Dubai - in the eyes of the "external media"

[sasherwani2]

Bloomberg.com: Exclusive

I think there should be a thread where newslinks from external media sources should be posted.

The government’s Dubai World owns both Istithmar and real- estate developer Nakheel PJSC, which needs cash for debt maturing this year, according to a person familiar with Dubai World. Nakheel sold $3.52 billion of Islamic bonds in December 2006 that mature in 2009, Bloomberg data show.

It will be interesting to see how Nakheel meets its debt obligations of USD3B+ in 2009.

[renter1]

That is the least of their worries - they have total $20bn+ due for refinancing in 2009 alone

[sasherwani2]

I think only noteworthy external sources should be referenced here. Here's an article on "Fajer Properties" in the Wallstreet Journal.

A Dubai Deal Called Into Question as Boom Ends - WSJ.com

Mr. Zadeh claims his detention came after a business dispute with his partner at Al Fajer Properties, Sheikh Hasher bin Juma'a Al Maktoum and his son, Sheikh Maktoum bin Hasher al Maktoum. Both men are members of the extended family of Dubai's ruler, Sheikh Mohammed bin Rashid Al Maktoum. Mr. Zadeh alleges the two men took control of the firm while he was in custody, according to a lawsuit he filed with Dubai's public prosecution office last year.

Mr. Zadeh has not been charged with a crime. But for the past year, authorities have held onto his passport, making it impossible for him to travel or find work.

"I used to believe in the miracle of Dubai. But now I see it all as a mirage," said Mr. Zadeh, 37. Sheikh Hasher denies any wrongdoing

I wouldnt take sides here, but shouldnt Zadeh be "charged" before he is being held for so long?

[financier888]

Originally Posted by sasherwani2

I think only noteworthy external sources should be referenced here. Here's an article on "Fajer Properties" in the Wallstreet Journal.

A Dubai Deal Called Into Question as Boom Ends - WSJ.com



I wouldnt take sides here, but shouldnt Zadeh be "charged" before he is being held for so long?

There may be a lot more to this than meets the eye but we really dont know until the results of the audit become public. (if they ever will....)

[Roshan]

As far as I know Al Fajer group belongs to Sh. Hasher.

I invested in the JBC2 and do agree that the development which was to be handed over in April 2008 is delayed. They are progressing well and have hit the 28th floor of the total 39 floors.

They have been very understanding and cooperative with me on payments.

Regards

Roshan

[sasherwani2]

An article in Forbes analyzing the after-effects Abu Dhabi's "first bailout" of Dubai.

Dubai's Jolt Back To Reality - Forbes.com

"I can't see how this bond issue would be immediately or directly beneficial to the real estate market unless the government introduced some sort of package which might shore up the mortgage default risk or ring-fence properties in default," said Chet Riley, an analyst with Nomura International. "But this would then assume the exit risk, which would be considerable."


Guess the bond didnt bring any life to the real estate market (as predicted!).

[PropGuy]

Originally Posted by sasherwani2

An article in Forbes analyzing the after-effects Abu Dhabi's "first bailout" of Dubai.

Dubai's Jolt Back To Reality - Forbes.com

"I can't see how this bond issue would be immediately or directly beneficial to the real estate market unless the government introduced some sort of package which might shore up the mortgage default risk or ring-fence properties in default," said Chet Riley, an analyst with Nomura International. "But this would then assume the exit risk, which would be considerable."


Guess the bond didnt bring any life to the real estate market (as predicted!).

I'm not sure if bond issue was suppose to bring life to real estate market.

[financier888]

Originally Posted by PropGuy

I'm not sure if bond issue was suppose to bring life to real estate market.

