Dubai is ’still an important offshore finance centre’
08 December 2009
Dubai must retain its reputation as the main centre for both offshore finance and tourism in the Middle East, analysts have told AFP.
The United Arab Emirates (UAE) state attracts over seven million tourists each year with its five star hotels and luxury leisure facilities. Dubai is also a tax free zone and the Jebel Ali Free Zone is one of the most favourable offshore business centres for international companies operating in the Middle East.
However, there have been fears recently that the Dubai bubble may have burst as state-owned company Dubai World announced that it would be delaying payment of its debt.
Marwan Barakat, chief economist at Lebanon’s Bank Audi, told AFP: "Of course, this is not the bankruptcy of Dubai. There is no other city in the region that has the same assets."
These views were echoed by Jim Krane, who wrote a book on the financial success of Dubai.
He told the news provider: "I do not think it is the end. Dubai is still the main financial services centre for the region. Half of Dubai’s economy, including business, tourism, shipping, trade, and logistics is still viable."
A significant number of people living the UAE state are expats and last week Zawya Dow Jones reported last week that those working abroad in Dubai could face job losses.
Source: Halifax International Expats