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Celebrities mired in Dubai debt crisis
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The global financial crisis hit both high-earners and ordinary people alike, with job-loss being one of the biggest concerns for the man on the street. But the latest crisis in Dubai has dealt a severe blow to the rich and famous, with the country's property market, a favored choice for a life of luxury.
When the Dubai property bubble burst, celebrities saw the value of their real estate investments collapse.
Nine British Football stars, include David Beckham and Michael Owen, paid 1 million pounds each in 2002 to invest in Dubai's Palm Jumeirah. Their investment soared 8 times over the years. But the average value dropped back to 1.6 million pounds during the first half this year.
Hollywood couple Brad Pitt and Angelina Jolie bought an artificial island for 36 million US dollars. Losses are now said to be beyond estimation.
German tennis star Boris Becker invested in a 19-story tower named after him. It's estimated that the value of the building in the center of Dubai's commercial district is down by nearly half.
Last year, F1 champion Michael Schumacher invested 7.5 million US dollars in a 29-floor residential and commercial building. The project has now been put on the market, at 60 percent off its original price tag. But no interested buyers have shown up yet.
Construction for Giorgio Armani's flagship Hotel Chain in Burj Dubai Tower was set for completion early next year. But mired in the Dubai crisis, the fashion designer's hotel opening has been delayed over and over again.
Meanwhile, developers for Tiger Woods' golf course in Dubai say they are now unable to afford the 1.1 billion US dollar project. Tiger Woods has also suffered losses from nearby property projects. Industry insiders say they do not expect many business people to hire Woods to design golf courses in the current financial environment. And that means fewer clients for the golfing star.
