A Visit To Dubai Inc.

Steve Kroft Reports On A Success Story In The Middle East

(CBS)  His people, the descendants of Bedouin tribesmen, pearl divers and traders, now make up a small fraction of the population in the emirate. They enjoy one of the highest standards of living in the world, with free healthcare and college tuition and no taxes.

The rest of the population are foreigners -- European, Indian, Russians, Iranian, and Saudi -- and they are coming at the rate of 25,000 per month. They are developers, architects, middle managers, domestics and bellboys, all united by a common goal: to make money.

"People can smell the opportunity. And they go for it," says Georges Makoul, vice president for Morgan Stanley in charge of its Middle East region.

He believes Dubai has the perfect business environment for multi-national corporations. It is strategically located halfway between the financial capitals of London and Singapore, a billion and a half people within a three hour plane flight, and it is the perfect jumping off point to tap the emerging markets of South Asia.

"So essentially what's happened is that Sheikh Mohammed and the Maktoum family were able to convince people to come in vest money there," Kroft asks Makhoul.

"Well they articulated a very good case or investing in Dubai. And I think they jump started it with some of their own investments," Makhoul explains.

The initial investment was made by Sheikh Mohammed's father, who decided to dredge a coastal waterway called "The Creek," which had been the center of Dubai's commercial activity for centuries. It was the beginning of what would become one of the largest ports in the world and a major transshipment point for goods headed to and from Asia.

Next, Sheikh Mohammed came up with the idea of turning Dubai into an international center for finance and media. He set up a series of free trade zones, promising no taxes, minimal regulation, and special incentive to corporations willing to locate to the emirate.

And he began building it all, convinced they would come. And they have.

"It’s an amazing experiment," Dr. Omar Bin Sulaiman, the governor of Dubai’s financial district, tells Kroft. "Everything is done with risks, but calculated risks."

Since it opened three years ago, the Dubai International Finance Center has attracted banks, investment firms, and capital from around the world. And according to Dr. Bin Sulaiman, this is just the beginning of what will eventually be a city within a city.

What is the financial district going to look like in five years?

"Five years from now you're gonna see towers on your right, towers on your left. You're gonna see a kilometer-and-a-half garden where you can exercise. And if you're bored of that, you can go underneath it for a kilo-and-a-half shopping mall," Bin Sulaiman explains.

"Kilo and a half, that's more than a mile?" Kroft asks.

"Yes. And it is not the largest shopping center in the world. Because that's next door," Bin Sulaiman tells Kroft, laughing.

Next door is the Burj Dubai development, where the largest shopping center in the world is under construction at the base what will become the world's tallest building.

It is being built by Emaar Properties, by some measures the world's largest real estate developer. It is one-third owned by Sheikh Mohammed and the Dubai government, which has a financial stake in almost all of the development in the emirate.

Emaar’s chairman, Mohamed Alabbar, took 60 Minutes up to what was then the top of the building, past what will be the first Giorgio Armani hotel, and floor after floor of million dollar apartments. It was already nearly a mile high, and when it is finished it will be twice as tall as the Empire State Building.

But Alabbar isn't worried about finding tenants with deep pockets. "We are about 85 percent sold. We sold 1.1 billion U.S. in two nights, which is really amazing," Alabbar explains.

Alabbar, educated in the United States, is one of Sheikh Mohammed's young lions, protégés hand picked by the sheikh to run one of his largest enterprises.

Another is Sultan Ahmed bin Sulayem, the chairman of Dubai World, who also runs a significant part of Sheikh Mohammed's business empire. "I think he looks at Dubai. What does Dubai need? What is missing in Dubai? And when he thinks there's something missing, we're gonna do it," Sultan Bin Sulayem says.

[fingerson-2009]

Where are they getting their electricity? Nuclear plants?

[nagma-2009]

Except for a pithy reference to ''building without regulation'' and ''changing of geography,'' you avoided the expose of a gigantic environmental disaster that the planet and world''s people will ultimately have to pay for. The long-term forecast for Dubai society does not look very promising either.

[nagma-2009]

Except for a pithy reference to ''building without regulation'' and ''changing of geography,'' you avoided the expose of an environmental disaster that the planet and world''s people will ultimately have to pay for. The long-term forecast for Dubai society does not look too promising either.

[revcsg]

PLEASE could we not get it right? Burqa is a word used to describe the women''s blue tent like garb (that has a woven net over the eyes)in Afghanistan which is not an Arab country. In the Middle East it is not used. In the Arabian Gulf region including Dubai, Qatar the word most used is Abaya. I have heard the word Burqa used time and time again recently in the States.It is not correct and thus we are embarrassing ourselves by our ignorance certainly in the eyes of others who know better.

[kffinance]

Great sales pitch for Dubai. Mr. Kroft never mentioned that you will not be allowed in Dubai if you have an Israeli stamp in your American passport - traveller beware.....

[xlib]

Oh veteran, no, no, no. See, this is the place that bubba made big, big bucks. See, you''re still buying into that class envy thing. That doesn''t work anymore. Do some research and see just who are the rich scumbags. I do believe there would be many, many dems. Besides, why so jealous??

[bwinski]

It amazes me how Americans (AND Steve Croft) view the rest of the world thru an American-only prism... Americans will see this an say "We''re paying for all of that - let''s drill everywhere we can here". Which is COMPLETELY not the right message of "Were running out of Oil, we have to think about what we will need as a country in 20-50 years"...VERY different perspectives.

