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Port trade route to India, Dubai, nicknamed “Venice of the Gulf,” is a booming city. Built on a desert, Dubai is known today as one of the world’s richest oil regions, living in luxury tourism. There is no shortage of superlatives to describe this emirate which has developed late economically. Indeed, Dubai was behind a simple pearl city that has been to the second half of the twentieth century an extraordinary development through the discovery of the black gold.
It is only recently that the Emirate has decided to diversify into the luxury trade. Lacking oil, engaged in massive construction projects and having an equivalent debt to GDP is Dubai a cold sweat to itscreditors? Can the City go bankrupt? And most importatnly how did it get there? So we will discuss how dubai has become a leading destination in developping rapidly, but how the crisis has stopped the climb and the situation today.
Dubai is both a city and emirate of the United Arab Emirates (UAE : created in 1971) the city is about 5% of the total area of the emirates . Dubai is in the middle of the UAE bordering the Persian Gulf , between the Emirates of Abu Dhabi and Sharjah in the south to the north. Dubai has the second largest population of the seven emirates area ( 3890 km2 or 37 times the size of Paris ) for a population of about 1.2 million. The latest discoveries trace the history of the UAE in 7500 BC.
At that time the area was a vast desert. The population has struggled to settle (the first inhabitants lived with the seasons : in the land during the year and on the coast in winter) . The introduction of Islam , the official religion of the UAE , is from 630 AD. But Dubai’s history begins at the end of the second millennium : Dubai was born in 1833. These founders came from a branch of the Bani Yas.
A rapid ascent
To the area of oil, the activities of
Page 2 Palm Islands and Dubai Essay
Dubai was confined to fishing and pearl trade . Natural gas and fossil ores then became the main resources of the emirate. To overcome this dependence a policy was adopted to open the economy to innovative sectors such as trade, new technologies and especially tourism. In order to achieve that the government has established favorable provisions for companies and launched a policy of public works that will allow urban complexes, hotels and resorts to see the day. Gigantism and the innovative nature of these achievements attract attention around the world and providing a growing reputation. The emirate plans to become the world’s first center for luxury tourism and a leading tourist destination in the world within a few years .Oil exports accounted for only 6% of GDP of the Emirate , the rest as provided by tax revenues and tourism businesses .
To accompany this sharp turn a policy of public works has been established to create childcare facilities, transport and leisure necessary for future activities. Airports, marinas, hotels, palaces, highways, amusement parks , shopping centers, etc.,were built. The projects are so numerous and pharaonic it is estimated that 20% of the world’s cranes are in Dubai.
The new districts are spread in the desert and along the coast north and south , forming the cities of Jebel Ali, Jumeirah, Bur Dubai, Deira, Sharjah and Ajman an area of 2,033,787 inhabitants. The old town retains its character . The coast north and south of Dubai is reserved for new industrial, tourist, religious, business and education. These industrial spaces consuming activities extend into the desert near the popular residential areas exposed to the hot desert winds and private sea breeze.
The old kernel remains. The souks , alleys and walkways kept their trading activity with a specialization . It pierces the souks spice souks but also electronics . To avoid architectural disruption caused by the proximity of two radically different types of frames, an intermediate architecture is implemented. It is a mixture of traditional and modern style. The city is divided into nine sectors, five urban and three rural . High tech is concentrated in ” Digital City ” and ” Internet City ” where settled large media companies (CNN) and computer (Microsoft, IBM ) .
Biological research can be found in the ” Dubiotech ” district and humanitarian activities such as the UN ” Humanitarian City .” To cope with the economic and demographic developments Dubai has substantial transportation infrastructure . The airport has a capacity of 30 million passengers and the project in 2016 is to develop the biggest airport in the world. In 2013 it has been reported that 15 million tourists visited the city. Based on the shores of a natural harbor the port activity has always been important . Port infrastructure has widely developed in recent years. In 2004 Dubai held the tenth container port behind those of Los Angeles and Hamburg. The long arm of the sea city has various ports: Jebel Ali , Port Rashid and Port Creek .
Some social problems
Unfortunately this conversion raises a number of problems. Entrepreneurs do not respect the rights of foreign workers employed to build these complex for millionaires. Employers have absolute freedom in compensation . The workers are so poorly paid, their passports are removed so they can not return home. Their living conditions are also neglected, they sleep in dormitories without comfort. According to local regulations workers can not work in temperatures above 50 ° C. It has been reported that sometimes the temperature being taken in the exceeds 55 ° C. Employees continue working regardless of the temperature.
The pace of construction is very high, which causes workers to work all week causing insecurity in relation to working hours.On average there is a suicide every four days in the working community. Thousands bodies were repatriated to Bangladesh and India. Following the first workers’ uprisings last year and the damning report of the Committee on Human Rights , the city has promised to improve the conditions of life and labor of the workers applying the legislation and strengthening controls.
There are also problems of religion in Dubai. Dubai is an Islamic country where religion is really important. In fact the authorities are really concerned and strict about the way people interact in public places. It is therefore impossible to walk in Dubai in public places holding the hand to his husband or wife or for anyone to kiss on the lips. The law does not authorize to sleep in a hotel or in an apartment in the company of a person that you are not married with. Dubai is modern in terms of infrastructure but its lifestyle does not follow.
Economical problems also
$ 3.5 billion. This is the amount that can not repay on time the public conglomerate Dubai World. Markets analyzed this defect as a possible state bankruptcy, they do not distinguish the debt of the public company to that of of Dubai. However, we must distinguish the sovereign debt of Dubai ($ 10 billion) of the debt of Dubai World (59 billion), while it is true that the total debt of Dubai, the “private” part added to the public part is estimated at 80 billion dollars, almost all of its GDP (estimate again because it is not published). This debt has jumped to the rhythm of development and it is not reasonable for the country.Last year, it flew from 41.8% to 100% of GDP according to Standard & Poor’s.
Today in Dubai hundreds of projects are at a standstill and more than 300 billion of planned investments were deferred to better days. So the cranes are moving almost . Some huge projects are only memories. As the second island -shaped globe , abandoned his precarious state of sandbox in the middle of the Gulf.
This is also the case of the awesome new town project , Jumeira Gardens. Announced in October 2008 and designed to accommodate 60,000 people, it is abandoned. The promotor Meraas decided to stoped it the first week. The exorbitant cost of $ 95 billion has discouraged financial institutions to did it.
To meet its deficits and economical problems Dubai call his neighbor Abu Dhabi that has helped to offset some of its debts and help facing some of its economical problems. But there is still some financial issues.
After this analysis, we found that Dubai has became a very attractive city in terms of its natural resources, its regulations related to trade or its utopian infrastructure. But behind all the benefits that can be converted into a luxury tourism economy, are hidden deep issues. Mainly Dubai biggest problem is that the debt is huge because many buildings are put to the stop or suspended.And there are also social issues which have degrade the image of the country. So how Dubai will regain control and finish all the pending projects? And what can they do to improve their social image?See More on Dubai