mrskpd

We are on schedule to move to Dubai early November, having spent most of this year negotiating contracts.....well before the worst of the credit crunch hit. Now, we are getting a little nervous that Dubai will take a down turn like everywhere else.
How is it over there? Is the credit crunch having any impact, or are things still relatively stable?

Blue Cat

the rents are the financial killer here, then the school fees. I think grocery shopping is pretty cheap though. Just make sure you have an adequate package and you should be just fine.

Confucius

Credit Crunch doesn't work here...Supply vs demand doesn't work here...
Even if 95% of the companies here close shop, the rents will still go up...

IndieG

Oh? My rent actually came down in 1999!!

Anyway, to answer the original question: The liquidity crunch has already affected the UAE. Some of the effects: (i) Developers will find it difficult to raise funding and many projects are likely to be scrapped/delayed (ii) loans are going to get very expensive (iii) credit growth will also be significantly lower (iv) Right now it appears there is no problem with the credit quality

If you're working for one of the Govt. owned developers, then you should be fine......

Confucius

I read a very interesting article on Arabianbusiness.com yesterday about an entity finding it difficult to refinance their loan which is getting very close to maturity...Very interesting...

IndieG

Not just one entity - all of them!

But what remains to be seen is whether ADIA will change their charter and bring in some SWF to ease liquidity (remember they have never ever touched their sovereign wealth fund since 1976, when ADIA was set up)

CeeBee

Nowhere is safe.

Not sure how true this is but someone told me that the last time there was a global 'crisis' such as the current one was just before the 2nd world war and that we have only just recoverd from the impacts of that. They said that the world had to rebuild after that and that its just levelled off now.