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UAE projects suspended or cancelled hit $75bn


sage & onion UAE projects suspended or cancelled hit $75bn. by Martin Morris UAE CONSTRUCTION: HSBC report claims $75bn worth of projects suspended or cancelled. (Getty Images)A new report claims around $75bn (275bn dirhams) worth of construction projects in the UAE can be identified as having been either suspended or even cancelled. The bulk of the report - an Arabtec Holding equity research note released by HSBC and reported by Emirates Business - said most were high-end residential and commercial projects. "Since our company note on January 13, 2009, Arabtec's share price has dropped 44 percent on the back of continued negative news flow across Dubai's construction sector," says the report. "Following the cancellation of its racecourse project by Meydan, the latest negative news to involve Arabtec is the reported suspension of the $654 million Atrium project in Dubai by Australia's Sunland Group. We surmise that the client may be looking to revisit the project's design costings. "We estimate that Arabtec was due to start construction circa in second quarter of this year, but that this could now likely be pushed forward to early third quarter of 2009. We continue to exclude this project from Arabtec's backlog until a revised contract value is disclosed, a move which more firmly signals a client's intention to proceed." The bank is maintaining its 12-month valuation of 2.40 dirhams but has upgraded its rating from 'neutral' to 'overweight'. It also adds that the magnitude of the sell-offs appear unjustified, the newspaper reported. In the report's view, while macro and property news flow has led the market to take a negative view towards Arabtec, the current valuation is too compelling. "We believe our forecasts reflect the present situation and the magnitude of the sell-off appears unjustified." "On a 10 percent net margin, this translates into a revenue target that is 3.5 billion dirhams lower than our 2009 estimate of 8.1 billion dirhams," the report says. The report gives the thumbs-up to management's decision to hold off on share buybacks and cash dividend distributions. It also adds that on a positive note, Arabtec's cash balance should be sufficient to fund continued operations, but that longer-than-expected delays in receivables will leave the company with no option, but to resort to debt financing. "As we expect its cash burn rate to be aggressive over the coming six months on the back of the less favourable working capital cycle than that enjoyed during good industry times," it said. "The average receivables days-on- hand for HSBC's global emerging markets construction and engineering coverage is currently 130 days, whereas we expect Arabtec to carry an average 193 days out until 2011,'' it added. The report says the company will manage to secure debt financing, but only on a project-by-project basis, as opposed to at the corporate level.
K-Dog Nakheel's KM Tower alone is $38 Bln. sage & onion
That price is not for the tower alone. K-Dog
huh? sage & onion
It seems that some figures were released or guessed regarding the price of the tower, however the 38bn figure is way exagerated. That would be $69m per floor, think about it? RobbyG 38bn is based on the entire Tower & Harbour project. The new unofficial Dubai City Center, as its being called. / sage & onion
That sounds more like it, thanks Robby. K-Dog But isn't the enitire project being pushed back, hence the $38 B. sage & onion
Yes indeed the entire Project is being put on hold / postponed / cancelled, depending on what article you read. uaekid on the other hand AD is about to launch a DH 100 Billion projects this year to constructions in the western areas of AD emirate. work never stop. Arabtec Holding does not reflect on all UAE projectS sage

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sage & onion
I totaly agree with you, Arabtec is just one of many. The Western areas of A/D are directly related to Oilfields if I am not mistaken. uaekid yes... most of those projects are related to the friendly energy production in AD from MASDAR energy sage & onion
If this indeed goes ahead it will be an incredible project. uaekid well it is a bout time I think sage & onion
Yes indeed, lets see how far it gets implented though K-Dog Much higher than $75 B. Some $263 billion worth of projects in the UAE have been delayed or cancelled, Morgan Stanley said, citing data of Middle East business information website Zawya. Emaar Properties is likely to be the "worst affected" among Dubai developers by the change in selling prices, Morgan Stanley said. "We believe that Emaar runs a high risk of sales returns and defaults among its recent launches," it said. "The company's high-end developments, the Burj area and The Old Town, have taken the biggest hit since the peak." sage & onion
But surely in that area, everything was sold off-plan, so the major problems would be with the banks rather than Emaar? K-Dog But Emaar is the one with their stock down the drain (around 47 cents last I checked). Their US subsidiary, John Laing, is just about to declare bankruptcy. uaekid
bankruptcy ? how ? he told you everything is sold, they got the cash ..hellllooooooo
gtmash
The cash went to the management's Bentley Fund. arniegang
They may well have been sold off plan Sage, but they are not fully "paid for" off plan.
