Moves by the Dubai government to inspire confidence in the once booming property market seem to have backfired.
The recession has shown that Dubai’s growth was financed by billions of pounds of debt and this burden is threatening to drag the city under the desert sands.
Several government-backed developers were at the forefront of major residential and commercial buildings in Dubai.
Shares in the largest listed Arab developer Emaar Property had 10% wiped off their price on announcement of the merger with Dubai Properties, Sama Dubai and Tatweer.
These three companies are all subsidiaries of Dubai Holdings, which has the backing of the Dubai royal family and analysts fear in the background assets are just being shuffled on paper to shore up ailing companies.


Palm Jumeirah Island



