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I wonder if this time Emaar had to sell their shares to pay the either underpayed or unpayed employees from India. This stock market is among the top 5 worst performers in 2006. These shares are at historic lows and even then no one is buying. I think the real estate market will come crashing down next. Once the share prices recover, I will be out for good and leave my money in Hong-Kong where there is a population of 1.6 Billion people that can support the market unlike Dubai that has 70% foreign underpayed or unpayed laborers. No wonder this market has not recovered. I doubt the Real-estate market would recover either after the crash that is around the corner. If one were to look at the Classifieds section for homes for rent and sale and compare it to the jobs section that payed salaries that can cover the payments on these selling homes or rental on these homes one could not stop laughing. The majority of the builders won't give loans backed by Banks until the building is finished. This means that most people would have had to have had payed of their apartment or villa by move in We can see already that this kind of cash does not exist here in Dubai or the market would have rebounded long ago in the DFM.

There have been rumours and fears about the bubble bursting for years...it continues to grow, bolstered by unseen funds and hands. If the price of oil were to collapse or another fuel source fully developed to commerical viability...then the whole pack of cards would come tumbling down.



Knight

great post

been saying the same thing for the last 6 months, and still the fools are buying.

The smarter one's dumped off a fair while ago

get rich quick wananabe's are shafted

The smarter ones then buy back for a lot less than they sold for

I cant wait

So why are the powers to be not doing anything?? Thats what i don't understand, are we going to end up with a ghost city on the edge of the desert.

I also don't see how the relates to some of the worlds worst rent rises??

I am dammed if i can work out how this country works...is it make as much as you can before it all goes pear shaped..because this situation and inflation as it stands is surely unsustainable.

JJ - I don't see how it would become a ghost city?? Stock Market crashes rarely lead to a mass-exodus from a city! Ok, I accept that a few people will be put off and will move on to the next big thing, but then there will be the people like Arnie (or some even bigger fish than him) who will come in and buy up all the cheap properties. That's called peaks and troughs!
It should recover - maybe not to the levels it is now, but I can't see all that's being built is going to make it end in a ghost town - if anything, I would think it may even end up making Dubai fill up a little - all those empty apartments might end up filling up, and Dubai might become even more attractive to potential workers and investors.

Zooter - i agree and my statement was quite extreme.

I think my zealous reponse comes from being my wallet just being hit for ones years rent.

As you can imagine if i was a property investor, i would proberbly be shouting from the other side of the fence.

I have yet to see all those apartments get sold and be bought up by the current underpayed and unpayed laborers in Dubai that sell for over 1,000,000 Dhms. and are rented out for 80,000+ Dhms. per year. If one were to open a local newspaper and look at how many apartments were available to rent at 85K-140K per year and compare that to the number of jobs available with those salaries one would start laughing at the differences. The big crash is yet to come and when it does come it will be making headlines worldwide. Dubai simply does not have high paying salaries to be covering their rental requests on aprtments and villas along with the living standards of where the government has a monopoly on (an example would be Etisalat and blocking of Skype) among others. If people want to buy a retirement home they would more likely buy one in Thailand over Dubai because there life is cheap and one that is not working usually can't afford high expenses for basic stuff after they have retired. This is the same exact reason as to why Hawaii has plummeted and does not get any return visits by the Japanese and Americans. Most Americans now head towards Mexico for cheap vacation trips. No one wants to get away and spend $300+ to sit at a hotel on the beach and Pick up a chick for the night for another $300 The average person can't afford to spend $600-800 a day on basics while on a trip. As far as families are concerned one would also have to think twice about taking their family on a vacation to Dubai with $300 Plus room nights when they could get $50-80 per night room rates in Thailand or Malaysia. Dubai's stock market has proven to be a failure of the local economy in Dubai and the local high prices of expenses will prevent people from moving into Dubai and make foreign visitors or travelleres think twice about returning to Dubai. This is very sad to see. I myself have lost a lot of money in the last drop of where the DFM dropped. When the market recovers and if I will transfer my money to Hong-Kong to where the market is more stable and has better support. The Hong-Kong market has 1.6 Billion Chinese people behind it as to where the local market in Dubai has underpayed foreign laborers that can't afford to by shares in the local market. Others can barely pay their bills and don't have extra money to invest in the local market. The locals only buy in on IPO'S where they can't go wrong and the Good IPO'S are only offered to locals. The locals that commit crimes are usually then pardoned only to commit more crimes.

You guys remind me of the people in NYC who hold up signs and say that the "World Will End.... tomorrow"

KeithL wrote:You guys remind me of the people in NYC who hold up signs and say that the "World Will End.... tomorrow"

Only difference is that people in New York make good money, so I doubt New York would not recover. I see your point though. I'm just hoping that the government in the Emirates changes the way they do things to help revive the local economy that is being battered these days.

