Impact of Financial crises in the real estate investment sector of UAE ( UAE is a country which is United Arab Emirates) - Research Paper Example

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Impact of Financial crises in the real estate investment sector of UAE ( UAE is a country which is United Arab Emirates)

Also, construction highly contributes to the economy of a country. These sectors intensify and make the financial structures extra adequate by assisting in lessening informal sources of finance, enhancing access, and assisting in mobilizing savings. In addition, real estate lending, including development and commercial investments have the capacity to make the financial system to be unstable, predominantly if connected to speculative and recurring market dangers, as highlighted by the continued worldwide financial calamities (Fried, 2012). This paper will look at the effects of financial predicaments in the real estate investment sector of United Arab Emirates. Growth of Companies  At the start, the companies which were affected were those which were engaged in mortgage lending and home construction in a direct way. This is because the companies could not get financial support through the credit sector. Almost one hundred corporations became bankrupt in the recent recessions. The growth of companies has been slowing down after the recent recessions. House building companies, despite the tremendous discounts they have been giving on their works, have found it difficult to make sales. This is because a large number of companies cannot contend with the mark down in value in the largely suffering resale sector (Fried, 2012). ...Show more

Summary

  Impact of Financial Crises in the UAE Name: Institution:           Impact of Financial Crises in the UAE The worldwide financial disasters have made a number of nations go into a profound recession. The impact of the financial crises seems to have gone past the imagination of leaders of foremost economies…
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