Marketplace

I am continually impressed by the work that you guys put out, and I am particularly pleased with the initiative and timeliness of Marketplace's special report on the Middle East. Now seems to be such an appropriate time for a report on this area of the world, given the price of oil, the war, and booming development that is taking place in the region. It seems that this region is one of the world's hot spots, with all types of businesses and industries flocking to the region in light of the petrodollars available. Keep up the good work.

Having visited Cairo Egypt as well as Dubai UAE [twice] and having read some of the commentary here, it appears from my African perspective, to be tinged with a whole lot of islamophobia and anglo expectations of something unspoken but what? First, business under the Islam umbrella is not necessarily profit driven; second, what was Dubai in 1985? How much progress should one expect in under thirty years really? I visited Dubai in the spring of 2006 and as recently as winter of 2007. Back in 2006, most of the construction I caught wind of was the 3 Palm projects and the world islands developments. These alone moving stones and sand from the internal to reclaim land out in the midst of the Gulf was most ambitious from the start. There were several inland condo projects but not to the extent of my visit of 2007. The major problem with Dubai is one of construction timing and implementation. The current metro project was not even talked about back in 2006 and now you have roadways being torn up to lay foundation for the metro project in the midst of the inland construction condo projects creating a massive problem of traffic, air quality and bad working conditions. And, since all of this construction labour is south Indian [Tamil Nadu] or Bangledashi or Filipino/East African in the services sector, one has a problem of moving all these folks on three year contracts around Dubai as well as providing decent housing for them as well as a livable wage plus extra to remit. And then there are the tourists and the high end investors whom you wish to come and purchase these unfinished luxury condos. I remember reading in the Gulf times were investors who had brought in to projects based on drawings in 2005-06 at 2.0-6.0 million UAE dirhams were now flipping them for 20.0 million dirhams plus and some were still incomplete!! The problem that Dubai will soon discover is that wedged between Saudi Arabia, Iran and the Omani Sultanate who are more strict with their Islam and its attempts to woe only high-end investors from the west as the "new rivera" of the middle east they will find themselves with a lot of empty developments due to a finite pool of investors with with the capital means and the fear of Islam. Even, wealthy Asian investors head for Australia or Singapore or VietNam for their vacation considerations in this regard.

Also, you should note that all of the current foreign workers are mostly on three year work contracts that are renewable for a second three year term for a total of six only. Thus, just was with Qatar, the UAE is not encouraging immigration for all of its lower end workers; not so for the western [mainly British] ex-pats in banking, insurance and asset management tasks. When i visited the Mall of the Emirates last winter, i was spocked at the count them 17 checkout aisles in the Carrefour shoppe on the bottom next to the Ski Park and the Hotel. Since i have never been to a Wal-Mart, this was total shock to my senses as all the aisles barring two were busy. I am still wondering were folks were taking all of this stuff in the desert and dealing with the traffic daily from the MOE maybe they were coming for Abu Dhabi as well as Sharjah.

However, wandering upstairs, I was in a gift shoppe looking for a collecting friend of mine's snow globe [she collects snow globes go figure] and i noted a transaction that left me sort of stunned. Whilst the shop workers maybe fronted by east Indians and Asians [mainly Filipinos] the owners are all Arab. Hence, i surmised that the owners of businesses from money changers, lower end hotels to the Bur Dubai small Indian catered food stores are all Arab owned but run by east Indians since they are servicing these communities. The Arabs of UAE are [barring police and other government ministries] not involved in building their burgeoning city of lights or highrises in the sand. But once the city is all built [just like Abu Dubai] whose going to run it and maintain it? Ever been to the mid-levels of Central Hong Kong or walked the back alleys off of Queens Road and Des Voeux Road.
Dubai will be just like this old in the back new in the front facade. Did you know the labour unrest of construction workers that has been occuring since early 2007 late 2006?

Did you wander the old souk area within Deira and the back alleys here? or walk along the dock side and check out the Dhows and their cargo? Had you done so you have found not far from the spices souk area two streets with all sports gear and shoes. All made in China. Boxes along the Dhow wharfs at the Abras portion of the creek...Made in China...even my friends snow globe was Burj Dubai Made in China. Nothing is made in Dubai UAE, it is a services merchant centre in the Gulf. A strategic point between Asia [China, Singapore, Malaysia] on the one hand and Europe on the other. The riveria of the middle east, I doubt it... Too much in terms of income disparity [i.e. no middle classes between the super wealthly and the poverty of the services/construction worker or abras driver..one dirham and no rate increase in two years]

oh and the cloudy climate.. part sand/sahel winds, part of the fallout from the stuff going on in Iraq and the construction/traffic pollution. You did notice there were not many trees and the majority of parks and trees are no were need the current construction concentration zones.