The Dubai World is sinking (into bankruptcy)

Discussion in 'Business & Economics' started by Syzygys, Jan 22, 2011.

  1. Syzygys As a mother, I am telling you Valued Senior Member

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    12,671
    I knew it was a stupid idea making hundreds of artifical islands:

    http://www.dailymail.co.uk/news/art...alling-sea-Dubai-World-sinks-fund-crisis.html

    "It exemplified the booming property market and ambition of Dubai’s entrepreneurs.
    But after the global financial crisis led to the collapse of the emirate’s home-building market, a unique development known as ‘The World’ is reportedly facing Armageddon.
    The project, a man-made archipelago designed to resemble a map of the planet, is facing disaster as its islands have begun sinking, a tribunal heard this week.
    The development, which sits a mile and a half from the mainland, is all but vacant after investors who bought up its ‘nations’ saw their finances collapse after the economic crash."
     
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  3. Pinwheel Banned Banned

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    Wealth destruction.
     
    Last edited: Jan 22, 2011
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  5. Shadow1 Valued Senior Member

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    hmm, i maked that thread way before you

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    it's that, bye dubai world islands or something like that

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    anyway, dubai now have bankruptcy
     
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  7. kmguru Staff Member

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    11,757
    Too much oil money. They forgot to take account where the money comes year after year after building all the buildings...
     
  8. spidergoat pubic diorama Valued Senior Member

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    Dubai has been sinking for years, it's obscene and was doomed from the start.
     
  9. Pinwheel Banned Banned

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    They were bailed out by Abu Dhabi ($10bn to help pay debts) so they avoided that for the moment.
     
  10. Gremmie "Happiness is a warm gun" Valued Senior Member

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    Meh, they'll just use that money to build another mall.
     
  11. dbnp48 Q.E.D. Registered Senior Member

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    My guess is that, so long as there is oil at $100/barrel, the Arab world will not let Dubai fail. Too much loss of face.
     
  12. PsychoTropicPuppy Bittersweet life? Valued Senior Member

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    Man, what the hell were they doing with the milliards of bucks they had? Nothing. What a shame..they're so fucking vain. So goddamn vain.
     
  13. X-Man2 We're under no illusions. Registered Senior Member

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    Yea they are almost as bad as the US the way they waste all the money instead of spending it on something constructive.
     
  14. Michael 歌舞伎 Valued Senior Member

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    Part of the problem is the culture of work-ethic; which is nearly non-existent in most oil-rich Arab cultures. It's VERY common to hire an Arab to do nothing (free money) and then a foreigner to do the actual work. Very common. I say work ethic is part of the problem because the Pakistani Muslims they imported to do all the back-breaking work can't seem to manage an economy on their own either.

    IMO, with no exception, once the oil funding drys up, all of these cities will disappear as the desert swallows them whole. JUST as is happening right now to these asinine mountains. Who builds snow fields in the desert??? Sure reclaiming land is all well and good IF there's a productive purpose to it. Japanese were reclaiming land as man-made islands a thousand years ago. Not for sea side resorts. It should be almost as fun to watch the chickens come home to roost in Dubai as it is in the USA. Emeraties treat Indians and Pakistanis like dogs but unlike dogs don't expect any loyalty when Dubai sinks into the desert.
     
    Last edited: Jan 24, 2011
  15. Captain Kremmen All aboard, me Hearties! Valued Senior Member

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    Maybe they made "The World" too realistic.
    Now there are sinking Islands, debt problems etc
    War between the different countries is sure to follow.
     
  16. jmpet Valued Senior Member

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    I am a fan of Dubai- and all of you should too. They're westernized enough to where you can visit there and not expect to get your head cut off for being an infidel.

    Sure they over-built. Everyone did. But Dubai was trying to go from being oil-dependant to oil-free and the way to do that is to build a world-class city like they've been doing.

    I don't think Dubai is doomed- rather, I see an oppourtunity to go in there and buy yourself some prime real estate at pennies on the dollar and own something that in a decade or two will pay off in prime real estate.

    Hey- they're trying to modernize- let's not criticize that.
     
  17. spidergoat pubic diorama Valued Senior Member

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    It's a city that has no reason for being there. They abuse workers and throw you in jail for kissing in public. It's not prime real estate, it's a pyramid scheme.
     
  18. Syzygys As a mother, I am telling you Valued Senior Member

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    It is a popular myth, so let's bust it: Only 6% of Dubai's GDP comes from oil.

    Also, just because we agree with the principle, we don't have to like the execution of it. The whole idea was ridiculous from the get go....

    My friend has been to Dubai. They have cooling pipes under the sand on the beach. I guess that is where I draw the line....
     
  19. PsychoTropicPuppy Bittersweet life? Valued Senior Member

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    cooling pipes? LOL! Vanitas vanitatum et omnia vanitas!
     
  20. dbnp48 Q.E.D. Registered Senior Member

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    Source?
     
  21. Michael 歌舞伎 Valued Senior Member

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    Dubai doesn't have any oil, that's all in Abu Dhabi - and fastly becoming scarce. The real question is, can Emirates actually PRODUCE something of value other than oil? I don't think they can. They've built a mini-London/New York in the desert - well, we all know what scum Banksters are. So, can Emirates work and produce something in their 55C heat that people will want to purchase? If not then the ponzi scheme will collapse sooner or later (seemingly sooner).
     
  22. Captain Kremmen All aboard, me Hearties! Valued Senior Member

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    Spidergoat, let's face it, it's a white elephant.
    Somewhere in the distant past I predicted it was a bubble.
    On sciforums.

    This part of the world has the world's worst summer climate.
    At least half of the year is awful. Terrible.
    I've lived on the gulf, and the winters are very pleasant.
    That's probably when they brought people to look at the properties.

    The whole project was built upon the lack of development.
    Why was there no development?
    Because no ferkah could live there!

    A few goatherders, scratching an existence from scrub desert.
    That's all.
     
    Last edited: Jan 25, 2011
  23. superstring01 Moderator

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    How is that?

    Is this one of those "they shouldn't enjoy their wealth while others starve" nonsense or "the rich should do more good" type commentaries? Because all Dubai is, is a nexus. The super-rich already exist, they merely show it off in Dubai. If it weren't for Dubai, they'd still be super rich and would still live lavish lifestyles, they would just be spread a lot more thin throughout the world.

    As for the entire city of Dubai "sinking", I have my doubts. The super rich will exist for many years to come and the UAE is just too attractive a place to avoid going there. When the economy rebounds more robustly, I will gladly wager any person on this website that the city's fortunes will return.

    ~String
     

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