Dubai's Rise and Fall Closely Tied To Its Love for Golf
The presence of professional golf in the United Arab Emirates' most chic metropolis, Dubai, began in 1989 when the European Tour planted a flag in the middle of the desert. Mark James won that year with a score of 277 and pocketed some €270,000 for the win.
While James was doing that, Dubai was really just beginning its two decade explosion onto the global scene - both as a beacon of tepid acceptance of western culture in the Middle East, but also as a cultural center for the Middle East's wealthy.
The massive real estate development that has transformed Dubai's image, for better and worse, coincided with the presence of professional golf in the region. That's not to say that it was the likes of the Dubai Desert Classic's early champions - Ernie Els in the same year as his first US Open, Fred Couples one year later - shaped the city's transformation, but the growth of the tournament has certainly run parallel to that of its host city.

Aerial photograph of Dubai's desert footprint (Click to enlarge)
Emirates Golf Club, host to the DDC, was constructed one year prior and labeled the "Miracle in the Desert" as it became the first course completely covered with grass in the Middle East. The Majlis course was a clear signal to the globe that the Emirates had serious intentions in transforming Dubai from a sparsely populated, nice trade city into a global secular mecca that could boast the most "mosts" and "biggests" in the world. One need not look further for proof than the skyline view of downtown Dubai from the Majlis course to see how drastically the city changed drastically in the twenty years since the course's construction.
Today, Dubai is home to the world's only supposed 7 star hotel. It will be home to the world's tallest building and tallest hotel. An underwater hotel is near completion. It has an indoor ski park in a city where daytime temperatures average 120 degress. Manmade islands, dredged using the latest technology, have been constructed. All serve as a monument to what enormous sums of money and hubris can achieve.


The same street in Dubai circa 1989 and in 2003
The next indicator of Dubai's aggressive quest to become a global city was intended to be the Race to Dubai and Dubai-owned Lesiurecorp's five year, nearly $200 million investment in the European Tour. Leisurecorp was intending to cultivate so much influence that it could even buy the rights to host the 2018 Ryder Cup despite not having a single participant in the historic matches.
But, then the steady stream of accessible, low rate debt and financing dried up as quickly as a plant in the desert sun. The billions - maybe trillions - in debt that propped up Dubai's infrastructure, global profile, and social profile was gone. With it, the real estate and debt collapse took a large chunk of the reputation and standing that had been created in the last two decades.
On the golf front, Leisurecorp was merged into Nakheel, another Dubai-owned organization. David Spencer, the man who architected the Race to Dubai deal, was shed from the company. All of this has happened while Dubai has negotiated with Abu Dhabi - the Emirate much more solidly built on the world's unquenched thirst for oil - a plan to dig the Arabic Las Vegas out of its deep hole.
Though there are still tons of cranes in Dubai, many have come to a standstill. Many of the immigrants that came from all corners of the Middle East and the Indian subcontinent to help in the construction of the city have since left. A good number of the real estate investors that staked their futures on the growth of paper wealth have abandoned their properties and luxury vehicles. The Dubai airport has become not just a monument to Dubai's massive growth by being the world's largest airport, but its parking lot is simultaneously a memento of this dark time for the city.
Golf in Dubai also has eye-opening indicators of Dubai's drastic fall. The 2009 Dubai Desert Classic was won by Rory McIlroy. For the win, he earned €325,000 Euros for the title - just €55,000 more than what Mark James earned two decades ago. But, an even more shocking footnote is that Tiger Woods, the 2008 champion, earned five times as much for the win.
Both the city and its golf presence, though, soldier on through the trouble. Dubai refuses to withdraw its investment in the European Tour. Though it has scaled back its $20 million commitment to the upcoming Dubai World Championship down to $15 million, it did not remove itself entirely as a show of wounded strength. Jumeriah Estates, a development for the uber-wealthy, has announced that it will only continue with construction of two of its four originally intended courses. But, development has not ceased altogether.
Dubai is aggressively trying to work with Abu Dhabi and private creditors to resolve its quasi-public debt structure. Many of the cranes may have come to a stop, but some progresses along with the aggressive planning for the future of Dubai.
