For so many years Dubai's economy followed its benefactor's (United states) guidelines. It was suppose to be the ideal city state in the Middle East closely following the neo-liberal ideology and an example for others in the region to pursue. But all of these an much more have crumbled to dust since the global recession began last year. The current situation is expediting the disintegration of Dubai as the epitome of the American bubble world.
The real estate sector in Dubai is in dire condition. There are absolutely no buyers for all the homes available, and there won't be any in the future. Construction companies closed down and foreign workers take whatever they have left out of the inferno.
The city-state once relied on well to do Iranians to make investments buying homes for quick profits. However that has changed, as there are no more Iranians willing to even take their holidays in Dubai these days.
According to the latest study conducted by the Swiss based UBS, home prices have fallen 30 to 45 percent so far this year and it expects for the negative trends to continue until 2011. Meanwhile, Dubai's mostly Pakistani, Indian and Bangladeshi residents are storming out of the country in huge numbers. The same study estimates that the UAE's population will shrink anywhere from 8 to 10 percent by the end of this year.
Hamsayeh.Net
