Whether Abu Dhabi has bankrolled Dubai's growth is not clear. A betting man would say that the FDI associated with the growth in Dubai is not all from shores or a distant land. The AbuDhabians with their oil cash have made strategic investments in places where there are returns to be made. This is both in the UAE and beyond. Dubai has been the Emirate seen to be achieving those investments on a global scale, but what we will see going forward is a further cementing of ties through troubled times. Abu Dhabi will support its neighbour - and the favour will be repaid through a sharing of skill and know how - as well as offering preferential treatment in investments guaranteed to bring in hefty returns.
There is no doubt that there will be troubled times ahead, more so in the over exposed emirate of Dubai, but talk of failure is embellishment too far. Failure is a big big word. In the eyes of some, success has already been achieved. To recount the transformation that has already been undertaken, one can see that Dubai has fast tracked itself onto the world stage. But its ambition of unprecedented growth will need to be curtailed. Dubai wont necessarily hit a recession. Dubai will hit slow down its growth. In a period of severe economic hardship, low single digit growth is impressive.
What we will see over the coming months is phasing and prioritising. Projects will come to fruition later and some projects wont be undertaken at all - but that is smart business practice, and whether you are a country or a company, that is how one should be operating at present. It's time to lose the weight and travel to the next juncture a little lighter.
Too Big to Fail