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Issue No. 48 - August/September 2009
UAE insulated from GFC
by Ms Sarah Newman
Australia Arab Chamber of Commerce and Industry National Director, SA business identity Ray Najar, says trading opportunities with one of the most dynamic Gulf States, the United Arab Emirates, are good despite the downturn in more glamorous neighbour, Dubai.
“Dubai is often considered the powerhouse of the UAE due to its modern, progressive rulers,” Ray says, “however much of its development is predicated on a booming trade, tourism and education market. The shortage of world investment capital has caused Dubai’s economy to suffer more than most, and many expats and foreign labourers are being sent home until stability returns.
“Abu Dhabi on the other hand has developed much more conservatively, relies more on its own resources and can weather the economic storm better than its neighbour Dubai. With different rulers come different rules. In Dubai, projects are being cut at an estimated rate of 70%, whereas in Abu Dhabi that figure is closer to 30%. On the whole the UAE economy is still quite robust.
“Investors will find much opportunity in the UAE, as significant falls in inflation have led to lower property prices. Rents are also more realistic and will most likely remain stable for a year or two. The UAE building industry has declined but remains active.
“The UAE should be viewed by Australian businesses as a point of entry into a variety of surrounding markets. Neighbouring countries include the Kingdom of Saudi Arabia (KSA), Oman ...