It is this group of investors/purchasers that is going to seriously rock the boat especially in Dubai. People bought off plan on the premise of :
a/ their asset would increase
and
b/ they could borrow the finance to complete.
In the coming year if they are to complete, they now find themselves with a property worth less than the original asking price and they cant get the finance.
Take Marina Mall for instance, 3.1 million to complete on a 800sq ft 1 bed appt.
It will complete this year and those appartments will struggle to achieve 2 million on the open market.
Those off plan investors, if they have paid less than a million dhs to date, may as well walk away from their off plan purchase. Basically that leaves Emaar in the shit. sage & onion
Not so if they have arranged a mortgage, that leaves the banks in trouble. arniegang If they have arranged a mortgage mate with a Bank in Dubai or anywhere else for that matter, the Banks will pull the clauses out of their bottoms drawer. Hidden clause No 1 The bank reserves the right to call in or seek redemption of the outstanding amount at any time within the agreed term. An offer of a mortgage does not contractually oblige any bank to actually offer the mortgage Sage. sage & onion
What I am getting at is, if the bank has given the mortgage / loan to the purchaser, then surely they will have paid the money to the seller. RobbyG
Don't you just love finance...
This simply leads to a few 'options' left:
a. Developer goes bust
b. Bank goes bust
Either way, the customer suffers. Project incompletion is like throwing away money down the drain. Bankruptcy calls for immediate margin calls and again, the client goes bust.
The only way to keep the system alive in Dubai. Is to use 'bailouts' from AbuDhabi as Dubai is up to its neck into loans already.
I think 2009 will result in a lot of bankruptcy filings and 2010 won't be better either if you aks me. :wink: arniegang If bought off plan Sage, then no mortgage lender will release all of the agreed amount until the project is signed off. The banks then reserve the right to make a valuation of the property for mortgage purposes to release the balance of the funds. If that valuation does not concur with the original asking price then the bank will not release the funds and insist the purchaser find other means of finance by way of a 2nd mortgage. They wont be able to secure further borrowing because 90% of the banks have adjusted their terms in respect to LTR (loan to value). Its a time bomb waiting to happen mate. sage & onion
In this case is the money not paid into an Escrow Account?, forgive me for not understanding the process, it just doesn't seem correct the way that your explaining it. RobbyG
Current rules denote that the developer can only ask a certain amount upfront. Only after this money has been spend on actual development progress, the developer is able to request more money from the off-plan investor and his client bank.
The bank monitors this development progress in order not to be at risk for losing the approved amount of mortgage to the client.
The money that used to be paid to a developer (old regulations), went in an escrow account, as I believe it was. Unfortunately, in market circumstances same like this, they spended the money on other things, than your development project. So that method was forbidden by the rulers and authority organizations. sage & onion
So if I arrange a purchase as follows.
I enter into an agreement with a developer, off plan
I arrange a mortgage from a Bank.
I start paying the mortgage.
The Development does not go ahead.
Do I still have to pay all of the outstanding amount to the Bank? DubaiInformationSite yup, both emaar and nakheel have halted most, if not all projects. i am surprised the atlantis slipped through the cracks somehow. they barely made it. the issue is that all this is just the start. the UAE has lagged the USA a good 8-12 months - so the worst is yet to come. it will be interesting to see how real estate developments pan out and how many jobs are affected at the end of the day. Sunil Edited Mod arniegang
Mate
When buying off plan stage payment are made into an Escrow account.
