Gone are the days when job seekers from all around the globe used to dream about a job in Dubai. Undoubtedly, there was a time when Dubai was considered as a hub for economic growth and finance of UAE. It provided as many job opportunities as none other state did with a facilitative and friendly working environment. Investors from all around the world wanted to invest in Dubai because of accelerated development and high quality of life in such a short span of time. It was known as a gem for industries, businesses and real estate markets of the world. So developed and progressive a state it was that people used to daydream about making their fortunes nowhere else but in Dubai.
The basis of this strong and well developed emirate that was assumed to be unshaken for a long term, drastically declined and devastated. This must not be taken as a complete disappointment but yes Dubai is no more a money making city as prescribed lately. There are ten reasons we have listed out that combined for this cause.
Economic crisis 2009
VA Dubai proposed to delay its repayment of debt which also played part in delaying in payment of $59 billion debt on Dubai world for 6 months. Economists suggest this 2009 debt crisis a consequence of real estate bubble burst. It became one of the good many reasons that economy of Dubai drawn into hot waters. The situation went from bad to worse in early 2009 when global economic crisis took heavy toll on property values, construction and employment.
Downgrading impact of moratorium
The official announcement of moratorium on 25th November 2009 also plays a vital role in shaking the economy of Dubai. The impact of moratorium so badly influenced that European markets start to fall uncontrollably with a considerable drop in Asian stocks resulting in a drop in shares of major world markets. Dubai is still recovering and trying to regain its initial status back.
Economic crisis 2013
In the recovering years, Dubai had to face a lot of complexities as created by economic crisis of 2009. It gradually became stable to repay loans but then again in 2013 its economy became unstable as all the recovered economy was based on debt, and was averted because of loans. This has served a big deal to bring Dubai in no-money-making city.
Since Dubai has been an area of interest and an appealing emirate for people from all around the world, therefore it became so crowded a city that a stable economy can not hold. At the very beginning of accelerating and fast growing Dubai market, people wished to invest here and put all their efforts to get their place in Dubai. it became so populous that opportunities for making money stated diminishing.
Lack of foreign investment
After the economic crisis of 2009, there was a huge gap between foreign investment and Dubai market. Since it was plunged in 2009, foreign investors stopped investing in Dubai because there was nothing like risk taking in this field. it is still in a process of recovery and hopes to become stable once again to attract foreign investors’ attention.
Lack of residence facilities
Real estate, construction and property value led to fall off after the very crisis of 2009 resulting in a lacking of residential and accommodation facilities. Young people fear to come to Dubai as they have to be careful to get a reliable and good accommodation.
Downfall of real estate marketing
Economy of Dubai was supposed to be based on its real estate marketing. This fact is known to every person from any corner of the world. The crisis of 2009 and then of 2013 resulted in a huge downfall of real estate market of Dubai.
The present political satire is one of the good reasons that Dubai has lost its position as a money making state. War against terrorism has affected the world’s economy in general and Dubai in particular.
Exhaustion of oil industries
It’s a general concept that the economy of UAE is based on oil industry and as much of oil it produces the economy grows higher and higher. This becomes void in case of Dubai. Oil reserves of Dubai have diminished significantly and it is expected that in coming 20 years, these reserves would be entirely exhausted.
Overly and mixed crowd
Different people from all around the world, speaking various languages and following different religions have come and settled in Dubai. This is why a great number of people now avoid to go to Dubai in order to make money.