FREE MARKETS: Many opportunities abound for countries like Pakistan due to the dynamics of the essential commodity prices coupled with low shipping rates. Time to harness these to our advantage.
By Saad Sarwar Muhammad
Monday, November 17, 2008
The whole world is undergoing a major financial crisis which has caused the downturn of almost all the developed world economies with job losses, bailouts and financial losses becoming the order of the day. In such unprecedented times of financial trouble the developed world is looking towards developing countries with huge reserves and financial muscle. Countries like China, Saudi Arabia and Turkey fit the bill. They were invited in the recently held summit of the G-20 to help the developed economies recover from the slump and in some way bail out the developed countries from the fiasco they are in.
The world has been undergoing a rollercoaster ride when it comes to the prices of different commodities, the stock market index levels and the value of dollar and yen versus other major currencies. Oil and Gold are two commodities that have hit a nosedive in recent times. Iran has reportedly given the intent to convert its reserves into Gold in order to overcome the deficit that can result in the reduction of price of oil. The value of dollar and yen is soaring at a time against major European currencies giving the indication of more trust in the resilience of the US economy as compared to the EU.
Pakistan has been suffering its own financial crisis lately, which somehow seems unrelated to the recent global recession. Pakistan’s problems have mostly been homegrown based on the energy crisis due to shortage of alternative energy power sources such as hydel, wind, solar and to some extent nuclear. Pakistan’s financial crisis has resulted from the withdrawal of funds from Pakistan’s stock market, the Karachi Stock Exchange (KSE) since the coming of the new civilian government. Pakistan’s stock market, KSE, has lost close to $36 billion dollars this year in market capitalization. Resultantly, the Pakistani rupee has also borne the brunt with the value of rupee falling from around 60 to a dollar from the beginning of the year to around 80 to a dollar at the moment (many currency dealers have also been arrested in the wake of the rupee devaluation, famous among them the firm of Khanani and Kalia). Not to mention the floor imposed on the KSE to allow the stock market to breathe a sigh of relief. The sigh has converted to deep sleep as the floor remains imposed after many many weeks.
For more on this article, please click on the following link: Opportunities for Pakistan in the Global Financial Slump: Economistan
Saturday, November 22, 2008
Sunday, November 16, 2008
Dubai property boom halts: The News
Sunday, November 16, 2008
DUBAI: Dubai property shares plunged and its biggest private developer slashed jobs this week as the global financial crisis tightened its grip on the tiny emirate, until now synonymous with the Gulf Arab real estate boom.
Dubai’s glittering skyline and luxury tourism sector have lured investors in droves over the past five years. But property prices have begun to fall, according to brokers and banks, in one of the clearest signs to date that the bubble has burst.
A real estate crash in Dubai would call into question the futures of millions of immigrant workers, many from India and Pakistan, and whether energy exporter Abu Dhabi would run to the rescue of its high-flying but poorer neighbour.”Villas that were very hot before the crisis have fallen. The buyers were chasing the sellers but now it’s the other way round,” said Quaid Abbas, property consultant at Engel & Volkers.
For more on this article, please click on the following link: Dubai property boom halts: The News
Real estate boom: The News
People liquidating bank savings to invest in property; FPCCI body on housing and construction SVP Munir Sultan says rates to remain stable and hike after March; realtors say investors fearing financial meltdown in UAE coming back home
Sunday, November 16, 2008
By Faryal Najeeb
KARACHI: Local builders in Pakistan are having a field day as the newly introduced projects all over Pakistan have received tremendous positive response marking the first signs of real estate sector revival in the country.
Real estate agents and builders said that though prices continue to remain low owing to recession - the demand for properties is increasing as investors are coming back home after trying their luck in UAE.Senior Vice President of FPCCI Sub committee on Housing and Construction, Munir Sultan predicted that the prices of properties would remain stable for the time being and would only hike after March. Estate agents and experts informed that the buyers of these properties are investors having money stashed in local and foreign banks and following the global credit crunch feared for their savings.
Sultan explained: “These are ordinary well to-do people of our society who liquidated their bank savings and opted for safe heaven investment in real estate. Properties are sound investments as no one can steal them from you and more importantly because regardless of the political or economical conditions, land assets do eventually gain value with time.”
He further said that Pakistan urgently needs to work on its investors’ confidence and the government should take steps to clear the country of its black economy that is working parallel to the legal system.
