Much ado about Dubai

November 28, 2009 at 8:44 pm 1 comment

Is Dubai’s debts serious? After going through the financial crisis of 2008, Dubai’s debts are “chicken feet”. Worst come to worst, banks just have to write off the loans.

The more probable case is that Abu Dhabi will help pay for Dubai’s “playboy” debts by extracting a pound of flesh. But will Dubai’s ruler make the necessary sacrifice?

The bull market case is still intact, investors or rather i call them speculators are just looking for an excuse to start a correction which is long due.

Entry filed under: Investing. Tags: .

All that glitters is not gold ? Is “Black Friday” really black?

1 Comment Add your own

  • 1. Ali Mohammed  |  December 5, 2009 at 2:26 am

    Why Dubai Inc. Failed?

    1. Excess Greedy. Highly leverage model. >150% of the GDP. >>$110/- billion debts.

    2. Greed.

    3. Excessive use of power.(Doing thing without asking Abu Dhabi, ruling family, big brother, etc.). Ran country like a company and not a country. Mad a rat race. Fittest stay and weaker go! If you can afford than stay (Rob or do anything).

    4. Pride. Islam teaches to be Humble. Making building like Burj tower is showing power, might, money, wealth.etc is not what Islam teaches. Dubai went opposite. Many more examples. When human being start thinking; how can everything go away like tourism, money, assets etc. Nothing can Stop me, nor even God. This pride is end of all! God does not accept this and his lashes are severe.

    5. No study of Social Impact of this growth.

    6. In human behavior to the society Excess materialistic Islamic banks & financial institute doing all UnIslamic / unethical business. Playing with customer religious sentiments but the entire management were frauds, unethical and corrupted.

    7. Destroy (Permanent destruction) of environment, sea/marine life, adding pollution, extreme wastage’s of resources, environment disaster, behaved like the law of Jungle / Man eater Tiger (Committing one destruction after another – First Palm, second Palm, Third Palm, World, Islands, extending beaches, canals, lakes, etc.). Destruction of Corals, fishes, marine life; for what??!! First one, then second, then third, world etc. Making World – Only God has right to build World. Showing Palm & World from moon is only God’s right. Human beings are suppose to take care of the environment, leave this world in a better form and protect. Not destroy nature! Unless the damage to nature is an important for Human being protection like Amsterdam reclaimed the land for Human safety against flooding, bridges are built for traffic or mass transportation etc but carefully planned. Go to Australia for Scuba Diving, they will not allow you to even touch the Corals. See, admire the nature, study, have fun and come back. Do not destroy them. Here in Dubai, No study or impact of anything.

    8. Not giving any preferment values or pension or benefits to expatriate for their devotion of life, age, knowledge, expertise etc.

    9. Injustice by all the government & semi government institution/companies to the investors. Not abiding by the contracts, delivery, refunds etc.

    10. Arrogance.

    11. Made people to join the artificial rat race had Vision but No Wisdom. Failed to keep up the promise made for visas. This brought back stabbing after Billions of dollars were poured in Dubai by the investors, open advertisement for visa and closing the bottle after this is a crime.

    12. Too much in hurry (Everything in one’s life time!!). God is Not in Hurry, why the Dubai?

    13. Not looking for children education, people’s health, rights, etc., No care for seniors. Bad Immigration / labor policy.

    14. Excess and fast growth. Unsustainable growth.

    15. No proper planning, study, etc.

    16. No proper laws, policy and changing every day.

    17. Not keeping up the promises made. Not giving people their rights.

    18. Injustice, distinction between local & a foreigner.

    19. Induced Inflation.

    20. No fundamental rights. Basic secondary education and primary health to be free. There is No such concept. Everything is private. No control on prices even for basic health and education cost.

    21. Unfair & No palace for grievances etc. No transparency. Control media. No accountability. Not ready to take losses and dissociating loss making government owned companies. These companies in good days were acting like government (Even now), acquiring land, making rules of their own, corrupted management of local nationals, injustice to investors etc. Now when there is loss the government is not a part of it. When profit, acquiring business, borrowing the government was part of this growth. Now these are individual companies!

    22. Changed law for visas against buying a property.

    23. No law on Health insurance.

    24. Heavy toll tax within the city, fines, charges etc.

    25. Public transport system is unaffordable now with increase in the bus fare as many cannot afford. It is not any more for Public but a money making system which is not for the masses.

