Aug. 3, 2008

A Visit To Dubai Inc.

Steve Kroft Reports On A Success Story In The Middle East

  • Play CBS Video Video Part 1: Dubai Inc.

    Oil-rich, a magnet for business and tourism and a stable island in the turbulent Middle East, the Kingdom of Dubai is the success story of the region. Steve Kroft reports.

  • Video Part 2: Dubai Inc.

    Oil-rich, a magnet for business and tourism and a stable island in the turbulent Middle East, the Kingdom of Dubai is the success story of the region. Steve Kroft reports.

  •  (CBS)

Photo
(Mimi Chakarova)
Photograph of a sex worker by Mimi Chakarova. She has chronicled the plight of sex workers in the Middle East and Europe for several years. She has made a film about prostitution in Dubai for PBS' Frontline/World. Click here for more information.
(CBS)  Amidst the smell of opportunity and prosperity, there is also a whiff of exploitation. Sheikh Mohammed's dream is being built by armies of contract workers from South Asia, who work 12-hour shifts, six days a week, for an average of $4 or $5 a day. It is more than they can make at home, but human rights groups say they are little more than indentured servants, forced to live in substandard conditions.

At the end of a shift, they board buses for the trip out of the city to remote desert compounds, where they live far from the gleaming towers they're building.

"There have been allegations, and reports, that a lot of contractors, a lot of labor contractors have brought people into the country, and taken advantage of them, abused them," Kroft says to the Sheikh Mohammed.

"We had some problem. But we're dealing with it. And now the law is against it. And we're dealing a lot about it," the sheikh says.

Sheikh Mohammed says he is dealing with it by building new modern dormitories and compounds for thousands of workers. The government has also created a court where workers can voice their grievances. And Sheikh Mohammed told 60 Minutes that tough new laws have been passed to protect workers and crack down on labor contractors who violate them.

"People will go to prison, if they keep doing this," Sheikh Mohammed vows.

But according to letter by Human Rights Watch, no one has. The group wrote that it was "not aware of a single instance" in which an employer had been prosecuted for labor violations.

"There have been efforts to improve their situation. But, clearly not enough," Younsi says.

"Sheikh Muhammad and the government of Dubai say, 'Look, this is a problem that has been created by labor contractors.' Mostly foreign nationals. That they're the ones that are exploiting these workers. Not the people in Dubai. What's your reaction to that?" Kroft asks Younsi.

"I'm not sure it's a credible answer," Younsi says. "They want the cheap labor. And it's been working to their advantage."

The worker situation has damaged Dubai's reputation but it's not the first time Sheikh Mohammed's had a public relations problem. Two years ago, President Bush approved a deal for one of the sheikh's companies, Dubai Ports World, to take over the operation six U.S. ports.

"This deal wouldn't go forward if we were concerned about the security for the United States of America," President Bush said at the time.

But not everyone saw it that way and a nasty debate erupted in Congress over whether a company owned by a Middle East sheikhdom should be managing U.S. ports vulnerable to terrorist attacks.

The 9/11 Commission report had already pointed out that at least nine of the hijackers "came through Dubai" on their way to the U.S. and that "funds wired from Dubai" were used to finance the attacks.

It was the first time most Americans had even heard of Dubai, and the controversy didn't end until Sheikh Mohammed decided to cut his losses and sell.

"If that’s what the American people want, sell to somebody else," the sheikh says.

"Do you think you got a fair shake out of the ports deal?" Kroft asks.

"I leave that to you," Sheikh Mohammed says with a chuckle.

Asked if he's disappointed, the sheikh tells Kroft, "As I say, I don’t want to disturb our relationship."

"You didn’t wanna make a big deal out of it," Kroft remarks.

"Exactly," Sheikh Mohammed agrees.

Dubai is still one of the U.S.'s staunchest allies in the Middle East, and the U.S. relies on its ports to service Navy warships in Persian Gulf.

Continued



Produced By Harry A. Radliffe II
© MMVIII, CBS Interactive Inc. All Rights Reserved.
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Add a Comment See all 38 Comments
by fingerson-2009 August 6, 2008 2:00 AM EDT
Where are they getting their electricity? Nuclear plants?
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by nagma-2009 August 5, 2008 2:42 AM EDT
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.
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by nagma-2009 August 5, 2008 2:39 AM EDT
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.
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by revcsg August 4, 2008 4:00 PM EDT
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.
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by kffinance August 4, 2008 3:00 PM EDT
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.....
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by xlib August 4, 2008 10:35 AM EDT
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??
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by bwinski August 4, 2008 1:40 AM EDT
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...
Reply to this comment
by bwinski August 4, 2008 1:39 AM EDT
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...
Reply to this comment
by trader1999 August 4, 2008 1:02 AM EDT
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.
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by tnollc August 3, 2008 11:54 PM EDT
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
Reply to this comment
by loushor August 3, 2008 11:19 PM EDT
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
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by inventagod February 4, 2008 2:14 PM EST

Oh -
Thought this was a discussion board about Bu$hCo...
Sorry.
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by ladyjaneg February 4, 2008 12:35 PM EST
Yay Dubai!! Good for you! :D
Reply to this comment
by hypnotoad72 February 4, 2008 11:37 AM EST
"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.
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by cbs_oliver February 4, 2008 9:30 AM EST
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.
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by brianbwb-2009 February 4, 2008 7:22 AM EST
"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.
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by brianbwb-2009 February 4, 2008 7:20 AM EST
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.
Reply to this comment
by brianbwb-2009 February 4, 2008 7:16 AM EST
Didn''t get to stop by the new Halliburton headquarters, eh?

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by rudy654-2009 February 4, 2008 6:39 AM EST
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.
Reply to this comment
by neobrian-2009 February 4, 2008 4:45 AM EST
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
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