Dubai #2: Creek to Port
As it lay ignored, Dubai had one special thing – its creek , writes Tomas Pueyo. Why did the creek matter? “A creek provides protection for ships from sea storms and pirates, so Dubai could theoretically be a port.” But with so many other ports around, why would anybody care for Dubai, which (remember) had nothing to trade or sell anyway? Well, Dubai’s rulers had progressively made sure the place was safe from pirates and robbers. The most important port under the Ottomans was Basra. But as Basra got taxed more and more, merchants and traders began to look for alternatives. It was now (1901) that Dubai created what we would call an SEZ (Special Economic Zone) today. Easy land purchasing, no taxes, a safe haven, tolerance to all beliefs. Of course, this playbook could have been tried by other creeks in the region. Why then did Dubai capitalize the most? “A big reason was that it was weak. That weakness was an asset, not a liability: The port was not huge, the Sheikh was not power...