Reality heck a good thing but Dubai still appealing

Financial forecasts may not make for comfortable reading at the moment but, despite all the newspaper tales of doom and gloom there are many reasons to be cheerful.

There is no doubt that world-wide economic strife has changed the climate in which we all live, only a fool would deny it, but we must not fall into the trap of negativity which effectively ties the hands of industry.

The biggest barrier to large-scale recovery right now is a crisis of consumer confidence and while people may not be making hay with quite the same frequency as before, the sun is still shining on Dubai and the will to succeed remains.

Dubai has changed in 2009; some people have gone home while others are being forced to accept differences in the way they work to survive the downturn. Visas have been cancelled and the quieter roads are a boon to those still here and a reminder that the pace of growth in the emirate has slowed.

But in the long-term, is it such a bad thing? Economies are necessarily cyclical and if you want to be part of the modern world you must accept the rough with the smooth. Boomtime may be over but the opportunities for consolidation, for digging-in and building firm foundations have arrived. And if you are in a financial downturn logic dictates that in time the wheels of change will bring you out of it.

Dubai is an emotive place to the rest of the world. Watching eyes follow its every move and it inspires both admiration and envy in equal measures in media circles.

As a place to set up home Dubai can't be all things to all men and the city will always have its critics, yet even the detractors wouldn't deny Dubai has an iron will to realise its ambitions.

The famous "brand Dubai" survives intact and is perfectly poised for the recovery when, not if, it comes. The desire of this emirate, while dented for a while, has not lost its potency. The people that built Dubai up, its rulers, its entrepreneurs and its workforce, will not allow it to fail.

In the current environment of negative growth, Dubai is better positioned than the UK or the USA recent gains seen across all sectors at Dubai Financial Market indicate that there is still life in the money markets. The people that come here for work are here by choice because Dubai offers something they can't find at home.

Costs, including rents, are coming down and with recent indications that we may see a drop in price of basic foodstuffs; living in Dubai could become more cost-effective than it has been for half a decade.

Wages here are free from income tax and companies based in the emirate find the cost of human resources manageable and free from the sometimes cumbersome regulations imposed by trade unions.

Capital controls in Dubai are not strict and individuals are able to move money into and out of Dubai in relative freedom. All of these points combine to create an atmosphere conducive to the establishment of businesses and will prove the key to long-term recovery.

The improving infrastructure and the long-awaited metro add to Dubai's appeal, while its desirability as a tourist destination remains unchanged.

Linda Mahoney is CEO of Better Homes LLC.