    26. People do not feel the sense of belonging / community etc.

    27. Everything materialistic and artificial. Excess capacity.

    28. Swiped out all the money from the banking system and leveraged it by 10 or more times.

    29. Went excessive over board and started buying on these highly leverage money assets. Wanted to be Napoleon or the Emperor of this World. (No one could do this – started buying assets of country which was strategic important with leverage money and not your own) Only to buy in other countries. But when someone comes to buy here in Dubai, sorry only for Sheikhs, locals, sorry, sponsor etc.).

    30. Cheated everyone.

    31. Wanted to be the greatest Emperor in his life time. Why? At what cost? Only God is the greatest.

    32. No democracy. Country where the government selects who will stand for election and which people / who will vote for FNC.

    33. Lack of transparency.

    34. Public listed companies for example like Amlak – Their directors have invested in business / real estate which were not their mandate but they did and personally invested in their fake companies. Now that AMLAK is bankrupt, No action against the directors. How can you keep a company delisted fro more than a year on a pretext of merging with another bankrupt company like Tamweel. This is one of the examples.

    35. Separate schools for locals and expatriates.

    36. DP World public issue was planned gimmick. All the precious assets (Jewels in the crown) were removed and public issue was taken out without transparency, overpriced and now the company stock price is almost zero vale. This is a crime.

    37. Extreme high cost for school education and health.

    38. Even if someone is born here, lived +30 years but once visa is canceled he/she is deported.

    39. No Social Security for any Foreigner.

    40. Return or bouncing of cheques is Criminal act in this country.

    41. Everything in government is in Arabic. All documents / contracts must be translated in Arabic for court. Only Local Nationals lawyer can approach the Bench.

    42. Children in school for twelve years are taught Arabic for all over the country. (Not One child for any school can speak or understand Arabic). Learning Arabic is compulsory. Learning Islamic is also compulsory for all Muslims. Due to Non Muslims have additional subjects where they learn Music, arts, etc. (Muslims are deprived due to limitation). The syllabus of this so call Islamic study is all memorizing and teaching fanaticism / fundamentalism.

    43. An expatriate boy born here and studied here but once his age is 18 years he cannot live here and his visa has to be an employment or visit. Although his parents still live here and doing well.

    44. Extraction of fees, fines, indirect taxes form foreigners.

    45. Destroyed seas, skies, dessert and peoples mind.

    46. Everything is materialistic.

    47. Even Dubai Cares with Philanthropic objective had hidden agenda for spreading Dubai name, marketing Dubai, taking money for rich businesses (Business gave money to please the government or get in return favors, etc.) and giving to poor.

    48. Exploitation of Labor. No minimum salary laws. Majority of construction and other labor getting Dhs.600/- ($109/-) per month without food, No air tickets after two years but only accommodation (Six people in one room & unhygienic room) and transportation is included. Working nine hours a day in 48 deg. C.

    49. High cost of fees. Visa renewal charges for Dhs. 600/pm labor is Dhs. 3,500/- and is also the same for a CEO whose salary is more than Dhs. 30,000/- pm. No equation. Also trade license fees are same for all (A grocery to supermarket or for a small business to large business)

    50. Only few get lucky who are surround to the ruler to get free land, buildings, towers, land and favors. Etc

    51. High & over cost of projects like METRO etc. (Not required to build with borrowed money and high cost)

    52. All locals only wants to be Manager.

    53.NAKHEEL (Main corrupted), SAMA Dubai, etc., was totally corrupted. From locals to engineers to all staff.

    54. No risk management study done. Unqualified CEO and AIR (People) around the ruler.

    55. Unrealistic vision.

    56. Wrote a Great Vision but No Wisdom. (Wisdom is Blessings of God). Implementing Vision at what cost? Is it worth?

    57. Bringing Demographic balance with high for labor visa!! How can a construction company bring unqualified people from various countries?

    58.Labour office, procedure is corrupted.

    59. Due to open economic system; when there is recession, both people and money evaporates. Both come back with opportunity. Unlike India, Egypt, USA, UK, etc., where people do not flee or goo away due to recession. Human beings find solution or be innovative id finding way and means to beat this phase. In Dubai population and No restriction of outflow of money causes sudden vacuum.

    60. Many CEOs and one minister was corrupted. Most of them all are out on bail or pardoned.

    61. The audit office of government is run by Egyptians and unqualified director!!! Guess!

    62. Destroying / demolition people’s houses without doing any rehabilitation program.

    63. Collected several sins from people, children, old people, everyone and nature.

    64. Poor planning. No long term foresee / planning. Lack of transparency. Key people unprofessional. No debate on policy matter. Common objectives missing. Even now each department heads have to central objectives or strategies in place.

