Dubai's dream is built on sand

Dubai has been good to Chris Dommett. The 47-year-old banker moved to the emirate 13 years ago and set up a property company. He found success – his firm generated millions of pounds – and happiness. He met his fiancée, Teresa. He never had any doubts about joining the ranks of a new white tribe of Arabia. Until now. “I’m not sure the government knows how to get out of this mess,” he said.

The global recession has ripped through Dubai, leaving its dream of becoming the Switzerland of the Middle East looking like a mirage. Locals who used to joke that Dubai would be a great place “when it’s finished” now wonder whether it’s finished.

They’re counting the cost in Britain, too. The UK has invested more in Dubai than any other country – an estimated £3 billion. British companies are owed more than £400m by troubled state-backed firms.