WE’RE CONCERNED ABOUT: Dubai (2)
The bad news machine continues to hum along at full throttle over in the desert emirate of Dubai. As we reported some two months back, Dubai is both suffering from a lack of liquidity and clamping down on media outlets trying to report on its economic crisis.
Now it appears as if the government is taking steps to thwart full-scale economic meltdown. A new law has just been passed allowing Dubai’s developers to cancel housing projects if they do not begin construction within in six months of their official approval.
The move already sees some 27 high-profile developments at risk of default status. Overall, local real estate watches say the law could see a full 25 per cent of Dubai’s literally hundreds of developments ultimately scrapped.