ARTICLE

PRESENTATION
ON
BYE-BYE DUBAI
Jayati Ghosh
(Deccan Chronicle,1st December 2009)
Presented By,
ANUP SHARMA
SALIENT FEATURES OF DUBAI
 Manmade or Artificial Land.
 Indoor ski slope.
 Luxury hotels, residences, shopping malls
and office complexes.
 Market and sales venture for luxury goods.
 Good political system.
 2nd largest oil producer in the world.
 Attraction to expatriates.
 Tax free incentives.
 World’s new global financial centre.
MANMADE ISLAND DESIGNED TO
REPRESENT GLOBE
INDOOR SKI SLOPE IN THE MIDST
OF DESERT
HOTEL WITH GLASS WALLS
TALLEST TOWER IT THE WORLD
MOST EXPENSIVE AND LUXURY
HOTELS IN THE WORLD
RESIDENCES
SHOPPING MALLS
OFFICE COMPLEXES
PRE AND POST PHASE OF GLOBAL
FINANCIAL CRISIS IN DUBAI

Global Financial Crisis dint effect Dubai in the early

stages.

Plan for constructing the Worlds tallest building were

unveiled just after
“Lehman Brothers” collapsed in the US.

but, sudden declaration and suspension of debt

payments for 6 months in Gulf Emirates led Dubai's
decline.
 Dubai is one of 7 small states that make
up the United Arab Emirates (UAE).
 2nd richest (after Abu Dhabi) in terms of
the size of the economy.
 Current oil reserves account for less than
6% of the total revenues.
 Dubai’s oil reserves have diminished
significantly and are expected to run out
within next 20 years.
DIVERSIFICATION
 Dubai’s strategy has been to diversify its
economy away from oil to trade, tourism and
finance.
 Dubai world to buy up companies around the
world and invite multi nationals to use Dubai
as base for their activities in Asia.
 DP World purchased British Ports operator
P&O in 2005, department store group
“BARNEYS NEWYORK” in 2007, and invested
in Construction Projects in Las Vegas in US.
CONTD….
 Dubai world also includes Property Developer
NAKHEEL
FACTORS WHICH CONTRIBUTED
TO DUBAI'S BOOM

 Expatriate population more than

80%.
 Around 1.5 million from India.
 Tourists.
 Bollywood celebs investment in the
properties.
 Newly affluent Middle Classes.
DOWNTURN PHASE
 The economy slumped from the 2nd half of
2008.
 GDP expectations for Dubai in 2009 were 4%,
but it lowered to 2% in the middle of the
year.
 Global market for luxury goods and services
and Real Estate shrank.
  Property prices in Dubai has fallen by 50% in
the past year.
 Many construction projects have been held
up.

WORST INVESTMENTS
 $5 BILLION IN MGM MIRAGE CASINO

 $1.05 BILLION IN US HOME BUILDER JOHN LAING HOMES

 $1 BILLION IN BARNEY’S NEWYORK

 Dubai’s main stock exchange dropped more
than 7% while Abu Dhabi exchange fell more
than 8%.

 It announced a debt standstill for $15 billion

of repayments on its $59 billion of external
debt until May 2010.

 Official estimate of the UAE debt is $80

billion
INDIAN EXPOSURE IN DUBAI
Bank of Baroda
Nagarjuna Constructions
L&T
Punj Lloyd
Voltas
Omaxe
Aban Offshore
Spice Jet
India Bulls Real Estate
 1.5 million Indian Workers in Dubai are Blue
Collar workers in Construction and Low level
grade services.
 Indian Workers are working on Contract.
 No employee unions are formed in dubai an
its is easy for companies to layoff workers.
 Thousands of workers have lost their jobs in
last few months.
FUTURE PLANS
 Restructuring its subsidiary companies
excluding Financially stable companies.

 Dubai’s ruler claims that Emirates is

strong and Persistent.

 Moody’s says the Dubai Government and

its Entities owe $100 billion.
CONCLUSION
 “DUBAIWORLD WAS
STARTED AS AN
INDEPENDENT COMPANY……
AND IS NOT GUARANTEED
BY THE DUBAI
GOVERNMENT”
-DG, DUBAI FINANCE DEPARTMENT
THANK YOU