There´s nothing like watching the collapse from a privileged spot
Burj Dubai Opens As City's Reputation Hangs In Balance $this->bbcode_second_pass_quote('', ' ')DUBAI (Zawya Dow Jones)--The opening of the Burj Dubai, the world's tallest skyscraper, Monday could mark a turning point in the sheikdom's fortunes and those of its ruler after a year that saw both come under intense scrutiny.
Sheik Mohammed bin Rashid Al Maktoum, the city-state's 60-year-old hereditary leader, hopes the building and its surrounding $20 billion development will help enhance his reputation among international investors and restore the allure of Dubai as a business hub.
Dubai's shock confession in November that one of its largest government-owned conglomerates couldn't pay its debts triggered a slide in world markets and prompted many analysts to question the city's economic model of borrow and build. Burj Dubai, it's hoped will redress the growing international perception of the emirate as an economic delinquent instead of a role model for the Arab world.
Saud Masud, head of research at UBS AG in Dubai and a regular commentator on the emirate's real-estate industry, says Burj Dubai will help the city to "stay in the limelight as home to a global landmark." Still, Masud forecasts that Dubai real estate prices could drop a further 30% this year after falling 50% in 2009.
After struggling with an $80 billion mountain of debt, no expense will be spared in Dubai for the opening, which takes place under a shroud of tight security. The carefully choreographed ceremony, which includes 10,000 fireworks, coincides with Sheik Mohammed's four-year anniversary as ruler.
The sheik, a passionate racehorse owner and published poet, was forced last year to turn to his oil-rich cousins in Abu Dhabi for financial assistance. The call for help prompted many analysts to question whether Dubai would be forced embarrassingly to sell prized assets to Abu Dhabi and surrender elements of its autonomy in order to pay its debts.
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Sheik Mohammed rejected initial plans for the Burj Dubai presented to him by the building's developer Emaar Properties PJSC (EMAAR.DFM) and demanded a taller, more impressive structure, said Krane, who is an expert on the emirate and a former resident.
"He sees himself as a great Arab building king," said Krane in a telephone interview. "Dubai represents Sheik Mohammed's bid to trigger an Arab renaissance and this is the thinking behind the Burj Dubai. Whether he can succeed is an open question."
According to Krane, the tower and its surrounding real-estate will never pay for itself.
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