We are such small minded people...Limited perspective will be our undoing.

But with the chimpy/darth media filter running rampant in this story, NO ONE will get the correct message...

[bwinski]

It amazes me how Americans (AND Steve Croft) view the rest of the world thru an American-only prism... Americans will see this an say "We''re paying for all of that - let''s drill everywhere we can here". Which is COMPLETELY not the right message of "Were running out of Oil, we have to think about what we will need as a country in 20-50 years"...VERY different perspectives.

We are such small minded people...Limited perspective will be our undoing.

But with the chimpy/darth media filter running rampant in this story, NO ONE will get the correct message...

[trader1999]

I liked Steve Kroft''s report, though in this rerun, it appears that it was not updated from the first run. Along with the images from the piece, another stands out in my mind: that from CNBC (I believe) in the last 30 days of 200 tanker trucks which each day haul sewage away from the new development because the existing 30 year old treatment plant is inadequate to handle the new offices and condos. But, along with Steve, I guess all those condo-buyers spent more time in the penthouses and boardrooms and not much time underground exploring the more mundane aspects of the country. Had they done so, I rather believe those condos might have come off their $5M price tags. Furthermore, if I were considering some involvement with this development, it would give me pause to consider how such an integral part of any building or city in the world got such short shrift in Dubai. But then, I do not believe they provide sewage systems on Hollywood movie sets either.

[tnollc]

It is disappointing that 60''s Steve Kroft did not discuss with Sheikh Mohammed his education program for his subjects. This program has resulted in his subjects running the country and not the foreign nationals...i.e..like in Saudi Arabia

[loushor]

To Steve Croft:

You did not tell the whole story about Dubai !

Within 5 years they will have the busiest airport in the world. More takeoffs and landings than O''Hare or Atlanta, or any other place in the world. Perhaps a little more than five years to reach the goal.

To accommodate the entire number of visitors going to where there is everything in one place, not necessary to go to the beach or mountains or to a shopping center: They will get it all in Dubai. Expensive, but for people with the ability to go where they want, this will be the ultimate destination. Look for that to happen sooner than later.

LOUSHOR

[inventagod]

Oh -
Thought this was a discussion board about Bu$hCo...
Sorry.

[ladyjaneg]

Yay Dubai!! Good for you! :D

[hypnotoad72]

"Why are you in such a hurry? Most people would try and do this in a lifetime, not five years," Kroft asks.

"I want my people to live better now. To go to high school now. To go to good health care now. Not after 20 years," the sheikh explains.
------------------------
Everyone in the world wants that.

America is currently helping them and every other country develop. Right now, at the cost of its own.

I look forward to the day we can rebuild America and continue down a truly globalized society where we all prosper.

[cbs_oliver]

The fairy land image and gushing praise featured in this story reminds me alot of a story I read when I was younger - it was in Life Magazine, beautifully illustrated, about the Shah of Iran.

[brianbwb-2009]

"Somewhere in there is a creature as dark as Darth Vader." Posted by rudy654

Or, as he is known in America, VP Di*k Cheney.

[brianbwb-2009]

Posted by mbburch06

"Once they arrived in the new country, they were priced and sold, and their documents taken away. The young women told me they were forced to service mechanics, soldiers, priests, butchers, tourists, and even U.N. personnel who were supposed to protect them...

(You can hear Vika''s story in the FlashPoint slideshow, Moldova: The Price of ***.) She told me she had been trafficked to Dubai, at times serving 30 clients a day. She quickly learned the only English words necessary to keep her owner from hitting her: "How much?" and "With or without plastic?" Once, without plastic, her luck ran out and she got pregnant. It didn''t matter. Her pimp kept her working for the duration of her pregnancy."

Some job mbburch06, let us hope your daughter gets one of these jobs.

[brianbwb-2009]

Didn''t get to stop by the new Halliburton headquarters, eh?

[rudy654-2009]

Dubai makes me think of something so bizarre and strange, like that of the Empire in the Star Wars movie series. Somewhere in there is a creature as dark as Darth Vader. The buildings are not anything real (not like the art of ancient cities), but just false corporate communities, with an emphasis on greed and debauchery, the hypocrisy of Islam and Christianity.

[neobrian-2009]

How they can EXPLOIT all those people who labored in that Extreme heat to build such structures so Quickly!"
====================
YES SO TRUE !!! YES SO TRUE !
Workers from Southeast Asia brought there with promises,...for $ 4 an hour,..more than they can make at home,...They put them in camps,...They CAN`T QUIT,,...They Can`t go home,...I`ve seen this kind thing First hand !!
YOU BIGOTS Go To Faux Noise !
You Scumbugs ARE the Filth of this nation !!!!!
If You had Your way,..Everybody would work for nothing,...GET a Clue !! YOU HAVE NO IDEA !!
You live in Fantasy world where You believe all the lies You are Told by YOUR KING,...Go listen to Rush,..Get Your Brains washed some more by the Shrubbie-scrubbing s,..
YES,..These workers Have Been EXPLOITED,..not all,..They Have Only the law of the RICH,The Corrupt,The Greedy,.....Just Like The GOP would Love to enjoy here,..BUT,THIS ELECTION WILL ERADICATE the GOP Stranglehold on Our Once Proud Nation !
Shrubbies,..Crawl back into Your Holes,..You ARE The Lowest forms of Life,..Amoebas,Slimy,Greedy,Liars