The Future of Dubai

City of Dreams… City of the Future… City of Technology… City of the High Towers… City of the Clouds… City of Wishes, and many other names you hear when mentioning Dubai.

It is the city that everyone dreams of going to either for tourism or for pleasure or for work, perhaps finding work or business opportunity.

The truth is that all is nothing but mirage, the case of this city of towers and skyscrapers that been built on sand dunes, can be easily drifted by the winds at any moment.

For several years now, Dubai has been silently experiencing a real crisis that is becoming more dangerous day by day, to the level that somehow threatening the future of the emirate.

After a major crises and wars in the region, plus a tough financial crisis that hit in 2008, the crisis of oil prices falling, to the Qatari crisis, the general situation in Dubai is dire.

After the crisis with Qatar, Dubai lost nearly $ 15 billion, an amount of Qatari financial deposits in Dubai that were withdrawn after the crisis, as well as the closure of all companies and cessation of investments and Qatari projects in Dubai owned by Qatari businessmen.

Only Dubai’s supply with natural gas is still continues to this day from Qatar, despite the crisis.

Dubai’s economic fundamentals are based on three main sources of income, which in a short period of time have been transformed into an important economic zone around the world.

It has built the world’s largest airports and has the world’s tallest towers with branches and offices for major international companies, and occupies an important position in all facilities related to economy, development, technology and other sectors.

Dubai’s economy depends, as we have mentioned, on three important factors that have brought it to the status and reputation it enjoys.

The real estate sector is one of the most important sources of income in Dubai because it depends on large-scale construction projects followed by leasing, purchases and real estate projects investments that all must followed by services related to infrastructure which secure a high amount of regular income.

Those who go to Dubai see luxurious residential towers and large villas, all of which offer great incomes that boost Dubai’s economy.

The hotel and tourism sector is another large income supplier of Dubai’s economy.

In fact, it’s a big source of income; with huge amount of spending has many zeros.

There is a regular influx of multi-purpose tourism to Dubai, where visitors from all over the world spend a lot of money to enjoy so many ((services)).

The third sector is Jebel Ali Port and the Dubai Free Trade Zone, which is the most important sector that has adopted Dubai as a base for generating income and creating large commercial and investment opportunities for major international companies and major investors in the world to spend billions to establish new businesses and companies and to benefit from the free trade and low tariffs on many products, a global center that allows the promotion of trade activities from import /export of various products, all of these advantages have transformed Dubai into a hub for trade with all over the world, given its convenient location to easily reaches many parts of the world.

The situation now is that, these three sources of income are under threat and real danger that is increasing day by day.

These threats are linked to the general situation in the region, and other factors, which is not being mentioned,perhaps because it’s also somehow related to accumulations and relations among the rulers of the UAE as a whole and its surroundings Persian Gulf states relations.

After oil prices fell and the entire Middle East being in state of war and conflicts for over 8 years, the real estate sector has been hit by a major earthquake, especially after the economic crisis that hit Dubai in 2008 which is still has effects on Dubai till this day, without forgetting the fact that most of the urban (Towers and other buildings) projects were financed by bank loans which still on.

The story of Khalifa tower is a small example of this crisis, and why the name was changed from Rashed Tower to Khalifa Tower.

In addition to stage of obscurity that Dubai is in today, the sparkle that was glowing the city starts to fade.

Simply, there is nothing new can be implemented only there is the idea of building a second floor of the city with more loans!

The idea of owning real estate in Dubai is no longer attractive to many because of the fear of the general situation in the region and the instability of real estate prices.

Prices of real estates in Dubai have been fluctuating and unstable for the past couple of years.

You’ll seriously think thousands of times before entering and invest in.

The tourism sector has not stabilized and is declining regularly with the spread of information about the existence of competitive markets, which will be established in the region.

The third sector is the critical sector, and the biggest problem that will threaten the future of Dubai, the location of Jebel Ali Port and the free trade area.

The basis of trade as a whole is largely reliant on the trade associated with China and East Asia, and Dubai’s location with its free trade rules was an advantage to Dubai.

But this reality is turning towards the end somehow.

Several years ago, China started on a project with Pakistan, which China embarked on a major project that would turn the face of the region upside down.

China has begun to invest heavily in Pakistan through the port of Gwadar, a deep seaport on the Arabian Sea, at the Pakistan’s Baluchistan province.

The port is prominently featured in the China-Pakistan economic corridor plan and is a link between the ambitious project in one belt and one road.

In 2015, it was announced that the city and port would be developed at a cost of $ 1.62 billion, with the aim of linking northern Pakistan and western China to the deep water port.

That will be significantly crucial for Chinese goods export, which is usually being shipped to the world by far east Chinese ports.
The port will also be the site of a floating liquefied natural gas facility that will be built as part of the bulk of Gwadar-Nawabshah worth $ 2.5 billion from the Iranian-Pakistani gas pipeline project, with information on Qatar’s joining the project too.

Construction began in June 2016 in the Gwadar Special Economic Zone, which is being built on an area of 2992 acres, the location adjacent to Gwadar Port.

In late 2015, the port was formally leased to China for 43 years, until 2059, so, China is preparing a highway and railroad to reach China through Xinjiang province to Gwadar port, which will greatly reduce transport costs and be a direct corridor for Chinese goods.

Xinjiang has been under development for the past 30 years and the region is rich in oil, natural gas, uranium, coal, lead, copper, zinc. Among the industries in the region are oil refining, sugar industry, steel, chemicals, cement and textiles.

In addition, the major industrial zones in China will use this crossing to transport their goods to the port for export to all parts of the world.

All these data indicate that the situation in Dubai is going to collapse, because the start of the port of Gwadar will be the fatal blow to Jebel Ali Port.

Those who follow the numbers are currently discovering a significant drop in employment in Dubai and the number of companies that are closing are by far than those opening; many companies already cut spending and transfer a lot of business and work duties to other company’s branches in other countries.

All these factors and indicators show beyond any doubt that the situation there is going down steadily.

The glare is slowly dwindling, with the fact that Dubai’s debt volume exceeds $ 114 billion and the number is increasing, with the lack of resources and the continuing impact of region’s crises, Dubai will face a real disaster very soon.