Pakistan and Dubai – Similar Fates..?

28 07 2010

Ramazan is up and unfolding soon. August and Ramazan went well the last time they met at the Governor General’s office. This time, much has changed but the re-union could be a new leaf, perhaps.

The nation was desperate then, unheard and yearning. Resources scattered or squandered, much so evident still in the present and its not hard to imagine how it would’ve been, minus the Sikhs and their swords. Muslims were untouchables then, so are they now. Then were Sikhs, now its the Parliamentarians and the Army men. Ahem..!! Did I say more? Or dare more?

Ramazan package has already been casted upon the already exploited Awaam. The blessings of Ramazan (read the relief package promised), the Eid package (read same again) are just some efficient tools to keep the worry factor taking rounds of the starving awaam. Roti (awaam kee boti), Kapra (kafan) or Makaan (palaces), this is the empirical formula of PPP – snatch the bread, leave them for dead. A proven track record is there. Bhutto Sahab, thank you for tearning those papers in the UN. What a speech that was. Ayyub’s speech brought victory in 1965; well he wasn’t that bad, he gave Tarbela and Mangla. You gave nationalisation and 6 passports for each person helping brain drain and efficient and talented fodder for other nations.

UAE Survey Merril-Lynch - 2010

Meanwhile in the neighbourhood, Dubai and sister city Abu Dhabi have shown dismal performances. Business is grim and slow, jobs are lesser secure as ever. Investor confidence was already tanked but nothing comes out of the tightly gripped media. The lustre departed with the hustle and bustle of Dubai. The country has given a growth of 1% to date, while neighbours like Kuwait showed improvement at 2.2% while Qatar led the pack with 11.3% ratio which was seconded by Oman with 3.9 percent. Read link here (Arabian Business, Jul 2010)
So far the after-math and after-shock are still reverberating around Dubai. The property seems to be taking a dip, yet again.

As of July 2010, Abu Dhabi’s flagship Aldar showed disappointing results with approx. $130 million loss in the second quarter. While the quarter one recorded much more losses of around $780 million. Link here. (Arabian Business, July 2010)

Second to Aldar is Sorouh which reported a direct but instant fall of 45% profit. Hope you’re not shaking on this. Oil money but $30 a barrel doesn’t really bail all of them out.

While at the start of July, Dubai Properties is planning for an August auction of beach side plots. Any takers? Saud Masud, head of research and real estate analyst at UBS was alive enough to comment that the market lacks much liquidity and importantly the conviction and such an auction might be a gauge to confirm the metrics but high hopes must not be pinned as thin interest might be seen with bidders. Auctions like these are unlikely to tame the $101 billion debt the emirate has amassed.

Dubai - Hot Property, Cold Response

While the previous month saw property prices go further down in Dubai which is already reeling with post-recessionary disorders. It engulfed more that it could accommodate or plan and now throwing up isn’t the best option when the rich are invited. So hold it there. On an average, 3% fall was seen overall in the property prices in Dubai. Read here.

Limitless Tower - Limitless Liabilities

Limitless properties (http://www.limitless.com) has seen changing of hands from under Nakheel to Malaysia’s Bandar Raya group for 75 million ringitt ($23 million approx).

Abu Dhabi’s lending hand has exposed its finances too, which has hung up much capital. The drought of property prices is drying up the capital loan assistance from Abu Dhabi. ADCB, which now controls 15% of market’s credit card share by acquiring the UAE’s retailing arm of RBS, an already flailing division. ADCB’s second quarter profits have flung down 45% to 163 million dirhams compared to last year. It has exposed AED 6.6 billion to bail out money starved Dubai. Slower market indicators while Abu Dhabi not being the transit trade route for Saudi Arabia and the likes, the pace of development in Abu Dhabi might feed its own Trade and Commerce requirement, the aspirations for market leader spot needs a bit of more of business talent to be put to aggressive use.

Meanwhile, the Emirate of Sharjah is facing some gruelling power shortages and cuts. Although, the Emirate is known to be oil rich with its recent not oil spill but oil well discovery in Zora Gas Field, the power cuts have led to serious implications. With the heat on, the sultry weather is too much to bear. People have to resort to spending nights in their cars or at someone else’s place. Such a dilemma was unheard of lately.

Some interesting picks –
Power Cuts. Yeah Pakistan alone is not suffering.

22% of UAE expats unable to meet loan, credit card payments. I’m one of them, your every click on my blog pays $0.00001 to the bank.

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