Sunday, February 15, 2009

Collapsing Dubai

Dubai's economic boom is collapsing very rapidly and unceremoniously. Without neighboring oil wealth, they don't have anything to hold them up. Looks like all those much-vaunted skyscrapers and theme parks may end up as half-built ghost towns. So much for their dreams of being the Switzerland of the Middle East -- they're looking more like Iceland instead. Where will D-Company hide now?

But it also goes to show that a country that shows no loyalty to its workers will be shown no loyalty by them. UAE with its slave-labour practices and its ridiculously disproportionate migrant labour force living under constant threat of being tossed out as soon as they lose their jobs, is now seeing the other side of the coin. When the country suffers downturn, then everybody vanishes, leaving the elite "true citizenry" holding the bag.

Just deserts.

7 comments:

Gagan said...

I have leaned from many of my friends (who ar working at key positions in the Government and private companies) that Dubai Sheikh has already asked Abu Dhabi (which is *very* rich in Gas and Oil) to bail it out by lending/investing money. Needless to say, these Arab states may show unity, bu internally they all are always bickering with each other, and Abu Dhabi will not miss its chance of imposing its restrictions and controlling a so called libral Emirate state.

san said...

Well, even oil is at quite a low right now ($34/barrel). So Abu Dhabi will also be burning through its cash quickly. We should help invite in the Iranians, who have territorial claims on their land. That will throw a cat among their pigeons for sure.

Ghost Writer said...

also - there goes some of Kerala's famous economic model that Amartya Rothschild loves so much; all funded by middle east blood money

tat_tvam_asi said...

Something tells me we won't have to fight another war with Pak. Because it won't be there


http://news.bbc.co.uk/2/hi/south_asia/7890985.stm

Pakistan's president says his country is fighting for its survival against the Taleban, whose influence he said has spread deep into the country.

Anonymous said...

Was there only a couple of months back. Heard then, only a month after the meltdown, that one of the major global banks had closed their Wealth Management division in Abu Dhabi. Rents were very high. Now with people running away, the market must have crashed. What will the Emiratis do for a living?

Communal said...

http://www.hulu.com/watch/57171/the-daily-show-with-jon-stewart-tue-feb-10-2009#s-p1-so-i0


Look at the part where Jon Stewart talks to Thomas Ricks.

The secret about Victory in US.

AGworld said...

Oh dear the poor emiratis...
who will clean their toilets, sidewalks and run the cafes!

gasp -- arabs may actually have to work for a living.