The Dubai bond prospectus has revealed some new information about the emirate’s economy and confirmed others. Here is a look at some of the most interesting aspects of Dubai’s economy.

For all those who didn’t read the 123-page Dubai bond prospectus, we have digested the fact-filled proposal to reveal some of the most interesting aspects of the emirate’s economy. Some of it may come as a surprise, while other pieces of information confirm that we already know. In any case, it has led to more transparency about the emirate’s economy.

Here is the most interesting points - digested: Read More Here

The UAE economy started to recover in 2010, though more modestly than in neighboring GCC countries. Benefiting from higher oil prices and strong demand from traditional trading partners in Asia, real GDP grew by an estimated 3.2 percent in 2010.

Nevertheless, because of the real estate overhang and continued uncertainties about the solvency of GREs, growth remained below the regional average of 5 percent. The 12-month consumer price (CPI) inflation rate was subdued at 1.7 percent in December 2010, up from -0.3 percent at end-2009.
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The global financial crisis brought an end to a decade of high growth.

The U.A.E. has had remarkable achievements over the last decade with its open and outward orientation, which led to a diversified and steadily growing economy. The decline in oil prices, the post-Lehman shut down of international capital markets, and the price correction in the property market in Dubai have put significant strains on the economy.

The UAE authorities supported the banking sector through liquidity injection, recapitalization, and deposit guarantees, and the Emirate of Abu Dhabi provided financial support to the Emirate of Dubai. Nevertheless, the combination of substantial short-term borrowing of the highly-leveraged GREs in Dubai, the price correction in the real estate market, and maturity mismatches forced Dubai World (DW), a major Dubai GRE, to seek a debt standstill. Real GDP is estimated to have contracted by 3¼ percent in 2009.

Here is how the drama unfolded in those dark days of Dubai. Click on the charts below to continue:

And then read How The UAE Economy Is Recovering