Sunday, November 29, 2009

The Dubai Crisis

The breakdown of the Dubai Real Estate sector is having a suspicion in the mind of the Indian realty investors.In spite of the pep-talk by Indian finance minister, Mr. Pranab Mukherjee, and declaration by leading banks including State Bank of India, Bank of Baroda and ICICI Bank, about their minuscule investments, the public at large, notably the ones having small and large investments in the realty companies is having their fingers crossed. The confidence building measures shown by Indian giants, notably players like Emaar MGF having a partner in the UAE,is acting as the much needed soothing balm, to an otherwise jittery investors.Dubai World, more specifically its subsidiary Nakheel is now at the mercy of the government of Abu Dhabi and apropos the first statements emanating from the capital of the Emirate, they are going to bail out the company after seeing all minute details on a case to case basis. Indian economy may take some beating as a million of Indian expatriates working in different Emirates, more so in Dubai may find it difficult to hold on to their job, thereby having a spill over affect on the remittances sent every month.The confidence shown by Indian experts is not an opaque one as they know the strong fundamentals of Indian economy would again come to their rescue like it was the case in the just receeding global recession, biggest since the great depression of the forties.However, wait and watch is the best way suggested by the experts and the astronomical rise in the price of properties even in India may soon see the bubble bursting and reaching their rightful place.

Read more from the following links of The Economic Times, leading financial and economic daily of India-

http://economictimes.indiatimes.com/quickieslist/5274021.cms

2 comments:

Manishankar Chakraborty........the management trainer said...

Finally Abu Dhabi comes to the rescue to Dubai, thereby stopping the image breakdown of the destination-Dubai as the best business hub in Asia. Read more on
http://timesofindia.indiatimes.com/biz/international-business/Abu-Dhabi-gives-Dubai-10bn-in-surprise-bailout/articleshow/5335611.cms

Manishankar Chakraborty........the management trainer said...

Finally Abu Dhabi comes to the rescue to Dubai, thereby stopping the image breakdown of the destination-Dubai as the best business hub in Asia. Read more on
http://timesofindia.indiatimes.com/biz/international-business/Abu-Dhabi-gives-Dubai-10bn-in-surprise-bailout/articleshow/5335611.cms