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Christmas is early in Dubai

"I never think of the future - it comes soon enough.", Albert Einstein.

It's already Christmas in Dubai! After a couple of weeks of uncertainty, Dubai woke up today to a gift. 10 Billion Dollars is the amount that Abu Dhabi splashed to make sure that Dubai's troubled government-owned companies are safe.

In simple terms, this means that companies like Nakheel will be able to fulfill their commitment and pay back the banks. Is this a good news? Well, it depends on how you look at it. See, the alternative for Dubai would've been risking the City's reputation as a safe and reliable investment destination. Companies and individual investors would have been reluctant to come here and spend millions of dollars on investments.

So we established that this will help Dubai protect it's image. The question is; are there any strings attached to it?

Well, let's agree that no one gives free money. Definitely not 10 Billion dollars. It is highly probable that Abu Dhabi would like to have some stake in Dubai's thriving businesses; like Emirates Airlines or Dubai Ports, etc. It's also possible that Abu Dhabi wants to get a chunk of the Cherry that is Dubai's global image. Is it that bad? Absolutely not.

UAE is made of 7 small emirates, and it's certainly not bad that you have one Emirate helping the other. That's what a union is all about after all. Besides, if one city goes down it will drag the other one with it, and if one thrive it will pull the other up with it. So, if there were any strings, it will only make the bond between the two cities stronger and the residents whether locals or expats will definitely benefit from it.

This scenario becomes all the more favorable when you consider that other sources of funds/ strings can come from abroad. It was never a positive thing to have an external influence on your domestic policies or decisions. Whether help comes from USA, EU, Russia, China, KSA or any other source, that is an influence and a potential risk that UAE doesn't need.

So, Happy Eid and Merry Christmas to Dubai.

12 comments:

Sami said...

I Hope they make good use of it and not go and build the tallest or the biggest unnecessary thing again

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