What’s going on? Dubai – where’s that?

December 1st, 2009

Just when things were starting to settle down again, I get zapped from Dubai!
According to the press, there are financial problems in Dubai. Dubai has a problem meeting its loan repayment for the next 6 months. As of August Dubai World owed $60 billion out of Dubai’s total debt of $80 million.

My problem
I also have a problem. I don’t even know where this place is or what they did to run up a tab of 80 million bucks. I also don’t understand why I am involved and what this has to do with my miserable little portfolio on the Nasdaq exchange. I turned to Google for information and I am stunned at the results.

Dubai
Here are some interesting snippets about Dubai. Dubai is one of the seven emirates of the United Arab Emirates (UAE). It is located south of the Persian Gulf on the Arabian Peninsula. Dubai has been ruled by the Al Maktoum dynasty since 1833. Dubai’s current ruler, Mohammed bin Rashid Al Maktoum, is also the Prime Minister and Vice President of the UAE. The emirate’s main revenues are from tourism, real estate and financial services. Although Dubai’s economy was originally built on the oil industry, revenues from petroleum and natural gas currently contribute about 2% of the emirate’s US$ 80 billion economy. Did you get that? No oil! So where does the money come from?

Tourism, real estate and financial services
Dubai has attracted attention through its real estate projects and sports events. This increased attention, coinciding with its emergence as a Global City and business hub, has highlighted labor and human rights issues concerning its largely South Asian workforce. Established in 2004, the Dubai International Finance Centre was intended as a landmark project to turn Dubai into a major international hub for banks and finance to rivals New York, London and Hong Kong.

The world’s tallest office block
Dubai’s breathtaking real estate developments include the Burj Dubai, which at 800 meters or 2,600 feet is the world’s tallest office block. Construction of the 160 story edifice started in 2004 and is scheduled for completion in 2010. The Burj is the flagship in a new neighborhood that also boasts the biggest shopping mall in the world. The architect is the American, Adrian Smith formerly of Skidmore Owings and Merrill. The building is simply a stunning piece of design. How it will feel sitting at your desk near the window 2,600 feet above the ground or the water may be another story.

The man-made islands
Developers created islands on which are built luxury housing estates and the sail-shaped Burj Al Arab which purports to be the only 7-star hotel in the world and which features amenities such as a butler for each room and an underwater restaurant. It is one of the most expensive hotels in the world. The cost of staying in a suite begins at $1,000 per night. If my shares keep dropping can I get a free night in the Royal Suite?

This entry was posted on Tuesday, December 1st, 2009 at 5:47 am and is filed under Economy. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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