I came across a brief feature from The New Yorker by Ian Parker on the rapidly rising debt Dubai faces.
Iceland recently dealt with an economic disaster that left them defeated but ready to take action to deal with the crisis. Dubai, on the other hand, is somewhat "shameless" in asking for extensions on payments, all while its stocks fell 5.6 percent yesterday.
Dubai's media insists that the rest of the world cannot relate to the economic issues of Dubai, so their debt cannot be compared to any other country. Although the economy must be monitored, because Dubai is a city that is heavy with foreign investments.
Dubai is a city of excess: villa lined streets, mammoth, glossy shopping malls, indoor ski slopes offering snowy recreation in a desert. All of these things are indications of a flourishing economy.
Sultan Ahmed bin Sulayem, chairman of Dubai World, said, "[We] give a lot of courage to neighbors in the region, whereby they say, if Dubai can do it, we can do it."
This feature is a trend story. It discusses how countries outside of the United States are dealing with recessions.
As brief as it is, the story packs in a lot of information, tying in Iceland's economy. I think that it is a bit too short for the subject. It could be double the size and could explore more areas and effects of the recession.
Parker did a good job showing the contrast of attitude and reality in Dubai. He ended the feature with a fact: "Today, Dubai may owe more than eighty billion dollars."