Dubai thrives for economic progress in the coming years, 2011 was the first step – Part 1

Dubai is getting back on the track and last year, it departed the lone and dreary junction of financial crisis with a long honk. The once business and tourism hub of the United Arab Emirates fell victim to the devouring 2008 crisis. That year and the following two saw the city’s economy go into free fall as many investors bailed out on the struggling region.

In 2009, Dubai beseeched Abu Dhabi, its sister city in the UAE, for a financial bail-out. However, things never settled for Dubai in 2009 and 2010. Residents abandoned the city and businessmen fled the area. The buildings gave the look of a haunted city. Over $500 Billion worth of projects were either cancelled or suspended due to the aching economy.

Now, however, the city has started to show healthy vitals with the start of new businesses and expansion of existing ones in the last year. People, who moved to other countries or the neighbouring cities, started to move back. Some places have even seen new faces, starting their lives in Dubai.

One of the major reasons for increased population in the city is the lowered down rents both in the industrial and residential areas. Most of the places have cut short their rents by 65 percent while the industrial area has cut their tenancy rates to half, luring more and more businesses to the place.

As mentioned above, new projects worth half a trillion dollars were shut down or suspended after the financial meltdown. Due to the fact that economy is getting back on its feet, corporate organizations, especially the realty firms, have restarted their projects.

The economy of Dubai may expand as much as 5 percent this year after growing more than 3 percent in 2011, Sheikh Ahmed bin Saeed Al Maktoum, the head of Dubai’s Supreme Fiscal Policy Committee, said on Feb. 15.

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Posted by Usman Khalid on Mar 12 2012. Filed under Business, Middle East, World. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.