The symbol of the excess that has left Dubai a financial cot case is opening tomorrow.
Sheikh Mohammed bin Rashid al- Maktoum, the emirate's ruler is opening the Burj Dubai, the world's tallest building, which stands the equivalent of two empire state buildings stacked up.
As The Times reports, people are already dismissing it as a gaudy symbol of a lost decade of uncontrolled speculation. It's no green building either. Its air conditioning system is the equivalent of melting 12,500 tons of ice a day, and it will consume millions of litres of desalinated water. All to be expected in a place like Dubai, the quintessence of corporate irresponsibility, boasting the world's highest per capita carbon footprint.
So in a nutshell, Dubai is broke and drawing in bailout money but the place is still opening the world's first super-scraper.
While that's going on Dubai is probably going to need more bailout money with economists warning it might not meet all its obligations.
Actually, the Burj is an important reminder. The Dubai World debt default and Greek fiscal crisis are telling us about the enormous amounts of debt that remain outstanding. The only hope lies in the implicit or explicit guarantees from friendly sovereign nations like, in Dubai's case Abu Dhabi. But the question is whether those nations be willing to stand behind the monstrous debt.
If nothing else, the Burj tells us what has nearly destroyed Dubai and why the vast amounts of debt still sloshing around in the system are so dangerous.
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