Dubai is set to open the world's tallest building Monday as the city seeks to revitalize its economy after a debt crisis in 2009 that forced the once-hot financial center to turn to neighboring Abu Dhabi for help.
The government hopes the unveiling of the 160-plus-story structure, Burj Dubai, will pierce the cloud that has lingered over Dubai since mid-December, when it received a second $10 billon bailout loan from Abu Dhabi, after unpaid bills prompted some creditors to abandon Dubai.
About 90 percent of units have been sold in Burj Dubai, which will welcome the first occupants of the Giorgio Armani residences in February and will open the world's first Armani Hotel in March.
Last month's bailout loan eased default concerns, but Dubai's reputation as a global financial center remains tarnished after the sloppy restructuring of Dubai World, the government-owned investment company, which was $22 billion in debt when it went bankrupt last year.
Economists say Dubai has fallen into a painful recession after years of 15 percent growth came to a halt as the real estate bubble burst. But some sectors of the economy continue to grow, and Dubai remains attractive as a services hub for the affluent Persian Gulf region.
-- Financial Times
As I've said before, I'm no economist, but if you couldn't see this coming, you're not very smart. Granted, this is coming from a person that's trying to sell a house in
No comments:
Post a Comment