For more on this article, please click on the following link: Real estate boom: The News
Sunday, November 16, 2008
By Faryal Najeeb
KARACHI: Local builders in Pakistan are having a field day as the newly introduced projects all over Pakistan have received tremendous positive response marking the first signs of real estate sector revival in the country.
Real estate agents and builders said that though prices continue to remain low owing to recession - the demand for properties is increasing as investors are coming back home after trying their luck in UAE.Senior Vice President of FPCCI Sub committee on Housing and Construction, Munir Sultan predicted that the prices of properties would remain stable for the time being and would only hike after March. Estate agents and experts informed that the buyers of these properties are investors having money stashed in local and foreign banks and following the global credit crunch feared for their savings.
Sultan explained: “These are ordinary well to-do people of our society who liquidated their bank savings and opted for safe heaven investment in real estate. Properties are sound investments as no one can steal them from you and more importantly because regardless of the political or economical conditions, land assets do eventually gain value with time.”
He further said that Pakistan urgently needs to work on its investors’ confidence and the government should take steps to clear the country of its black economy that is working parallel to the legal system.
For more on this article, please click on the following link: Real estate boom: The News
Wednesday, November 12, 2008
Local real estate revives as UAE market spirals down: The News
Wednesday, November 12, 2008
By Faryal Najeeb
KARACHI: As property markets in the United Arab Emirates (UAE) face a critical slump, local investors are turning away from the Arab country and are starting to look towards Pakistan, Malaysia and Turkey. Experts in the field say all the investment money that had flown out of the country towards Dubai and other emirates is now coming back. “Ajman is completely dead, whereas Dubai, which had 13 per cent of Pakistani investors’ money in the real estate sector, is left grappling with eight per cent,” stated Munir Sultan, Senior Vice-Chairman of the Federation of Pakistan Chambers of Commerce and Industry Sub-committee on Housing and Construction.
“The UAE has injected about $40 billion for lending purposes, and mortgage lender Amlak has had to be merged owing to fears of bankruptcy,” said Sultan. He explained that Pakistanis had booked properties in Dubai and Ajman to make a profit, but eventually discovered that they had incurred a loss after being swindled by several middlemen. “There were no builders, and of course, a structure cannot stand on its own without one.”He revealed the UAE market had declined by 21 per cent. According to him, local investors who had invested in the Arab country were mostly those who had dipped one hand in shares of the local stock exchange, and the other in UAE real estate. “Since both have been hit hard at the same time, these investors are feeling the pain. It’s disastrous for Pakistani investors.”
Sultan further said the reason for the downtrend is an imbalance between the demand and supply in the UAE real estate market. He expatiated the rapid pace of construction in Dubai had led to saturation in the market.
For more on this article, please click on the following link: Local real estate revives as UAE market spirals down: The News
By Faryal Najeeb
KARACHI: As property markets in the United Arab Emirates (UAE) face a critical slump, local investors are turning away from the Arab country and are starting to look towards Pakistan, Malaysia and Turkey. Experts in the field say all the investment money that had flown out of the country towards Dubai and other emirates is now coming back. “Ajman is completely dead, whereas Dubai, which had 13 per cent of Pakistani investors’ money in the real estate sector, is left grappling with eight per cent,” stated Munir Sultan, Senior Vice-Chairman of the Federation of Pakistan Chambers of Commerce and Industry Sub-committee on Housing and Construction.
“The UAE has injected about $40 billion for lending purposes, and mortgage lender Amlak has had to be merged owing to fears of bankruptcy,” said Sultan. He explained that Pakistanis had booked properties in Dubai and Ajman to make a profit, but eventually discovered that they had incurred a loss after being swindled by several middlemen. “There were no builders, and of course, a structure cannot stand on its own without one.”He revealed the UAE market had declined by 21 per cent. According to him, local investors who had invested in the Arab country were mostly those who had dipped one hand in shares of the local stock exchange, and the other in UAE real estate. “Since both have been hit hard at the same time, these investors are feeling the pain. It’s disastrous for Pakistani investors.”
Sultan further said the reason for the downtrend is an imbalance between the demand and supply in the UAE real estate market. He expatiated the rapid pace of construction in Dubai had led to saturation in the market.
For more on this article, please click on the following link: Local real estate revives as UAE market spirals down: The News
Thursday, November 6, 2008
Emaar Ceo Changed: Dawn
KARACHI, Nov 6: Emaar Pakistan, a subsidiary of Dubai-based Emaar Properties, has appointed Dr Dia Malaeb as new chief executive officer.
For more on this article, please click on the following link: Emaar Ceo Changed: Dawn
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