Senior financial executives put Dubai in a good position to face the challenges of the global downturn.
The fall in real estate prices in Dubai should reach a bottom in just three to four months, according to Ali Khan, executive director of investment bank Arqaam Capital. 'The real estate market will reach a bottom a lot quicker than people are anticipating,' he said.
And recovery will come as the best property companies are changing their strategies so cope with the financial downturn. 'I don't expect companies just to sit by and let their order books disappear and not do anything. We're clearly seeing signs of some of these real estate firms actively trying to change their strategies and so forth,' he commented.
He added that once property prices start to pick up, this is likely to have a knock-on positive effect on stock markets, which he said should turn around by the second quarter of next year.
And with the Dubai Government set to announce a record budget in a few weeks there is optimism within the sector.
Nasser Al Shaikh, Director General of the Dubai Department of Finance, said Dubai is in a sound financial position. 'The new environment is challenging. But we are in absolute control of our destiny. We have the means to deal with the outcome of the global credit crisis,' he said.
The new budget is expected to focus on capital expenditure with an increase in spending on infrastructure projects, including completion of the Metro project, expansion of the airport and construction of a new airport. It is also expected that 32,000 new housing units will completed in the coming year.