Trinidad Is Not Another Dubai

With the recent news of financial trouble surrounding state-run construction company Dubai World (DW), a few members of the traditional media are drawing poorly conceived analogies between DW and UDeCOTT.

In the span of a few short years, Dubai World undertook an extensive list of unprecedented construction ventures. The skyline quickly transformed as a host of immense new structures went up seemingly over night. In a matter of a few short years Dubai became synonymous with opulence and excess.

This rapid expansion was built on a massive speculatory bubble fueled by a worldwide credit surplus. While there are some signs of optimism, Dubai is now paying the price for its haphazard development binge. For the people’s sake, I hope that Dubai can cover its debts and stabilize its economy.

Yes, DW and UDeCOTT are both state entities involved with development projects but that is where the similarities end. Dubai World is an extremely diversified holding company that participates in construction, hospitality and tourism management, aviation and even financial services. Dubai World’s boastfully pursued these extraordinary ventures in lieu of sustainable projects that would have otherwise contributed to the basic infrastructure necessary for establishing long-term viability of Dubai as a global economic power. The Dubai World model thrived in a sheikdom where decent against the ruling family was seldom heard and rarely tolerated. This stands in stark contrast to the established democracy we enjoy in TT.

DW is a global enterprise whose mission is to make money in ventures around the world and manage the many exorbitant building projects at home. UDeCOTT is a state entity tasked with hiring contractors to conduct development projects that will allow us, as a nation, to reach our long-term goals. This lack of need to turn a profit internally removes any incentive to take on massive debt like that of DW. At their core, UDeCOTT and DW are very different organizations with completely different objectives. Until we see indoor ski resorts cropping in Port of Spain I think its safe to assume that Trinidad is not another Dubai.