    65. Small children go to school at 4:30 am as bus comes in Sharjah and these kids sleep in the buses to reach their school at 7:30 am due to traffic. Every country the schools are nearby the house where one live, parent does travel an hour or so but here the children and parent travel. No libraries for children.

    66.Dubai has No resources on its own. Did not think that we have No oil, natural resources, we are Not Fed. Swiping the entire money from the banking system and giving this to it own corrupted and their own unprofessional crooks (NAKHEEL, EMAAR, Limitless (In reality it went out of Limits, Name seems to fit right), Isthitmar, Dubai Properties, Al Burj, Jumeirah Living, Dubai Holdings, Tatvir, Dubai Industrial City, DP World, FORSA, Islamic banks, water fronts, etc.) to buy assets on multiple leverage. Finally Lehman Brothers got Bankrupt and all these leverage models were back fires.

    67. Making people extra materialistic. No balancing. Had No time for anyone except growth, projects, money, money etc.Forgot the definition of Happiness, good life, civil society, pluralism, arts, culture, religion, social responsibility and history.

    68.NAKHEEL paying contractor. >30% less discount for work done and NO payment date commitment even after deduction. Government companies to be role model and with this everyone in private sector is renegotiating contracts, etc., and exploiting the situation. Defaults!!

    69. Courts fees are too high, only in Arabic and biased. Cannot take government or its companies to courts. Arbitration and Sharia courts are gimmick.

    70. Not accepting / denial of the mistakes, sins and not correcting the same. Dubai is gone for a Generation. Dubai is a bankrupt government.

    71. Thanks to Abu Dhabi as have done a good job in protecting every one’s deposit, keeping federation intact, etc., Amazed to see the maturity level.

    72. Hundreds of stories are there of injustice happening all over the city to investor by these fully Dubai government owned companies. What can one do? Lawyers say these companies have No money. Values of assets are ZERO. Contracts clauses not fulfilled by these companies. Lawyers recommend that one need big court fees or arbitration fees, translate in Arabic and one cannot win against the government. So accept in justice, part payment, credit notes, alternative worthless assets, etc.

    73. All Islamic banks & institution management in the name of religious sentiments / beliefs of their customer did all Non-Islamic, unethical transactions, corruption, etc., People have lost life savings, education fees. Not just because of simple recession but because of Dubai’s greed, conspiracy, failure, planned unethical behavior and sins.

    74. Now sovereign default, not able to pay debts of Dubai World.

    75. Seems it was a planned strategy to bring in peoples money, allow them to make buildings (Which cannot be taken away – fixed assets), like opening a soda bottle and once everyone is in close the cork. Or let things get Bust, I will extract all the Abu Dhabi wealth as he is sure to bail me out. At least my / his city is build. All with OPM (Other peoples Money). At the end Dubai only got caught in this unethical strategy.

    76. Dubai Police chief telling / warning private companies not to Lay off their citizens in this recession period but keep them, even if you could not afford them! The government job is Not to do business but to take care of their own citizens in this downfall times. Here in Dubai it is opposite. Dubai government own job or responsibility of unemployment wages / social support is done by private enterprise and the business part is done by government. In Dubai, everything flows fast and in reverse mode.

    77. Demolition of peoples houses etc. for water to pass to sell real estate / make towers etc., etc. No rehabilitation program for any one. These are human being and not animals. Giving better houses is not a better quality of life. Just order Dubai Municipality to pay x unfair amount and move these thousand of people to far of location in better houses. People were not at all happy as they had parents, brothers, children, etc., staying around. Even huts in India are not demolished without doing a rehabilitation or social study and taking peoples view in resolving a problem; if the change is for national importance.

    78. Does not understand – Real quality of Life. It is not just a building or material but much more to this. Key policy makers should learn liberal arts, history, environment, social sciences, public policy, development, sociology, anthropology, psychology etc and Not Only study military (Sandhurst) and sports training !!

    79. Human being job is to be polite, humble, protect nature, balance spiritual and worldly life, help others, gain and spread knowledge, not go after excessive materialistic, lead an honorable and an ethical life. Dubai just did opposite.

