Monday, December 7, 2009

Dubai, UAE

Friday, December 4th - Sunday, December 6th
Route of the Ancient Traders
Day 24 - Day 26
M/S Nautica
Dubai, UAE
Mostly Sunny - Low 80s

Friday, December 4th
Day 24

Dubai has been very much in the news as we docked in the fabled city this morning. As much as Dubai was the emblem of success in the boom years, it has become the poster child of the crash as well. Dubai World, the development arm of the government and the royal family has missed a payment deadline on the $60 billion in debt it is carrying and global financial markets are nervously watching for signs of stability or default. The boom was built on the backs of 250,000 migrant laborers from poor countries in Southern Asia. They were paid as little as $10 a day and housed in slums while working long hours in deplorable conditions. The middle class of expatriates that managed these projects has all but disappeared, fleeing the threat of debtor's prison as construction came to a halt and the economy collapsed. Even the famed Palm Island is reported to be sinking. Literally.

Sheik Mohammed bin Rashid Al Maktoum is the ruler of Dubai, as well as Prime Minister and Vice President of the UAE. Faced with dwindling oil supplies, likely to run out as soon as next year, the Sheik sought to diversify the economy. Tourism, development, and financial services now dominate the economy, with just 6% of GDP being generated by oil revenue.

The Sheik officially came to power upon the death of his father in 1990, but assumed a larger role due to his father's poor health as early as 1980. Together, they created the Jafza (Jebel Ali Free Zone) around the port in 1985 to provide foreign companies unrestricted free trade. The incredible success of the Jebel Ali Free Zone began the transformation of Dubai into an international capital of finance and the Emirate is replicating this model to develop clusters of new free zones, including Dubai Internet City, Dubai Media City, and Dubai Maritime City. The construction of Burj Al Arab, the world's most expensive and tallest freestanding hotel, as well as the creation of new residential developments, were used to market Dubai for tourism. Since 2002, increased private property development has recreated Dubai's skyline and shoreline with such projects as The Palm Islands, The World Islands, and Burj Dubai, the world's tallest man-made structure. Sheik Zayed Road forms the backbone of commercial development linking the many financial centers of this sprawling city. Fifteen years ago, the World Trade Center was the only tower rising above this stretch of sand, now there are more than 60, including the Burj Dubai. A fabulous new light rail system connects most of the city. Each of the stations is spectacular and designed to uniform standards. We saw a total of ten malls, each bigger, better, fancier than the last. Mall of the Emirates has an indoor ski slope, and that isn't even the biggest one. As one guide noted, Dubai actually means "Do Buy."


In spite of the crash, plans for growth continue. Dubai is home to 70% of the construction cranes in the world. There has not been a lot of activity on the construction sites, but this is a holiday weekend. Two more Palm Islands are in the works. They are building a new airport, three times the size of O'Hare. The theme park Dubai World is a $20 billion project that will be twice the size of Disney World when completed. An underwater hotel is set to start construction soon and a series of "Dynamic Towers" are being contemplated. Each floor will rotate independent of the others, like the top of the Space Needle.

We began our stay in Dubai with a heritage tour of the old city surrounding Dubai Creek, a natural saltwater inlet of the Persian Gulf. The area has a small museum devoted to daily life in old Dubai and a restored schoolhouse. Houses of that era in Al-Bastakia featured wind towers for cooling. These open towers extended one floor above the living area to trap the cooling breezes above the roof-tops. They were covered with wet cloths to further cool the air as it circulated through the house below.


The heritage site also featured a camel for rides and close-ups. Yes, that is the handler in the background on his cell phone.


We boarded a traditional Arabian dhow for a cruise down Dubai Creek. These modest wooden boats have been the engine of commerce here for centuries and are still used for trading today. Independent merchants buy all manner of goods from clothing to electronics duty free in Dubai and sail around the gulf selling their wares. Until the latest boom, the Creek remained the center of life in Dubai and many government and financial buildings line its shores. The creek is now being extended to reach the far end of the latest developments.