So lets say i bought in Marina Mall in Oct 07 for 3 million. I would have paid an initial depostit of 10% or 300k Dhs. This would have been my 10% mortgage deposit on the assumption i was looking for a mortgage @ a 90% LTV (loan to value).
The bank would have made further stage payments as per the contract also to the Escrow account.
As Marina Mall isn't due to complete until the end of this year by now all the stage payment upto 60% of the purchase cost have now been made.
On completion the bank will have to forward the final 40% to complete and the owner can then take possession.
The banks in Dubai (and in the UK) are now valuing properties at completion. If the valuation is less than the original selling price the bank has the right to say to mortgage customer
"we are not lending you 90% of the original price, as per our contract we are only going to lend you 90% of the valuation. As the valuation is now 2 million AED we will not advance you the 40% to complete your purchase. You are now required to find the remaining 40% from your own or other sources".
So basically, now the purchaser is up the creek. He has a debt by way of a 50% mortgage (plus his original 10%) totaling 1.8 million Dhs. His property is valued around 2 million by the bank but he still requires a further 1.2 million dhs to take possesssion.
Unless he has 1.2 million in cash he is basically stuffed. Even then he is double stuffed knowing he has to find 3 million to complete on a property worth 2 million.
It is called Negative Equity Sage. This is the mortgage problems facing many Brits and Americans now. Those who bought in the peek at vastly inflated prices at a high loan to value, cannot now remortgage or sell because the amount they owe to the bank will not pay off or clear the original debt. The house or appartment is also worth less than the original mortgage.
This is why 90% of all the banks in Dubai are not lending to those with a large deposit of around 30%. The banks know full well in a declining property market it is financial suicide to lend at a high loan to value ratio.
Established banks with much expertese in established property markets like LloydsTSB, have put a 50% LTV cap on Villa mortgages in Dubai. They have suspended all appartment mortgages.
This to me is the indicator that their projections indicate the property slump in Dubai is going to be in excess of 50% for villas and even more for appartments. sage & onion Thanks Arnie, read and understood. K-Dog I'm have a negative mortgage :( RobbyG You forget one step Arnie and I explained. Which is: You only pay via the bank when the development progression is signed off. If there's no sign off, and the projects fails for instance...you and the bank pay nothing more. But you lose the amount that went already in (worst case) arniegang
I agree
But, if it has been funded by the bank as a Mortgage, you still end up with a mortgage that has to be paid back whether you take completion or not
Most banks up till now, have just accured up the interest and added this amount to the total amount borrowed. So basically purchasers have had a payment "holiday", until completion.
In the event it all goes "tits up" the purchaser still owes the money/mortgage to the bank. The bank doesn't say "ohhh thats ok, we will just write off the 1 million dhs we have lent you on account". arniegang
YES
But, the purchaser has redress from the developer for "breach of contract" and as such has the right to ask for a refund of moneys paid. This is why the money is paid into an Escrow account.
The system will be tested many times this year, only then will we see the true results as the developers start to go bankrupt one by one. And the more off plan developments that any one developer has under construction, the more serious the situation ie Emaar, Nakheel and Damac.
For every dirham paid into an escrow account for the master developers, that developer cannot get his hands on the money, and any money they have taken from the Escrow Account will need to be paid back. They will be left with uncompleted projects and one hugeeeeeeeeee debt.
Bye Bye Dubai Inc RIP.
PS... the developers cannot use "Force Majeure " as a reason to not complete projects just because of financial problems and world recession. sage & onion Lets not be so down on Dubai, this is our home (for now) and we need to support even if only morally as much as we can. rudeboy
exactly. arniegang
Sage
I disagree. Just because its your home that is not reason to bury your head in the sand.
I can tell you, things are far worse in the UK and if you ask someone like K dog they will say the same about the States.
The difference in the UK is that we live with it every day and it is openly reported in the Media.
