Written by Ameer Muhammad Jaffrey Friday, 26 March 2010 04:29
The landmark of investors has been still to seeking the potential, which will embark a highest level. Though the world are in economic recovery phase while this region has a hindrance as lending remains rigid. Although, Dubai World have been struggling to resolve its debt that stands still $26 billion. In the month of the January Dubai stock exchange fell by 15% due to uncertainty in the restructure. Currently, world will be watching on Dubai World to hope the reformation of Dubai World remaining $22 billion debt whether the risk would be higher to reach ahead.
Gulf States are expected to recover in 2010 after the financial turmoil but as from the Saudi Arabia and Qatar are expected to surpass their neighbors with GDP estimated 16% and 3.8% respectively while UAE is about 2.5% growth.
In the economic recovery phase there has been a risk factor.
Last previous year, banking sector was hit and also domestic real estate fell sharply while mortgage defaults and Non-performing loans are likely to further rise. Banks should keep watch on lid lending and implement conservative lending policy. This year would be hard for banks with NPL in next two months as the uncertainties in the domestic, regional, and international markets.
As the economic recovery phase, volatility in oil price, regional uncertainties in countries such as Iraq and Afghanistan, inadequate policy.
This is to important associated demand for Dubai recovering in the global markets since major feeder invested in the markets. Government has recent focus on alternative investment such as China, which will help to mitigate the risk. It is expected to increase of entrants in 2010, as supply increases lead to further declines in Revenue PAR. To look the market in short-term scenario, liquidity crunch especially on private developers, particularly who are taking part in building the sightseeing demand generators for Dubai? The reason is delay in construction projects that will have a new room supply in near future.
In the conclusion, Dubai has a potential to recover the economic pace itself, if above risk will be controlled.

