Dubai Recovery will be sooner than expected
Dubai Airport serves around 40 million passengers around the world, and the hotel occupancy exceeded 90 percent, while the number of new residents went beyond the number of people who departed from Dubai. Companies operating in Dubai were able to reduce their expenses by more than 30%, at a time where "DP World" serves over 45 countries around the world. More importantly, the essential Infrastructure base has been accomplished successfully.
We cannot ignore these indicators or shorthand the achievements of such a developed country, just because a company has requested to extend the installment period of its commercial loan.
In my personal opinion, the media campaign against Dubai that was carried and is still going on has ulterior objectives and aims to improve the terms and conditions of the funding contracts and obtain Government guarantees, knowing that these contracts are commercial contracts and are not guaranteed by the Government.
Hence, the issue is simply about shortening the loan installment periods, and this misjudgment involves some lenders themselves. It is obvious by a caucus of lenders, who seek to be part of the company’s assets before improving the market mean values that have rapidly became visible.
What I'd like to talk about today, is how some of the Arab media abuses the global reports that they receive, specially ignoring facts that are closer to the market.
For example, in a press release that was held earlier this year, I discussed the significant damage created by the Arab media transmission for the negative reports issued from foreign contacts. Similarly, to what had happened when the oil barrel price dropped to less than USD 40, where an extensive questioning campaign was developed to tackle the Gulf's ability to recover, under such level of petrol prices.
That was a false claim, as all economic indicators conveyed the equitable price at a range between USD 70 and USD 80, and that was the recorded rate until the end of the year. Although several formal declarations were made in this regard, the media ignored it and didn’t pay any attention to the positive reports.
Media in Western countries is capable of directing general moods towards specific interests. Dangerously, Arab Media fully depend on the reports generated by the Western media, where the majority of our media aren’t capable of drafting highlighted and consistent reports with reality and potential economic interests.
This failure reached the inability of choosing positive reports that can be picked up and built on - for example, both the Gulf and Chinese economies are considered to be the fastest recovery markets for one reason: focusing their efforts on economic recovery policy through spending on Infrastructure. This policy can be reflected on all sectors, unlike other recovery policies adapted by some industrialized countries such as the United States of America, which focused on saving the banking sector only.
Questioning the capability and potential of Dubai makes no sense and we have got used to it, even when Dubai was able to attract millions of investments, tourism, businesses and employment opportunities.
If these existing capacities are a reality, so what are the justifications for such a false and exaggerated campaign?
I am sure that the recovery will be faster than the most optimistic analyst expectations.