Building Islands is Expensive!

Posted by Admin | November 27th, 2009

The United Arab Emirates is essentially a nation made up of seven small kingdoms, or emirates. The most well-known of these emirates is Dubai, an area which is extremely rich. The area is well regarded in the west because of it’s embracing of the free market and other so-called western ideals. Apparently, though, Dubai’s real estate market has both risen and fallen with the West’s efforts too. During the height of the real estate boom, they were building islands that looked like palm trees or maps of the world. In fact, that is what Dubai is best known for, the efforts of the State-owned business Dubai World, which specializes in these sorts of real estate ventures.

However, Dubai World is now floundering. The company has some $59 billion in liabilities, a huge sum for such a small government to have incurred. The company plans to get back into the black by receiving a bailout from nearby emirate Abu Dhabi. We’ll see how it works out–but one thing is for sure–as the United States real estate market goes, so goes the world real estate market.