Throughout the years that I have been working in the Emirates I have always lived in Abu Dhabi; I have come to call it home. My work has taken me all over the UAE – to deserts, islands and mountains, as well as to other cities. I’ve seen it all, changing, developing and growing, each emirate at its own particular pace.

However, I’ve never quite fallen in love with Dubai as many of my friends have done. Indeed, my daughter is happily settled there.

To some extent that’s because I’ve never become familiar with it in the way that I have done with Abu Dhabi. I’ve rushed in and out on short visits, or driven through it, or now, thanks to the Emirates Road and the outer bypass, I drive past to other destinations. I will go to great lengths to avoid a trip to its malls. And like many Abu Dhabi residents I’ve been mildly miffed over the years by the feeling that somehow Dubai (and Sharjah) residents looked upon us as country cousins – a bit behind the times. I remember a member of the Sharjah ruling family telling me in the mid-1980s that although he was in Dubai almost every day, he hadn’t been to Abu Dhabi for ten years, and didn’t feel motivated to drive down the road. I haven’t seen him here since.

Over the years I have often wondered whether the pace of Dubai’s development was sustainable and whether there would come a time that a slowdown would occur.

Dubai’s population is set to fall 17 percent this year as the former boomtown suffers from a real estate slump that could cause the UAE economy to contract for the first time in about 15 years, EFG-Hermes said yesterday.

Consumer prices in the United Arab Emirates, the second largest Arab economy, are also set to fall this year as the global financial crisis pressures rents and consumer demand, the Egyptian investment bank said in a research note.

“We believe the impact of the global financial crisis will be particularly harsh in Dubai, compared to the other emirates and the rest of the region,” EFG-Hermes said. “This is because of both the highly leveraged and externally facing nature of the Dubai economy.”

Faced with a sudden economic slowdown, Dubai is trying to combat the fraud cases that surged during the past years of rapid economic growth in a bid to boost its status as a regional business hub.

But the clean-up drive has stirred controversy as several former executives of major firms, suspected of embezzling sums which total hundreds of millions of dollars, have been held for months without charge.

The economic boom of the past several years appears to be the main culprit.

"It was a boom market. Everybody gets greedy and you have corruption," economist Eckart Woertz of Dubai-based Gulf Research Centre told AFP. "You have the opportunity to cash in some bribes, and you do it."

The UAE witnessed a 16 per cent rise in the salaries of private sector employees in 2008 - marking the highest increase in the Gulf region, according to a recent study.

The study, conducted by a Dubai-based company specialising in administrative development, covered a number of private service companies in the fields of money exchange, finance, insurance, property development, oil and information technology.

The study put Qatar in second place with a 14 per cent average salary increase, followed by Oman with an average increase of 11 per cent.

The World Water Day event, due to be held on 27 March, 2009 at the public park in Abu Dhabi has been postponed to 10 April, 2009, due to bad weather forecast.

Dubai and adjoining emirates were lashed by heavy rain late Wednesday and Thursday morning.

The meteorology centre also reported heavy rain in Masafi and some areas of Sharjah.

The Abu Dhabi event is organised to commemorate World Water Day 2009 and to bring awareness to the increasing importance of conserving water.

Ebtisam Al Bedwawi has been named Dubai's first female judge.

"When I was sworn in before His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, I felt very proud, especially since it has proved how much our wise leaders trust women and support their empowerment. I thank President His Highness Shaikh Khalifa Bin Zayed Al Nahyan and Shaikh Mohammad who have always empowered women."

"I feel honoured to be the first woman to be appointed as a judge in Dubai courts." Born in 1982, Ebtisam holds a masters degree in special law, which she earned at the Dubai Police Academy.

The closing months of last year were dubbed the Empty Quarter by mortgage companies, such was the dearth of business.

But the darkest times could be behind lenders, who are now reporting an increasing number of enquiries from people interested in buying property.

And most people expressing interest in buying property are professionals in the mid- to high-income bracket keen to take advantage of lower house prices.

