Young Americans Ride Out Recession in Dubai

Booming reality counters talk of bubble in Middle East's 'Manhattan'

By Kevin Spak, Newser Staff

Posted Nov 17, 2008 1:55 PM CST

(Newser) – Back in Texas, Brooke Butler’s friends are worrying about their homes and jobs. Butler has other worries. “I’m thinking it’ll take about 5 years to make a million now,” the 24-year-old saleswoman tells New York. “It’s not that difficult over here.” Here is Dubai, the Persian Gulf emirate with a real-estate and investment boom seemingly immune to the world’s economic crisis.

Young Americans with dimmed prospects at home are flocking to Dubai, where consumer confidence remains high thanks to the monarch whose ambition made this luxury paradise. But Dubai is carrying $48 billion in debt—103% of GDP—and some believe neighboring Abu Dhabi will have to bail it out. That, a local says, would end the party. “It would say to the world, ‘Dubai Inc. has failed.’”

[Images (5)]

[Quotes (2)]

An Emirates man visits a high-rise project during the CityScape real estate exposition in Dubai's financial district, Oct. 7, 2008. (AP Photo)

Workers pass by at a luxury hall of the Atlantis hotel which is a part of $ 1.5 billion resort in Jumeira Palm Island in Dubai, United Arab Emirates, Wednesday, Sept. 17, 2008. (AP Photo/Kamran Jebreili)

A worker cleans up a fountain statue at the Poseidon hall of the Atlantis hotel which is a part of $ 1.5 billion resort in Jumeira Palm Island in Dubai, Sept. 17, 2008. (AP Photo/Kamran Jebreili)

Dubai's "Pentominium" includes luxury penthouses to be designed by Salvatore Ferragamo. (PRNewsFoto)

Young American expats flock to a 7,000-square-foot home on the Jumeira Palm Island to watch NFL games on Sunday nights. (AP Photo)

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Everyone is always complaining that Dubai
is too expensive. But that’s the intention! They’re trying to make this into the Manhattan of the gulf. - K.S., Iranian-American businessman living in Dubai

It doesn’t feel like you’re in the Middle East. You really have to remind yourself sometimes, like, ‘I’m in the Middle East!’ - Brooke Butler, American saleswoman living in Dubai

« Prev« Prev | Next »Next » Slideshow

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Young Americans Ride Out Recession in Dubai