KeithL wrote:You guys remind me of the people in NYC who hold up signs and say that the "World Will End.... tomorrow"

Right on Kieth

Styline, from your nick I assume that you are an expat... but instead of just analysing, have you plunged into the property market??

Instead of trying to make money on a weak and immature stock exchange, I'd have invested something in real estate... something not very big but instead of spending absurd amounts of money on rent, get yourself a 1bed apt...

I bet you have already spent much more than what it costs on renting out a place so far

Stylinexpat wrote:Once the share prices recover, I will be out for good and leave my money in Hong-Kong where there is a population of 1.6 Billion people that can support the market unlike Dubai that has 70% foreign underpayed or unpayed laborers.

Are you talking about Hong Kong or China? The Hang Seng is doing damn well in the two years since I left HK. I wish i had kept my shares going there!

KeithL wrote:Styline, from your nick I assume that you are an expat... but instead of just analysing, have you plunged into the property market??

Instead of trying to make money on a weak and immature stock exchange, I'd have invested something in real estate... something not very big but instead of spending absurd amounts of money on rent, get yourself a 1bed apt...

I bet you have already spent much more than what it costs on renting out a place so far

Those that purchased a couple of years ago have really done well, in today's market I am not so sure though

This thread was an interesting read and i enjoyed it thank you.

Stylin, one thing you mention you are 'stuck' in the market and will pull out as soon as it recovers and then give very good reasons why it won't. when your shares dropped 10 fils you probably said, hmmm this isn't good but I'll hold off can't sell now I'll lose X dirhams, now you are hoping that it goes back up to X so you can reduce your losses.

The next week in the market will stabilize and may even go up a bit but good advice to anyone investing is set a certain loss limit and don’t cry, hold and hope when a planned investment doesn’t go right. The markets here both real estate and Stocks are in their infancy as people mention above, it is equivalent to penny shares, or going to the casino, people are making money but way more are losing.

KeithL wrote:Styline, from your nick I assume that you are an expat... but instead of just analysing, have you plunged into the property market??

Instead of trying to make money on a weak and immature stock exchange, I'd have invested something in real estate... something not very big but instead of spending absurd amounts of money on rent, get yourself a 1bed apt...

I bet you have already spent much more than what it costs on renting out a place so far

I have 2 units that I bought a couple of years ago and I have put them for sale before they too take a plunge.

yorky500 wrote:

Stylinexpat wrote:Once the share prices recover, I will be out for good and leave my money in Hong-Kong where there is a population of 1.6 Billion people that can support the market unlike Dubai that has 70% foreign underpayed or unpayed laborers.

Are you talking about Hong Kong or China? The Hang Seng is doing damn well in the two years since I left HK. I wish i had kept my shares going there!

Hong-Kong, great market with great returns..

fayz wrote:This thread was an interesting read and i enjoyed it thank you.

Stylin, one thing you mention you are 'stuck' in the market and will pull out as soon as it recovers and then give very good reasons why it won't. when your shares dropped 10 fils you probably said, hmmm this isn't good but I'll hold off can't sell now I'll lose X dirhams, now you are hoping that it goes back up to X so you can reduce your losses.

The next week in the market will stabilize and may even go up a bit but good advice to anyone investing is set a certain loss limit and don’t cry, hold and hope when a planned investment doesn’t go right. The markets here both real estate and Stocks are in their infancy as people mention above, it is equivalent to penny shares, or going to the casino, people are making money but way more are losing.

I agree with what you said. More or less this is not a market here in Dubai but more or less like a casino.

They will probably give the stocks away for free in the near future and still not have any takers in the future!! Who do they expect to buy?? Are they expecting the 2000+ laborers building Burj Dubai to buy some shares in the DFM?

http://www.gulfnews.com/business/Markets/10081752.html

Stylinexpat wrote:They will probably give the stocks away for free in the near future and still not have any takers in the future!! Who do they expect to buy?? Are they expecting the 2000+ laborers building Burj Dubai to buy some shares in the DFM?

http://www.gulfnews.com/business/Markets/10081752.html

Why not, they all have Mashraq Bank certificates already

More bad news to follow as the Tadawul is now down over 5% in the morning trade. After that some will go to pray and others to commit suicide. Evening session after prayers will probably bring more blood. Hopefully they won't blame Bush and the Jews for there stock losses

http://www.tadawul.com.sa/wps/portal/!u ... _A/7_0_49I

Style

dealing in shares, risk is the name of the game i am affraid. If you cant afford to loose it, dont do it.

I dont know your age, but those of my era, still remember the effects of "black monday" in the late 80's. Lessons learnt by many of us, and the lessons learnt the quickest are the ones that cost you money. I lost '000's.

