Re: Burj Dubai - A Symbol of Dubai's Pomposity
i guess dubai sheikh know what they are doing, though many are deceived by duplicate designs of the existing building in the west and milking money from them with zero investment. :)
what dubai is offering first class infrastructure with zero percent tax rates for businesses to have their EMEA offices/base there. they know they will be running out of oil sooner than their neighbours in the area so hence trying to make dubai a business and holiday destination in the long run!
its how they are doing it, making ultra big so no one can compete to its infrastructure in are and around the world.
nOw current downtrun will not stay forever, there will be growth and world economy will start to grow, so its not all waisted investment for them after all. may be few hard years but they can hang on to oil for that period and wait for return on this investment.
dubai economy is not self reliant at all, they dont have huge industrial output to export etc, they are in service industry for long run, and depends on world economy.
many buildings in downtown newyork and london even finished recently or previous stands empty, they may look dead horses at the moment, but its all depend on economic growth to return.
if the dubai sheikh were little bit diversified they would have gone for other industries to excell like manufacturing etc along with financial and service industry.