Cities of Sand or whose getting mailed to Abu Dhabi. Afton Clarke-Sather World Regional Geography July 23, 2009

Transcription

1 Cities of Sand or whose getting mailed to Abu Dhabi Afton Clarke-Sather World Regional Geography July 23, 2009

2 Map Quiz Middle East Cairo Dubai Istanbul Tehran Qatar Israel Lebanon Syria Persian Gulf Nile River Euphrates River Suez Canal Baghdad Kuwait Lebanon

3 Types of Mobility we ve seen Mobility of What People Ideas Resources Capital (money) Tourism Trade Example Immigration in U.S. and Europe Music in Latin America Oil in Russia Real estate in Dubai Tourism in Dubai Ports

4 3 Mobilities in Dubai Capital Investment funds Goods Trade hub for movement Mobility itself is a big business in Dubai Oil Exports declining People Migration People Immigrating Tourism

5 1. Capital UAE largest recipient of FDI in Middle-East Dubai accounts for 2/3 of UAE total ($ 21 of $31 billion) Aim to become financial center of Middle East How? Minimal regulation of flows

6 Capital II All mobility has a cost Dubai has aimed to minimize the cost of movement of capital through: Tax preference Export Zones Most FDI flowing into construction projects

7 History of Capital in the Middle east 1970s Petrodollar Recycling Sudden Rise in price of oil Large amounts of money in Gulf states with little outlet for investment Invested in foreign (particulary U.S. Banks) Lent to governments (particularly in Latin America) Led to debt crisis in 1980s in Latin America

8 Capital III Financial Collapse has hit Dubai Hard When capital comes easily it can also leave easily The cost of capital mobility is risk of sudden collapse Russia 1998, Asian Financial Crisis 1998

9 2 Trade the costs of All mobility has a cost mobility Financial costs of mobility accrue to someone That someone is often Dubai entrepot (through shipping) accounts for 15% of Dubai GDP

10 History Trucial States British Hegemony Early history in trade (smuggling) to India and Persia (Iran) 1966 Offshore oil discovered Reinvestment of oil proceeds (particularly in ports) and dry docks Benefited as safest port in Iran Iraq war Jebel Ali free trade zone (epz) this is a territorial way of promoting trade.

11 Jebel Ali Dubai investments in trade ports Largest port in the Middle East Largest man-made port in the World Dubai world ports 4 th largest operator of ports worldwide 2006 controversy over taking over American ports

12 Dubai investments in Emirates State-owned Founded 1985 mobility Air 4 th Largest Airline by international passenger-miles flown (10 th total) 7 th Largest global airline by freight carried

13 Dubai investments in Dubai Airport mobility Air 6 th Busiest in the world by international traffic 2008 (11 th in 2005) Al Maktoum Under construction 10X the size of Dubai Integrated logistics

14 2 The Costs of Mobility--Summary Mobility always has a cost, and that cost often accumulates to someone Dubai has a history of trade Dubai has used its limited oil money to finance an expansion of its business in trade This has all been state owned

15 Mobility of Humans 1. Tourism 2. Guest workers 3. Human Trafficking

16 Tourism Wealthy people from Europe, elsewhere in EU, Middleast Shopping Luxury travel first 7 star hotel /02/2402dubaimainMOS_428x269_to_46 8x312.jpg

17 Foreign Workers Dubai has largely been built with guest workers These groups are ever-present but unseen in Dubai

18 Foreign Born Total population of metropolitan Dubai Total foreign-born population of metropolitan Dubai Foreign born as a percentage of the population of metropolitan Dubai 1,272,000 1,056, % Data: Dubaidatasheet.pdf

19 Foreign Born Population of Dubai

20 Construction workers Low pay ($10/day) Poor living conditions Few rights

21 Mobility of People Human Trafficing

22 Take home points Dubai is, in many ways, a city built on mobility This includes mobility of capital, goods, and people The Dubai Model Qatar Bahrain following it

23 Take home points Mobility of Capital Money moves easily The only thing stopping money from moving is regulation Creating zones with loose financial regulations creates fewer costs for mobility Yet capital mobility still has cost if you leave

24 Take home points mobility of Stuff All mobility has costs Those costs go to someone, and there is much money to be made there Industries where mobility is profitable: Air Cargo

25 Mobility of people Dubai often associated with the rich and famous But most who come are not Human costs to mobility