But significant hurdles remain – with most lenders introducing strict criteria for applicants to meet, in a move to limit their exposure to an unsteady real estate sector.

"The last quarter of 2008 was the Empty Quarter as far as buyers were concerned," said Omer Ghani, CEO of Fine & Country UAE. "However, since mid-February we have seen a significant increase in the number of inquiries about buying."

The Ministry of Foreign Trade said UAE's non-oil foreign trade rose by 33 per cent in 2007 compared to the previous year.

It reached $150.7 billion (Dh553bn).

In a press conference at its new premises, the ministry said India came first as the volume of its foreign trade with the UAE rose to $21.7 billion, followed by China ($12.8bn) and the United States ($9bn).

The UAE's foreign trade focussed 56 per cent and 57 per cent for the year 2006 and 2007, respectively, on around 10 countries at a growth rate of 35 per cent in terms of trade volume.

Signs of recovery in the Middle East property market are emerging but prices will fall for the next 6 to 12 months, a new report from real estate adviser Jones Lang LaSalle said on Tuesday.

The study for the MENA (Middle East and North Africa) region said that requirements for recovery such as rising oil prices and improved liquidity through the recapitalisation of the banking sector in the form government bailouts has already begun.

Falling property prices presenting good deals for investors would stimulate much needed demand in the market, the report added, citing that transactions in Dubai have doubled over the last month to $500m up from $250m.

Funds from the Dubai government’s $10bn bond will target Dubai World, Dubai Holding and domestic firms in the emirate's sovereign wealth fund's portfolio, the emirate's finance department head said on Tuesday.

A five-man fiscal committee, headed by Emirates airline chairman Sheikh Ahmed bin Saaed Al Maktoum, was established a month ago to assess the companies' requirements and decide how the funds would be used, Nasser Al Shaikh said in an interview on Tuesday.

"We will not wait to support the companies, there are urgent requirements that need to be dealt with quickly," he said.

The economies of the six Gulf Cooperation Council (GCC) countries will reach an aggregate $2 trillion (Dh7.3 trillion) by 2020, according to a new report by the Economist Intelligence Unit (EIU).

Another point the report raises is that monetary union between five of the GCC members will most likely not meet the scheduled deadline of 2010, and only be in place by 2020. Oman has opted out of the monetary union, insisting on pursuing an independent monetary and economic policy.

The EIU's long-term forecasts predict that by 2020 a quarter of the world's oil supplies as well as an increasing proportion of petrochemicals, metals and plastics will be supplied by the GCC region, and investors and regional sovereign wealth funds will increasingly focus on the emerging economies of Asia and Africa.

The GCC economy is set to grow steadily between now and 2020 but at a faster rate than the global average, according to a new report by the Economist Intelligence Unit.

The Gulf states will achieve average annual growth of 4.5 per cent compared with the aggregate global rate of 3.3 per cent.

And the report – The GCC in 2020: Outlook for the Gulf and the Global Economy – predicted that the region's economy will be worth $2 trillion (Dh7.2trn) in the next 11 years.

UAE. Gulf shares rose as a US plan to revive growth in the world’s largest economy boosted the price of crude oil, improving economic prospects for the region.

Abu Dhabi Commercial Bank, the UAE’ third-biggest bank by assets, and Commercial Bank of Dubai, the lender 20%-owned by the Dubai government, surged after banks said they will convert federal government deposits into capital to cushion losses.

Arabtec Holding, Dubai’s biggest construction company, led gains among real-estate firms.

Arabian Construction Company (ACC) says it is bidding for new projects worth about Dh8 billion and has enough work to take it through until 2012.

The company says it has registered significant growth during the past few years and had to restrain itself and also warns that the forecast for 2009 will be less optimistic compared to previous years.

Wassim Merhebi, Executive Director at ACC, speaks about the company's strategy for the future, its recent expansion and the state of the construction industry in the region.

