Dubai is doing it again

Dubai is going to build a new 3000' tower. It is almost 300' taller than the Burj Khalifa which opened in 2010.

The architect is Santiago Calatrava who built the Milwaukee Art Museum (1994–2001), the Florida Polytechnic University (2009–2014) and the World Trade Center Transit Hub, New York City (2003–2016)

What will they do when the oil money
runs out and the electric and air only
work sporadically. The tallest slum
buildings in the world. We built the
Empire State building 80 years ago
and it's going stronger than ever
because we had a structured economy
to back it up. Dubai does not.

Quote: Evenbob

What will they do when the oil money
runs out and the electric and air only
work sporadically. The tallest slum
buildings in the world. We built the
Empire State building 80 years ago
and it's going stronger than ever
because we had a structured economy
to back it up. Dubai does not.

The Empire State Building was started just after the stock crash of '29 in 1930 and finished a little over a year later. It was a financial disaster at the time because of its timing and for years was nicknamed the Empty State Building.

Quote: kenarman

The Empire State Building was finished just after the stock crash of '29 in 1930 and finished a little over a year later. It was a financial disaster at the time because of its timing and for years was nicknamed the Empty State Building.

But our economy recovered and so did the
building. Dubai is not oil rich, but it certainly
profits from it's neighbors being rich. It's
a deceptive place. The top 5% are very rich,
the rest of the country is very poor. Once
it's neighbors run out of oil wealth, Dubai
will suffer greatly.

Quote: Evenbob

What will they do when the oil money
runs out and the electric and air only
work sporadically. The tallest slum
buildings in the world. We built the
Empire State building 80 years ago
and it's going stronger than ever
because we had a structured economy
to back it up. Dubai does not.

Even with the oil wealth I am having a hard time getting how all of the building there is sustaining. Dubai itself has not much oil but seems to be making itself the playground for all the oil wealth of the area. Also a transportation and business hub. Not to mention tourism and entertainment.

Logically, though, there has to be an end to it. Unlike the USA and our building boom of 90 years ago, Dubai isn't making these buildings on her own. How many offices and condos can they support?

The oil wealth will last at least another 50 years. If they invest well then they may last 50 more after that, possibly more. But easy wealth usually gets wasted.

Quote: AZDuffman

Even with the oil wealth I am having a hard time getting how all of the building there is sustaining. Dubai itself has not much oil but seems to be making itself the playground for all the oil wealth of the area.

Dubai has just over 100K hotel rooms with roughly one third at 5 Star hotels.

Only 3 of the top 10 source market for visitors are part of The Cooperation Council for the Arab States of the Gulf of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates. The GCC has been discussing a common currency since 1981. The GCC monetary union would be the second largest supranational monetary union in the world, measured by GDP of the common-currency area.

TOP 20 SOURCE MARKETS FOR VISITORS TO DUBAI (‘000 visitors YOY Jan- Mar 2017|2016)
Performance of Top 10 Source Markets
rank-country 2017 2016 change
1 India 578 469 23%
2 KSA 440 476 -8% <---------------------
3 UK 350 334 5%
4 China 230 140 64%
5 Oman 214 322 -33% <---------------------
6 Iran 181 130 39%
7 Pakistan 178 152 17%
8 USA 176 166 6%
9 Germany 172 171 0%
10 Kuwait 131 119 10% <---------------------

Dubai hopes to attract more EU visitors, and thus bolster their post oil economy.

Quote: Pacomartin

Dubai has just over 100K hotel rooms with roughly one third at 5 Star hotels.

Only 3 of the top 10 source market for visitors are part of The Cooperation Council for the Arab States of the Gulf of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates. The GCC has been discussing a common currency since 1981. The GCC monetary union would be the second largest supranational monetary union in the world, measured by GDP of the common-currency area.

TOP 20 SOURCE MARKETS FOR VISITORS TO DUBAI (‘000 visitors YOY Jan- Mar 2017|2016)
Performance of Top 10 Source Markets
rank-country 2017 2016 change
1 India 578 469 23%
2 KSA 440 476 -8% <---------------------
3 UK 350 334 5%
4 China 230 140 64%
5 Oman 214 322 -33% <---------------------
6 Iran 181 130 39%
7 Pakistan 178 152 17%
8 USA 176 166 6%
9 Germany 172 171 0%
10 Kuwait 131 119 10% <---------------------

Dubai hopes to attract more EU visitors, and thus bolster their post oil economy.

Clearly they are becoming a sort-of city-state like Singapore and using a similar location on trade routes to become a business and tourist center. It may work. I think to do so they ultimately have to offer some experience beyond shopping and just being a big city. Then again, you can do so much there that it may be the draw.

Still, though, it is a very high-wire act. We get another 2008 credit seize up and it all crashes.

Assuming you have some business in greater parts of the Middle East. All things considered, seems like a pretty good idea for many reasons if you can pick a place like Dubai as a meet up. Lots of unstable environments in that area. At least that's my impression.

I think the USA needs to pick up the gauntlet and build the world's tallest building. We've done it before, and we should do it again.

But we don't use slave labor to do such things.