Up And Down In Dubai

Dubai has been known as the world's richest city in past decades, mainly because of its abundant oil and gold resources. However, a recent project of building man-made islands off its coast known as "The World", fell short on funding as a result of the city's recent economic downturn. The crisis comes as a result of Dubai's real estate market crashing by 50 percent. Dubai's government recently received two bailouts from neighboring city Abu Dhabi at a combined price of 25 billion dollars-money that is supposed to help pay back the loan taken out to finish the semi-built utopia.


Dubai World, the corporation that is planning the project feels some relief that the cash injection will help offset their enormous debt. Although pay back seems to be increasingly difficult as the remaining 75 billion dollar balance due continues to weigh the Emirates government down. The crisis caused all major construction projects to halt, yet they are insisting on building Burj Dubai, the world's largest tower.

The plan for Burj Dubai was revealed in January by the company Emaar. The announcement is creating skepticism among critics who feel it will only add to Dubai's increasing debt. In opposition, the Dubai government claims its sole purpose of erecting such an enormous building is for stimulating the local economy. Ten percent of units are already sold nearly six years before its official grand opening. This gives the city hope that more wealthy people will want to purchase space in the extravagant, 160 story tower. Sheikh Mohammed bin Rashid al-Maktoum, ruler of Dubai, is proud of the Burj Dubai and what its construction will do for their long-term economy. He will hold a special celebration the day it opens.

Dubai's newly opened Metro Network, a driver-less rail system, is another potential sign of the city's re-emerging economy. The Metro is already becoming a success as millions of tourists and work force commuters utilize the world's most advanced transit system on a daily basis.

Despite skepticism of the The World's future island construction, high hopes of the Burj Dubai and the Metro Network, many now feel that the previously wealthy city has lost its reputation because of its financial bailout and their incessant need to keep blindly creating unrealistic projects without money to back it. Only time will tell what the economic outcome of Dubai will be.


http://www.cnn.com/2010/BUSINESS/01/03/dubai.worlds.tallest.ft/index.html

http://news.bbc.co.uk/2/hi/business/8462218.stm

http://www.railway-technology.com/projects/dubai-metro/

photo courtesy of morguefile.com/Khalednj