Thailand's direct exposure to the Dubai market crash has been very limited, but a greater impact could come from deteriorating global sentiment if the situation worsens, says international property consultant Colliers International Thailand.
Dubai World, the emirate's largest corporate entity, announced on Nov 25, 2009, that it would seek a "standstill" agreement on its US$80 billion in debts.
The news sent shockwaves through the global financial community and questions were raised in relation to Thailand's exposure to firm and its offshoots.
The first Islamic bond payment of US$3.59 billion for its real estate arm Nakheel, due on Dec 15, was covered by the Dubai government thanks to a $10-billion loan from Abu Dhabi.
Tuesday, January 5, 2010
Sunday, January 3, 2010
Maintaining liquidity key to sector's growth, say officials
Major players of the UAE's construction sector gave a mixed opinion about the prospect for 2010.
While some major contractors expressed confidence that stalled projects would restart, others said it would take another eight to twelve months for the situation to get back to 2007- 2008 levels.
This year will see a slight increase in the prices of building material prices. The leading players in the UAE construction industry are concerned that maintaining liquidity in the market is essential in 2010, and that otherwise might affect the smaller subcontractors' and suppliers' ability to continue doing business in the market.
Consolidation, restructuring and diversification of their portfolio risks will be the name of the game in the coming year, they said.
According to a recent report by Economist Intelligence Unit (EIU), lower oil production allied with slowing construction activity depressed the UAE economy in 2009. It is expected to rebound by nearly four per cent in 2010.
While some major contractors expressed confidence that stalled projects would restart, others said it would take another eight to twelve months for the situation to get back to 2007- 2008 levels.
This year will see a slight increase in the prices of building material prices. The leading players in the UAE construction industry are concerned that maintaining liquidity in the market is essential in 2010, and that otherwise might affect the smaller subcontractors' and suppliers' ability to continue doing business in the market.
Consolidation, restructuring and diversification of their portfolio risks will be the name of the game in the coming year, they said.
According to a recent report by Economist Intelligence Unit (EIU), lower oil production allied with slowing construction activity depressed the UAE economy in 2009. It is expected to rebound by nearly four per cent in 2010.
Thursday, December 31, 2009
Thai Company Signs Franchise Deal To Set Up 44 Tune Hotels In Five Countries
Evolution Capital, listed on the Stock Thai Exchange, is planning to invest over US$200 million in the next few years to build, refurbish and operate 44 Tune Hotels.com in five countries.
The company has signed a franchise agreement with Tune Hotels.com.
Its President, Simon Gerovich said 24 hotels would be operated in the first phase within the next four years, with the first scheduled to be operational inThailand 's premier resort island of Phuket by 2010.
Besides newly set up hotels, half of them would be existing hotels to be refurbished as Tune hotels.
"We are leasing most of the land or space for 30 years to keep our initial cost low," he said at the announcement of the franchise agreement between Tune Hotels.com and Evolution Capital.
The company has signed a franchise agreement with Tune Hotels.com.
Its President, Simon Gerovich said 24 hotels would be operated in the first phase within the next four years, with the first scheduled to be operational in
Besides newly set up hotels, half of them would be existing hotels to be refurbished as Tune hotels.
"We are leasing most of the land or space for 30 years to keep our initial cost low," he said at the announcement of the franchise agreement between Tune Hotels.com and Evolution Capital.
Wednesday, December 30, 2009
Property prospects for Phuket and Krabi
Nick Anthony and Tom Travers of Indigo Real Estate discuss how Thailand’s property sector has been affected by the global economic crisis, and what to watch for in southern Thailand during 2010.
Phuket shakes off the world economic problems
The global financial crisis will rumble into 2010 and will create more surprises. The United States is still in deep trouble, Europe is fracturing and Africa is unstable.
In Phuket most projects went into the global financial crisis under duress caused by the previous two years of political instability, so most developers have escaped the worst of the speculative excesses. Developers have been offering attractive incentives in the final quarter of 2009 that have helped to thaw the standoff from buyers.
Phuket shakes off the world economic problems
The global financial crisis will rumble into 2010 and will create more surprises. The United States is still in deep trouble, Europe is fracturing and Africa is unstable.
In Phuket most projects went into the global financial crisis under duress caused by the previous two years of political instability, so most developers have escaped the worst of the speculative excesses. Developers have been offering attractive incentives in the final quarter of 2009 that have helped to thaw the standoff from buyers.
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