Comments on: Crisis in Dubai: A Local Perspective http://cominganarchy.com/2009/12/01/crisis-in-dubai-a-local-perspective/ Speak Victorian, Think Pagan Tue, 16 Mar 2010 23:57:39 -0700 http://wordpress.org/?v=2.8.6 hourly 1 By: Mamahuhu http://cominganarchy.com/2009/12/01/crisis-in-dubai-a-local-perspective/comment-page-1/#comment-391947 Mamahuhu Thu, 03 Dec 2009 18:33:15 +0000 http://cominganarchy.com/?p=7347#comment-391947 And such a nasty slap And such a nasty slap

]]> By: Curzon http://cominganarchy.com/2009/12/01/crisis-in-dubai-a-local-perspective/comment-page-1/#comment-391936 Curzon Thu, 03 Dec 2009 12:51:02 +0000 http://cominganarchy.com/?p=7347#comment-391936 Mamahuhu: Most construction workers do not work directly for Nakeel or Emaar or the other major Emirati master construction firms but instead work for contractors that may have obtained separate financing for their projects and will be paid when they finish the building and hand it over. So for that reason it seems unlikely that someone being fired now is a DIRECT victim of Dubai World, but could be a victim of a financer of the construction project on which he is working pulling the plug on the project. Construction is currently very active, which is better than half a year ago when most sites were silent. Accordingly, most of the layoffs have already happened. An Indian worker in Dubai being fired now is similar to a banker in London being fired now... both probably thought they had missed the redundancy slaughter of 2008-9, but unfortunately got slapped in the tail end of the crisis. Mamahuhu: Most construction workers do not work directly for Nakeel or Emaar or the other major Emirati master construction firms but instead work for contractors that may have obtained separate financing for their projects and will be paid when they finish the building and hand it over. So for that reason it seems unlikely that someone being fired now is a DIRECT victim of Dubai World, but could be a victim of a financer of the construction project on which he is working pulling the plug on the project.

Construction is currently very active, which is better than half a year ago when most sites were silent. Accordingly, most of the layoffs have already happened. An Indian worker in Dubai being fired now is similar to a banker in London being fired now… both probably thought they had missed the redundancy slaughter of 2008-9, but unfortunately got slapped in the tail end of the crisis.

]]> By: Curzon http://cominganarchy.com/2009/12/01/crisis-in-dubai-a-local-perspective/comment-page-1/#comment-391935 Curzon Thu, 03 Dec 2009 12:38:25 +0000 http://cominganarchy.com/?p=7347#comment-391935 Thanks for that Joe. Hmmm. I agree with Krugman. Which is very rare. Dubai World's reschedule of debt payments is not calamitous sovereign default, but just another real estate-inspired debt crisis, but this one has a lot more potential to be smoothed over than the sub-prime crisis because it's much more limited and the revenue potentials are still there. Thanks for that Joe. Hmmm. I agree with Krugman. Which is very rare. Dubai World’s reschedule of debt payments is not calamitous sovereign default, but just another real estate-inspired debt crisis, but this one has a lot more potential to be smoothed over than the sub-prime crisis because it’s much more limited and the revenue potentials are still there.

]]> By: Mamahuhu http://cominganarchy.com/2009/12/01/crisis-in-dubai-a-local-perspective/comment-page-1/#comment-391932 Mamahuhu Thu, 03 Dec 2009 08:03:28 +0000 http://cominganarchy.com/?p=7347#comment-391932 See this? http://blog.foreignpolicy.com/posts/2009/12/01/dubai_guest_workers_fired_by_text_message By the way, if anyone's looking for a good book on Dubai, pick up Jim Krane's Dubai: The Story of the World's Fastest City. See this?

http://blog.foreignpolicy.com/posts/2009/12/01/dubai_guest_workers_fired_by_text_message

By the way, if anyone’s looking for a good book on Dubai, pick up Jim Krane’s Dubai: The Story of the World’s Fastest City.

]]> By: Joe Jones http://cominganarchy.com/2009/12/01/crisis-in-dubai-a-local-perspective/comment-page-1/#comment-391929 Joe Jones Thu, 03 Dec 2009 03:41:58 +0000 http://cominganarchy.com/?p=7347#comment-391929 Paul Krugman has <a href="http://krugman.blogs.nytimes.com/2009/11/27/rashomon-in-the-desert/" rel="nofollow">a good blog post</a> on the Dubai situation from a macro perspective. Paul Krugman has a good blog post on the Dubai situation from a macro perspective.