Like Fayz says, the market in the ME is still in its infancy, but the rules remain the same whichever market you dabble in old or new.

After my huge losses back then, i moved into property, and have never bought a single share since.

Dont you guys know how it works?

If anyone gets the original of this story pls post it

Long ago in a small village, there were lots of monkeys and good hearted ppl living in. One fine day a neatley dressed uptown gentleman comes to the village and announces himself as the International Trading Groups's representative for the region. He tells them that they export monkeys to other countries. And they are ready to pay up to 30$ per monkey.

The first few villegers who heard it, go in to the jungle and hunt down some monkeys and hand it over to the ITG man. He gives them the money, packs all the monkeys and goes. Those who made money become happy, who didnt hear abt the news get sad.

After couple of months, the ITG man returns to the town and tells them that he needs more monkeys as the quality of monkies they supplied were too good and the company would give 50$ per monkey. But this time, more people get involved in the hunting as they were all waiting for the ITG man to return. They get back with rest of the monkeys left in the village, the ITG Man pays them the agreed 50$ per monkey and takes all the monkeys with him.

after couple of months .. ITG man comes to the village and keeps an open meeting where he introduces his Boss, ITG boss. ITG Boss appreciates the good work of the villagers and the quality of the monkeys they supplied. He then declares... he needs another full load of monkey's for which he's ready to pay even upto 100$ per monkey.He leaves the town reminding the villegers that , after a month he would personally come to pick up the monkeys for 100$ each.

Now the villagers get very happy with the 100$ per monkey offer. But they realize that they have no monkeys left out to hunt n sell. So they approach the ITG man who advices them to do what ever but not to loose the opportunity. And extending his help he says he can get them some good number of monkeys for just 75$ each.
The villagers get extremely happy and buy all the monkeys from the ITG man for just 75$ each. They thank the ITG man for helping them with the supply.The ITG man leaves the palce.

After a month the ITG boss comes and says, there's a sudden down fall in the demand for monkeys. but still he can offer them 50$ per monkey.



Thats how stock market works..

nice one St L

St.Lucifer wrote:Dont you guys know how it works?

If anyone gets the original of this story pls post it

Long ago in a small village, there were lots of monkeys and good hearted ppl living in. One fine day a neatley dressed uptown gentleman comes to the village and announces himself as the International Trading Groups's representative for the region. He tells them that they export monkeys to other countries. And they are ready to pay up to 30$ per monkey.

The first few villegers who heard it, go in to the jungle and hunt down some monkeys and hand it over to the ITG man. He gives them the money, packs all the monkeys and goes. Those who made money become happy, who didnt hear abt the news get sad.

After couple of months, the ITG man returns to the town and tells them that he needs more monkeys as the quality of monkies they supplied were too good and the company would give 50$ per monkey. But this time, more people get involved in the hunting as they were all waiting for the ITG man to return. They get back with rest of the monkeys left in the village, the ITG Man pays them the agreed 50$ per monkey and takes all the monkeys with him.

after couple of months .. ITG man comes to the village and keeps an open meeting where he introduces his Boss, ITG boss. ITG Boss appreciates the good work of the villagers and the quality of the monkeys they supplied. He then declares... he needs another full load of monkey's for which he's ready to pay even upto 100$ per monkey.He leaves the town reminding the villegers that , after a month he would personally come to pick up the monkeys for 100$ each.

Now the villagers get very happy with the 100$ per monkey offer. But they realize that they have no monkeys left out to hunt n sell. So they approach the ITG man who advices them to do what ever but not to loose the opportunity. And extending his help he says he can get them some good number of monkeys for just 75$ each.
The villagers get extremely happy and buy all the monkeys from the ITG man for just 75$ each. They thank the ITG man for helping them with the supply.The ITG man leaves the palce.

After a month the ITG boss comes and says, there's a sudden down fall in the demand for monkeys. but still he can offer them 50$ per monkey.



Thats how stock market works..

We don't have any monkeys in Dubai!!!!!

i could possibly disagree with you SGO.

arniegang wrote:i could possibly disagree with you SGO.

WHO YOU CALLING A MONKEY

arniegang wrote:i could possibly disagree with you SGO.

Hmm, I didn't think you were in Dubai that often, Arnie!!

sage & onion wrote:

arniegang wrote:i could possibly disagree with you SGO.

WHO YOU CALLING A MONKEY

noooooooooo not you matey, i was refering to the other type of monkey, usually found in taxi's.

Like the one 2 weeks ago that took my friends from the airport to my appt after a 2 hour tour of DM, DMC, DIC and Jebel Ali, saying he was new to DXB. Yea right

DFM opens in the red again today.

hehe...i'm not into stock market issues:D