The Arab Crisis
Dubai grew significantly strong and confidently advancing in the last decade. However, the recent problems of the emirate made it not the best place for investors. The unreasonable game of money that the ruler of the state has imposed over the business is now proving to have been the worst decision for the country since the Arab financial crisis over 30 years ago. Some say that he has consulted a financial adviser with engineering degree rather than a real professional before the crisis. And whoever said that might have been quite right.
The problem with Dubai started almost 5 years ago when the problems of over-investing led to an increased intake of products in the state. The people over consumed what was offered and the economy kept increasing in value faster than the healthy rate. Billions were wasted in infrastructure projects with no potential and just that much was used in satisfaction of massive and not that profitable projects. The business was earning foreign money from tourism but the income generated was quickly spent on new projects. This is how Dubai went into debt.
Currently the state is struggling to pay off debt. Even some fuel deliveries were not directed to the country simply because there is no funds to pay this fuel. Deliveries of construction materials. workers and consumptives are all frozen until further notice because the business cannot afford maintaining employment of foreign specialists and labor. The Dubai problem is worsening with the further complications in the Arab economies where revolutions and new regimes determine a new Arab political behavior and Dubai might soon face even tougher measures so that its debt repayment is ensured.
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