One of the culturally progressive places in the Middle East is Dubai. The most happening business destination of today's Fortune 500 companies. For it's obvious reasons of great business opportunities like oil, retail, shipping, as well as Dubai offers progressive culture, Tax Holidays, rapid adoption of technology and a strong buying power.
Strangely, the majority population of Dubai is expatriates. The ones who are staying for long now, have been able to settle themselves, well, however, still a large working population finds it difficult to sustain in Dubai because of rising inflation rates which has led to increased living costs in all quarters of life.
Very ironic to the Country's image {rich people} a majority {expatriate} is not rich as well as they are finding it increasingly difficult with each passing day to sustain in dubai. With ever increasing traffic and living costs...makes me ponder...is Dubai on a verge of Bubble Burst?
The bubble of growth has been building....and quite a few companies in Dubai have grown over 200% annually within past 5-7 years. This constitutes a minority companies, which are service providers, auxillary products and some mainstream product companies. A rapid growth is always appreciated with worldwide investment if it's sustenance is substantiated by credit rating agencies. However, how can you trust an agency in a region where they themselves are new and there has been no system of keeping financial records and it has been primarily private, single ownership businesses.
So does this bring us to ask questions like: Is A Growth Bubble Building up in Dubai? And is this Bubble on verge of Bursting?
Is this is Myth? - With an overall economic slowdown in American markets and other surrounding regions, Middle East still offers great economic spending power?
If this is true then why is inflation affecting Dubai? And if this is a myth then my question gets more important than ever...Is Dubai really on verge of a Bubble Burst?
Not sure about the answers to my questions, though Dubai reminds me of Mumbai...a Very Cleaner and well organized version of Mumbai. The people are busy in their daily lives, running around all over the place to earn their bread and butter. And they have the same bindas spirit. Just a twist that the place is very clean. People have driving sense and they enjoy their weekends at malls, shopping, trying out new eating joints and more...
During my recent visit to Dubai, i though of getting a couple of pictures clicked in one of the busy malls...its almost like another city inside a mall...phew..enough of my rambles...and questions for the day and my dubai visit... will be back soon...
3 comments:
you are saing the dubai bubble is going to burst - how are you justyfying it?? does a high inflation simply imply that the next phase is econimic slowdown??
My argument is, a high inflation rate, as well as dependency on a specific way of GDP growth i.e. dependent on contruction and oil. If there is no controlling steps taken by government to reduce inflation...might result in floating population to take migratory steps.
Though i am still looking for answers and not giving any conclusion.
Husband wife should not fight over a topic :)
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