Dubai Tops Again

25 Jan 2013

Baptism by fire may be one-time ceremony. But in the case of Dubai, its economy is dubbed suspect and tested repeatedly. With every test, it is coming out lot cleaner and successful at that.

A $1.25 billion bond issue by Dubai this week was completely subscribed. This underlined the spectacular recovery of the emirate's reputation since its debt crisis. Some investors are wondering whether the world is once again getting a little too optimistic about Dubai. That is yet another test is round the corner.

Dubai obviously has some or other godfather to bank roll it out. The Emirate may be small, but its benefactors have a big heart. Its economy is booming, with record passenger levels at its airport, record tones of cargo loaded and unloaded at its seaport of Zebel Ali, and its shops letting people to keep at it till they drop.

When the recessionary trends began in 2008, they said Dubai was finished, but it was bailed out by neighbor Emirate Abu Dhabi. Now the bond issue makes it clear that its critics need to stop cribbing and start believing Dubai is economically strong.  And when the chips are down, the Emirate can hold its crown high. Burj Khalifa is a standing example of Dubai’s rising four square in the midst of economic ruins elsewhere.