It Couldn't Happen to a Nicer Emirate

[don]

Dubai has been going through a tough period lately, with debt delays from one of its leading companies and rattled investors selling down stocks, but things could be getting even worse for the sunshine emirate.

One of the crown jewels of its real estate empire, The Palm Jumeirah, is literally sinking into the ocean, one scientist told the Wall Street Journal.

"We're seeing across the island, at a number of locations, ground is moving downwards," Adam Thomas, InSar surveying project manager at Fugro, told the paper.

The claims have been firmly rebuked by the Dubai-based developer that created the island, Nakheel, the report said. This is the latest headache for Nakheel and its parent company Dubai World which has been forced to restructure its debt after delaying bond repayments.

"Speculative reports suggesting Palm Jumeirah is sinking and vulnerable to flooding are wholly inaccurate," the company said, according to the report.

The findings were reportedly gained from satellite research, but Nakheel is claiming they must be flawed.

The island, which cost more than $12 billion to build, originally added to the Dubai's reputation as a global hub for high-end property, but could now be the latest reason for investors to shun the country.

http://www.cnbc.com/id/34345717

[flintlock]

Re: It Couldn't Happen to a Nicer Emirate

Ah, the folly of man. Nice title Don.

[GRG55]

Re: It Couldn't Happen to a Nicer Emirate

Dubai has been going through a tough period lately, with debt delays from one of its leading companies and rattled investors selling down stocks, but things could be getting even worse for the sunshine emirate.

One of the crown jewels of its real estate empire, The Palm Jumeirah, is literally sinking into the ocean, one scientist told the Wall Street Journal.

"We're seeing across the island, at a number of locations, ground is moving downwards," Adam Thomas, InSar surveying project manager at Fugro, told the paper.

The claims have been firmly rebuked by the Dubai-based developer that created the island, Nakheel, the report said. This is the latest headache for Nakheel and its parent company Dubai World which has been forced to restructure its debt after delaying bond repayments.

"Speculative reports suggesting Palm Jumeirah is sinking and vulnerable to flooding are wholly inaccurate," the company said, according to the report.

The findings were reportedly gained from satellite research, but Nakheel is claiming they must be flawed.

The island, which cost more than $12 billion to build, originally added to the Dubai's reputation as a global hub for high-end property, but could now be the latest reason for investors to shun the country.

http://www.cnbc.com/id/34345717

Filling in the shallow foreshore has been going on in the Gulf for more than three decades. I've seen one example in the GCC where the original coastline is now more than two miles inland. That old saw about buying land "because they're not making any more of it" doesn't apply in the GCC...as many unfortunate expat "villa owners" are discovering.

However, the geotech and civil engineering knowledge to do this properly is well understood in the Gulf. Because of the extraordinarily corrosive environment [extreme summer temperatures combined with extraordinarily high relative humidity and a salt air environment] even corrosion management issues related to structural steel and steel reinforcement in the concrete are daunting.

As costs for everything escalated it would be inconceivable that corners weren't cut. In Egypt entire new high rises have collapsed because the inspectors were bribed and the building wasn't built to drawings or standards [cutting back on the size or number of steel reinforcing rods is a favourite there]. The only difference between the Gulf and the rest of the Middle East is that the corruption in the Gulf is done on a more "sophisticated" level...so I wouldn't expect any outright building collapses...slowly sinking into the turquoise waters of the Gulf seems entirely appropriate...