December 15th, 2009 by Zack

Claudia Pugh-Thomas writes an op-ed about Dubai’s floundering cultural identity, unable to establish a cohesive Islamic tradition amidst waves of expatriate diversity.  As the country feels the growing the pains of economic readjustment, she comments “how Dubai negotiates this rite of passage will determine whether it will ever be taken seriously.” The fact the recent downturn is portrayed merely as negative publicity “is not a promising sign.”

Brian Whitaker explores how the emirate has responded to negative press about the regime with harsh censorship and authoritarian pressure.  He argues that “in Dubai, deep down, they still don’t get it.”  The country cannot expect to be a modern financial center and still cling to traditions that give deference to an unelected leader and repress the the media that critique him.  Whitaker conclude, “If Sheikh Mohammed wants to be treated with the respect that he obviously feels he deserves, then he can confine himself to being a titular figurehead. But if he wants to combine being royal with life as a politician and as being the centrepiece of Dubai’s business affairs he becomes fair game – just like anyone else.”

The Economist reports that Abu Dhabi has provided Dubai $10 billion in order to meet an upcoming debt payment schedule.  However, this amount does not come close to settling all Dubai World’s outstanding debt. As such, the UAE has appointed a three judge panel and created new “reorganisation law” that will allow creditors to file claims against the state corporation.  The Financial Times argues that despite these problems, Dubai has faired rather well and that this experience will push investors to back sound businesses instead of businesses backed by the state.  Marios Maratheftis, head of regional research at Standard Chartered Bank, explains investors have shown confidence in the move because it indicates  ”there is a one-country approach in dealing with the crisis, which is positive.”

Posted in Dubai, Freedom, Journalism, Legislation, Reform, UAE |