Growing up | The Economist:
"TRAVELLERS flying into Dubai often look down and marvel at the man-made islands with the luxury villas. These outlandish creations came to symbolise the emirate’s economic boom in the mid-2000s—and the crisis that followed in 2009, when it needed help to pay its debts, many related to property development. But once on the ground, travellers see signs of a more sustainable prosperity. The airport is bustling—more international travellers use it than any other.
Dubai has bounced back from the crisis, which saw its economy contract by around 2.5% in 2009. It is expected to grow by around 5% this year, as it did last year. The question is whether it has found a more solid underpinning for its growth. There are reasons to worry. Property prices reached a new peak least year (see chart), raising concerns that the market was again overheating. But along with the airport, Dubai’s commercial areas and seaports are also buzzing. These are signs of growth, and also maturity, say analysts.
Dubai long ago used up most of its oil reserves, so the government has for years tried to diversify the economy. While skyscrapers and palaces grabbed headlines, this less glamorous work has slowly paid off: Dubai is now a regional hub in several areas. The airport, which already serves some 70m travellers a year, is set to expand to serve over 200m, eventually. Emirates, the local airline, is world-class. The port at Jebel Ali is by far the busiest in the Middle East, the cargo it handles growing by nearly 12% last year. It is likely to become the biggest container port in the world by 2030."
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