An Agence France-Press photo of a comely, scantily clad European
woman sunbathing on a beach in Dubai while several Pakistani
construction workers pass by headed for the palatial building
sites in the distance tells the complete story of this
incongruous city and state. If the photographer had been able, he
would have included a shot of the Gulf’s first metro, a favorite
project of the ruler. The question exists, though, whether this
Disney world of development can much longer exist living at its
frenetic pace.
The story is well known of this expensive dot on that portion of
the western Arabian peninsula that juts into the Persian Gulf on
one side and the Gulf of Oman on the other. Its oil and gas
income has dwindled percentage-wise to the single digits of its
economy, and it is tourism, real estate, and finance stimulated
by its economic “free zones” that now keeps Dubai afloat.
Unfortunately for its privileged citizenry and expatriates living
in high style, the worldwide financial crisis has burned a hole
in the emirate’s previously gold-filled deep pockets.
In the past few years Dubai leveraged itself into eighty-plus
billion dollars of debt by becoming hypnotized through prolonging
its construction boom via unsustainable credit lines. Inflation
has exceeded 10% annually since 2007, causing substantial
increases in living costs. With each mogul, sheikh, and foreigner
alike vying with one another to create the largest and most
lavish of commercial and residential buildings, eyes and bank
accounts were so fixed on the expected future rewards that they
lost sight of the pitfalls of the present.
There appears to be a direct correlation between the easy flow of
money and the acceptance of non-Islamic cultural values. Now
during a time of economic instability the emirate’s population
has increased political pressure on its ruler and prime minister,
Sheik Mohammed bin Rashid al Maktoum, who is also vice president
of the United Arab Emirates (UAE), to rein in the profligate
style of Dubai. Apparently this newly found conservatism is
directly related to the severe business downturn and credit
tightening.
The truth is that the lavish lifestyle and uninhibited opulence
that has attracted so many tourists also made great inroads on
the traditional culture of conservative Islam. Wine, women, and
song became more than just a saying. However, the signs of a
tightening of the social order are now clearly there. Arabic has
been reinforced as the official language in an attempt to stem
the tide of the popular use of English. The laws on drunkenness
and other unacceptable public displays have been tightened and
prison terms for the offenders have been applied.
Of course, this means a fine balance must be maintained between
preservation of traditional values while trying to squeeze the
dollars, pounds, euros, and yen out of the tourists and resident
expatriates. The merchant society of Dubai goes back long before
the days of the oil boom when trade with South Asia ruled the
emirate region and pearl diving was a major industry. There are
very few alive today who have personal memories of those days,
but there are many who, with imagined nostalgia, tell of the
grand old times when life was more simple — while driving in
their latest model Mercedes.
Dubai may sit squarely in the strategic cross section of the
Gulf, but it does its best to pretend to political balance. As a
historic entrepôt the emirate acts commercially as a friend to
everyone. This is best signified by the regular smuggling traffic
in everything that can be desired. Iran is a major participant in
this form of trade and has been for many generations. Iranians
are major investors in Dubai through various front companies, and
other Persians find the location a favorite vacation site for the
more wealthy among them.
Dubai is a striking example of what can be done with vast sums of
money, foreign workers and engineers, and free-wheeling financial
dealing. Having said this, however, it must be remembered that
this is a historic community of traders who have been competing
in the broad mercantile society of the Gulf and South Asia for
centuries. The Emirate of Dubai knows how to handle the good
times and the bad, so don’t sell them short in these testing
moments; all of which is good for the babe on the beach.
