Burj Dubai opening is a welcome distraction

Burj Dubai Opening

After the end to 2009 that Dubai had, one could be forgiven for thinking that the last thing the emirate wanted was for the eyes of the world to be falling on it at the very start of 2010.

But Dubai's rulers have remained optimistic as they prepare for the inauguration of the world's tallest building - the Burj Dubai.

The US$1.5 billion tower will reach just shy of 200 storeys into the sky, and although officials have not yet revealed the exact height, it will exceed the next highest structure by some 300 metres (1,000 ft). The emirate's rumours claim the fact they have gone ahead with the opening, shows the world that Dubai is ready to recover from its debt woes, little over a month since its largest state-owned company, Dubai World, asked for a six month delay on debt repayments of around US$80 billion.

Lavish ceremony

The Burj Dubai will open to a lavish ceremony of "sound, light, water and fireworks" with over 6000 invited guests, but instead of seeing it as a sign of recovery in the emirate many fear the opening may actually be the exact opposite.

"The worry for Dubai is that the event will be remembered as a second bout of hubris," said David Butter, regional director for Middle East and North Africa at Economist Intelligence Unit.

The first bout was in November, 2008, two months after the collapse of Lehman Brothers, when Dubai spent US$24 million on the opening ceremony of the Atlantis hotel, an event that did more to highlight a taste for extravagance than allay fears that the economic crisis was not being taken seriously by Dubai.

Intensity of debt

But rulers and businessmen are adamant Dubai will not crumble under the intensity of its debt, "Crises come and go, and cities move on," said Mohamed Alabbar, chairman of Emaar Properties, the state-owned developer of the building.

"You have to move on. Because if you stop taking decisions, you stop growing."

Time will tell if the spectacular opening of the Burj Dubai will be the start of an equally spectacular recovery, or the final act in the emirate's last hurrah.

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