Dubai

In a few weeks, I will start making brief presentations on my Dubai and Abu Dhabi trip. I have many photos and will keep it to a 20 minute presentation, which will be suitable for civic clubs and other organizations that have meetings and need speakers-programs. Part of my presentation will include a section on the “buildings of Dubai”. It seems like most folks that know something about the Middle East and the Saudi peninsula know something about the rapid construction and development in Dubai, and this is what I will cover. This should be interesting if you are interested in travel, so let me know if you have a group that I could speak to.

Over the past few weeks I have been asked repeatedly the essence of this question…”Is development in Dubai for real?”  Over the past few years, both commercial and residential development has been slowed dramatically due to the world-wide economic slowdown. However, when the decision was made some 20 years ago to commence the massive development that has earmarked Dubai, it was probably a very good decision, for all indicators were that world trade would continue to grow rapidly. Dubai, or at least the leadership of the Emirate, as well as the Emirates (states) as a whole, saw itself as positioned perfectly between the bustling Far East and the consumer oriented West, including Europe, Russia, and the US.  And, when you look at a map, this makes sense.

What we now have is a very unusual situation, when you look at it from a western finance perspective. In the US, and much of the western world, investor owned buildings are financed based on the projected revenue from leasing the property. Lenders do not approve new building loans unless they are satisfied that the property will, in fact, pay its way.  It does not appear to be this way in Dubai. Buildings were built without the buildings being fully leased.

To look at newer buildings that have For Lease signs on them, and then find that the occupancy is at 25%, is a reflection on massive development and a massive slowdown, which has happened. What surprised me the most, though, was the huge number of partially completed hi-rise commercial buildings that are in every area. This really made me more conscious of the value of not having to qualify for the loans….or, have the cash to do the building, and go for it. Must be nice….and think of this at your next fill-up at your local gas station.

Bottom line, though…when this economic slowdown turns around, Dubai is ready, and probably no holding it back.  Dubai will be a major world trade and commerce center….mark my word.

The Dubai Metro is one of the most modern in the world. Opened less than a year ago, this state-of-the-art high speed Metro is totally computer controlled and driver-less. The cars are very light and bright and are in a “spotless” condition. There are usually about 8-10 cars in one train, and they run about every 6-10 minutes, which is posted along the boarding areas. The cars are very quiet, being electric, and there are separate seating areas for Gold Ticket holders along with women. One of the first times that I got on I sat in one of the “women only” areas, and a woman seated pointed to a sign that said “Women’s Seating Area”.

The Metro (Red Line) was the main means of transportation that I used. I would take a shuttle from the hotel to the Mall of the Emirates, and would board the Metro at that station. I would buy a ticket card before boarding, and it is very reasonable…about the same price as riding BART in the Bay Area.

The second line, the Green Line was opened the end of August…in fact the last day that I was in Dubai. It runs from the water and port areas into the more interior areas of Dubai. Again, very modern and very impressive, especially when you also look at the beautifully designed stations…both above and underground.

When you visit Dubai, the Metro is a must.

This is part of the greater Dubai area, but is a commercial development all by itself. Located about 15 miles north of the so-called center of Dubai, Dubai Internet City was designed as a home for all of the hi-tech companies. It is the Dubai version of our Silicon Valley in California. I saw most of the world-wide and well known internet, high tech companies, and the older standbys…all within this 2 or 3 mile square area. The companies most visible from the Metro were IBM, Siemens, Microsoft, and HP, and all are in very modern hi-rise buildings.  Very impressive.

Access to Dubai Internet City is via the Metro that runs from south of the International Airport all the way up north towards the current end which is at Jeb Ali Port. Wide and modern freeways cover this entire route, and cars are abundant on the freeways, and this particular one runs on north to Abu Dhabi, which is about an hour drive along the wide and divided freeway.

Info about Abu Dabi goes here.