Old Article Well Worth Republishing

The internet is a wonderful and amazing resource (often a frustrating one, too). What is amazing are the little gems, the unexpected tidbits of info or other mateiral that one just happens upon. The following was brought up in a forum at SkyscraperCity.com: Dubai to guarantee capital of investors, says al-Maktoum.

It refers to an article dated 25 Oct 2003 (pasted in its entirety below should the source link disappear). It states:

Dubai will not allow any (investor) to lose ... If anyone’s investment in Dubai regresses, and if the capital regresses, then the government of Dubai will give him, and it will buy what he has invested in, al-Maktoum said in Al-Bayan newspaper.

Is this an edict? If a developer runs off with the payments of investors--a fear (even if unstated) of off-plan property buyers--will the government of Dubai reimburse such investors? It is an interesting question, one I cannot presume to answer, but one for which this article offers a bit of hope.

Article in Full

Sh. Mohammed bin Rashid al-Maktoum, Ruler of Dubai

The government of Dubai will guarantee capital invested in projects in the emirate, the emirate’s crown prince Sheikh Mohammed bin Rashid al-Maktoum said in an interview published on Saturday.

Dubai will not allow any (investor) to lose ... If anyone’s investment in Dubai regresses, and if the capital regresses, then the government of Dubai will give him, and it will buy what he has invested in, al-Maktoum said in Al-Bayan newspaper.

The crown prince, who is the driving force behind multi-billion dollar projects that have placed the emirate on the world map, told the daily: I hate failure, and I can’t stand it.

The goal to develop Dubai into a tourism hub, he said, stemmed from a conversation he had with Arab ministers at an early age while visiting oil-rich Kuwait.

The crown prince interrupted the conversation of the dignitaries and asked Why don’t our countries in the Gulf, and in particular Dubai become promoters of tourism? ... If I remember, no one listened to me.

So I repeated the question, and I said that I was thinking of making Dubai a center of tourism and to place it on the international tourism map.

Since that day, al-Maktoum said in the government daily, the competition thermometer increased and Dubai now has become as I dreamed, five million tourists travel to it (annually), and in 2010 we expect 15 million tourists from all over the world.

Last week, Dubai announced plans to build “Dubailand”, a scheme to give the Arab world its own version of Disneyland. Sheikh Mohammed, who is also UAE defence minister, said the theme park would be completed after three years at a cost of 18 billion dirhams ($4.9 billion).

The return on every project (in Dubailand) will be 18 per cent, where will you find such a return on investment and in what country? he replied when asked how he would attract investors to the project.

Oil revenues account for only eight per cent of Dubai’s general budget, with tourism revenues and trade accounting for the remainder.

Seventy percent of the emirate’s imports are re-exported, said the crown prince.

Dubai has become an important financial centre, with its own weight and importance. Dubai has achieved a silk road in the sky ... Emirates airlines started with two planes and with a start-up capital of $12 million. Today the airline’s fleet consists of 60 aircraft and within two years or three the number will multiply to 120, he said. —AFP

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TAGS: Dubai property, property guarantee, Sheikh Mohammed bin Rashid al-Maktoum, Dubai edict