How does Dubai pay for their building costs?



  1. 0 Votes

    Good question.  Dubai is in major debt.  It borrowed $80 billion from 70 creditors during an economic boom for its extravagant construction and expansion projects and is now in trouble.  It was easy to get creditors at the time because the project seemed to be successful—celebrities did flock!—and the economy was doing well.  Now, though, the city is trying to renegotiate the terms of some of its loans.  If it defaults on its loans, it could be hugely detrimental to more than its own economy.

    Meanwhile, Dubai has also invested in construction around the world (Las Vegas, London) and it will be detrimental to these places if the money is taken away.  Additionally, workers in Dubai are being laid off so they are no longer sending money home (mostly to different countries), potentially destabilizing more economies than just that of the UAE.

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