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Old 05.02.2009, 17:35
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Re: Dubai... a giant Ponzi scheme?

You're not getting anything wrong. You just haven't bought into all the hype like so many mindless dittoheads.

I visited Dubai frequently during the '80s when I lived in the Middle East. It was a great business location and was considered one of the more progressive places in the region at the time. I enjoyed the beaches and I remember going ice skating once in an indoor ice rink they had right next to the Hyatt.

I haven't been in over 20 years, but between the stories I've heard from those who have and the articles in the news, I have no desire to revisit. It sounds like they've gone totally crazy and all out tacky. Like Las Vegas on steriods.

But all the luxury, glitz and glamour cannot change the fact that there are huge divisions and disparities between the locals and the expats, between expats from, say, Europe or the US and those from South Asian and East Asian countries (this also includes the area of remuneration), there is one one set of rules for the locals (with a subset of rules for wealthy locals and another for poor locals) and another for the expats, and being, still, a fairly conservative Islamic society, I would imagine Sharia laws apply, especially as they may pertain to women. I have also read that the local law enforcement refuses to prosecute crimes committed by locals against expats and that's a big sore point.

I also believe that Dubai's high profile, economic success (whether dubious or not) and it's efforts to appeal to Westerners and the über rich make it a potential target for a terrorist attack.

Sorry, but it'll take more than sheer wealth and glitz to give me incentive.

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One of my favourite pet hates is the breathless enthusiasm expressed by people when speaking about Dubai. They tend to promote the place with a Messianic zeal of new converts. I might not be PHD in economics but something smells rotten in the kingdom and it's not the stale hummus.

Does the emperor have no clothes? Is Dubai some sort of an economic cult?

A Ponzi scheme is an investment pyramid where the returns on investment of previous investors are re-payed with the investments of the subsequent ones.

Each year, more and more projects are started in Dubai that bring ever more expats... who work on even more projects that need even more expats who live/use the previous projects. Sounds sustainable?

Dubai's idea was to create a huge playground for the rich from all over the world. To attract such numbers of very discerning individuals, they built...

A. Largest indoor shopping mall.
B.Largest indoor skiing slope.
C. Tallest skyscraper.
D. The biggest luxury hotel in the world.

Now I understand how D might interest the said rich individuals (even though most rich people prefer anonimity and relative solitude, hence the the more expensive the room, the smaller their number.)

But the first 3? Why would you go to a cheesy indoor slope... when you own a chalet in Gstaad?
Why go to a gigantic American type mall... when you go shopping to Milan in Spring and Paris in Autumn... all in exclusive boutiques.

Tall skyscrapers? How long will you stand around and stare at one?

Dubai also has the distinction of being WAY too hot in Summer (requiring you to stay indoors, don't believe me? Check the drop in prices in Summer) and water too cold in Winter... which is a problem for a VACATION destination.

The main beach in Dubai has also been recently overflowing with faecal matter... unless swimming among some Arab t£^&ds is what you enjoy I see that driving people away.

Not to mention that islamic mores, while more relaxed then in Saudi Arabia... might dampen some of the parties that the rich like to throw.

Economically Dubai is close to most of the Arab oil producing nations... and Persian one across only 50kms of water, a nuclear program and an itchy trigger finger.



So... what am I getting wrong here?
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