I was surfing the net the other day and came across some kind of passage and an idea clicked my mind while I wondered that the Dubai real estate slump and downturn would have been quite lesser if Dubai was an industrial city as a basic backbone of economy instead of being a tourist place.
What do you people think of this particular aspect. As your healthy and valuable comments are always found beneficial for us.
Amm if you ask me, I think Dubai is and was an industrial place and that was shaping up the foreign investments to enter the Dubai premises.
The major issue I feel is the completion of projects which were very low in ratio which scattered many hopes. But after RERA has taken up responsible actions, I think it is regaining back its importance.
First of all thanks for concern. Secondly, in my opinion Dubai has not seen any prominent industrial growth in past years. Dubai's government focus was entirely on tourism and off course on real estate as both are interlinked. Tourism no doubt generates greater revenues for the country but for short term and you have seen that Dubai was severely hit when the recession shadowed all over the world. The countries with strong industrial backbone are now again on the track but Dubai still striding to gain its lost status.
The issue of completion of projects is also due to this cause. The investors were constructing fast before recession because they were selling other properties fast. They were not even investing their own money but just from profits gained from earlier projects. Now as the demand has lessened so the ongoing projects have run short of money. Investors cannot complete projects until the demand is increased.
What I wanted to discuss here was that if Dubai bring real estate boom through industrial revolution then the economy drive although would be steady but for long term basis.
Hi Abdul Hakim,
I am agreed with you. Actually what has happened that UAE used to be dependent on its oil reserves to run its economy but with oil reserves vanishing, it is now striving to rely more on other sectors of economy and UAE Government and authorities have invested a lot to boost their real estate and tourism industry as alternative means to run UAE economy and be less dependent on oil reserves but it could be even better if they had focused on science and technology and also industry sector to boost their economy and in my opinion, it is due to the poor planning that Dubai is now suffering from several economic and financial crises.
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