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Capital: Abu Dhabi
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The Trucial States of the Persian Gulf coast granted the UK control of their defense and foreign affairs in 19th century treaties. Six of these states (Abu Dhabi, Ajman, Al Fujayrah, Sharjah, Dubai, and Umm al Qaywayn) merged to form the United Arab Emirates (UAE) in 1971 and were joined by Ra's al Khaymah the following year. The UAE has an open economy with a high per capita income and a sizable annual trade surplus. Its wealth is based on oil and gas production which should last for more than 100 years at present rates of extraction. Since the discovery of oil in the UAE more than 30 years ago, the UAE has undergone a profound transformation from an impoverished region of small desert principalities to a modern state with a high standard of living and a diversified economy. In 2004, the UAE signed a Trade and Investment Framework Agreement with Washington and agreed to undertake negotiations toward a Free Trade Agreement with the US. |
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Dubai is truly an ancient new city. Ancient because the Dubai Creek seen here was first stettled in the late 18th century and new because most of today's Dubai was built in the last three decades.
Sea faring trade has been the raison d'être of Dubai from the beginning and it still is. These dhows extend Dubai trade as far as Pakistan and India.
Skyskrapers, towers and five star hotels are commonplace today but only one high rise hotel was available when I attended the Arab Petroleum Congress held there in March 1975.
In those days, the Dubai Inter Continental Hotel in Deira, where the congress was held, was on the outskirts of town. Now it is in what is called "the old part of town".
This panorama stitched from three old photos taken from my hotel balcony shows what more than 95 percent of today's Dubai looked like thirty years ago.
Petroleum revenues helped but the secret of Dubai's remarkable success has been the astute business sense of its ruling Sheikhs, today's Maktoum bin Rashid Al-Maktoum and his father Rashid bin Said Al-Maktoum before him.
These colourful dhows still ply the seas but they carry only a small fraction of Dubai's world trade. Dubai airport has become a world scale hub between Europe and Asia, so has it's sea port and Dubai firms specialised in the efficient management of ports operate several of the world's major ports.
Success begets success and a real estate boom presently feeds Dubai's expansion.
The Creek, which is the reason the Bani Yas tribe settled here two centuries ago, is now crossed by two bridges and a tunnel but traditionnal "Abras" still carry passengers from one side to the other.
Here is an Abra docking terminal on the north-east (Deira), side of the creek.
There was only desert around the Al-Fahiti fort when I visited it 30 years ago.
The inside has been completely restored and a very interesting underground museum was constructed as an additionnal tourist attraction.
Five star tourism is still a secondary source of wealth but it is growing rapidly and liberal investment regulations encourage tourists to participate in Dubai's real estate boom.
I arrived in Dubai airport at 3 AM after a 12 hour trip from N'Djamena via Addis Abeba. I waited in the airport until 7:00 and took a city bus to the terminal in Al-Ras near the Gold Souq. It was a shock to see all the skyskrapers on the way. The old Al-Ras I knew had been completely rebuilt and poor Arab shopkeepers had been replaced by prosperous Pakistani or Indian businessmen. The cheapest hotel room I managed to negociate cost 42 US$ a night, a bit more than my usual backpacker budget. It was however quite nice with bathroom, air conditionning and television.
Dubai has innumerable spotless modern shopping malls like this one in Wafa City.
Fortunately, the excellent "Tour of Dubai" bus makes it possible to get a quick overview of the city that now extends more than 30 kms along the south-west coast of the Arab Gulf.
Here is a view of Deira from a small Abra terminal on the south-west side of the Creek.
The curves of the Hyatt Hotel are not haphazard. They read "Allah" from the air!
Here is a view along Sheik Zayed Road with the Emirates Towers Hotel in the center and more skyscrapers further west.
Beautiful mosques can also be seen but they are visibly less important than luxury hotels and high rise office and appartment buildings. This one is the famous Jumeirea Mosque.
All of the Gulf coast is a continuous sandy beach except for the busy Port Rashid near the mouth of the creek. These beaches have a tremendous touristic potential.
Jumeira Beach Hotel is just one of the several facilities serving beach lovers.
The most famous luxury beach hotels is no doubt the Burj Al-Arab said to be the highest hotel in the world
The French Meridien chain have no less than three five star hotels here. This is the Mina Seyahi Beach Resort and Marina.
And this is the Royal Meridien Beach Resort and Spa. The third one, Le Méridien Dubai, is in Deira.
Dubai is still madly expanding as you can see along Sheik Zayed Road towards Jebel Ali Port.
Construction is proceeding furiously. Oil money may have started the boom but speculative investment seems to be feeding it now.
Real estate is so sought after now that investors have found it worthwhile to dredge the Gulf to create four artificial islands to build on. (Palm Deira, The World, Palm Jumeira and Palm Jebel Ali).
Only in Shanghai have I seen such a building frenzy. But Shanghai has a huge hinterland that Dubai has not!
Is this mad boom a bubble preparing to burst?
