Under pressure even before the virus outburst, Dubai and its immense network of state-linked industries confront billions of impending debt repayments.
Dubai constructed a city of skyscrapers and unreal archipelagos on the promise of globalization, producing itself as an important hub for the free motion of people, money, and trade all around the world, and all this vision is disrupted by the global pandemic. Along with this, events cancellations, flights grounded and investments terminated, this sheikhdom is at risk by both the increasing economical issues and virus. Even before this outburst, Dubai and its vast network are facing impending billions of dollars debt repayments.
And although Dubai had bailed out a decade earlier, it may not be able to rely on cash infusion considering the fall in global oil costs. Karen E. Young, a scholar at the American Enterprise Institute who studies Gulf Arab economies stated, ”They facilitate the transport and the buying of things and the movement of people,” ”That’s not the world we’re living in right now.”
Dubai’s commitment to global trade is commemorated in 50-Year Charter’s first sentence of the first article developed in the previous year by their ruler, Sheikh Mohammed bin Rashid Al Maktoum, who has witnessed much of the city’s development. The charter states, ”Dubai is destined to be a crossroad between East and West, and between North and South.”
Even before the pandemic, Dubai had reached that position. For years, Dubai International Airport has been the world’s busiest considering international travel. Its huge Jebel Ali Port ranks top worldwide for its cargo operations. Adding to it, Tim Clark, president of Emirates Airline confirmed, ”The airline industry cannot afford to have large numbers of its seats idle.” “It would be an absolute economic catastrophe, worse than the current situation.” Also, Dubai’s real estate market had already fallen by 30% since 2014, when it declared that it would be hosting the Expo 2020 world’s fair. This event on which Dubai had already worn out billions has now been postponed to 2021.
But Dubai has seen a global economic crunch even before the most serious coming into the clutches of the Great Depression in the 1930s. Watching out for an opportunity in its location, back then Dubai soon started re-exporting tax-free gold to India or gained profits from the precious metal being illegally traded, stated Indian officials for decades, Considering the situation at present, ”I do think they will pivot again,” Young mentioned. He also added, “They will find a new way.”