Dubai Projects in danger

Dubai Projects in danger

Dubai dropped a bombshell this week announcing that Dubai World, the main government-backed development group, has financial troubles and needs at least six months of brake from creditors. Dubai World has a total debt of over $60 billion.

Dubai was known as the world’s fastest-growing city, growing from 700,000 citizens in 1995 to more than 1.3 million citizens today. Main sources of revenue are tourism, property and financial services.

The emirate is famous for its outstanding projects: Burj al Arab – the tallest hotel in the world build on an artificial island, Palm Jumeriah – the palm tree shaped artificial island, and The Burj Dubai – the tallest building in the world having more than 800 meters.

Due to the financial crisis Burj Dubai, a steel-and-glass needle, might be the last mega project from the Dubai’s golden era. Another two projects are on hold for now and might not come to life at the expected level: a second palm shaped island and another skyscraper that would surpass Burj Dubai.

Dubai started to experience financial problems early this year, but at that time Abu Dhabi bailed them out. It seems that Abu Dhabi would not bail them out for the second time. This means that this time Dubai must face his creditors on his own.

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