Bye Bye Dubai?
By Pat Racimora on February 20, 2009 at 8:00 AM in Current Affairs, Dubai
Sometimes in one of those fantasy “What if we could…” moods, my other half and I agree that we would like to visit Dubai. Their tallest hotel in the world isn’t so much an attraction as the one where the rooms are under water. We like to watch fish.
But trouble looms. This Middle East Disneyland for rich business people–one of seven emirates in the United Arab Emirates along the Persian Gulf–was believed to be recession proof. With so much money in that area and its innovative (some would say over-the-top outrageous) real estate developments, sporting events, and business/finance-friendly policies, what could go wrong? Apparently they didn’t factor in the havoc the greed among us here could generate.
The New York Times tells a bitter story about what is currently going down in Dubai. Foreigners (comprising most of the work force and 90% of the population) are being laid off and need to leave (or are attempting to escape from bills they are unable to pay). Dubai is no USA. If you owe money you can’t go bankrupt. If you bought a home and can’t pay for it, you can’t foreclose. Debtors’ prison awaits.
Construction projects have been delayed or cancelled. Real estate and luxury car prices have plummeted, but few are buying. Maybe those cute little man-made islands are sinking. It is difficult to sort out rumors from fact because a new law would make it a criminal offense to say or do anything that would soil Dubai’s reputation or economy. Fines run as high as a quarter million U.S. dollars.
So, I guess we won’t say “Dubai” next time we play a “What if we could…game.”
I’m thinking Orlando.
























