BYE-BYE DUBAI

 

Fast Company has a very interesting article on the decline of Dubai called ‘Bye-Bye Dubai’ which features a slideshow on the cities ongoing decline and non-stop shutdown of mega projects. The Dubai decline slideshow is fascinating … abandoned cars and all.

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When we were in Dubai, I asked the same question ‘Why? How can it last?’. It seems like there is more pain to come. From The Globe and Mail ‘Crunch Time in Dubai’:

The sheikdom and its network of state-controlled companies amassed at least $80 billion (U.S.) in debt on projects like manmade islands and opulent high-rises during a multiyear building boom that saw the city-state craft itself into the Middle East’s financial, trade and tourism hub.

About $50 billion worth of that debt needs to be covered over the next three years, said Farouk Soussa, S&P’s head of Middle East government ratings. A lack of government information has left investors wondering how it all will be repaid or refinanced.

“It’s anyone’s guess how much the government of Dubai has to support that debt,” Soussa said at a conference in Dubai. “It comes back to transparency.”

I guess Dubailand will have to wait.

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