Dubai is a caricature of the excesses and downfall of capitalism

[marmar]

from the NY Times:



Dubai Faces Environmental Problems After Growth

By LIZ ALDERMAN
Published: October 27, 2010


DUBAI — Dubai’s skyline is the most sparkling in the Middle East. But down on the ground, the environmental problems of a quickly erected city built on sand look a lot less alluring.

In the last year, tourists have swum amid raw sewage in Dubai’s slice of the Persian Gulf. The purifying of seawater to feed taps and fountains is raising salinity levels. And despite sitting on vast oil reserves, the region is running out of energy sources to support its rich lifestyle.

The simple basics of waste treatment and providing fresh water, in addition to running major industrial projects, require so much electricity that the region is turning to a nuclear future, raising questions about the risks, both environmental and political, of relying in part on a technology vulnerable to accidents and terrorist attacks.

Dazzled by Dubai’s rapid urbanization, other countries in the gulf are seeking to emulate it, especially as they prepare for a population boom. Dubai offers a cautionary tale in the pitfalls of building metropolises in the parched desert.

“Growth has been so intense and enormous, but people forgot about the environment,” said Jean-François Seznec, a Middle East expert and professor at Georgetown University in Washington. “The attitude was, business comes first. Now, they are seeing increased problems, and they realize they have to be careful.” .........(more)

The complete piece is at: http://www.nytimes.com/2010/10/28/business/energy-environment/28dubai.html?_r=1&ref=energy-environment&pagewanted=all

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1. K & R

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2. K & R

[JCMach1]

3. A recent study by my University showed that air pollution in the UAE was as bad as Karachi

especially during summers due largely to Saudi refineries along the coast. When I first moved here you could see downtown Dubai from where I live on most days. Now, it is a rare sight.

Burj Khalifa (the tallest building in the world) sits at about 80% empty. Malls and commercial space have become hugely overbuilt. The focus on LUXURY housing has priced out most workers. Cheap and moderate housing is in relative short supply while luxury villas sit like skeletons gathering dust.

Dubai government leveraged the remainder of its oil income to build an economy before all of the oil is gone. Unfortunately, they built the economy on things which are not stable in an economic downturn.

The lack of democracy and transparency is also hurting. For example, no one actually owns the property they might buy here. It is owned by the government (i.e. the Shaikh). He can take it, or leave it as he likes. Even the developed properties now come with huge maintenance fees that leave no one wanting to buy into projects. Essentially anyone wanting a 'real' home (not an investment property) is better-off just renting.

What's more, the bubble here has not fully deflated as individuals who are still extremely wealthy don't capitulate on rents, or pricing. Rents are still 'too damn high'!

However, it's not all bad. Masdar city is a huge experiment of sustainability and looking to the future. Also, the Western media has over-dramatized many of the problems here. This NYT article is a darn good example of how to write a hit-piece without doing your research. For example, most de-salinization plants are coupled with power plants here. Literally, they use the excess heat to separate the water from the salt. There would be little additional carbon footprint from such activities. If they had done their research, they would find the biggest waste of water in UAE is not people, or developments, but agriculture. Even worse, it is using it for growing fodder (for horses and camels). Fortunately, the government is slowly winding down these unsustainable practices.

But seriously, the reality of the situation is bad enough. The NYT doesn't need to just echo and plagiarize other hit-pieces on Dubai just to make a story. They should really do their homework next time!!!