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This is Dubai, one of seven monarchies which
form the United Arab Emirates, and this is
The World, a three hundred island archipelago
right off its coast.
There’s an island for almost everyone but
Israel - including California, Antarctica,
even North Korea, ya know, for anyone just
dying to visit.
So, why draw the world with 300 million cubic
meters of sand?
Well, why drive million dollar police cars,
or build a tower so tall you can watch the
sunset, ride to the top, and watch it again,
Why build a ski resort in the middle of the
desert?
Because… well, because they’re… cool.
It probably sounds familiar: A country discovers
its sitting on black gold and its royalty
becomes unbelievably rich, while the average
person can… barely eat.
But, not quite.
Dubai does have oil, but today it only accounts
for less than one percent of its GDP.
What looks like pure extravagance is actually
pure marketing genius, attracting 14 million
international visitors a year, who spend more
than any other city in the world,
65% more, even, than New York or London.
The Burj Al Arab hotel, for example, only
has 200 rooms, each two stories tall.
It wasn’t built to make a profit, but draw
travelers with deep pockets.
To its neighbors, Dubai is progressive and
modern, to others, it’s very traditional
and religious.
It’s the pinnacle of luxury, yet many are
enslaved, living on next to nothing.
So, how did Dubai become such an exception?
Geography is the recipe for civilization - it
decides where people can go and what they
can build,
That’s what makes Dubai so remarkable, It’s
the last place you’d want to found your
city.
The obvious reason is climate, which ranges
from arid desert to… unbearably arid desert,
the part of Australia even it kinda just,
gave up on.
And, that’s, well, that’s it.
It rains a whole five days a year, with 106
degree days and 88 degree nights.
During the winter, it drops all the way to
a freezing cold…
77 degrees.
Next, agriculture!
or, lack thereof.
Because less than one percent of the country’s
land is arable, only a third of which is irrigated.
Large portions are covered in a salty crust
called Sabkha, making it less than useless
for growing anything but… league players.
And the entire 3.2 million square kilometer
peninsula lacks a single natural river.
The United States, in comparison, has 250,000.
98.8% of Dubai’s water has to be pumped
from the Persian Gulf and desalinated.
Okay, so terrible climate, plus poor agriculture
plus no source of water, equals… major international
city?!
Let’s rewind…
Before it had armies, borders, or diplomacy,
Dubai was ruled by tribes called Sheikhdoms.
until the early 1800’s, When pirates in
the gulf did the unthinkable: they got between
Britain and its tea, attacking its valuable
trade route with India.
Now the region had strategic value, and the
English, an excuse to plant their flag.
The last thing they wanted was another tea…affair,
ya know, you go easy on them and next thing
you know they want fair and equal representation.”
That’s no good.
So, they proposed a truce: stop stealing our
tea and we’ll protect your territory.
Oh, and Ps., we’re the captain now.
The British settled disagreements between
Sheikhdoms, now called the Trucial States,
and they promised not to work with any other
country.
Which, put them in a strange position.
On one hand, the tribes were isolated from
the world.
With Britain as a barrier, they struggled
to trade, or grow, or develop.
But - it also gave them incredible stability
- the first pillar of Dubai’s success.
Not a single leader has been overthrown since.
And to this day, whenever there’s violence
or chaos in the world, investors turn to Dubai
for a safe place to put their money.
9/11, for example, should’ve been terrible
for its economy, two of the attackers were
from the country, and its banks were used
to launder money,
But when the U.S. responded with the Patriot
Act, it scared away Arab investors, who went
from pumping 25 billion a year into the U.S.
economy to only 1.2.
All that money was looking for safety, and
Dubai was the answer.
The ultimate test of stability was the Arab
Spring, with protests in Saudi Arabia, Egypt,
Libya, Syria, Kuwait, Yemen, well, all these
countries…
But not the Emirates, who sat with their toes
in the sand, sipping a cocktail while their
neighbors used a different kind of cocktail.
They escaped revolution because of their unusual
social structure:
North Korea maintains stability not because
it has the resources to keep people happy,
but because it doesn’t need to.
Everyone is either too preoccupied to revolt,
or too isolated to know.
Dubai is the opposite - it leaves no reason
to revolt.
Citizens get free land, water, education,
health care, and subsidized electricity, food,
gas, and weddings.
It can afford this without the T-word by carefully
managing its citizenship.
85% of the population are expats, compared
to, say, America’s 14.
You may have been born in Dubai, you may have
lived there 50 years, but you’re almost
certainly never becoming a citizen.
The second pillar is commerce.
In 1971 the British decided they had bigger
fish and chips to fry, leaving the tribes
to fend for themselves.
But Iran, ya know, not wanting them to get
lonely, swooped in on the very last day before
they left, capturing several islands.
The British cared about as much as a senior
on their last day of school.
But when ships arrived on the third island,
one of the tribes had an idea.
”Hey, looks like you’re admiring this
lovely beach-front property here.
Can we lease it to you for 3 million?”
The Iranians agreed, and put away the weapons
they had, for some reason, taken to look at
real estate.
The seven tribes became seven emirates, forming
the country we know today.
And their spirit of business continued.
When Iran increased its taxes, Dubai lowered
its own, and gave free land to any company
willing to move.
Today, Dubai attracts businesses with special
economic zones like Science Park and Media
city, which has become the Middle Eastern
hub for journalists, and in the process, given
Dubai lots of free press.
Each zone has different laws, a British court
system, and uses American dollars.
They’re almost different countries.
But even more important in Dubai’s plan
to replace oil is tourism.
Long ago, the pearl industry constituted 95%
of the Gulf economy.
Until the Japanese developed artificially
cultured versions, devastating Dubai’s only
income.
But it learned the lesson - never rely on
just one resource.
So when it discovered oil in 1966, Dubai invested
the money in roads, factories, ports, and
state-run businesses.
Before it could become a tourist destination,
it needed a way to get people there,
Luckily, Dubai has a natural advantage, conveniently
located between Europe and Asia, Africa, and
Australia.
It began with British airplanes refueling
on their way to India,
Imperial Airways paying about $150 a month
for landing rights, but Dubai knew it could
do better.
First, it opened its skies to any airline
that would come.
Later, when Gulf Air dropped 45 of its weekly
flights, Dubai decided it needed an airline
of its own.
And that’s when it really took off.
Today, Dubai’s is the busiest international
airport in the world.
And Emirates, the fourth largest airline by
distance traveled.
Dubai has plenty of challenges ahead, But
with these three pillars, it’s well prepared
for a world without oil.
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