Economist.com Cities Guide: Dubai Briefing - March 2006

News this month

Unsafe harbours

The Dubai government may rethink its international investment strategy after the hostile reaction of American politicians towards two America-based private-equity deals worth $8 billion. Specifically, American congressmen were up in arms over the purchase of P&O, a British port operator, by DP World, a Dubai-owned firm—a $6.8 billion move that would have put six important American ports in the hands of DP World. The American complaints were ostensibly about national security, as two of the September 11th hijackers were from the United Arab Emirates and the attacks were partly financed by funds that went through Dubai banks. Dubai has also been cited in a number of investigations as a hub for illegal nuclear arms sales. The stand-off over the ports ended on March 9th, when DP World announced it would sell its American port operations.

The fuss surprised many business leaders in Dubai who thought the deal was all but concluded. UAE officials argue that they have been an active ally of America in the war on terror—a claim endorsed by George Bush. Yet the backlash in America was a slap in the face for the city, which is trying to invest in building world-class businesses before the oil runs out in about ten years. The effect has been to encourage Dubai businessmen to seek opportunities in Europe and Asia rather than in America, to avoid what they see as anti-Arab sentiment.

A ban on poppers

As the emirate grows more popular among celebrities, Dubai has launched an official crackdown on paparazzi photographers. It follows the snapping on local beaches of high-profile English footballers, such as Chelsea's Frank Lampard and John Terry, and the sale of these photographs to British tabloids. David Beckham so far has escaped attention, but this is expected to change when he moves into his villa in Dubai later this year. Dubai police say that under local law it is illegal to take pictures of anyone—famous or not—without their consent. While the law has largely been ignored in the past, in early March police officials announced plans to enforce it strictly, threatening prison sentences for offenders.

Winners, not gamblers

Residents in Dubai can now win up to Dh1m ($272,000) a week as part of a prize draw launched by a state-backed Dubai firm, which officials insist is not gambling. This is no small issue, as gambling is forbidden under sharia law. Contenders get a chance at the pot by entering a government-sponsored saving scheme and buying bonds from the National Bonds Corp, which they can hold for life. The minimum purchase is Dh100 and the numbered bonds are entered into a weekly draw to win cash prizes.

Anxious to play down any suggestion of gambling, officials had the scheme rubber-stamped by a senior sharia scholar. But in case any confusion lingers, local Dubai media were banned from using the word “lottery” in their coverage.

Rain stopped play

Hundreds of residents in swanky new Dubai homes, some in the exclusive and expensive Emirates Hills district, were outraged when they were flooded during a recent thunderstorm. Just a few centimetres of rain fell in late February, but that was enough to make some streets impassable, and many villas were ankle- or knee-deep in water. Critics said the incident has underlined the inconsistent quality of building in Dubai, with contractors and developers cutting corners on drainage to save costs. Generally this does not become a problem because of Dubai's arid climate, but freak storms—which occur once every two years or so—can catch them out.

This is not the first time shoddy workmanship has come to light in Dubai’s building boom. Officials in Dubai’s government are now concerned that the city will earn a reputation for poor quality that could undermine its real-estate development, and critics have called for a new regulatory body within the construction industry.

Anglo-Saxon attitudes

Saxon, a band of ageing British rockers, was forced to cancel a concert in Dubai after some Muslims criticised lyrics of the song “Crusader” as anti-Islamic. At issue are the lines, “For Christendom's sake, we'll take our revenge/On the pagan from out of the East” and “The Saracen heathen will soon taste our steel”. The group was due to perform at Dubai's Desert Rock festival in mid-March. But Dubai's Department of Tourism and Commerce Marketing, a government body, withdrew the band's licence to perform just days before the show amid an angry backlash in some Arab media. Saxon defended their lyrics in a statement: “We are not and never have been a racist band...The song is a snapshot of an event in history, the lyrics are intended to give a flavour of what it must have been like in the army at the time.”

Catch if you can

March 2006

Figure/Ground: 4 women and their surroundings

Until April 17th 2006

Incongruously located in Dubai’s industrial district is the Third Line, a warehouse art gallery that displays contemporary Middle Eastern art. This show brings together the paintings of Mona Marzouk and Roá Aly, with the photography of Rana El Nemr and Montreal-based Arwa Aboun—three of the artists are from Egypt and the fourth is from Tunisia/Libya. Together these artists explore the female experience, whether through glossy snapshot portraits of people on Cairo’s subway system, or an effervescent film of women in bubblegum-pink hijab.

The Third Line, Al Quoz 3, Dubai. Tel: +971 (0)4 341 1367. See the gallery's website.

More from the Dubai cultural calendar