Now that Gulf State stock markets have tanked, the fate of many of the $1.3 trillion of building projects underway in the region appears much less secure.
Some Dubai developers say they are going ahead with their projects.
Others are quietly postponing development plans while they reevaluate existing capital and seek new funding.
"Foreign investors were banking on that oil revenue . . . to spur property markets and overall economies of these countries," Chartwell Partners head Carl Delfeld told the Washington Post.
"And it's going in reverse now."
Before this week, new construction in oil-rich Gulf States surpassed even China’s building boom and led bankers and developers to feel they had immunity from the financial turmoil in the U.S. and Europe.
Now, it appears that billions of dollars in oil surpluses may not provide a sufficient cushion against Western financial problems after all.
"Gulf investors are dumping shares as they fear that a global financial-markets meltdown will badly hit the local markets," Shuaa Securities Managing Director Mohammad Ali Yasin told the Wall Street Journal.
Many sovereign wealth funds, which Gulf states use to invest much of their oil revenue, have yet to reveal the extent of their losses in U.S. and European investments.
Even before this week's crash, investment firms warned of a 10 percent to 20 percent drop in real estate prices over two years.
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