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ime there were rumours that the city was under enormous debt and many believed that it would be unable to pay back the debt it was under. Although it must be noted that Dubai did not seem to be affected by the global economic slowdown which happened in 2008.

Initially reports were that none of the stock prices had gone down in the country and in real time also there were hardly any projects within the country which were cancelled out or delayed. Dubai is not as oil rich as its neighbour it has basically survived on its port and other sources of income. In the recent times the city has developed as a hub of various multinationals and is striving its economy from revenues from them. Last year Dubai claimed that it was fewer than 80 billion dollars of debt. Although financial analysts around the world say that the actual figure may be around 130 billion dollars. One of the main sectors which are under debt is the real estate sector. There have been a lot of projects which have been completed within Dubai especially of our concerned company Emaar but there occupancy is hardly 20 percent.

These huge real estate’s have been built by taking money on credit and due to the low sale rate the interest rates on Emaar and on various other companies has been mounting at an alarming speed. This has been the basic reason behind the economic meltdown of United Arab Emirates. The property prices in Dubai slashed down to almost 50 % of what they were six months before the meltdown hit. As we know that all companies within the United Arab Emirates which Dubai is a part of have to be state owned. Due to the factor that the government of Dubai owned all the companies it was expected that the city will be able to come out of the global financial crisis unscratched but it didn’t happen in reality.

Ultimately even Dubai also suffered. Emaar itself has come under huge debt. The government agencies which have a share in Emaar were also in a bad shape themselves. However Dubai has breathed a sigh of relief as Abu Dhabi came to its rescue. Abu Dhabi was unaffected by the global meltdown and by the meltdown in Dubai because of its heavy dependence on oil and oil based industries which did not get affected anywhere in the world. However Abu Dhabi has only contributed around 15 billion dollars till now. This is hardly even 15 % of total debt of Dubai.

The royal family of Dubai itself has invested huge amounts of its private wealth to get over the crisis but the amount seems to be too big for them also. Another thing that has hurt Dubai is the lack of transparency in its funding of various institutions which has prevented any sort of help from other gulf countries or from any of the western countries like United States of America or United Kingdom. However it must be noted that the scale of Dubai’s economic meltdown is nothing in front of the meltdown going under in the west.

The fact remains that Dubai may ultimately have to sell a substantial share of the property in the city in order to get over the financial crisis. Although Dubai is still a premier destination to do business in the world but it has been somewhat crippled by the economic meltdown that has hit it. The various stock prices in the stock exchange of Dubai and United Arab Emirates have heavily gone down in recent times. The country’s currency rates have also suffered heavily after the economic meltdown that hit Dubai.

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