Dubai and its White Elephants
March 2010
On November 25, 2009, Dubai World, the wholly owned subsidiary of the
Emirate of Dubai announced that it would request a 6-month standstill on
all debt servicing starting December 2009. The announcement effectively
gave notice that the company’s debt would be rescheduled. The
announcement came on the eve of Eid Al-Adha holiday during which Dubai
banks were closed from November 26 to 29. For these four worrisome days,
at least to Dubai’s panicked lenders and investors, the company
maintained complete silence. To read more...
Abu Dhabi's Nuclear Power Plant Folly
June 2010
In
December 2009, Abu Dhabi awarded South Korean companies a four-reactor
BOT contract to generate 5,600 MW of electricity. In two
contradictions, the emirate announced in February 2008 the plan to
build Masdar City, a zero carbon, zero waste, and 100 percent renewable
energy powered town; and in July 2009, it became the secretariat
headquarters of the International Renewable Energy Agency (IRENA). This
article argues that Abu Dhabi's non-representative, non-participatory
governance enables a poorly informed ruling elite enjoying rentier
economic circumstances to reach such decisions. It concludes that the
Masdar spirit and IRENA's principles require Abu Dhabi to abandon
nuclear energy for safe solar and wind power. To read more...
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