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Dubai Economic slowdown

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					Economic Slowdown of
       Dubai




               Presented By : Nikunj Patel
                 About Dubai
• One of the seven emirates of UAE
• Ruled by the Al Maktoum dynasty since 1833
• Major Revenue Sources
   •Petroleum & natural gas
   •Property & construction
   •Tourism
Sectoral Composition of GDP of
            Dubai
                        Others
                         9%      Real estate &
           Petroleum             Construction
            related                  23%
              17%

      Other services
     including Retail
           9%
                                       Trade &
                 Financial             Enterpot
                 Services                31%
                   11%




                                     Source : CARE, Emerald insight
            Dubai Financial Crisis

• The Dubai government’s total debt was $80 bn. till
 February 2009
• Dubai World burdened with $59 bn liabilities
• Dubai World had declared a six month standstill on its
 debt repayment to its lenders
• Nakheel has a debt of $26bn
           Reasons For The Crisis
• After 2003- Dubai economic model- More debt & less equity.
• Global Economic Crisis
    • Shipping industry
    • Tourism
    • Real estate prices collapses
• Government restrictions were low.
• No strict lending standards and low interest rates.
         Impacts of Dubai Crises
• Impact on Banking
• Fall in real estate prices
• Unemployment problem may arise in Dubai.
• Drop in demand of Gold
• Immediate drop in oil prices
     Impact on Asian Stock Market
• Hangsang (Hong kong )       4.8%

• Nikkei (Japan)              3.2%

• BSE (India)                 2.0%

• Kospi (Seoul)               4.7%
                  BOB

                  Axis

Indian Banks In
                  SBI
     Dubai

                  ICICI

                  HDFC
         Indian Bank Exposure
• Bank of Baroda has some real estate exposure to Dubai
 which is around five per cent of its loan book account.

• State Bank of India has an exposure of Rs 1,443 crore or
 0.2 percent of total assets in the UAE

• Such loans are issued for very short periods (3-6 months).
THANK YOU

				
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posted:5/7/2011
language:English
pages:10