Abu Dhabi and Dubai Blog

The observation deck on the Burj Khalifa in Dubai, the tallest building in the world, has been closed for repairs only a month after it opened. Emaar Properties, the builder of the tower, said there had been an unexpectedly high number of visitors and problems with the power supply.

http://news.bbc.co.uk/2/hi/middle_east/8504852.stm

The murder was straight out of a cheap spy thriller. At least 11 professional assassins, some wearing wigs and fake beards, tracked a senior Hamas official to his Dubai hotel in January and killed him with cold precision, fleeing the country afterward on European passports, the Dubai police say.

http://www.nytimes.com/2010/02/17/world/middleeast/17dubai.html

Details continued to emerge yesterday on the assassination of senior Hamas member Mahmoud al-Mabhouh in Dubai last week. Dubai police chief Dahi Khalfan told local reporters yesterday at least seven people with European passports were involved. He did not name the specific countries of the passports, but said the Dubai police approached the nations for information on these individuals.

http://www.haaretz.com/hasen/spages/1146622.html

The financial crisis and now two criminal cases that have generated critical headlines in other countries have demonstrated that the emirates remain an absolute monarchy, where institutions are far less important than royalty and where the law is particularly capricious — applied differently based on social standing, religion and nationality, political experts and human rights advocates said.

http://www.nytimes.com/2010/01/22/world/middleeast/22uae.html

Even as the site was being excavated more than five years ago, during the halcyon days of the Dubai miracle, the Emirates construction business was disillusioning. Dogged by human and civil rights violations, the Pakistani, Bengali, Indian, and Chinese workers who poured the reinforced concrete, put in place the support beams, and manned the high cranes that still dominate the Dubai skyline were often subjected to unhygienic, overcrowded living quarters, unsafe working conditions, and withheld wages.

http://www.philly.com/inquirer/currents/81082807.html

“The fundamentals in the market are too strong,” he said. “There won’t be a crash.” These words were spoken last year by the head of the largest state development firm in Dubai. But it seems that things have changed:

Since then, residential real-estate prices in Dubai have slumped by almost 50%. Developers have slashed jobs and scrapped projects. Groundbreaking on the tower was long ago put on hold. The yearlong retrenchment culminated in last week’s surprise announcement that Dubai would seek to restructure $26 billion of debts owed by Dubai World, the holding company for many of the government’s port, infrastructure and real-estate businesses.

http://online.wsj.com/article/SB125988807548075805.html?mod=rss_Today%27s_Most_Popular

Some brief but astute comments from a blogger at the New Yorker:

Last Wednesday, Dubai asked to be excused six months of payments on a debt of fifty-nine billion dollars owned by Dubai World, the state-backed conglomerate. Yesterday, Dubai’s stocks fell 7.3 per cent; today they fell another 5.6 per cent. And the Gulf News, an English-language Dubai newspaper, has reported this online with the headline: “UAE markets bounce back at the end of trading sessions.”

http://www.newyorker.com/online/blogs/newsdesk/2009/12/dubai-in-debt.html

This is a question more people are asking, given the turbulence in world financial markets this past week. The BBC provided this interesting analysis:

Although frequently described as a city state or even as a country in its own right, Dubai is a constituent member of the federation of United Arab Emirates along with six other emirates.

Only one of these, Abu Dhabi, possesses substantial oil reserves, and as such it has dominated most areas of federal politics – including foreign affairs and defence – since the UAE was formed following Britain’s withdrawal from the Persian Gulf in 1971.

http://news.bbc.co.uk/2/hi/middle_east/8382275.stm