The up and down cycle thatDubaifaced can be interpreted from multiple aspects. First off, the pace of the rapid development had been based on borrowing and investing and grand projects as well as growth in the Real Estate sector. Many critics pointed to this growth being artificial.
Thus a downturn in this respect can be considered health for Dubai’s economy. The market had to correct itself for what can be termed as past excesses. Since Dubai vies for a place among the world’s global hubs, it had to endure through price corrections sooner or later to continue on that trend which could not be based on artificial growth if it was to be sustainable. Another aspect to consider here though is the source of Dubai’s bailout. It was expected from the start thatAbu Dhabi was going to bail out Dubai but the delay it took for it to come into action raised some eyebrows. This raises questions regarding the kind of relationship the emirates enjoy which are ruled by different Sheikhs.