At the end of the day Sage, expats took their chances on a better way of life, in particular a better lifestyle and disposable income. No one forced them to leave their jobs and security in their homeland. A lot will say "we did it for the experience", bollox, they did it for the lure of money that the majority of them could never come close to earning in their own country. Dubai made the average expat in an average job, feel important. Many of these expats are now going to have that taste of true reality when they return home and find there are no jobs there either.
What goes around comes around mate. I am not knocking expats, far from it. As i said it was their choice, no one forced them to up sticks and move to the Emirates.
Yes i know it sounds harsh, but it always does when reality bites. The same goes for your apethy to an extent Sage. Just because it isnt reported to you in an open and honest way in the Media, doesn't mean to say it isn't happening.
Dubai was built on hype and an illusion that no bad can ever happen. People got sucked into that hype, people made money and had success, others have not.
Its horses for courses mate.
Do you think that the 000's of people that stand to loose serious money whether it be in propperty or business's to "support" the UAE. Get real Sage, the Dubai experience is going to leave a very bitter taste in a lot of peoples mouths.
Do you really want to support a country that throws people out of the country when that person has lost his job. What is this "country" doing to support those 000's?. I'll tell you what they are doing mate "sweet f.u.c.k all". Everyone in the Emirates apart from locals are disposable, very disposable, now they have their infrastructure, they have their developments. They sold everyone a dream, its turning out to be just that "a dream". Red Chief UPDATE: UAE Delays, Cancels $263 Billion Real Estate Projs-MS :%20UAE%20Delays,%20Cancels%20$263%20Billion%20Real%20Estate%20Projs-MS/ arniegang
There you go, thats is at least half of the Emirates Central Reserve Fund. RobbyG Arnie is right. Lets not put our heads in the sand. The first two decades of growth where painless, and now is the time for reality. Its not that those building are coming down now! This is an excellent opportunity for people like myself. I'm looking to go to Dubai when everything is at top prices. This situation which reasonably can be said, is 'a healthy correction'. Money expansion and growth cannot continue forever. There are booms AND busts. Growth and recessions. And when the crap hits the streets (read: excrement dumping in storm channels) and the first delivery of hard working expats has seen it all, as do the fortune investors move out... Its time for the second delivery of problem solving expats thats gonna pick up the renewed growth in Dubai. Its not over!! Hell not. New opportunites beyond 2010. Lower prices. Better conditions for everyone....after the marina has been cleaned from e-coli bacterias :) the rich will come back, so is Arnie. :geek: I actually enjoy this kind of 'problems'. This is where I get my ambition from to push through this hardship periods. Maybe thats not for all of us, but it surely is my positive motivator. Don't stop....get that ass going!!! Noww!!!! :salute: uaekid
dummies,what does uae has to do with companies projects LOOOL RobbyG UAEkid, ....You're kidding right? uaekid its an oil country remember? RobbyG nevermind RedKite Arniegang, With your explanation of the off-plan selling, it looks as if some British investors could be in DEEP trouble, particularly if they were greedy in 2007 and bought 2 or 3 expensive properties off-plan with property APPRECIATION in value on their minds. As you say, if they were borrowing heavily and the banks only lend on the new property values, they have had it. No-one else will lend them money on devalued properties. How much have they dropped in value since late 2007? About 30 per cent maybe? Have Dubai Marina dropped that much?? It was all hunky-dory on Piers Morgan's recent ITV documentary on Dubai. He made out that Dubai was almost recession-proof. On the prog ,Dr Sulaiman al Fahim had paid $600,000 dollars extra for a special model of car; the car number plate alone, with 2 numbers on it had cost him $2 MILLION dollars!! Then whilst flying over Dubai, he estimated there was $300 BILLION DOLLARS worth of Real Estate "down there". One thing!! At the end , Morgan said that Abu Dhabi had leant Dubai £8 or 9 BILLION POUNDS STERLING. Well, that is nothing if a lot of the $300 billion dollars is only partially finished. I'm afraid there has been too much greed and profligacy in Dubai !! Too much of HAVING TO HAVE THE BEST......on a HUGE SCALE and thinking that prices would go ON AND ON!! They should have built LESS......and FINISHED IT, before instigating another mega-project. If Dubai is running out of money.......then those who have BOUGHT a GOD-FORSAKEN SAND ISLAND FOR MILLIONS IN "THE WORLD" , are especially badly placed. Unless the WHOLE project is finished it won't look right!! The boating/ferrying between islands and the look of it won't be right. It costs far more to build on a sand island. Everything must come in by boat. Buyers will be ALL AT SEA !! Others will be UP THE CREEK without a paddle!! uaekid
Well finally someone is honest around here, arniegang is right. however arniegang I know for sure you are not one of the people who made it in this country and I'm sorry this happened to you, however, you came here and had your chance in scamming ppl (I mean doing business) you had a tuff luck and I guess lost your investment for some reason so be it and suck it up man, you are reflecting your anger and disappointment of your failure on DF badly, don't take it personal with Dubai like you did with me. Like I always said, it doesn't matter if you fall down but what matter is how fast will get up. But whom am I kidding, with all the time you spend on the net I doubt if you will ever get up ..
