The Pakistan Economy Watch on Saturday said Pakistanis have lost billions of dollars of investments in speculator-oriented Dubai real estate property downturn. Those who lured Pakistanis by showing them golden dreams of rich returns by investing in the oil-poor emirate have walked away. These include salesmen, so-called developers, intermediaries and bankers, etc who must be brought to book.
Shares of top property giants in Dubai have fallen as much as 85 per cent bringing many mega projects to halt, said Dr. Murtaza Mughal, President Pakistan Economy Watch while unveiling ‘overseas risk report’. Many local and foreign companies have opted for mergers to avoid bankruptcy. The giants are cutting expenses, plans and number of employees.
He said the losses in the realty sector are roughly equal to that of GDP of Dubai. The government of UAE is pumping billions to avoid failure. 30 billion dollars have been pumped in the banking system and selling of some highly acclaimed assets is under serious consideration.
Dubai is facing losses to the tune of hundreds of billions of dollars and risk of defaults. The situation has result in stock exchange crash, dried up credit and shaky wealth funds. Banks have minimised limit of credit cards and mulling their ability for foreclosures. “UAE has already lost 100 billion dollars in the global crunch and it has 500 billion dollars of assets,” said Dr. Murtaza Mughal adding that it is already under stress due to some 60 per cent slide in oil prices.
The plans to make Dubai a hub of financial activities may not realise as attempts for unnatural growth result in such a situation, said Dr. Murtaza Mughal. -PAK Economy Watch