The saying some years ago was, ?If the US sneezed, the world caught cold?. Looking at the developments filtering out of the Middle East in the past few days, it is fair in saying, ?If Dubai sneezes, the world catches cold.? But the dominoes effect of Dubai on other economies has forced me to say that it is a bit of a VIRAL! First, for all of you who have been wondering what the fuss is all about, let me put things in right perspective ? Dubai World, an enterprise associated with the Government of Dubai, has asked its creditors to hold off on their repayment schedules. The finance on stake ? A whopping $80 Billion Dollars! Why did the Dubai economic crisis ever happen? Dubai has been perennially known to be the most Un-Gulf state. It doesn?t rely on oil as a key driver for its economy. Inst credit repair ead, during its heydays between the late 1980s right until 2005, Dubai relied on tourism, real estate and commerce for driving its economy. People who lived in Dubai during these times, witnessed the transformation of what was an absolute Sand dune to a city where everyone wished to live in! All of this had to come with its own set of pitfalls. The ambitious plans of the Dubai Government, spearheaded by Shaikh Mohammed bin Rashid Al Makhtoum to set up dream ventures at exorbitant prices had to meet with an anti-climatic end. And it did meet one, in the form of the global recession! The global recession meant one thing ? Dream initiatives like the Palm Islands and the Seven Oceans had very few takers, by the time they went live. These projects also had the backing of the Government of Dubai.
