Dubai's financial woes have been in the news as of late. The city-state pinned its future on finance and real estate and we all know what happened to those two sectors on a worldwide scale. Unlike its dowdier but oil-rich sister to the South, Dubai has relatively few natural resources to fall back on as a safety net. Real estate values are plummeting and because of the global banking crisis, investment money is as scarce as hen's teeth.The bills are coming due and nothing short of a miracle and some charity from neighboring Emirates will ease the pain.
But wait....I have an idea!
What Dubai can do is what many financially beleaguered municipalities and governments around the world have done, legalize gaming! I realize that in this part of the planet, there might be more hurdles to jump than usual, but free-zones exempt from local laws already exist for other enterprises, why not a gaming free-zone? The World Islands would be perfect. They are offshore, currently empty and access could be easily controlled. Residents could be required to obtain a gaming license much like that for alcohol purchases. Visitors could be whisked from the airport to the casinos on the islands without ever having step foot in the city proper, their indulgences all but invisible to those that might take offense.
Dubai is a natural for becoming the Las Vegas of the Eastern Hemisphere. The original Las Vegas is also located in a barren desert bereft of natural resources, without gaming it would be little more than a desolate crossroad village where watching tumbleweeds blow across the dusty streets is the main form of entertainment. Dubai already has the infrastructure, glitz and attitude to easily cross the line. Additionally, Dubai's central geographic location between Europe and Asia and the beautiful waters of the Arabian Gulf are advantages.
As we all know, the Las Vegas formula works. The city is a favorite destination of travelers from all over the world. These people happily drop their kid's college fund money in games that they know the casinos have the edge, but return time-and-time again because it is fun! All this activity also provides a fertile ground for support businesses such as food providers, cabbies, entertainers and such.
In fact, gaming is so profitable that the state of Nevada, where Las Vegas is located, sees no need to tax its residents' income, one of the few states in the US with this policy. Dubai seems to agree as at least two government owned businesses, Dubai World and Nakheel, are major partners in several new Las Vegas developments.
I am just free-associating here and I know it would be a hard sell to the powers that be, but allowing gaming has proven successful for curing financial woes in many other venues. Never underestimate what people will spend to satisfy their vices. I will be available for the position of Dubai Gaming Commissioner when the time comes.