Sunday 29 November 2009

How Dubai's dream sank in a sea of debt

As he flew from Dubai to London last Sunday, Sheikh Mohammed bin Rashid al-Maktoum had plenty on his mind.In the four years since he had become ruler of Dubai, Maktoum had grown used to courting world leaders to visit and invest in his desert emirate. They admired the economic growth he had fostered as Dubai, fast running out of oil, turned itself into a tourism and finance hub.

Maktoum knew that on this trip he would have to strike a more humble tone. After an audience with the Queen at Buckingham Palace, he met Gordon Brown and Lord Mandelson. The damaging effect of the global economic downturn on Dubai’s growth was on the agenda. The sheikh brought reassurances that angry British contractors, caught up in the emirate’s construction collapse, would eventually get paid.

Maktoum also knew that a bigger test to international relations was brewing. But there were few clues until he had jetted out of London.

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