Our next stop was Madinat Jumeirah, a souq and resort designed to resemble an ancient Arabian citadel. More modern mall than old souq, it was all decked out for Christmas. An outdoor amphitheater overlooking a lagoon and the Burj al Arab beyond, was set with a Christmas Village complete with Santa in his sleigh while Christmas carols played. The Emiratis are Muslim, but 80% of the population are foreigners, many of whom celebrate Christmas.


Finally, we went next door for a late high tea. Burj al Arab, built off the coast of Jumeirah beach to resemble the sail of a dhow, has become the symbol of Dubai.


It is linked to the mainland by a gated causeway. If the Emirates Palace Hotel in Abu Dhabi was classic Arab, Burj al Arab is modern Star Trek. Not just a "seven-star" hotel, but the most expensive and exclusive in the world. Rates range from 9,000 to 60,000 Emerati Dirhams, $2,450 to more than $16,000. A triangular atrium rises 30 stories above the lobby, a cacophony of stark white, gold, and primary colors. Total luxury and absolute whimsy.


We rode to the 27th floor on a glass elevator looking out into the gulf. Tea was served in a sunken banquet room upholstered in red and gilded with gold leaf.



We finished tea after dusk and toured the property before returning to our lowly "five-star" accommodations onboard Nautica.



Saturday, December 5th
Day 25

The Big Bus Company, the same one that operates in London, offers double-decker, open-top, hop-on, hop-off bus tours of Dubai. We booked both the daylight and nighttime tours. There are two routes. The Red Route City Tour covers the part of Old Dubai that we saw yesterday. We spent the morning on that tour enjoying the sunshine and another look at the sites. The Blue Route Beach tour extends out to the newer parts of Dubai along the coast.

We got off the bus at the Atlantis hotel on the tip of the first Palm Island. Man-made Jumeirah Palm Island extends out into the gulf via a monorail and causeway that forms the spine of the palm. Finger islands in the shape of fronds extend out from the spine on each side. The fronds are fully developed with condos and villas. At the end of the spine, the causeway dips into a tunnel and emerges into Atlantis. This is a sister resort to the one in the Bahamas and has a similar design, but the luxury and exclusivity have been taken to another level. Rates start at $500.00 and they charge $58.00 per person just to look around the grounds. There are ten restaurants in Atlantis, but the lunch options for non-guests were limited. We chose the French brasserie Rostang under two-star Michelin chef Michael Rostang.



Back on the Big Bus, we continued our tour of malls and skyscrapers. We drove by The tallest building in the world, Burj Dubai. The graceful twisting spire tapers to a point at 818 meters and 125 stories high. It will open next month. Stunning!!!

The night tour was more of the same, with the architecture highlighted by floodlights. Nights in the desert are a cool relief from the intense heat of the day and we enjoyed the fresh air on top of the bus.

Sunday, December 6th
Day 26

We didn't leave port today until 1:00 in the afternoon, but we have seen enough of Dubai. We shopped around the pier and spent the rest of the morning relaxing onboard Nautica.

This is definitely a destination. It is beautiful. The architecture is amazing. This time of the year, the weather is perfect, 80 degrees, sunny, warm evenings. It would be very comfortable to live here. There are all the modern conveniences, except for pork and wide availability of alcohol. You might think you were in America. But, who is going to come and how are they going to support this? Dubai is trying to recreate Las Vegas, New York, and Orlando all in the same place, with no gaming revenue and very little in liquor sales. It is hard to imagine how this place can be sustainable. We will have to watch the news to see how it plays out.

As we sailed back out of the Persian Gulf and through the Strait of Hormuz, we listened to Dr. Doug Sturkey's timely lecture, "Oil - Has Production Peaked? - Gulf Oil Supply May Last Around 80 Years, but Have Reserves Elsewhere Peaked?"

Next: Two Days at Sea Crossing the Arabian Gulf

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