Tuesday, June 16, 2009

Filling The Parking Lot

I was having a beer with my new neighbor this weekend and he was elaborating about developments in his business sector. His company is involved in major infrastructure projects around the world. He mentioned their office in Dubai and I asked him how the city was handling the contraction. He responded "the parking lot at the airport is filled with abandoned cars". I didn't quite understand his statement so I asked for clarification. He then stated that the country allows for expatriates to invest in local real estate. Over the past few years, speculation went crazy and many folks were holding property that was under water. He then stated "this part of the world handles defaults a little differently." So basically, many have fled the country to escape prosecution. They drive to the airport and leave their car in the parking lot. He said that his company has lost three employees in the last month due to these reasons. He said that they don't resign until they've successfully fled the region. Wow.....sounds like the used car business might have a surplus in Dubai!



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