Dubai Soon To Be A Ghost Town.

Dubai, the once darling city of the Middle East, has taken quite an ass-kicking lately.  New York Times reports that Dubai has just secured $10 billion in aid from its neighbor, Abu Dhabi.  Real estate prices have dropped more than 50 %.  Many foreign workers, who make up over 90% of Dubai’s population, have lost their jobs and fled.  Major construction projects, including the world’s largest tower, have halted.

Major ass kicking.

Owing back loans to foreign investors, Dubai scrambled to try and refinance a major $3.8 billion loan last week but no dice.  The lending banks told Dubai to take a hike.  So their only shot was Abu Dhabi.  And you can tell Abu Dhabi loves this arrangement.

Since each “Emirate” is like its own state, each have autonomy.  Abu Dhabi seems to want total control.  Now with Dubai flailing, it may be time to bitch-slap them around a bit.

The $10 billion loan Abu Dhabi gave to Dubai wasn’t nearly enough.  You can bet it’s just to see how Dubai reacts.  When they need more, they’ll be running back to their big brother AD, and the terms may be much stricter.

It’s sad to see Dubai in this mess, but it’s really their own fault.  Who needs the world’s largest tower anyway?  Why couldn’t you be happy with just a nice, pretty high tower?  I guess it doesn’t matter anymore.  Dubai’s the Cleveland of the Middle East.

Oh, and if you’re from Cleveland, I meant Pittsburgh.

  • Tor

    Well, they wanted everything they made to be the worlds biggest, so I guess when the crash comes to Dubai, it will be the worlds biggest crash as well..

  • Geez, what a suprise?
    Well, somebody’ll probably buy the place and move it to Arizona. To say the least it will make a very cool ghost town.

  • Rob

    Wow. I’m from Cleveland, living in Pittsburgh. Gotta say your right on the sad state of both…

  • Bill

    Um, sorry but even with all that Dubai still has much more going for it than both Pittsburgh and Cleveland combined.

  • Thats quite exaggerated. How about doing some homework before writing up on ‘real life’ issues 🙂

    Cheers

  • Wait, what’s exaggerated? Cleveland or Pittsburgh?

  • I suppose Dubai is still too “third world” to get caught-up in Cap and Trade. Lucky them. Think what their electricity bill would b.

  • Clevelander

    Ouch. That hurts a little bit.

  • Referring to Dubai as Ghost Town. Wait for few months and you’ll see Ghost Towns line from east to west coast. Recession be praised.

  • What really sucks is how unimaginative their development was. With all that money they could have created a sort of mega-Epcot Center, City of the Future kind of thing, with efficient public transportation, solar power for everyone, the latest waste recycling systems, parks and huge enclosed gardens, and an interesting, integrated city plan promoting community and quality of life.

    Instead all they have is a bunch of tall buildings on a grid, all dumping their waste into the ocean.

  • Dave

    I agree with Dave. They had all that money, they could have built something truly spectacular with built-in longevity. Instead they went for the cheesiest option. I always felt it had no future: it needs stupendous amounts of water, it is built in a place where until 30 years ago nobody would think of going and their slaves are their largest demographic.

    I didn’t think it would die this fast, but you’ll see that the costs of maintaining all these buildings, for which there not adequate facilities, will prove too much of a burden. The buildings will be abandoned. You also read about how they treat their water resources. They’re in the desert. And polluting their water. All their water is desalinated. How much does that cost?

    And in the Summer it’s 50 degrees in the shade. Good luck with that one.

  • What’s really sad is that once the world stops buying their oil, every major city in the middle east will become a ghost town. And they see it coming, thats why they didn’t make an Epcot in Dubai, with solar power, and mass transportation. they NEED the world to rely on their oil to stay alive.

    And Kashif, if you’re looking for a ghost town, google Detroit, thats where i’m from.

  • I love this blog! Will come again next time for sure,

  • rp

    Bangladeshi Farmer Sends “Aid” to Dubai Government

    http://theeggplantpost.wordpress.com/2009/12/02

  • rp

    Bangladeshi Farmer Sends “Aid” to Dubai Government

    http://theeggplantpost.wordpre