Bear Mountain Capital Inc.

Dubai Tower

| January 5, 2010


What I like about this chart, is that it shows the National GDP of the country the year that construction was completed, and the previous 5 years before the project was completed.  It shows how usually “unthinkable” development projects are made during periods of economic expansion and how these accomplishments often peak at the same time as the relative economy peaks.  Many conclusions can be drawn about the perils of being the developer of such a project, given you may be selling/leasing the development in the worst possible economic climate once its reached completion.  The trick is to maintain enough cash flow to weather the subsequent downturn, after completion (true for governments as much as it is for private developers).

(Click here to view chart)