Have you seen the news that the Dubai economy is imploding somewhat?? A Durham tutor from the politics department has written a really good explanation on the BBC. Do you think that this will have massive effects on the UK economy, and is it a sign that despite the government telling us that we're on the way out, that the worst is yet to come?
I think that Dubai's problems aren't simply a case bad debt, but are deeper than that. Dubai, as a part of the UAE, has very oil-rich, wealthy neighbours who can maintain their undemocratic regimes by using oil profit to 'buy off' citizens (good public hospitals, free housing, jobs, no taxes). However, Dubai doesn't have natural resources in the same way. Sensibly, I think, they have tried to diversify their economy but where they have gone wrong is by marketing Dubai as very separate and independent from the UAE, and by making themselves seem western by ignoring traditional religious norms that are usual in the region. Now they want the UAE to bail out their bad debts and I don't think they'll get any help. What is the future of the UAE?
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