More than 50,000 homes will be built for Emiratis over the next 20 years, the Abu Dhabi Urban Planning Council (UPC) said yesterday.

Tens of thousands of Emiratis have applied for government housing and the waiting list is up to five years long, so the announcement was warmly welcomed and heralds much needed relief to a housing crisis that has resulted in spectacular rent increases and forced many people to commute from cheaper areas, such as Buraimi in Oman, on the border with Al Ain.

About 30,000 houses will be constructed in Abu Dhabi and 20,000 in Al Ain at an initial cost of AED 25 billion (US$6.8 billion) in the first three years.

State-run Abu Dhabi Investment Co (ADIC) said this week it expects buyout opportunities to begin emerging in the Middle East and North Africa as valuations are hit by the global financial crisis.

The investment firm, owned by Abu Dhabi Investment Council, said it was looking for companies with solid cash flows in sectors that are likely to be least affected by the economic downturn such as healthcare, education and telecommunications.

Companies are still flocking to Dubai despite difficult times, thanks to the emirate's advanced infrastructure and its status as a major financial centre, a board member of Dubai Financial Services Authority said yesterday.

"The Gulf economy is clearly strong and I am optimistic about it in the long term. Every economy at the moment is suffering major pressures. Dubai and the UAE no different from that. But I do think fundamentals here are good. Dubai is a major international business centre; infrastructure here is very strong. Companies are coming here even in difficult times," said Lord David Currie, DFSA Board Member.

The UAE and other Gulf oil producers suffered from a combined asset loss of nearly $350 billion (Dh1.2 trillion) as a result of the global financial distress but their financial position remains strong enough to respond to faltering revenues and other repercussions, a major Saudi bank said yesterday.

After nearly seven years of an economic and fiscal boom, the six Gulf Co-operation Council (GCC) countries now face a difficult period as oil prices tumble, their crude output dives by more than two million barrels per day and global credits become scarce, the Saudi American Bank (Samba) said in a study.

Given their heavy reliance on oil exports, the decline will likely turn years of fiscal surpluses into deficits in some members, while their economies will either plunge into a recession or sharply slow down this year, it said.

But the seven-year boom is not a bygone era as its positive impact will stretch into 2009 and beyond.

Inflation in the UAE is expected to ease to two-three per cent this year and 2010 would be a year of recovery for the Gulf, Asia and Africa regions while economies like the US, UK and Eurozone are likely to take much longer to recover, Standard Chartered bank said yesterday.

Deflation could be a possible risk but not necessarily a threat to the UAE's economy. While some banks are already lending, the estimated Dh110 billion liquidity gap needs to be filled for the banking sector to re-start lending, Standard Chartered said in an economic briefing in Dubai.

The region, with its strong fundamentals, would be quick to recover and at the same time should aim at a "good quality, sustainable" growth instead of a high growth. Unlike last year, which saw growth in credit zoom to almost 50 per cent for the UAE in June, a growth of 10-15 per cent is desirable in the present situation, the bank said.

Decline in land prices has led to a fall in construction costs while speculators avoid investing in plots due to new regulations from Dubai's Real Estate Regulatory Agency (Rera), said experts.

According to Rera, a developer has to pay 100 per cent of the land price if he wants to sell units off-plan. Besides master developers are also strictly enforcing regulations that tend to discourage speculators. Land contributes almost 25 per cent to the total cost of construction, experts said, adding decline in prices have led to lower construction costs.

"Land prices have reached attractive levels in different areas of Dubai as speculative activity has gone down substantially," said Robert McKinnon, Managing Director of Research, Al Mal Capital.

Ronald Hinchey, a partner at Cluttons, said: "Dubai's emerging foreign ownership market has corrected mid-cycle, which may be easier to manage than a major downturn in, say, 2012.

New residential areas such as The Springs, Jumeirah Lake Towers and Discovery Gardens are witnessing increasing interest from buyers and renters, according to a property website.