Now ppl are stressed as it is about Dubai going under and instead of making it worst for them you should cool them down. Panic always leads to poor performance like what's happening to you know.
However it is too late to leave this country for your secured life back home guys, face it , it is much worst out there than in Dubai. so I would stick around if I were you.
this is for you arniegang sage & onion
Well Kid, I happen to know that you are wrong about Arnie. uaekid well he seems to be pissed off at something, can't put my hand on it yet uaekid
and where would've we sheltered the huge number of you who flow here everyday mr smart ?in tents maybe ? RedKite UAE kid
[1] I live in the UK. I have been on holiday ONCE in my life. I don't need the place.............so you would not have been sheltering ME in a tent.
[2] I have been in business 40 years . I have always dealt HONESTLY with people. I have sealed HUNDREDS of business deals by WORD OF MOUTH ALONE.......and STUCK to my WORD........WIN OR LOSE!!
[3] That is not the case with Dubai. You have to dot the "i" s and cross the "t"s and watch EVERY LOOPHOLE.
I'm not thick, I know it is the same for bank and housing deals in the UK to. I used to sell certain produce by word of mouth, worth thousands or hundreds per deal.
[4] You have just said "SCAMMING PEOPLE" as an expression for "DOING BUSINESS ". What a SCUMMY, DISHONEST , RIFF-RAFF ATTITUDE TO BUSINESS!! It says it all about Dubai !!!
I would trust you as far as I could spit! RedKite Typo .....I have been on holiday to DUBAI once in my life. zzzane Arnie mate, thanks for the detailed explanation on LTV, mortgages and other stuff. Thankfully, I'm still in the black on my house mortgage. RedKite I believe there is a great deal of TRUTH in what Arnie is saying. He lives in Bristol, does he not? So why has he lost out in Dubai? Is he not a moderator too? The only thing! Is Dubai worried that the Dubai bank where his money is invested might go bust? Dubai's best chance is Abu Dhabi. AD cannot afford to leave Dubai in an unfinished mess, surely? There has been far TOO MUCH overreaching ambition in Dubai. Sheikh Mo must be responsible for some of that, if he has spent far beyond his means. He and his family own much of the business. Dubailand, Hydropolis, The World, The Palms, Al Burj, Burj Dubai etc were all MIND-BOGGLINGLY ambitious. They must be PAID FOR by someone. It is NOT CLEVER to start something you are not certain to finish. It is CLEVER to look into the future and anticipate events accurately. I have been saying since 2002 that UK property would drop at any time because it was INFLATION NOT PRODUCTION. UK workers and other inflation at 2 to 3 per cent per annum.......WITH PROPERTY GOING UP 20pc !!! CRAZY!! UNSUSTAINABLE!! The whole world has been on PROPERTY BUBBLES.......now bubbles are bursting EVERYWHERE ......... It's like spraying cold water over a bubble bath and popping the lot!! RedKite Another typo......Is ARNIE worried that the Dubai Bank where his money.............etc Sorry ! Too much of a hurry. RedKite Re the bank. Arnie.... Would you have put your money in a British bank in Dubai......like Barclays ? Common-sense tells me you surely did. sage & onion
So far as we have experienced their has been no problem with the banks here. They are also supported by the Central Bank in Abu Dhabi. arniegang
I have my investments spread between LloydsTSB and HSBC in Dubai. Through these 2 banks i have offset a large portion of my savings via both their offshore branches in Jersey. Technically i have split it 4 four ways.
