For most of the past two decades Dubai has been the envy of just about everywhere else. There were plenty of opportunities for everyone and for a while it seemed almost too good to be true. But, as a result of the financial crisis, Dubai has stumbled and the glass no longer looks as full as it once did.
However, the glass is far from empty. Diehard optimists rightly see it as half full, while the growing number of pessimists keeps pointing out that it is half empty. Only the doom and gloom pundits insist that the glass has been broken and is better given up as lost forever since nobody could put it back together again. Even when the glass was full to overflowing, unrepentant haters of Dubai pronounced it a white elephant and dismissed its economic model as being unsustainable.
It is undeniable that Dubai's credibility has suffered, but credibility can always be regained through hard work. The emirate is no stranger to hard work, which propelled it to global prominence. It is also legitimate to say that trust in Dubai has been diminished. But trust is a commodity that can be restored and polished through determination, which is the hallmark of Dubai. The emirate currently looks pretty shaky and exposed and business confidence has been eroded, but confidence is regained swiftly by being transparent, recognising past mistakes and adjusting to new realities.
Resilient
The emirate is more than capable of learning from its mistakes. No one has ever claimed that Dubai is perfect. For a while, some were carried away by grand achievements and were intoxicated by the glamour of success. Others were simply hasty and greed was unchecked. New local and global realities dictate that the emirate needs to slow down and be more cautions.
Dubai's invincible reputation has been battered and its economic model is being questioned, but this is not unprecedented. All economies go through ups and downs, recessions and recoveries. No one is immune to the cyclical rise and fall and no city can stay at the top perpetually. Having said that, it is not in the character of Dubai to stay down for too long. It might take a while to return to prosperity, but no one should doubt its resilience.
As it rebounds, the emirate would be well advised to get over the fascination with the ‘new' Dubai and revisit the old Dubai. Much of what has evaporated suddenly has to do with extravagant real estate projects in the so-called new Dubai. The business of the old Dubai is today as rock solid as ever, and accounts for the glass being more than half full.
The old Dubai is the real foundation of the Dubai model. The emirate needs to rediscover its roots and rebrand itself as the old and sound Dubai, with emphasis on its hard-earned independence and its indispensable identity as a service centre for the region.
The emirate has made itself available to state and non-state actors; it cleverly wears many hats, plays numerous roles and appeals to diverse audiences. It is as important to Iran as it is crucial to US interests in the region. Tehran has benefited from Dubai as much as Washington has. Both keep an eye on Dubai's affairs and value its strategic attributes. The emirate is also socially and commercially vital to Saudi Arabia and provides critical logistical services to the other GCC states, as well as Pakistan, India and a host of African and Middle Eastern countries. No other city in the region can perform these logistical and strategic roles better than Dubai. The emirate is simply irreplaceable and is years ahead of its closest regional competitors.
But for the emirate to play these crucial roles it should assiduously guard its entrepreneurial and independent spirit, which has served it well throughout its history. The emirate's apolitical nature is good for the UAE and for all regional and global players. This is one feature of the old Dubai that should not be tampered with or compromised under any circumstances, or in return for help of any kind. The emirate's inner soul and its historical and constitutional independence have never been up for sale and these remain non-negotiable, even under the most difficult financial circumstances.
Dubai needs to beware of those who try to take advantage of its current restructuring challenges to advance narrow local, regional or global agenda. It is irresponsible to politicise Dubai's financial setbacks or tamper with its strict neutrality. With its entrepreneurial and independent spirit intact, Dubai is highly capable of returning to its best, rebranding itself and refilling the half-full glass — no matter how damaging the current financial setback may be.
Dr Abdulkhaleq Abdulla is a professor of political science at Emirates University.