The findings of propertyfinder.ae are based on approximately 500,000 page visits to the website during February and highlights ongoing activity in the Dubai real estate market despite the economic downturn.

Commenting on the survey results, Marcello Sambartolo, Head of Marketing at propertyfinder.ae, said: "This survey has revealed some really interesting statistics. We are seeing a real shift in rental interest towards new residential areas such as Discovery Gardens and Jumeirah Lake Towers where rents are more competitive. There is still interest from end-users looking to invest in Dubai, which is now offering opportunities to capitalise on the recent drop in house prices."

Ras Al Khaimah Investment Authority (Rakia) has mandated Standard and Poor's for a credit rating in an effort to attract more investment into the emirate, a top government official said.

"We are going in for a credit rating and have appointed S&P for the purpose. The rating should not be viewed as our plans to tap the fund market, but is to show the world how safe Ras Al Khaimah is for investment. We expect to get the rating in the next three to four months," said Dr Khater Massad, Chief Executive Officer of Rakia.

Ruling out plans for overseas expansion for Rakia, he said: "It was a directive from emirate's top leadership to invest and develop the emirate. And we are now concentrating on development of RAK."

In late January, S&P assigned RAK its long-term foreign and local currency sovereign credit rating of 'A', while Fitch assigned its 'A' foreign and local currency sovereign credit rating to the emirate. Both the rating agencies maintained a stable outlook.

"Ras Al Khaimah's rating is supported by its relatively diverse economy, rapid economic development and high per capita income and the government's prudent fiscal policy and strong balance sheet," Richard Fox, Head of Middle East and Africa Sovereign Ratings at Fitch, had said.

According to Dr Massad, the investment authority has no plans to launch a sukuk, or Islamic bonds issue this year.

In December 2007, Rakia listed a $325 million (Dh1.19 billion) sukuk on the DIFX and the London Stock Exchange. The money was raised to fund its Al Marjan island project.

Dr Massad, who is also the advisor to Sheikh Saud bin Saqr Al Qasimi, Deputy Ruler and Crown Prince of Ras Al Khaimah, refused to comment on whether RAK was planning a sovereign bond issue.

In mid February, Dubai launched a $20bn bond programme as part of its long-term financing strategy. The first tranche, valued at $10bn, has been fully subscribed by the UAE Central Bank.

According to Fitch ratings agency, public sector debt at end-2006 was just seven per cent of gross domestic product (GDP), well below the 'A' median, with no external debt and limited foreign currency debt in Ras Al Khaimah.

However, debt rose to 20 per cent of GDP in 2007, largely due to a $325m sukuk issued by Rakia. Besides, RAK's liberal business model, supported by state-provided infrastructure, has attracted major foreign investment since 2003 in two free zones, which are home to about 4,000 companies.

Cityscape Dubai, the world’s biggest business-to-business real estate investment and development event, has broken new records with 40,000 visitors in the first two days - more than the three days of last year’s event.

“As a result of phenomenal public demand, we have extended the Cityscape Dubai 2008 opening by a further one hour each day until 8pm,” said Rohan Marwaha, Managing Director of Cityscape.

Cityscape Dubai, taking place at the Dubai International Convention and Exhibition Centre is now in its seventh year and has already been extended to a fourth day.

“By the close of this year’s event on Thursday night we are more than confident of breaking all previous records with more than 60,000 participants from virtually every country in the world,” Marwaha added.

Dubai’s property market has taken a beating but could emerge from the economic crisis stronger and more transparent, leading legal and financial experts have predicted.

They were taking part in the Cityscape Connect business breakfast ahead of Cityscape Dubai.

Attended by more than 150 property executives, legal advisers and investors, the business breakfast was called to explore the challenges facing the Dubai real estate market.

The initiative has been introduced to stimulate networking, transparency and open debate on the key issues affecting the Dubai real estate industry which has dramatically changed market dynamics and growth prospects since last year's Cityscape.