The bank guarantee in Dubai does not cover British and American Banks . The guarantee only applies to Arabic Banks.
It is therefore not wise to keep a large sum of money in any 1 non arabic bank. I dont believe there is a major problem with Brit Banks, with the possible exception of Barclays. sage & onion
The Guarantee does indeed cover the foreign banks that are here, that has been clearly clarified by the Central Bank some time ago, but it is only for money that is on deposit here. arniegang
I disagree. Both my managers have shown me the guidance and it is very loosly worded. It is not specific enough to take it as read that the guarantee includes foreign banks.
Sorry to disagree with you Sage, but i have done my homework on this one for very important personal issues.
If you can show me evidence to the contrary i will eat my hat. sage & onion
I will do my best to vary your diet. RobbyG
October 12, 2008:
Initially only local banks were guaranteed.
October 14, 2008:
Guarantees extended to foreign banks with "significant operations in the UAE" for three years. No names were given, only speculated. This clearly gives reason to believe, that foreign capital remains at risk in the UAE without detailed clarification. arniegang If you come up with the press release by the Central Bank i already have a copy of it. It is seriously open to interptretation mate and as such HSBC and LTSB have assumed it to read, it does not apply to foreign banks in the UAE. I agree with them. I am certainly not going to take a chance, i prefer to errr on the cautious side . RedKite Arnie,
You will be fine with those two banks [ HSBC and Lloyds] . Barclays have enough assets too. They have told the UK Govt they don't need Govt help.
I spoke to one of my bank managers this afternoon. He has travelled the world in a sporting capacity for decades. He knows the Middle East very well. He is always back and fore to the UAE.
He told me today that he had spoken to an Abu Dhabi Govt official around Christmas. The official told my friend that Abu Dhabi would NEVER let Dubai go down!! It would be a matter of "losing face" above all else, and that is anathema to Arabs .
Apart from that, Dubai and Abu Dhabi are in the UAE together , so they are part of the same country with the same currency. If Dubai went down, it would badly affect Abu Dhabi economically as well.
Everyone knows that Abu Dhabi has plenty of gas and oil and is SERIOUSLY WEALTHY.
So my banker friend is in no doubt that Abu Dhabi will bail Dubai out of its current mess.
He said that Abu Dhabi would take over Emirates Airlines for a start.
By the way, what is the official recorded wealth of Abu Dhabi in pounds Sterling and dollars?? RobbyG Its obvious to me, that AD would never let the UAE icon fall down to its knees. Recently in the media it was reported that Emirates was being supported financially by means of a partnership share with the AD government. This resulted in a new problem. AD responded by decreeing that no more governing decisions are made without AD influence and approval. So this development might pose a serious threat to the Western openness of Dubai. AD is somewhat more conservative than Dubai's leader Mo and his gang. Another interesting fact; There are ongoing plans to introduce a Value added taxation into the UAE. No more tax free shopping in Dubai next year... may 2008: September 2008; delay for 2010 / Red Chief
Reference please. At my point of view It's very doubtfull inf. More waiting is launching income tax as one of Gulf country did last year... RedKite Robby, There is no doubt that Abu Dhabi will have to curb the excesses of its "prodigal son " to east!! As you say, A D is more conservative in attitude than Dubai and also more strictlt Islamic, so it might insist on stricter rules of general life-style. However, the dilemma is that it is trying to attract millions of western tourists and compete with Tenerife , Spain, Greece and Barbados, in becoming a popular holiday destination from September , through the winter to April. To do that, the strict Islamic lifestyle shown in some Gulf States needs to be relaxed , not tightened. For example ,people would like to enjoy a cool beer in a pavement cafe , as they watch the world go by. RedKite Typo in previous.....more strictly Islamic....are the words in line 2. RobbyG
True, and there is an EDIT button made for these kind of 'repairs'.
