Streetwise: Dubai fiasco as waiting to happen, even without Thaksin

By Achara Deboonme

Published on November 30, 2009

(Posted by CAAI News Media)

For some Thais, linking former prime minister Thaksin Shinawatra to any negative turn of events has become a kind of reflex.

When he launched his populist policies, he was accused of buying votes. To be sure, this charge has also been levelled against Prime Minister Abhisit Vejjajiva's government, but to a far lesser degree.

Now that Dubai World is tanking, talk has arisen that Dubai - synonymous with prosperity for many years - is sinking into trouble because the exiled Thaksin made it his political base.

Could it be true?

Dubai World, a government-run owner of ports, real-estate developments and investment companies, is now asking creditors for a standstill on its debt repayments.

During my May visit to Dubai, which forms part of the United Arab Emirates, I was amazed at the scale of the expansion that had occurred over the past decade, and there were signs that such a fiasco was on the horizon.

According to Thais in Abu Dhabi, the capital city of the UAE, Dubai embarked on a massive investment scheme - including land reclamation for those famous Palms development projects - because its oil supply is running out and it needs income from other businesses.

In May, in the extreme heat, I noticed that cranes were everywhere in the city. I was convinced that more than half the cranes in the world were in Dubai.

I visited Palm Jumeirah, the first man-made island, and saw the monorail that links it to the mainland. The smooth, wide concrete roads were nearly empty, and there were few signs of inhabitants of the private villas and high-rise condominiums in the island. I told myself that the rich folk who can afford to pay the US$1 million (Bt33.2 million) it costs to buy a residence here must not like the heat.

Along the main road on the mainland that leads to the island there are many new buildings. I was told the buildings that once stood there had been torn down, their owners paid hefty compensation, because the city wanted to beautify the area.

For tourists' comfort, all buildings are kept nice and cool. Vehicle engines are left on, even when left parked for more than half an hour.

None of this show points to any great concern for sustainability.

Certainly, Thaksin should not be linked to the Dubai World episode. But he has made Dubai notorious in the eyes of some Thais.