Lisa Dale, a partner in legal firm Al Tamimi & Company, said: “As we come out on the other side of the economic troubles we are in at the moment, Dubai will have a more regulated and much more transparent real estate system.”

Dubai’s property market has taken a beating but could emerge from the economic crisis stronger and more transparent, leading legal and financial experts have predicted.

They were taking part in the Cityscape Connect business breakfast ahead of Cityscape Dubai.

Attended by more than 150 property executives, legal advisers and investors, the business breakfast was called to explore the challenges facing the Dubai real estate market.

The initiative has been introduced to stimulate networking, transparency and open debate on the key issues affecting the Dubai real estate industry which has dramatically changed market dynamics and growth prospects since last year's Cityscape.

Lisa Dale, a partner in legal firm Al Tamimi & Company, said: “As we come out on the other side of the economic troubles we are in at the moment, Dubai will have a more regulated and much more transparent real estate system.”

Resolving issues linked to the residency status of expatriate property purchasers will provide a floor to the Dubai realty market, according to a new report.

"Measures such as a removal of the current link between employment and residency status, and a clarification of the law providing for residency for expatriate purchasers may be required to provide a floor to the market," Jones Lang LaSalle (JLL), a real estate advisory firm, said in a report titled "Dubai City Profile – A Review of the Dubai Property Market."

The report expects activity in the residential sector to slow further in the first half of the year as nervous investor sentiment coupled with lower rental rates will encourage residents to lease rather than buy. As investors continue to adopt the "wait and see" approach, landlords are also becoming more flexible with payment terms, accepting cheques on a quarterly or even monthly basis.

Gulf oil producers are pushing ahead with costly gas projects despite a sharp decline in their crude export earnings and tough global credit markets.

Experts said the global financial crisis could even prompt regional countries to intensify their gas projects on the grounds they ensure a stable income in the long term and a diversified economy.

There is another factor that could push the Gulf countries to step up gas projects, said George, an adviser at the Institute for International Finance (IIF).

"I believe since oil demand is receding and its growth could remain slow in the next couple of years, the Gulf governments could channel part of their planned investments in crude capacity expansions to gas ventures," he said.

In the UAE, the Abu Dhabi National Oil Company (Adnoc) is expected soon to announce an agreement with the US ConocoPhilips to develop sour gas at Shah field after a long delay because of soaring costs.

A surge in its oil export income and other revenues boosted the UAE's fiscal surplus by a staggering 55 per cent in 2008 but the balance is expected to decline sharply this year, according to Western estimates.

From around Dh196 billion in 2007, the surplus in the country's consolidated finances jumped to a record Dh304bn in 2008, an increase of around 55.1 per cent, as per the figures by the Institute of International Finance (IIF). The surge was a result of a 41 per cent leap in the UAE's total revenues, which hit an all time high of Dh487bn last year compared to around Dh345bn in 2007, the Washington-based Institute said in a study.

The surplus increased despite a 22 per cent in expenditure to nearly Dh182bn in 2008 from around Dh149bn in 2007, the figures showed.

Between end-March to May this year, the construction sector might see the positive impact of the $10 billion (Dh36.7bn) that Dubai received from selling bonds to the UAE Central Bank.

On February 25, Nasser Al Shaikh, Head of Dubai's Department of Finance, said the property sector could be among the main beneficiaries of the aid and the aid would be "enough for now to help local companies pay off debts and restructure to deal with the slump".

On the same day, Dubai's Real Estate Regulatory Agency (Rera) said Dubai developers will have access to up to Dh8bn from escrow accounts to cover construction commitments and that was the "total available amount in the escrow accounts after Rera supervised and agreed to issue payments from these accounts to cover construction projects".

The UAE has 103 office developments underway worth a combined $10.62 billion, more than any other country in the Gulf Cooperation Council, a research report said on Saturday.

The report from Proleads, a Dubai-based market research company, said approximately 50 per cent of these developments in the UAE are due for completion this year, while the rest are expected to be finished in 2010.

