Mumbai firms in desert city keep the faith
Mumbai firms in desert city keep the faith
Yesterday, Abu Dhabi played the good neighbour and gave Dubai $10 billion to pay debts owed by its Dubai World conglomerate.
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But Mumbai enterprises in the desert city say they haven't really suffered due to the economic meltdown there.
Cutlery is clinking like sweet music to singer Asha Bhosle's ears at her restaurant, Asha's, at Wafi City in Dubai.
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"What crash are you talking about?" she asks with a laugh. "My restaurant in Dubai is doing as well as ever."
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Not Wanted: The Palm Dubai where Shah Rukh Khan reportedly has a villa is one of the projects affected by the debacle |
It's good news too for Metropolis Healthcare Ltd, the healthcare chain started by city doctor Sushil Shah, which uses its Dubai laboratory in the upmarket Jumeirah area as a hub for their Middle East business.
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"We are not affected by the Dubai crash. Other Emirates are doing better than Dubai currently, but I do see Dubai bouncing back in one year," said Dr G S K Velu, Metropolis's managing director.
Being CarefulCaution, however, laces Yoko Sizzlers partner Anjum Rizvi's words. Mumbai's well-known sizzler chain has been in Dubai for nearly 10 years.
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"We are staying put," said Rizvi, who admits that the Dubai crash "has affected us marginally". They're adopting a policy of wait and watch.
Aalok Purohit, who with two others started Mumbai's first-ever ice lounge called 21 Fahrenheit in Andheri (W), was part of Dubai's ice lounge earlier.
But the company left Dubai in February. Purohit added,u00a0 "We did not anticipate a crash in Dubai, but real estate in Dubai was being over hyped and subsequently overpriced. It was like a bubble waiting to burst. Now it has."
Said Purohit, "People in Dubai will become choosy about what they spend on, paying only for that which gives absolute value for money."
| Dubai Crisis |
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Last month, Asian markets tumbled after the Dubai government-owned holding company Dubai World, which manages the country's portfolio of businesses, said it had asked creditors for an extension of six months on $80 billion debt repayments.
More than u00a3300billion of planned development projects have been cancelled or put on hold, including ambitious plans for the world's first kilometre-high tower and a "mega-development" of homes, shops and leisure facilities in the desert once billed as "bigger than Hong Kong". |
