Dubai: 8 million sq ft mall to proceed

The world would most probably be in a recession mode for 2016. IMF’s assessment. Read here: Getting ready for the next global recession? : It’s not too hard to understand why, the world’s largest market, China’s growth has fallen so much that it is affecting countries with lots of exposure to it including even our neighbour, Singapore. One country is still pushing ahead with the construction of the world’s largest shopping mall. Dubai (UAE) said that its 8 million sq ft shopping mall called The Mall of the World would proceed even if it will continue to assess the market in later phases of the project. This mall is connected to a theme park, 100 hotels and serviced apartment buildings with 20,000 rooms.

Total capital needed would be around US$22 billion and the first phase would be ready before Dubai hosts the Expo 2020 exhibition. Beyond that, it will depend on market dynamics. The company responsible for this mall is Dubai Holding and it’s owned by the emirate’s ruler. Its vice-chairman and managing director Ahmad bin Byat said that the project would still be the the world’s largest shopping destination. He said, “This is a mixed-use project which will be very interesting not only to locals but for the global market to invest in.” (This confidence is good because there was a huge slowdown in 2009 in UAE especially in Dubai but the restructuring has been completed within less than 2 years, it bounced back)

I have a few friends working in UAE and I just met one this morning. I think he has full confidence with his career there because he has not just bought a place there but is relocating his family including his Singaporean wife and his daughter there. Well, in terms of pay, it’s indeed very lucrative indeed plus all the benefits which I think is second to none, even when compared to the most advanced nation in South East Asia, Singapore. For those who think it’s so amazing because of oil, the truth is, oil and gas output is now accounting for less than 25% of its GDP. (Source: CIA World Factbook) In other words, this is considered a diversified economy.

one bed apartmentSometimes, we think we know the world. Seriously, I do not. Truth is, there are still many countries which are like a magnet to the world’s talents. If we really are thinking about earning huge money and saying most of it, I think Dubai presents a great opportunity if the skill we have matches what they require. The advice remains the same, really to stay focussed on earning and saving because no one knows if the crisis in 2009 which hit Dubai hard may come back. Oh yeah, property investment? I do not have enough knowledge but a one bedroom apartment availability and price is as per image. The price starts from AED800,000 (RM896,000) or higher. (Ex. rate as per 11 Feb 2016). Compared to the salary my friend is earning, I guess this is still considered quite affordable? I should pay a visit to my good friend. Hopefully, he will also take leave to bring me around too besides letting me stay in his home. Happy visiting.

written on 11 Feb 2016

Next suggested article: IMF: The world is not growing to grow fast

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