It should help the sliding value of the Nahkeel bonds and help the stocks... Increasing availability of mortgages won't help - if there are no buyers... With so many people losing their jobs or worrying that they soon will - which means exiting the country - where will the buyers come from that COULD qualify? - not like the USA , UK or other markets. they need to create a fund so that developers that qualify can get access to construction loans to finish AND create a policy whereupon, based on a min investment of US $250 -$300 k or thereabouts - you can qualify for 3-5 year residency visa... renewable - like in spore , malaysia.. etc.. the only way you'll bring people to live here long term in absence of stable employment

[Ajmanprop]

An article from Zawya, originally from The Economist

"Abu Dhabi bails out its neighbour. What will it ask in return?"
The outstretched palm

[spicy]

dear sirs/madams

since ive been made redundant ive been reading every single thread every minute of the day (ive got nothing else to do) regarding my futile attempt to ensure my families future well being by investing my hard earned money in the dubai off plan market
ive joined numerous forums (and been banned from one) all to no avail
we all want our money back or companies to fulfill their promises and not hold our monies indefinitely but to deliver on the contracts
having made myself a nervous wreak with the worry and reached a point where my interest has waned on all other things to the point that im just a couch potato sitting in front of my computer with no other interest but to wait for a new reply maybe a new development which never happens
ive come to the following conclusions
its ok to blame the present climate
its ok to blame toxic debt created by the sub prime market in America
its true that i probably should have been more investigative prior to making my investment
but the fact of the matter remains that if the shambles which is dubai had been organized properly from the start then i and yourself s would not be in this quagmire were in
from what i can see from my research right from the start there has been a fundamental lack of good business practice it reminds me of the gold rushes of yesteryear . people have been so blinded by greed that they have failed to adhere to proper procedures (i include my self here )
the returns being offered were so great that i was all to ready to sign on the dotted line. did i ever question the contract no . did i ever question the company no . did i ever enquire into who was going to live in this alleged desert paradise alas no.
i just saw the money
we have allowed ruthless companies which ultimately simply operate glorified pyramid schemes to take our hard earned money from us . dubai is a house of cards waiting to tumble
i now ask myself a very simple question which perhaps should have been asked before i invested WHO IS GOING TO BUY ALL THESE APARTMENTS FLATS AND VILLAS !!!!
with only a population of approx 200 000 gcc nationals do you really think that all these projects are going to get filled by visitors who dont even have the right of permanent abode
Ive been to dubai several times and im amazed at how it runs
im a fan of simcity and having played that and i really question whether the infrastructure is really in place to service such rapid growth
are the drains ok where does the sewage go is there enough power and water to service everything
cities develop over decades centuries even i dont care how much money you throw at something you cant force a city into being it takes time
here in england there is health and safety which strictly controls all aspects of business life
if your paying labour in some cases as little as $7 a day then one must question quality control
when everything is new then all is ok but what happens 10 years down the line will the same be said then
the shieks had a vision but im afraid that they have allowed companies which dont share their vision to infiltrate and ultimately control their destiny
im sure they started with a honest and good intention to create a paradise built out of sand very noble but somewhere down the line the train ranaway from them
now they find themselves left holding the fort with all the fly by night shysters having filled the wallets with billions exiting the plot
i have no doubt that eventually abu dhabi will bail out dubai it must it has no choice but with half a trillion debt its a long road to climb
dubai will not fall completely but what will stay will be drastically different from the princes visions
so where does that leave you and me up **** creek without a paddle
you know everyone is putting so much hope and energy in rera but ultimately rera is controlled by the princes who are so paranoid that dubai is being seen in a bad light that they will do anything to stop the media or anything spoiling their dream
do you really think that rera will make these huge companies that have not started these projects give the investors their money back
the list of projects on hold is huge most of these project will never see the light of day (including mine) if rera was to create a law where all the monies where refunded the impact on dubai would be devastating the sheihks would lose so much face and no one would invest in dubai anymore
its not going to happen
the only way my friends in my humble opinion to get our money back is to shame dubai internationally media pressure from the outside world is something that the princes cant afford
if we can band together and create enough media noise in all our respective countries then the sheiks will have to do something
we need to form action groups for every country that investors live in and the force the news and television to run reports about the lack of justice that is going on in dubai and if we can do this i am 100% sure that then rera will do something
as it stands they are doing the bare minimum
they are making nice sounds designed to allay investors whilst not really making the top master builders do anything
international media coverage is what we need
so please fellow investors i urge you to band together country by country and make a concerted effort in your own countries to reveal the amount of lawlessness going on in dubai
if this isnt done then i fear that our money will be tied up for 5 or 6 years which is how long its going to take for dubai to get their act together

this is a personal opinion