Bank Sarasin has recommended Gulf States' equities as one of its 10 key investment themes in 2009.

"I am very confident about the Gulf States. The Dubai bailout was highly welcome and only serves to solidify the fundamental investment case for the Gulf States," the Swiss private bank’s Chief Investment Officer, Burkhard Varnholt said in a company press release.

Varnholt cited the following factors supporting the resilience of Gulf equities:

•    They currently offer the cheapest valuations in seven years;
•    They are generally well-managed, family-run companies;
•    They have solid corporate balance sheets; and
•    They are fundamentally attractive because of their resource wealth.

There has been a dramatic rise so far this year in the numbers of trade and business licence applications in Ras Al Khaimah, with the total in January and February at 3,804, according to a statement issued by the emirate's Economic Development Department.

This follows a 2.6 per cent rise in the number of licences issued in 2008 over the previous year. While 17,840 business and trade licences were issued in 2007, last year saw that number increase to 18,318, the department said.

New trade licences in 2008 totalled 9,162, while the number of new industrial licences was 314, and new professional licenses 8,842.

The statement also said January and February 2009 saw remarkable activity in the sphere, with a total of 3,804 licence applications being referred to the department, including 1,817 trade licences, 74 industrial licences and 1913 professional licences.

A surge in its oil export income and other revenues boosted the UAE's fiscal surplus by a staggering 55 per cent in 2008 but the balance is expected to decline sharply this year, according to Western estimates.

From around Dh196 billion in 2007, the surplus in the country's consolidated finances jumped to a record Dh304bn in 2008, an increase of around 55.1 per cent, as per the figures by the Institute of International Finance (IIF). The surge was a result of a 41 per cent leap in the UAE's total revenues, which hit an all time high of Dh487bn last year compared to around Dh345bn in 2007, the Washington-based Institute said in a study.

The surplus increased despite a 22 per cent in expenditure to nearly Dh182bn in 2008 from around Dh149bn in 2007, the figures showed.

The Middle East will lead the world out of the current economic slowdown, according to 76 percent of senior business leaders responding to a poll.

The survey of delegates attending the World CEO forum in Dubai later this month shows that 66 percent are “very optimistic” about the long-term prospects for their company in the region.

A further 33 percent of delegates, who hail from the US, the Middle East, Asia and Europe said they were “optimistic” about doing business in the region.

The sudden drop in the prices of prime Dubai properties is drawing attention from real estate investors seeking attractive entry points.

"It is not so much that Dubai is gearing to attract more real estate funds into the market, but with property valuations becoming more attractive... investors are deploying more capital into the real estate sector," says Kerrie Alder, Head of Real Estate, Emirates Investment Services (EIS) Asset Management.

"The re-introduction of available financing will also further aid interested funds in due course," said Alder.

The Dubai Multi Commodities Centre (DMCC) said its expenditure on infrastructure development at the Jumeirah Lake Towers (JLT) will amount to Dh1 billion. Infrastructure development at the project is progressing and work on the remaining three lakes is expected to be complete by 2010.

DMCC reports that it has signed a Dh150 million landscaping agreement with Al Bayader Irrigation and Contracting Company for the Jumeirah Lake Towers development.

Bryan Wilson, one of the Executive Directors at DMCC, said the two-year contract will involve development of landscaping for the project and work will start within weeks.

"The amount being spent on the infrastructure development within the JLT will come up to Dh1bn. Including all the towers, the project will be a Dh20bn development," said Wilson.

Abu Dhabi's industrial port and city project will receive a total investment of $24 billion (Dh88bn), according to Maqita Al Ahbabi, Senior Coordinator of Project Development Strategy and Development, Abu Dhabi Port Company. It will cater to 300, 000 residents and will create 150,000 jobs, she said.

The first phase will include the inception of Khalifa Port, is expected to be completed in 2010, followed by phases including aluminum, petrochemical and clean technology industries. Work in the port is going on without delay, with investment over the last 2 years reaching $5.1bn.