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In talk with Morgenland magazine, No. 88: Ernst Munk on the Situation of the Nation and the ongoing Struggle against the Super Recession: |
Dubai: Proud on the Past, confident of our future. |
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The economic and fiscal weights worldwide have shifted to benefit the Arab World. Consequently also Dubai is in an excellent position for a positive development. This process will continue. The UAE can invest in technologies of the future i.e. construction of 4 new Nuclear Power Plants. International Co-operations are reforming themselves and Dubai is right in the middle of it. The Economical development of the Emirate is a very good indicator for this fact. Also the German National Economy must make this turn about, simply because for us this is a question of survival. |
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www.ErnstMunk.com |
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And the public opinion is this: Only the ones that are tops in High Technology will remain at the top of the ranking of the Industrial Nations. The importance of the Anglo – American economic area has definitely lost importance.
Unquestionably the Arabian World, because of its Network has weathered the crisis by far better than the ponderous European Banking Structures were able to.
After all the Arabian Economic Leaders in the UAE have avoided making many mistakes which Europe, the USA and the other rest of the world did. Mainly the exorbitantly piling up of debt over decades by the governments for consumptive spending such as subsidizing social budgets for ailing pension systems. Certainly Dubai did, as London or New York did experience tremendous price increases in the Real Estate markets and as a consequence vacancies. In hindsight it becomes clear, that the development of the doubling, tripling or even larger multiplication of Real Estate or land prices every 5 or 10 years could not continue ad infinitum. However, the big difference between the UAE/Dubai and the Western Industrial Countries is, that there were other negative circumstances which show their detrimental effects on the National Economies: These are a population pyramid upside down, the consequences of poor educational policies, the negative results of false subsidy policies for companies, health systems and pension schemes and many other factors which are hindering the European Governments, specially the German Government, to combat the crisis. The National Economies of the UAE and Dubai do not have these encumbrances, which enables to let the forces for a recovery move more freely.
The UAE and Dubai can and will employ the Measures for the Restructuring quicker and more effectively than the USA or Europe.
NAKHEEL and EMAAR are to be entirely restructured and to be set up with new functions. Both have enough potential for such a measure. And this goes for all the Emirates of the UAE and specially for Dubai. Also here the necessary potential for a restructuring process is available, for a comeback out of its own resources.
Conclusion:
The Economies of the UAE and Dubai have large enough self healing potential which should be clear to every restructuring expert and also that this is due to the reasonable participations and investments of earlier decades.
The State Fund reserves of Wealth of the UAE are estimated to be US$ 328 Billion.
The available capital has been invested around the globe in participations so that a renewal should be possible. And Germany? There the debt clock clicks at Euro
1.680.000.000.000 or 1.68 Trillion = 89% of the annual economic performance of the whole nation; with the USA being at an estimated US$ 11 Trillion = 136% of the annual economic performance of their nation.
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