After the party, the hangover...


Express April 19, 2010

What Dubai lost:

After a boom that looked like it would never end, the party finally came to a close in Dubai. It turned out that the city where everything was possible was built on a foundation of sand. As Dubai grew, it financed its expansion through debt, not having been blessed with the oil reserves of its Persian Gulf neighbours, including its fellow emirate, Abu Dhabi. As the world markets began to crash, the bills came due and invetors pulled out, leaving Dubai with a mountain of bills to pay, forcing them to sell assets. Here is a partial list of what they had to sell...

What Abu Dhabi gained:

Known as the far more conservative cousin of Dubai, Abu Dhabi often looked upon its flashier emirati neighbour with a degree of disdain. After having shunned the glamour of Dubai for a more measured approach to building up its international reputation, Abu Dhabi feels vindicated, having not suffered any of the financial woes of its cousins (it helps to have a huge reserve of oil). While they had to bail out Dubai, Abu Dhabi extracted its costs and kept on buying more assets, as if to spite Dubai on its new-found penury. A partial list of Abu Dhabi’s gains...

COMMENTS (3)

Mirza | 11 years ago | Reply I think Dubai is built good but like all things the rise was not forever, the has to come full circle and it did and results are in front of all of us. In my idea the golden days of Dubai are gone and the truth and hard reality is settling in. The Emirate must know that in order to built a country they must educate, manufacture and industrialize. I feel sorry to say that none of the countries of Arab world who had and still have billions invested in social infrastructure, building educational institutions making the move toward self reliance and development of industry. The investors are affraid and the money wont be coming back to Dubai as it did earlier because the other GCC countries are also selling there silver and trying to imitate the Emirate. One last thing the idea of Democracy has to be established in these countries and a monarcy like Britian can be imitated.
Meekal Ahmed | 11 years ago | Reply More appropriately a cycle of boom, bubbles and bust. The business cyle is not dead.
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