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Discuss this article (6 Comments)42% think UAE economy will suffer further in 2010
by This email address is being protected from spam bots, you need Javascript enabled to view it on Thursday, 20 August 2009
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Some 42.6 percent of people who took part in an online poll think the state of the UAE economy will be worse in 2010 than this year.
The findings of an Arabian Business poll run counter to predictions by the governor of the UAE Central Bank who said earlier this week that the UAE economy would recover from a contraction to see strong growth in 2010.
Sultan Nasser al-Suweidi said the UAE’s economy was solid and that oil price rises would support economic growth next year.
A total of 29.7 percent of people said they thought some sectors would see growth, but not the construction or real estate.
Property prices in Dubai have tumbled up to 50 percent from their peak in 2008, while millions of dollars worth of construction projects have been put on-hold or cancelled amid the global financial crisis.
The online poll found that 20.6 percent of people said the economy next year will see an improvement on this year, but that all companies will struggle to make profits.
However, 7.1 percent of respondents said the UAE economy would be in a strong position and business will be booming again.
READERS' COMMENTS
Disclaimer: The views expressed here by our readers are not necessarily shared by ArabianBusiness.com or its employees.
uae economy
Posted by roger, dubai, uae on Sunday 6 September 2009 at 11:43 UAE time
UAE economy non-oil is real estate, tourism, Trade/Manufacturing.
Real-estate is in the pits and will be the last to recover.
Tourism will be following the global recovery, however. visitors frm the sub-continent and iran have to pay hefty visa fees besides, stll expensive hotels, expensive taxis and not to forget expensive shopping which are the biggest deterrents and need to be addressed to.
The last sector Trade/maufacturing is the most hurt and most neglected sector and which holds the greatest potential for a rebound.
As a business man i can say nothing has been done by relevant departments to either instil confidence or even hear the grievances of businesses. which are hindered by
a) higher visa fees visit/employment.
b)hike in fees by all departments across the board.
c)hike in utilitity tariffs
d)squeeze by banking sector which was a direct consequence of irresponsible personal loan and propety loans.
e)increase in port fees.
f)exploitation by shipping companies.
Several other factors can be listed and it will be a never ending list.
If the above issues are not addressed the there will be no recovery even in 2015 the only saving grace will be the oil income which will be stretched further to prop up other sectors of he economy.
Posted by roger, dubai, uae on Sunday 6 September 2009 at 11:43 UAE time
UAE economy non-oil is real estate, tourism, Trade/Manufacturing.
Real-estate is in the pits and will be the last to recover.
Tourism will be following the global recovery, however. visitors frm the sub-continent and iran have to pay hefty visa fees besides, stll expensive hotels, expensive taxis and not to forget expensive shopping which are the biggest deterrents and need to be addressed to.
The last sector Trade/maufacturing is the most hurt and most neglected sector and which holds the greatest potential for a rebound.
As a business man i can say nothing has been done by relevant departments to either instil confidence or even hear the grievances of businesses. which are hindered by
a) higher visa fees visit/employment.
b)hike in fees by all departments across the board.
c)hike in utilitity tariffs
d)squeeze by banking sector which was a direct consequence of irresponsible personal loan and propety loans.
e)increase in port fees.
f)exploitation by shipping companies.
Several other factors can be listed and it will be a never ending list.
If the above issues are not addressed the there will be no recovery even in 2015 the only saving grace will be the oil income which will be stretched further to prop up other sectors of he economy.
Say what?
Posted by infedel, desert, desert on Saturday 22 August 2009 at 16:28 UAE time
Seeing how this crisis was the gastric gassing of business men and bankers primarily, I am pretty sure they will not be Green Reapers.
I believe it will be up to the engineers and manufacturers world wide to improve the economy. I strongly believe so despite what business folks think.
However, UAE is rushing to alleviate its independence of oil as now it is responsible for the many products manufactured internally and that is aside of real estate.
Where there is a will, there is a way.
In response to the Nay sayers:
Covering the "Against" rather than the "For" is in fact Geometric. Doesn't matter really, depends on how you see things. It doesn't hurt to look back in all directions. As long as the article is covering news, that's all that matters.
Posted by infedel, desert, desert on Saturday 22 August 2009 at 16:28 UAE time
Seeing how this crisis was the gastric gassing of business men and bankers primarily, I am pretty sure they will not be Green Reapers.
I believe it will be up to the engineers and manufacturers world wide to improve the economy. I strongly believe so despite what business folks think.
However, UAE is rushing to alleviate its independence of oil as now it is responsible for the many products manufactured internally and that is aside of real estate.
Where there is a will, there is a way.
In response to the Nay sayers:
Covering the "Against" rather than the "For" is in fact Geometric. Doesn't matter really, depends on how you see things. It doesn't hurt to look back in all directions. As long as the article is covering news, that's all that matters.
No chance in 2010
Posted by Riz, London, United Kingdom on Friday 21 August 2009 at 06:16 UAE time
Hi Guys, I see regular comments from people and its too funny to read some comments. Anyway, I feel that UAE economy will not be normal before 2012 as govt. is not doing enough to overcome the crisis. UAE being a small country it doesnt not have enough economic resources except real estate and due to the strict policies on this sector for expat investor made the case worst. Govt should place convenient laws for expat real estate investors in UAE as expat are the main contributors in this industry. The ecomimies of countries like India, China , France and Germany are on their way to normal by end of 2009 as these countries have enough econimic resouces and they are self dependent nations. Banks are the main countributors for the present situation in UAE they have levied high charges amid the global slowdown which compel to expat nothing but leaving the country. In United Kingdom, central bank have strict vigilance on operating banks to ensure that banks are not charging high in the current crisis but I have not seen a single step of UAE govt to take this point. Anyway, God bless UAE.
Posted by Riz, London, United Kingdom on Friday 21 August 2009 at 06:16 UAE time
Hi Guys, I see regular comments from people and its too funny to read some comments. Anyway, I feel that UAE economy will not be normal before 2012 as govt. is not doing enough to overcome the crisis. UAE being a small country it doesnt not have enough economic resources except real estate and due to the strict policies on this sector for expat investor made the case worst. Govt should place convenient laws for expat real estate investors in UAE as expat are the main contributors in this industry. The ecomimies of countries like India, China , France and Germany are on their way to normal by end of 2009 as these countries have enough econimic resouces and they are self dependent nations. Banks are the main countributors for the present situation in UAE they have levied high charges amid the global slowdown which compel to expat nothing but leaving the country. In United Kingdom, central bank have strict vigilance on operating banks to ensure that banks are not charging high in the current crisis but I have not seen a single step of UAE govt to take this point. Anyway, God bless UAE.
AB knows that negative news attracts attention
Posted by M, Dubai on Thursday 20 August 2009 at 23:59 UAE time
Unfortunately, this is the approach AB has been following for a while, especially when it comes to Dubai's real estat, UAE economy, job market etc... Dubai dowturn has been a very hot topic over the last year considering the huge interest it generates. There are a group of negative readers who get so excited when they hear negative news about the UAE and AB is giving them what they like. I'm pretty sure they will read my comment and star making fun of it...but who cares, only time will tell
Posted by M, Dubai on Thursday 20 August 2009 at 23:59 UAE time
Unfortunately, this is the approach AB has been following for a while, especially when it comes to Dubai's real estat, UAE economy, job market etc... Dubai dowturn has been a very hot topic over the last year considering the huge interest it generates. There are a group of negative readers who get so excited when they hear negative news about the UAE and AB is giving them what they like. I'm pretty sure they will read my comment and star making fun of it...but who cares, only time will tell
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