Wednesday, Jan 06, 2010
(This item was originally published Tuesday.)
By Andrew Critchlow
A DOW JONES COLUMN
Just five days before the opening of the world's tallest skyscraper in Dubai, organizers were informed of the shock decision to rename the building after the ruler of Abu Dhabi. For five years, as the project climbed towards its ultimate height of 828 meters, it was known as the Burj Dubai. But Dubai's ruler, who took a personal interest in what was to be the ultimate symbol of the city-state's independence, has made the very public sacrifice of naming the tower after his cousin, Sheik Khalifa bin Zayed Al Nahyan.
The newly named Burj Khalifa is now a symbol of Dubai's loss of independence. But by swallowing his pride, Dubai's Sheik Mohammed may have guaranteed his emirate's economic future--and given anxious investors owed more than $80 billion by the city-state reason to breathe easier. Dubai came close to default last month until Abu Dhabi stepped in with a $10 billion bailout. Bankers are being asked to agree to a standstill on $22 billion of debt owed by struggling government-owned conglomerate Dubai World.
Now Dubai seems to have acknowledged reality: the UAE is one country, dependent on Abu Dhabi and its vast oil wealth. Investors must hope that Sheik Khalifa, in allowing his name to be attached to the new tower, has also acknowledged Abu Dhabi's new reality--and that his support for his troubled neighbor is now nailed down.
(Andrew Critchlow is Middle East managing editor of Dow Jones Newswires. He can be contacted on +97-14-364-4960 and by email at andrew.critchlow@dowjones.com)
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(END) Dow Jones Newswires
06-01-10 0401GMT
