News about extravagant urban developments in the United Arab Emirates has been greeted with a mixture of awe and uncertainty across the world. While growth rates of 16 per cent in the resource-poor emirate of Dubai (the leader of the boom) reinforce optimism about the economy, the question remains: who is taking ownership of the long-term development and sustainability agenda in the UAE?

Going by 2007 figures, demand for hotels, skyscrapers and other new developments is ever increasing. In Dubai, hotel occupancy levels are at over 80 per cent and nightly rates are at record highs. Stories about its six million annual visitors struggling to find accommodation are commonplace. But the fact remains that Dubai’s population is a measly 1.4 million people. And the entire UAE is home to just 4.1 million, 80 per cent of whom are foreigners.

This raises the question of whether Dubai’s plans to woo 15 million business and leisure visitors to contribute 20 per cent of GDP are realistic. The strategy of Dubai authorities is “build it and they will come”. But with neighbouring emirates including Abu Dhabi also planning vast expansion, what happens if demand wanes?

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