Dubai 'could be set for quick recovery'

28/05/2010 - Dubai Investment News
Dubai 'could be set for quick recovery'

Posted by Neil King

Dubai could be set for a quick recovery thanks to oil prices and its good infrastructure, according to Stephen King, chief economist at HSBC Holdings.

Speaking to Business Week, he said that while the Emirate has undergone a crisis recently, it has lots of factors on its side that will help it recover quickly.

"Dubai has a tremendous advantage from being in this particular part of the world if this part of the world does well from rising oil prices," he said.

Mr King also noted that a lot of the money Dubai borrowed was spent on developing the city's infrastructure, which could actually help it recover from the recession.

"The buildings aren't going to be knocked down afterwards, so the market adjusts," he added.

Last month, the GCC Investor Sentiment Index by the investment bank SHUAA Capital rose by 15.2 points, driven by positive investor sentiment towards the UAE.