Economic Impact of Dubai Essay

1251 Words Oct 24th, 2010 6 Pages
Economic Impact: Dubai Dubai is the largest of the seven emirates in the United Arab Emirates. It is quickly growing into a huge tourist spot and prides itself on having some of the world’s greatest attractions. However, sometimes having the best comes with consequences. Despite the Middle East’s relatively low tourist rate, Dubai had been able to attract many “big spenders,” which has enhanced its economy, but can also take a toll on the people.
In her article, “Tourism in Dubai,” Joan Henderson calls the Middle East, “one of the least developed tourism regions in the world” (Henderson, 2006). However, Abdul Basit of the Khaleej Times reports that, “a strong and dynamic tourism sector has placed Dubai among the top 10 most visited
…show more content…
The DTCM hopes this will help build Dubai into a year-round destination, and the growth of 9.2 percent in 2009 proves promise (“Dubai creates deals,” 2010).
Among other things, Dubai is known for having the world’s tallest building, the Burj Khalifia, the world’s largest shopping and entertainment center, the world’s tallest performing fountain, and the world’s richest horse race (“Iconic burj khalifa,” 2010). Dubai prides itself on having the best of many things, especially infrastructures, which provide most of the local jobs. Therefore, the continued interest in these architectural buildings proves to be beneficial to the local economy. Although, according to sources, property values in Dubai have sunk about 30% it is believed the three years from now prices will rise again and more projects will erect (“Average property drop,” 2010).
In order for Dubai to make the transformation into a tourism and financial hub, $109.3 billion was borrowed to finance lavish buildings, resorts, and manmade islands. The International Monetary Fund estimates that $15.5 billion of that debt was due to be paid back in 2010 (Sharif, 2010). Dubai’s economy peeked in 2008 and is predicted to rise again in the next few years but the staggering amount of debt Dubai has incurred makes this seem extremely challenging.
In the article, “Riding the Oil Boom” K. Whitelaw states, “It was the kind of publicity stunt upon which this desert boomtown was
Open Document