Maps    |   Hotels    |   Tours    |   Jobs    |   Real Estate    |   Citylife    |   Entertainment    |   Restaurants    |   Education    |   Shopping    |   Contests 
  Home  |  Contact Us  
       Sign In / Register  
Dubai City Map
Dubai Metro
Dubai Videos
Dubai News
Press Releases
What's On
Latest Events
Annual Festivals
Visa Regulation
Dubai Airport
Travel Tips
Explore Dubai
Shoppers Paradise
Dubai Gold Souq
Getting Around
Emergency Numbers
Embassies & Consulates
Government Services
Shopping Malls
Parks / Beaches
Clubs / Organisations
Business Information
Relocating Help
Jobs Search
Property Finder
Medical Tourism
Dubai Healthcare

News Detail

Dubai Tour Booking
Dubai Visa

Application Download

Special Promotions
Dubai Hotel Booking at
Cheapest Rates
Book Dubai
Furnished Apartments
Dubai Tours & Safaris
at Best Rates

Dubai Hotel, Lodging & Accommodation

Dubai Apartment Rates & Booking

Dubai Desert Safari Tours

Dubai Dhow Cruise Dinner

Dubai City Sightseeing Tour

Hatta Trek Tours & Mountain Trekking

Helicopter City Tour Over Dubai

Fujairah & East Coast Tour

Aquaventure Tour at Dubai Atlantis

Latest News & Happenings in Dubai
Dubai Health & Medical Tourism Information
Dubai Real Estate & Freehold Properties
 Nation   Region   Sport   World   Technology   Business   Tabloid   Notes 
Powered by, one of the most popular daily English language newspapers in the United Arab Emirates.

'Question of risk vs reward'

10/06/2009 05:45 PM

Dubai: The Trump Organisation would be willing to stump up the cash to get construction started on the Trump International Hotel and Tower on Palm Jumeirah, depending on what the market looks like.

Donald Trump Junior, executive vice-president of the Trump Organisation, said that while his company is not an equity investor in the project, it would be willing to contribute financially in order to make it move faster.

"It depends on what I see throughout the rest of the market," Trump said during a media discussion.

"If I knew a lot of that supply was sucked up, that the demand was there, it's certainly not out of the question. But I'd have to see very significant moves to be willing to take that risk and I'd have to see those moves be significantly greater than what I'd see in the other markets that are vying for that same capital."

The Trump International Hotel and Tower on Palm Jumeirah is currently stalled although still in the pipeline despite rumours in Dubai that it may have been shelved completely.

The tower was launched in 2008 and was due to take pride of place on Palm Jumeirah until the global financial crisis reared its head.

Although Nakheel has admitted some of its projects have been put on hold, many doubted their future feasibility.

Trump said that he would love to see the project go ahead within the next two years.

"We're great partners with Nakheel. The project, when it makes sense, we plan on going forward with it. A lot has to happen because it makes no sense to throw good money after bad. I'd love it to get going in the next two years," Trump said yesterday, the first day of Cityscape.

While Trump International hasn't invested any equity in the project, the firm has retained its confidence in Nakheel, the project and Dubai.

The current issue of excess supply in the market needs to be addressed before the market can move forward.

Trump said the main issue in the past was a loss of focus where most developers were keen to sell out units fast and build astonishing projects. This encouraged investors and speculators to lose track of the concept of spending and led to such a level of "diminished returns" that we have seen in Dubai and globally.

However, Dubai's greatest asset, its imagination and ambition, was also its greatest liability.

"Prices have dropped around 50 per cent across the board in all markets. If you're looking at real estate as a long-term hold, given the world even today, these are the bases where you think yes, it's pretty attractive," Trump said.

"We made our best deals when no one else wanted real estate," he added.

Going into the future, Trump said Dubai needed to encourage responsible lending to the secondary mortgage market in order to get rid of the excess supply.

"The secondary mortgage market will suck up the excess inventory& responsible lending is a very important thing. You need to come up with something that makes sense, that will suck up some inventory and can create new demand for new projects," Trump added.

Corrections in real estate prices, specifically in the more mature western markets, are attracting would-be investors at the expense of many emerging markets, Trump said.

Emerging markets are not only competing with each other for a finite amount of investment funds, but they are now competing with more mature markets.

"It's a question of risk versus reward. The potential reward for investing in mature markets has improved significantly over the last couple of years, whereas the risk has if anything reduced. On the other hand, emerging markets, whilst they still represent good reward, their risk element - transparency, regulation - is still a concern. Therefore funds that would normally have been earmarked for emerging markets are now finding their way into the more mature real estate," he said.

 Back to News Page assumes no responsibility for any content from external sources.
 Nation   Region   Sport   World   Technology   Business   Tabloid   Notes 
 More News & Happenings :
 Latest Press Releases  Events & Exhibitions  News Archive
 Popular Links :
 Dubai Hotel Deals & Special Offers  Dubai Tours, Safaris & Dhow Cruises &
 Featured :
Atlantis Dubai Aquaventure Tour
Atlantis Dubai Aquaventure Tour
Dolphin Show at Dubai Dolphinarium
Dolphin Show at Dubai Dolphinarium
Entertainment Special Events Contests Restaurants
Dubai Medical Tourism & Health Tourism in Dubai
Dubai News, Press Releases, Events & Exhibitions Dubai Citylife, Restaurants, Night Clubs, Sports, Dance...
Dubai Hotel Booking / Book Dubai Furnished Apartments Dubai Desert Safari, Dubai Dhow Cruise & Dubai Tours
Latest Jobs in Dubai, Career News & Recruitment Agencies Dubai Real Estate & Freehold Properties Listing & News


Sponsored Links
Jobs in Dubai
Find the latest job listing & career news in Dubai
Banking / Finance Jobs
IT / Graphic Designers Jobs
Human Resource Jobs
Oil / Petroleum Jobs
Sales / Marketing Jobs
All UAE Jobs
Most Viewed
Dubai Videos
Google UAE Map
Dubai Landmarks
Dubai Jobs
Dubai Real Estate
Dubai Entertainment
Restaurants Clubs & Pubs
Movies Health & Fitness
Sports Dancing
Education Kids n Teens
Sale & Discounts
 © 2009 Dubai, UAE    Dubai News   |  Dubai Events   |  Dubai Map   |  Dubai Jobs   |  Book Dubai Hotels   |  Dubai Desert Safari   |  Dubai Real Estate   |  Dubai Tourism   |  Dubai City Life