DUBAI's Global Downturn Is Starting !! -- UAE Dubai Recession

Sentiment soured further in the United Arab Emirates as a gauge of business conditions in the second-largest Gulf economy slumped to an eight-year low. In an echo of disputes that have roiled global trade, sales to foreign customers posted a “weaker upturn” and new orders stagnated in the U.A.E. in August, according to IHS Markit. Its Purchasing Managers’ Index dropped to 51.6 from 55.1 in July, declining for a third month and edging close to the threshold of 50 that separates contraction from growth. Fears of a global downturn are deepening as signs of a manufacturing slump have emerged from Europe to Asia. Domestic competitive pressures are compounding the outlook for the U.A.E., a federation of seven emirates that includes oil-rich Abu Dhabi and tourism and trade hub Dubai. Dubai, beautiful, full of potentials and the land of economic advances. Or was it a long time ago. Dubai's economy has been growing so little in the past decade that many believe it can’t be even called growth. Surveys show that the economy has seen a 1.94 percent growth in 2018 which was Dubai’s slowest pace since 2009 when the economy crashed due to a debt crisis. A big part of Dubai’s economy is focused on tourism and international business services. These two sectors have been hurt by a rough patch amid a fall in the real estate market. Experts say a weakening external backdrop, a strong US dollar and the ongoing correction in the property market are headwinds for a number of vital sectors. Property prices in Dubai have fallen by more than a quarter from their peak in 2014. It is expected that the prices fall 5 to 10 percent in the near future as a result of a continued gap between supply and demand. What happened in 2009 that still haunts the sheikdom? Collapsing property prices put Dubai in a debt crisis, so to tackle the situation, Dubai asked a 20 billion dollar bailout from oil-rich Abu Dhabi. After that, Dubai’s GDP grew at 4.8 percent in 2013 before starting to decline and the drop accelerated last year after the property sector slumped and the number of tourists stagnated.