The Rise and Fall of Dubai

Way back in 1985 on my very first visit to this Emirate Dubai collectively known as United Arab Emirates comprising of 7 Emirates and with Abu Dhabi as its Capital I had visualized its growth. The desert was slowly being converted into a concrete Oasis.
I very well remember the stretch of road connecting Dubai and Sharjah having barren desert on either side with the exception of two outlets , one the world famous KFC and another a petrol pump on the right hand side after traversing a small distance from Dubai towards Sharjah .
Over the years UAE specially Dubai saw a massive growth and development with people from all walks of life from around the globe flocking for travel and conduction of business. Dubai became the Hub of business with its liberal policies, simple visa procedures, friendly atmosphere and its location acting as a Transshipment point in connecting the entire Gulf with South Asia and Far East countries. Businesses, industries and tourism blossomed and the government succeeded in portraying Dubai as a travelers delight by bringing to its land the best of both East and West, Dubai became a second home for the Asians especially Indians and Pakistanis.
In this span of 25 years Dubai became synonym with luxury, tourism and multinational businesses. The construction Industry was the most prospering business, growing and developing four folds in comparison to the entire world as everyone wanted a property in Dubai. The Construction bigwigs saw this as a big opportunity which eventually led to heavy competition amongst them as they started acquiring real estate at exorbitant prices thereby escalating real estate to a superficial level.
Dubai which was a destination for an average traveler became viable only for the ultra rich, along with real estate all other amenities and necessities skyrocketed.
Now, the last quarter of 2008 brought in the world recession which indeed is a difficult time for the whole world but more so for Dubai as it was placed in a superficial arena and main source of income for the government was from tourism which was inadvertently affected as wise persons curtailed their expenses and bid adieu to luxuries.
Now hundreds of accommodations, apartments and buildings are lying idle with no takers in sight in spite of rock bottom offers and baits being offered by the real estate developers. The industry is reeling under heavy losses and interests burden. Even the government is feeling the pinch as tourism is on decline and their coffers are rapidly draining and are in no position to bail out the construction Industry. This has also affected other industries and businesses which have shown signs of panic and are deporting and marginalizing their workforce to sail over these bad times.
Unfortunately Dubai’s income was entirely dependent on tourism and is not a oil rich emirate as in comparison to Abu Dhabi which is the richest and prosperous Emirate of UAE.
Dubai is now negotiating with Abu Dhabi to bail them out of these crises which they have agreed to but for a stipulated time frame and in lieu and consideration of projects and takeovers.
Dubai will be sinking further if the recession prolongs and will take years before they can make up to the lost glory.