    80. The Tolerance level (Both from government & people). Multi cultural environment, good security saved Dubai & UAE. It this multi racial, heritage, religious, tolerance etc. saved. I hope the government realize this and make policy accordingly. This people are the true asset of Dubai & UAE. A child who is born and grown up here or a person or family lived here for more than 25 years are the true loyal citizens and assets. These buildings are not! People have lost millions not just by recession but back stabbing laws, failure to implement contracts by government owned companies. Despite this Not many have approached or demonstrated against the government. No one understands here. Pity!

    81. Criminal waste and emcees consumption of resources. Over capacity in every field and waste of all types of resources.

    82. Want everything to achieve in this current life time. Why this haste? Even God is not in hurry. World is a continue process. Even a child takes nine months to be born as per God’s wish as this is to show human beings, patience etc.

    83. Several half construction projects. Pl see The Villa area. Event there is no money to put water to plants. Hudreds of villa under poor construction is stopped. Sample villa and the whole town is deserted. Unpaid Contractors left the site. Safety first site boards half hanging form villa roof, just to drop in due course. No money even in the sample villas even to put water to plants. All dead trees. plants, landscape, looted site. Looks like a ghost town. (One year back was a showcase villas where you needed a entry pass to come in) What a waste of resources !! Disgrace!!!

    84. Dubai has been for years to do biggest / greatest / largest things / act / etc, in the world to place itself in Guinness Books of World Records. Now one more to add; largest nation / government in debts in the world & single biggest person with largest debt, single company in largest debt, largest sovereign debt in the world etc. The name of the Guinness Books of World Records should now be Guinness Books of Dubai Records.

    85. Doest not even till to date understand that whatever Dubai is today is because of the diverse (In terms of culture, pluralistic, religious, culture & interpretation) and tolerant, expatriate population. These are the true asset of the country. Of course Dubai also is diverse (In terms of culture, pluralistic, religious, culture & interpretation) and tolerant. Security is great. These are the core strength and future policy must be based on these assets, retaining talent, knowledge, follow ethics, implement pluralism & civil society. Also government fails to understand that a child of an expatriate is born here, studied here and lived at least 18 years; he/she loves Dubai and will never go against this Nation. But in return does not get any permanent status. These are the assets of the country. Culture and Heritage is Not only showing and preserving you own but to accept opposite persons culture and heritage without damaging yours.

    86. In real terms, the local population does not have a feeling of Nationalism. No one is prepare to sacrifice their life. It is only in theory they are Nationals. There is No concept of community feeling. All are materialistic. It is an artificial life and an economy. Nationals here even do not have a will to go Ground Zero and work for poor / poor country / International Philanthropic organisation / etc. Giving on Money / charity is not enough. No one here is bother of poverty, real life issues, planning future, common objectives for various government/semi-government organization. It is a rat race og greed, materialistic, comfort and blindly following religious practices. All ethical principle of religion is gone.

    87. So many houses, buildings, villas, commercial places etc were demolished or were given Notices to evacuate. Why? So that water comes in, new towers a built, fantasy city (Impossible dreams) cities are built. These people compensation for land, villas was not right as Only money is Not enough for moving living people. There was no Rehabilitation study or implementation. Just take money (Unfair amount, your services are cut, or go to some far off ready built villas within a specific short time). These are Human being and Not animals. You cannot put people in Cages even made with Gold. People have sentimental values, social surrounding etc. Just ordering and throwing people is not right. Animals are moved from one cage to another, Not Human beings.

    88. Human beings were consuming too fast the natural resources of the world. Greed, unethical behavior, excess inflation, getting rich too fast (The way it was going, probably in few years people would have forgotten God) etc. Leave for Next Generation to come. Everything in this age!!

    89. Dubai wanted to do everything in this present leader’s Life time! Why?? Also only people who could afford should stay. Was following Law of Jungle. Running country like a company. God is Not in Hurry. Still generations to come. Why Dubai in hurry? A child takes nine months in the mother’s womb. God could have done in a day. He has showed Human beings to be patience etc. God shows Human being by examples. The responsibility of a ruler is much higher than a democratic government. Any wrong action is a permanent disaster. The CEO of Nakheel who was a car race rally driver was given a steering of Nakheel and was allowed him to drive at fastest seed the company in an opposite direction of cars. He had to crash. How can a rally driver drives a Nakheel. It was a crash of $80 billion!

    90. Still more to write! How many more collective sins. Dubai need to repent to God and ask for forgiveness and change its policy, be more responsible to others. God Bless Dubai!

    Reply

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