The new Dubai skyline
"Somewhere between 15 to 25 percent of the 125,000 construction cranes currently operating in the world today are located in Dubai," writes Morgan Stanley chief economist Stephen Roach. (Thanks to Brad Setser for the tip.)
The cranes of Dubai are emblematic of a much deeper point: We need to update our thinking about the Gulf economy -- especially insofar as its internal development efforts are concerned, but also with respect to its role in world financial markets. It was only a little over 33 years ago when rising oil prices first came into play. Since then, the economic development of Middle East oil producers has been nothing short of extraordinary.
Dubai underscores a critical difference between then and now. Even if it ends up being a bubble, I suspect there will be no turning back for the new Middle East. In a world where the globalization debate is dominated by China, it is high time to broaden our horizons.
Posted by Andrew Leonard at http://www.salon.com/tech/htww/2007/02/26/dubai_cranes/index.html
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