No... I'm not screaming to you. Just an educative tip, for non-forum kiters in their sixties 8) uaekid
You just knew that now ? oh I see you are one of those ppl who thought Dubai is a country hah. Anyway it has been like this since day one sir and nothing changed since but the media publicity of Dubai is the cause of what one might think this is all new, no sir it has been like this since the beginning and AD never stopped supporting and financing the other emirates and has always been but I think they stepped in hard this time bcz Dubai went over their heads and AD had to take control of the hall thing. RobbyG
No, I said it was obvious to me. That doesn't say anything about WHEN I knew that. I only JUST told you who probably wants to 'teach' me that Dubai and Abu Dhabi are cities within the UAE, while in fact it are emirates.
Big differences in my view uaekid
I wouldn't think that AD is attracting westerns for their cash, it's more like being complete as a modern city and tourism is part of that like what they are trying to do now in the art field with all the museums being belt, now we know AD has no art back ground or attraction sites that would interest the west but as I said its more like being complete and introducing the city to the world.
.
but it wont be a major issue weather they ll come or not like in Dubai where they depend on tourism allot in their income.
for being strict Islamic part, well why would I visit a country and do the same habits and life style I got back home ? how will I experience the real place if I didn't blind in with its life style ? that's what touring is all about in the first place . but this is just my opinion and how I do it when I travel to other countries and I don't know how alcoholic are you ,just kidding :) RedKite Ironic isn't it ?? Arabs don't drink if they are strict Muslims.......................yet Alcohol , is originally an Arabic word!! rachelbrown
Escrow Accounts in Dubai are relatively recent. Many projects are 3 or more years behind schedule and still not delivered. What happens if there was no escrow account on the development as in the early days of the Dubai boom?
Does the buyer still owe money to the Bank? The bank has the title to the property until the loan is paid off in most UAE loans, but in this case there is no property. RobbyG Update about AD and Dubai financing dispute and more; also: Abu Dhabi SWF reserves: $328 billion @ end 2008 &sid=a2dffEIkpEmg&refer=home uaekid
I'll say most of it is true but what the hell is this
“Abu Dhabi has looked toward Dubai with a mixture of envy and contempt, a bit like old money usually thinks about nouveaux riches and their daredevil business approaches,” Woertz said.
LOL give me a break :lol: smoggie
Kid: If AD reigns Dubai in, how will it change things here in Dubai? Will we see a noticeable difference? uaekid
well first of all AD never envied Dubai for the fact that both cities internal Gov sees themselves as a 1 country regardless of what you hear .and i know for a fact that AD had been supporting DUBAI since ever and the fact that many things goes under the table that is not for the public to know.
Dubai had chosen a different approach in developing it self by depending completely on businesses and tourism rather than the oil dollars from AD ( it may have a hidden political reason ) and that was a good move but sadly came with deadly consequences as we see now, AD on the other hand preferred to deal more in cash rather the Dubai credits and loans for it's projects .never the less they remain to be a 1 united country and any downside of Dubai will reflect on the hall country.
I guess we will see a fair stable economic future for Dubai since AD is reigning it for the fact that the global investors now knows that the back up DUBAI got is a v.strong reliable one. smoggie
Yeah lets hop for a more stable future for businesses and individuals alike.
I was wondering if we may, for instance, see a tightening of laws regarding alcohol....after the enormous "Sex on the Beach" scandal.
NB. I was celebrating a friends birthday at the Meridien last Friday and Yalumba was in full swing....people snogging etc outside....and that was just the blokes!!!! hehehehe RedKite So the stuff on regarding Abu Dhabi and Dubai is not strictly true!



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