A Visit To Dubai Inc.

Steve Kroft Reports On A Success Story In The Middle East

(CBS)  Eight years ago, Sheikh Mohammed decided what Dubai needed was more waterfront property and beaches for all the tourists who are going to come. Dubai only had 60 miles of coastline, so ordered Sultan Bin Sulayem to create more.

"After two months, I came to him and I showed him this picture, of a perspective of a picture of an island. He said 'How much beach is this going to give us?' I said seven kilometer. He said 'Why not 70?' You know he always ask you the impossible. Not what you are able, but what you cannot do," Sultan Bin Sulayem remembers.

"So, Sheikh Mohammed gave you the land and told you to start building?" Kroft asks.

"He gave us the water," Sultan Bin Sulayem says. "We have to make the land."

Business consultants told him the project was unfeasible, but with no environmental regulations to stop him, Sultan began dredging a hundred million cubic yards of sand from the Persian Gulf, along with seven million tons of rock to form a man-made Island in the shape of a palm. It more the doubled the coastline of Dubai, and created waterfront condos and homes for 150,000 people, not including 35 hotels.

"Most people, if they brought in a business consultant, and they told them, 'This is a terrible idea. It's not gonna work.' They wouldn't do it," Kroft remarks.

"Most people, yes, but not us," Sheikh Mohammed says.

"I must tell you, your Highness, that there are some members on your team who, from time to time had doubts. I won't name them, but they looked and they said, after you told them what you wanted they said, 'This is impossible,'" Kroft remarks. "They thought that you were crazy."

"Yeah, if you don’t want to name them, I can name them," the sheikh said, laughing.

It's easy to laugh about it now. The palm island project sold out in less than a week, and houses that initially went for $1 million are being resold by original investors and real estate speculators for five times that. But the day 60 Minutes went ashore, a month after the official opening, the island was a ghost town.

"People just started moving in," Sultan Bin Sulayem explains.

It's not clear when or if people will actually start moving in. Most of the properties were bought as second or third homes by wealthy Arabs, Russians, and Europeans to be used a few months a year, or as real estate investments, or a way to move money offshore to a safe haven. But it has not stopped the building.

Three more off-shore developments are underway, including a chain of 300 man-made islands, some of which will be private. They are shaped and situated to resemble a map of the world, which is what the project is called. Demand is said to be strong, but to many, Dubai has the feel of a speculative bubble, that could burst.

Man-made islands with multi-million dollar homes on them are only one component of Sheikh Mohammed's vision to make his kingdom a safe haven for capital and a model for social and political change in the region.

From financiers and entrepreneurs, to construction workers and maids, Dubai has become a kind of El Dorado, the setting for a modern day gold rush. Everything is in overdrive. And not surprisingly, the speed of it all has had unintended social and political consequences.

"A number of people have described you as the chief executive officer of a huge business enterprise. Is that an accurate way of describing what you do?" Kroft asks the sheikh.

"Actually, yes. I change the way of government to make it like a big company," Sheikh Mohammed says.

Some people call it Dubai Inc. and, besides investments at home, includes extensive holdings throughout the Middle East and around the world. In the U.S. its list of properties is way too long to go into but includes resorts, hotels and real estate holdings from Las Vegas to New York. The company is also negotiating to buy a significant interest in the NASDAQ stock exchange.

[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