The rising prices of everything have affected Dubai and its financial situation. The ever rising prices of properties and Dubai real estate are on the top of financial crisis which Dubai is facing. It becomes really difficult for people to afford there house on rents and buying property. Dubai was considered as the safe haven for about previous forty years but now the world crisis in which inflation has contributed a lot due to rise in patrol and petroleum goods prices has affected the Dubai’s economy. Everything from day to day usual products to luxuries prices has increased at about more than two percent ratio. We can not neglect the fact that this modern city is built by the loans taken from Swiss banks and the interest rates are increasing with every passing year. So it is really hard to say that Dubai can survive if it does not make a good plan to stabilize its economy.
The true problem that is hitting straightly the financial issues of Dubai is the property and real estate business. Dubai is one of the most expensive cities to live in and the labor class of Dubai is usually from the third world countries like India, Sri Lanka, Bangladesh and their purchasing power is not like others and it is impossible for them to buy a property or place to live in Dubai. They can hardly afford the basic Necessities due to increase in prices of the world so they can not buy a home in Dubai.
Dubai is oil producing market and the oil reservoirs are slowly diminishing and it can be a situation very near when Dubai has to buy oil from other countries and this can really be hurdle for the economy of the Dubai. And in case it happens than Dubai will remain no more a perfect place to live and enjoy life because everything from head to toe will really go on high price.
Dubai really needs now to make new policies and static’s to balance its financial crisis. Government of Dubai needs to hire good economist to make its economy stable. Otherwise within five years the Dubai economy can go in really worst condition. So proper planning to deal with financial crisis in Dubai is very important issue so that it can face other Economical crisis for long time without disturbing the every day life but if it does not it is totally destruction for Dubai.