China is not Dubai
Healthy Economy Depends on Big Infrastructure, Good Rebalancing and Proper Investment
Even a decade back, Dubai was not stronger with sound economic infrastructure due to recession. However slowly, this emirate of UAE has overtaken the crisis to have a new vision. The steady nosedive in oil prices has held a mirror for Dubai entrepreneurs to cross check their own financial conditions. They are planning to invest money in housing sector, hotel industry, and tourism and leisure sectors.
Right now, a big question tag is suspending for newcomers whether big infrastructure is the sign of healthy economy. Many sky kissing luxurious resorts and shopping malls are being built in Golf nations including Dubai emirate. These multistoried buildings give sufficient space to customers to stay. Corporate offices are shifted or relocated in these big infrastructures to run business.
Dubai Spoon Feeding Big Infrastructures to Reinforce Economy
Dubai is running fast to upgrade the economy. In between, a number of expensive housing projects have been completed to expand the area for business growth, and smooth customer management.
Well, the Burj Khalifa is now the biggest building with approximately 828 meters in height. It is the tallest infrastructure in Dubai. Chairperson of this infrastructure has appreciated engineers, interior designers and architects for buildup Burj using innovative technology.
In Saudi Arab, the Kingdom Tower is under construction. This tower will be almost one kilometer in height to overtake Burj.
So in different Golf nations, many skyscrapers, large buildings and shopping malls are being constructed or renovated for people. Right now
Dubai city is one of the international commercial centers for entrepreneurs to invest money in various lucrative sectors. Many economists and business analyzers in Dubai have claimed that super tall buildings will cover wide area of the city of Dubai. So, there will be problems for people to find the vacant land to use. People have to struggle to possess land. The clash between the requirement of customers and the current availability of land must be prominent to force Dubai government to change the law.
Large buildings are being used as sophisticated shopping malls, resorts, car parking lot and departmental storefronts. Higher possibility of starting indoor business or in-house BPO industry attracts many new financers to make investment.
These sky kissing buildings and towers must reinforce the economy of UAE uber. The Palm Jumeirah in Dubai is the foundation stone for financers to spoon feed the real estate industry in UAE.
More long term housing projects are in pipe line. Vision of Dubai must be brighter and long lasting.
Reasons of Economic Slowdown in China
Chinese economy has experienced slowdown for a number of visible reasons. For instance, sudden drop in the housing prices discourages rich investors to take the risk of pouring their stored fund for building houses. House owners are not ready to sell their residential apartments. Financers who have invested money on housing sectors will not be able to clear heavy bank loans because of such lower prices in housing market. It affects GDP growth rate in China. Secondly, approximately 59 percent revenues are generated by manufacturing companies to strengthen up national economy of PRC. China exports products to have foreign currencies. However recent recession or depression in global market bottlenecks the growth of the economy of PRC.
China Needs Innovative Economic Growth Engine for Rebalancing to Prevent Recession
China is now a hot topic to many critics and journalists because of its exposure to the new financial breakdown, insurgency and internal political disturbance. Hong Kong issue is also forcing PRC to call for experts to do extensive table work and design strategies to tackle the awkward situation efficiently.
China has the second largest economy in the world. However, this country is facing financial stringency with low GDP growth. To compete with Europe and America, Chinese rulers invested billion dollars to build up new chemical factories, large resorts, shopping malls, trade centers, hotels and multistoried buildings. It created problem for government of China due to over expenditure.
The industry in China is booming but the demand among people runs down. Instead of investing money, China needs to opt for consumption to save money for reinforcing the national economic infrastructure.
Many Dragon slayers (Persons who are pessimists) are not sure about the faster recovery of Chinese economy from recession. According to them, China has squandered hard earned money to modernize people. Lifestyle is improved but China has to bear the brunt of pecuniary downtime. Economic rebalancing program has been introduced to overtake the crisis.
However, China has to open its doors for collaboration with foreign countries to fuel up the small industries, and boost up newcomers to expand the business to upgrade credit ratings.
China is not Dubai
It is not affluent in crude oil and gas. It is still conservative with monopoly power to regulate the industry. Comparatively even in spite of nosedive in the oil prices, Dubai has not sat for lamenting in despair. It prioritizes the other sectors like hospitality, construction, real estate, tourism and recreation. Dubai touched 4.4 percent GDP growth rate to make other nations envious.
By 2020 Dubai can outstrip PRC by introducing more solid economic infrastructure with unprecedented growth in commercial landscape. China has to be innovative with good ambience to offer for smooth business expansion. Chinese government has to implement its economic reforms and rebalancing program as fast as it can.
Conclusion
China will have to find more innovative rebalancing growth engine which compensate the loss gradually. Old model of economy concentrated on the product exporting and manufacturing and cheap manpower. New model must be based on services, household consumption and rebalancing prioritizing the environmental growth. However this new growth machine has not been activated full to turbo-charge the economy of PRC. China should have more appreciable growth engines to introduce to combat with the economic slowdown.
