Premium
This is an archive article published on December 1, 2009
Premium

Opinion The white sheep

Dubai is. It is over-the-top extravagance,it is opulence in abundance,an imagery that challenges even the most feverish imagination.

December 1, 2009 02:38 AM IST First published on: Dec 1, 2009 at 02:38 AM IST

Dubai is. It is over-the-top extravagance,it is opulence in abundance,an imagery that challenges even the most feverish imagination. Far removed from a time when there was more desert than development,Dubai has become the star of the Emirates.

And now,it has buckled under the pressure of its own zealousness: asking for a debt standstill,unable to pay back $59 billion sukuk.

Advertisement

Dubai’s glory days were being questioned even as the recession set in. Voices whispered that the property bubble had burst,that the countless cranes lining the skyline lay idle,that wealthy investors — the type Dubai wanted — would abandon the country,scared by plummeting oil prices. So they threw a party. To celebrate a new,palm-shaped island. And what a party it was. Sheikhs rubbed shoulders with Lindsay Lohan; shipping tycoons discussed trade as Kylie Minogue rocked the party. A huge success,according to the Dubai “It” crowd; but frowned upon from afar. Was this really a time to party?

Then the bad press came swamping in. Investments overlooked earlier now became the talk of the town: the P&O Ferry Line; that the QE2 was docked,unable to get decked up; that Dubai was as plastic as the Madame Tussauds it had invested in.

But there is more to Dubai than gold-lined palm-tree boulevards and imported white sand.

Advertisement

Firstly,acknowledge the role Dubai played once the great cities of Beirut,Cairo,Tehran and Damascus fell. Their wars and the trials that followed created a vacuum in the Middle East. Beirut lay ruined,Cairo suffered a blow following the crushing of its pan-Arabist dreams,Damascus was embroiled in its own insurgencies,and the rise of the Islamic Republic pushed Iranians out of Tehran. An alternative was needed: and Dubai has always been a laissez-faire economy with less pinching political and religious inclinations. Populations from elsewhere could be easily absorbed.

Dubai already served as a refuelling and relaxation stop during the various Gulf Wars. Wealthier refugees from Iraq,Iran,Armenia came to form permanent settlements in colonies; economic migrants came from India,Bangladesh and Pakistan.

Diaspora communities built Dubai. The first Gulf War was a major catalyst: wealthy businesses and large chunks of the foreign trading communities — first from Kuwait,and later from Bahrain as the Shi’a insurgency there picked up — moved their businesses to Dubai. Thus grew the idea of “Modern Dubai.” Sheikh al-Maktoum’s philosophy of “build and they will come” was first conceived by the creation of Emirates airlines,and then a mall or two sprang up,catering to increased demand. Naturally everyday life of Dubai “locals” was disrupted. Ask us if the changes were welcomed and they will grudgingly dodge the topic,then proceed with a “No,not really…” It simply disturbed everyone and everything — until recently.

As much as Dubai is a copy of Las Vegas-style development,where aesthetics and architecture often clash and urban planning is at odds with reality (note how the Palm Islands project was delayed due to poor sewage conditions around its fringes),Dubai focussed attention on the Emirates.

Development in Dubai has allowed for the wise investments undertaken by Abu Dhabi. Who would have thought,back in 1992,that Abu Dhabi would have the privilege of developing the latest F1 circuit,or that the remote emirate of Sharjah would become an urban metropolis too? Dubai’s growth has spurred growth in the Emirates. As the rents continuously rose between 1998-2006,less wealthy migrants spurred a property boom in Sharjah. Real estate boomed in Al Ain too,which developed its own free zones. It’s not all competition though: consider the Dolphin Project. This aims to develop links between the gas infrastructure of Qatar,the UAE and Oman. What’s more,the Gulf Cooperation Council also reaped benefits from Dubai’s growth.

Oman is now a major tourism destination. It has the gorges,the rivers and the turquoise sea Dubai has attempted to replicate. Its airline is giving Emirates a run for its money. Bahrain too challenges Dubai: the so-called Sheikh of Fashion who climbed to fame in Dubai with his Boutique One brand has gone back home to Bahrain to set up similar luxury stores.

Simply put,there is more to Dubai. Yes,it may be an exercise in extravagance but its spill-over effects are beneficial to the region. So,as far as the wise cousin bailing out his badly-behaved relative line goes,one needs to look deeper,beyond Dubai Inc. Beyond the façade.

alia.allana@expressindia.com

Latest Comment
Post Comment
Read Comments