 AREEBA ZUBAIRI A PRESENTATION BY AREEBA ZUBAIRI

 An emirate in the United Arab Emirates (UAE)  Located south of the Persian Gulf on the Arabian Peninsula  Has the largest population with the second largest land territory by area of all the emirates after Abu Dhabi  Sunshine, shopping, seaside, sports and safety-five of the key ingredients that have earned Dubai a growing reputation as one of the world's most attractive and rapidly developing leisure destinations

 Trading and commercial hub of the Middle East.  Dubai is well positioned to attract tourists.

 Unlike the other six emirates of UAE, Dubai is not a country rich with oil resources.  Purely business city depending mainly upon tourism and other businesses.  Dubai World started attracting world entrepreneurs and spending more on building fine roads, star hotels, world’s tallest buildings etc.  Attracted a lot of foreign investors especially during the last four years  Due to the economic recession that took in almost every part of the world the investors were not able to turn the investment made in such huge amounts of money.  As a result the real estate business in Dubai suddenly started to collapse which in turn made an impact of other businesses.

 As a result Dubai government announced that for the time being they were not in the position to pay back their outstanding debt of $  At the same time Government owned Mega financial institution Dubai World also declared that it would not be able to pay back any loan for at least 6 months. The loan amounted to $60 billion.  Dubai World is engaged in different businesses like transport, ship, building, township building etc.  A sister concern of Dubai world, a building construction company named Nakheel also declared that it would not be able to pay back its debt installments.

 Dubai world had business tie ups in different countries.  The projects were delayed resulting in an increase in cost, dropped or prolonged  The unemployment problem  Foreign Financial Investors who had business ties with Dubai World faced a massive loss. 70 Financial Institutions from all over the world had lent credits to the Dubai World  Banks in Dubai also faced crises  The Oil prices dropped rapidly- Oil contributes % in Dubai Economy.  There was a Depreciation in Dirham

 Abu Dhabi gave Dubai a $10 billion hand out to help it pay of its debt  Dubai used $4.1 billion of the money to bail out the government owned Investment company- the Dubai World  The company’s property development operation, Nakheel, needed the money to pay investors in an Islamic bond which was reaching its maturity`