Pramod Biligiri's Blog

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Dubai in the doldrums
pramod kde
One of the sad stories of 2008 is the city of Dubai, which has been badly hit by the global financial crisis. Pretty much everyone would have heard about all the amazing construction activity going on there. Apart from promoting tourism, their monarch was making it a tax free destination for finance, media and IT companies. But there was also immense amount of property speculation going on there, which is now unwinding due to drying up of foreign credit and investment. Their government is 80 billion dollars in debt, and currently getting bailed out by Abu Dhabi, the oil-rich neighbouring Emirate.

One businessman in Dubai writes that at least the city has numerous capital assets which can be sold now, in an article titled "Imagine if Dubai had been too timid to build..."

The social aspects of Dubai's government are interesting too. Check out this Guardian article to understand how unique/weird this place is. And banned cult blogger Secret Dubai has a poem about the current state of their city. And lastly, a Lew Rockwell podcast about the historical correlation between creating skyscraper records and the economic busts that follow soon after (he dramatically segues into fractional reserve banking).

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