Posted by: cgratton | March 2, 2009

Not So Fast Dubai…

With the tragic economy hanging ominously over everyone’s heads these days, and pockets tightening across the globe, luxuries are facing the chopping block.

But what if your image is one built on luxury and extravagance?

This seems to be the dilemma facing Dubai, the city that is currently in the process of a major building binge in an effort to claim its title as the most opulent and modern city in the world.  With plans for a moving skyscraper, refrigerated beaches and a hotel comprised of a chain of man-made islands that resembles a map of the world, Dubai’s goals are unquestionably innovative, but are they still financially possible?

Investors claim Dubai (and the entire Gulf Region) is immune from the economic cancer spreading across the globe, but some recent news stories paint a different picture:

As millions join the unemployment line everyday and entire countries are going bankrupt, is there really a place for promoting excess anymore?  There definitely was in Dubai at the end of November when Atlantis Resorts opened a new branch, and celebrated with a party that cost 13 million Pounds!

But is seems this financial boom may be fizzling out, as the playground of the world’s rich and famous is taking a hit just like everyone else.  Hundreds of billions of dollars are being slashed from these building projects, causing them to be put on hold or scrapped altogether.

What this means for the city’s future still remains unclear, as its current image of over-the-top decadence may need some tweaking to appeal to the more practically-minded consumer.  There are, of course, only so many billionaires in the world.

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Responses

  1. I saw a 60 Minutes story a few months ago about all of the growth going on in Dubai. It was suggested in that story that Dubai would be recession proof, I guess not. Good job


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