Monday, February 16, 2009

Dubai's woes

"Dubai, one of seven states that make up the United Arab Emirates (UAE), is in crisis. So too are British expatriates. Many of the estimated 100,000-strong community came here expecting to make millions in property, and to soak up a lavish lifestyle living alongside footballers, actors and supermodels.

But the real estate bubble that propelled the frenetic expansion of Dubai on the back of borrowed cash and speculative investment, has burst. Many westerners are being made redundant or absconding before the strict legal system catches up with them.

Half of all the UAE's construction projects, totalling $582bn (£400bn), have either been put on hold or cancelled, leaving a trail of half-built towers on the outskirts of the city stretching into the desert."

More, including video, in the full Guardian article here.

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