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/> Another new criteria that emerged after the Dubai meltdown was that huge amounts of money were taken out of the banks in Dubai within weeks. Some analysts comment that this amount was as huge as 20 billion dollars. This further weakened the condition of Dubai. Moreover what has been a major problem for everyone is that Dubai has clearly not spilled out who its creditors are. Much is to be said about the fact that Abu Dhabi has not come to the aid of Dubai in a proper manner as it has done in the future.

IMPACT OF DUBAI MELTDOWN ON EMAAR GROUP

We must understand here that Emaar group has been a major player in the development of Dubai since the past one and a half decade. It must therefore be understood here that Emaar group has been one of the biggest sufferers due to the economic meltdown of Dubai. It is being estimated that nearly 65% of the company’s money being used in various projects was money from various creditors.

Nearly 30 % of emaar’s properties which have been completed are still vacant. Moreover Emaar is reluctant to sell these properties at the moment because of the fact that the current market conditions are such that Emaar will incur losses if it sells its properties at the current rates. It may not be in a position to even recover the investment that has gone into the properties leave alone the fact that it may earn profits from selling its properties at this moment. Moreover Emaar has had a bit of bad luck as just before it got hit in Dubai by the financial crisis its international ventures were also hit by the global meltdown. Especially in countries like India in which Emaar international has made huge investments the property prices slumped due to the global meltdown and Emaar had to incur huge losses.

Many of its projects were stranded within India itself. Emaar also faced a problem with its labour in Dubai as most of its labour is from countries like India and Pakistan. These migrant labourers are expected to suffer severely after the global meltdown. Dubai has offered a safe haven for these labourers and Emaar was one the companies which was employing the highest number of migrant labour. These labourers come from poor background from countries like India, Bangladesh and Pakistan and they yearn to get a better life in Dubai due to the higher wage rates being paid in the country.

Such labourers face bad times ahead if Dubai doesn’t recover from its meltdown soon enough. Emaar group has decided that it would cut down on its projects within Dubai and United Arab Emirates but it has not yet planned to sell of any of its properties in the region. The conditions are improving in foreign markets especially in India which was not affected too much by the economic global meltdown. The prices of properties are rising up and Emaar group expects that it will be able to pay back a reasonable amount of its debt from the profits it may earn in the near future from its projects in the Indian sub-continent.

Dubai property prices have slashed down severely and there doesn’t seem to be any indication that they may rise up in the near future. It seems that the boom which the country was undergoing has finally collapsed and not only has it collapsed it has led to an economic meltdown. The top management at Emaar is now accepting and regretting the fact that they expanded too much too quickly and this was one of the reasons which led to this