Presentation on theme: " AREEBA ZUBAIRI A PRESENTATION BY AREEBA ZUBAIRI."— Presentation transcript:
AREEBA ZUBAIRI A PRESENTATION BY AREEBA ZUBAIRI
An emirate in the United Arab Emirates (UAE) Located south of the Persian Gulf on the Arabian Peninsula Has the largest population with the second largest land territory by area of all the emirates after Abu Dhabi Sunshine, shopping, seaside, sports and safety-five of the key ingredients that have earned Dubai a growing reputation as one of the world's most attractive and rapidly developing leisure destinations
Trading and commercial hub of the Middle East. Dubai is well positioned to attract tourists.
Unlike the other six emirates of UAE, Dubai is not a country rich with oil resources. Purely business city depending mainly upon tourism and other businesses. Dubai World started attracting world entrepreneurs and spending more on building fine roads, star hotels, world’s tallest buildings etc. Attracted a lot of foreign investors especially during the last four years Due to the economic recession that took in almost every part of the world the investors were not able to turn the investment made in such huge amounts of money. As a result the real estate business in Dubai suddenly started to collapse which in turn made an impact of other businesses.
As a result Dubai government announced that for the time being they were not in the position to pay back their outstanding debt of $740000 At the same time Government owned Mega financial institution Dubai World also declared that it would not be able to pay back any loan for at least 6 months. The loan amounted to $60 billion. Dubai World is engaged in different businesses like transport, ship, building, township building etc. A sister concern of Dubai world, a building construction company named Nakheel also declared that it would not be able to pay back its debt installments.
Dubai world had business tie ups in different countries. The projects were delayed resulting in an increase in cost, dropped or prolonged The unemployment problem Foreign Financial Investors who had business ties with Dubai World faced a massive loss. 70 Financial Institutions from all over the world had lent credits to the Dubai World Banks in Dubai also faced crises The Oil prices dropped rapidly- Oil contributes % in Dubai Economy. There was a Depreciation in Dirham
Abu Dhabi gave Dubai a $10 billion hand out to help it pay of its debt Dubai used $4.1 billion of the money to bail out the government owned Investment company- the Dubai World The company’s property development operation, Nakheel, needed the money to pay investors in an Islamic bond which was reaching its maturity`