The revelation of Dubai’s debt forfeiture, and what appears to be an all around economic meltdown, was not surprising. Dubai, as did its brethren Arab oil producing states, used oil income to feather its nest, not looking into developing other income producing resources of sustainable nature.
Dubai citizens are wealthy, as are all citizens of the UAE, and of most oil producing Arab states. Manual labor is left to imported people, mostly Palestinians who have third class citizen statue among its Arab brethren. While, at the same time, infrastructure work is done, in large part, by Westerners; European and Americans. The “locals,” are put in a position to take advantage of the richness, without assuming a responsibility to train for skills that are required for ensuring a future of the country, should, or rather oil revenues start to dry up, or keep up with the country’s expenditures.
Since expenditures in most oil producing Arab states have been growing at a faster rate than are oil revenues, most Arab oil producers borrowed a great deal of capital from Western financial institution. Many of these financial entities who were just recently bailed-out by the United States government, are likely significantly suffer from the economic break-down of Dubai and its neighbors, for many years to come.
In the United States, Home Land Security Administration is concerned with Islamic terror; while the economic impact of Islamic mismanagement of its oil revenues, may prove more damaging to the global community, than multitude of terrorist acts.
Islamic economic impact on the global economy may prove devastating. It is not likely that such effects on the economy were planned, or intentional; yet the results may prove no less damaging to the fragile global economy that was just starting to show weak signs of recovery.