]]> By: Evil Rocks http://cominganarchy.com/2009/12/01/crisis-in-dubai-a-local-perspective/comment-page-1/#comment-391915 Evil Rocks Tue, 01 Dec 2009 16:35:55 +0000 http://cominganarchy.com/?p=7347#comment-391915 This situation is eerily similar to that that Lord Cromer wrote about in Modern Egypt wherein he went to the aforementioned Oriental land in order to find a way to make Egypt profitable and so pay back her massive (15+ million pounds sterling at the time) debt. The Sultan of the Ottoman Empire stepped in eventually (nb: I'm only a third of the way through the book) but was restrained from doing anything more than haranguing the army for disobedience to the Sultan's appointed ruler by the European advisors present (Cromer et. al.). It's fascinating how middle-eastern countries ruled by oligarchies get themselves into uh-oh-big-trouble situations when Western loan sharks come a knockin'. This situation is eerily similar to that that Lord Cromer wrote about in Modern Egypt wherein he went to the aforementioned Oriental land in order to find a way to make Egypt profitable and so pay back her massive (15+ million pounds sterling at the time) debt. The Sultan of the Ottoman Empire stepped in eventually (nb: I’m only a third of the way through the book) but was restrained from doing anything more than haranguing the army for disobedience to the Sultan’s appointed ruler by the European advisors present (Cromer et. al.). It’s fascinating how middle-eastern countries ruled by oligarchies get themselves into uh-oh-big-trouble situations when Western loan sharks come a knockin’.

]]> By: Thomas http://cominganarchy.com/2009/12/01/crisis-in-dubai-a-local-perspective/comment-page-1/#comment-391914 Thomas Tue, 01 Dec 2009 14:31:07 +0000 http://cominganarchy.com/?p=7347#comment-391914 Though, construction being a major indicator of future economic health, the fact that there are few projects 'in the pipeline' as you say may bode poorly for the health of the Eimirate. Though, construction being a major indicator of future economic health, the fact that there are few projects ‘in the pipeline’ as you say may bode poorly for the health of the Eimirate.

]]> By: Delirios victorianos http://cominganarchy.com/2009/12/01/crisis-in-dubai-a-local-perspective/comment-page-1/#comment-391913 Delirios victorianos Tue, 01 Dec 2009 08:15:22 +0000 http://cominganarchy.com/?p=7347#comment-391913 [...] de su sueño postimperial- puede llegar, como en los últimos artículos de Robert Fisk al delirio sin sonrojo. La lástima es que en la Europa latina haya quien compre esa moto vieja, a duras penas en pie, sin [...] [...] de su sueño postimperial- puede llegar, como en los últimos artículos de Robert Fisk al delirio sin sonrojo. La lástima es que en la Europa latina haya quien compre esa moto vieja, a duras penas en pie, sin [...]

]]> By: Curzon http://cominganarchy.com/2009/12/01/crisis-in-dubai-a-local-perspective/comment-page-1/#comment-391911 Curzon Tue, 01 Dec 2009 06:49:34 +0000 http://cominganarchy.com/?p=7347#comment-391911 Kurt9, yes -- and everyone thinks there's still plenty of room for prices to fall. Lots of new office and residential places are still scheduled to come online and rents have got to keep dropping. That being said, some things, such as transport, are dirt cheap -- it's $5 for me to commute 15 minutes by taxi, $0.80 if I walk and take the metro for 40 minutes. Food prices are very cheap if you stay away from fancy joints, a one person full meal rarely breaking $20, and you can buy a can of coke at standard Indian, Lebanese or Chinese restaurant for as cheap as $0.30 (no beer tho, unfortunately). Despite Islamic restrictions on public social behavior, you can enjoy the beach in a bikini or short shorts, buy alcohol and pork in designated locations, and women can drive and wear clothes that expose their knees and shoulders -- making it a very easy place to live when you look thousands of miles in every direction. Kurt9, yes — and everyone thinks there’s still plenty of room for prices to fall. Lots of new office and residential places are still scheduled to come online and rents have got to keep dropping.

That being said, some things, such as transport, are dirt cheap — it’s $5 for me to commute 15 minutes by taxi, $0.80 if I walk and take the metro for 40 minutes. Food prices are very cheap if you stay away from fancy joints, a one person full meal rarely breaking $20, and you can buy a can of coke at standard Indian, Lebanese or Chinese restaurant for as cheap as $0.30 (no beer tho, unfortunately). Despite Islamic restrictions on public social behavior, you can enjoy the beach in a bikini or short shorts, buy alcohol and pork in designated locations, and women can drive and wear clothes that expose their knees and shoulders — making it a very easy place to live when you look thousands of miles in every direction.

]]> By: kurt9 http://cominganarchy.com/2009/12/01/crisis-in-dubai-a-local-perspective/comment-page-1/#comment-391908 kurt9 Tue, 01 Dec 2009 02:41:50 +0000 http://cominganarchy.com/?p=7347#comment-391908 It seems to me that if you have any kind of business that requires a presence in the Middle East or any kind of trading business, now may be the time to go to Dubai. The bubble (meaning the fluff) is gone, and prices can now return to reasonable levels. This is much like Singapore after its crash in "02-03. It seems to me that if you have any kind of business that requires a presence in the Middle East or any kind of trading business, now may be the time to go to Dubai. The bubble (meaning the fluff) is gone, and prices can now return to reasonable levels. This is much like Singapore after its crash in “02-03.

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