GamerCowboy's Journal: Dubai Economy Crash on the Horizon?

Could it be that my predictions of a depression in Dubai's economy may finally be coming to pass? The government has been spending way too much and the growth has gone unchecked. The infrastructure is unable to cope and massive projects to improve it have only added more government expenditure to the equation. Basic macroeconomics teaches us that increasing government expenditure or lowering interest rates are direct ways to boost an economy. Dubai has both and is showing no signs of stopping.

The signs are all around us. Inflation is painfully obvious to anyone who spends as little as six months in Dubai. Investor confidence is still high but some blemishes are appearing especially in the prime real estate market. There are several other economic factors but on top of all these, we have an ever-expanding collection of reasons that will indirectly affect the economy.

People are starting to hate Dubai. This isn't just a case of the discontented being more vocal than the content ones. People are really becoming fed up with life in the big city. The outlook is not so good as the discontentment arises from fundamental deficiencies of this part of the world so will not be addressed anytime soon. These deficiencies are part of another discussion for another time.