No one could have missed the news surrounding Dubai over the last few days, I doubt anyone has ever asked for more time to pay a loan and had such attention put on him before. The fact that Dubai World and to the world Sheikh Maktoom are unable to pay the debts , has come as a total shock to some.   For some strange reason there was a perception that everything was ok in Dubai, but the warning signs were there. The fact that Amlak and Tamweer are still not lending almost a year after stopping all new lending speaks volumes.  The fact that there have been rumbling about Amlak defaulting on payments for existing mortgages also tells a story, the trust in the market place has gone.

The real shocking things is the way the worlds media has reacted to the news , just like a sheep to the slaughter Dubai has well and truly been hung out to dry. There is talk of desert mirages, of an economy built on sand of Dubai being more like Argentina than Hong Kong all the cliches have come out. It is as if people are actually taking pleasure in the whole situation, turning their noses up at the new kid on the block that never quite made the grade (yet).

Whilst the current situation is bound to have a negative effect on the image of Dubai and hence investment, the real losers are those individual investors that have invested in property that is yet to be completed. Would it be fool hardy to keep pumping your savings to make repayments on an apartment that is yet to be built, who knows maybe the whole country is going bankrupt. For those looking to sell it could well mean a very long wait as I doubt anyone wants to buy at the current time. Things are not looking good.

However there could be a few reasons for optimism , reasons will be lost on a lot of journalists who just want the rip roaring headlines of Dubai failure.

1) Dubai World and Sheikh Maktoom are closing ranks, when in trouble surround yourself with people you know.

2) Dubai maybe out of oil but Abu Dhabi is not , there is no hint of Abu Dhabi not backing Dubai to the last when it comes to lending.

3) It is the wake up call that Dubai needed, a few home truths will help Dubai recover quicker.

4) The high risk takers will be leaving town, leaving Dubai to slow down and develop and progress from a more solid basis.

5) All the naysayers will be back in the new year to hail the opening of the Burj Dubai, there might even be talk of it representing the future of Dubai rising from ashes.

Dubai is most definitely on a War footing when it comes to it’s finances , this can only be a good thing. All that needs to be seen is who is General that will lead Dubai out of this mess.

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2. Dubai Speculators Quit as Lending Drought Bursts Desert Bubble
3. Bank lenders in talks with indebted Dubai World ahead of critical creditors’ meeting
4. How did Dubai End up in Vegas?
5. UAE central bank vows to honour Dubai’s debts