Dubai's finances continue to go from bad to worse. Despite last month's deal by state-owned conglomerate Dubai World to restructure almost $25 billion of debt, Dubai's debt mountain now stands at $125 billion with economists and investors expecting more restructurings and asset sales.
During the boom years, Dubai had all the momentum of a bubble which could only go one way.
Now real estate management company Richard Ellis is warning that Dubai's office buildings are so badly planned and located that they will stay empty forever. Dubai has a 40% office vacancy rate and property prices there have fallen by about 60%, wiping out investors stupid enough to fall for all the hype during the boom.
Given that Dubai's economy was fuelled by real estate investment, it's not a good sign for its future. Dubai is finished.