Not coincidentally, the future of Dubai's growth on the global stage and in the golfing world are pegged to its ability to find a way to sustain itself - much less grow - amidst the new world flow of debt and capital.
Dubai's growth has certainly been both staggering and impressive, but it has been equally rivaled by its implosion. The question remains if its future is one of stagnation or decline, or steady growth. Provided the link between the city and its love for golf, perhaps the best indicator of its future can come from the health of the game in the Emirate.
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so is this going to come down to China owning Dubai, or does Russia finally get a warm water port and access to lots of oil ?
"this ball will fit in that fairway"
by courtgolf on Nov 11, 2009 5:41 PM EST reply actions 0 recs
Haha, I don’t know how this is going to play out quite yet. But the parallels to golf would be pretty striking if China got in bed pretty deep with Dubai.
Find me! Email: ryan@thegolfnewsnet.com, Twitter: http://twitter.com/waggleroomryan, or Facebook: http://facebook.com/waggleroom.
by Ryan Ballengee on Nov 11, 2009 5:47 PM EST up reply actions 0 recs
Ah – so you’re saying that the loans from China will be called in and Jackie Chan will be making desert Kung Fu movies before too long. :-D
"this ball will fit in that fairway"
by courtgolf on Nov 11, 2009 6:00 PM EST up reply actions 0 recs
Really interesting story – there seems to be a fine line between progress and greed.
Thanks for posting this.
by red tees on Nov 12, 2009 9:15 AM EST reply actions 0 recs
not “greed”.
they are more victims of their own overly-positive view of what they could do and how easily they could do it. When they started all of these projects, money was no object and their idea was to move from an oil based economy to a tourism destination and services economy. They didn’t see this global economic downturn coming.
"this ball will fit in that fairway"
by courtgolf on Nov 12, 2009 9:32 AM EST up reply actions 0 recs
Dubai’s GDP from oil in the 1970s was in excess of 50 per cent, whereas now its more like 5 per cent, so in many regards this was achieved several years ago. There’s never been much oil in Dubai (it’s all up the road in Abu Dhabi), but what they did have was used to create a tourist destination, global ports business, Emirates Airline, and a regional hub for business.
There’s no doubt that Dubai has been massively hit by the global economic downturn, but so have many other parts of the world. Dubai is a very young city (the Bedouin were roaming the desert 50 years ago), and the sheer scale and speed of development seems to be looked upon with disdain by many parts of the Western world – almost as if Dubai had no right to be so successful so fast.
One factor that never seems to get considered is that the capital, Abu Dhabi, does have untold oil wealth, but the two emirates always seem to be viewed in isolation despite sharing the same federal government. In the UK, Westminster wouldn’t leave Birmingham out to dry, so why should it be any different in the UAE?
by azza888 on Nov 14, 2009 8:20 AM EST up reply actions 0 recs
You’re right – greed wasn’t the best word…extravagance maybe better represents my thoughts. But I also believe there had to have been people there waiting to cash in on the “overly-positive” ideas…those are the people that were vicitims of greed.
by red tees on Nov 12, 2009 9:42 AM EST reply actions 0 recs
still not “greed”.
I’m guessing you’ve never been in business for yourself. Of COURSE they wanted to make money – that’s what business is for. This transormation cost the country and investors trillions of dollars – and that’s not an easy number to recoupe.
Aside from the regular building jobs they did, these people had to figure out how to grow world class golf course grass on a desert, then they had to figure out how to desalinate enough water to not only keep the grass growing, but feed the needs of this growing city. They built an indoor skiing facility that is staggering. They figured out how to build islands to expand the land they needed. They had developed the technology it would take to build two of the world’s tallest buildings…on a sand base.
These are not easy things – and it’s a shame they didn’t get to see the projects through the way they had hoped.
"this ball will fit in that fairway"
by courtgolf on Nov 12, 2009 9:54 AM EST up reply actions 0 recs
Actually, I have been in business for myself. And I wasn’t saying that people shouldn’t “make money”… Maybe my point of view is different because I’m not as much of a risk taker and I have no idea what it’s like to consider spending trillions of dollars…I’m sorry that what I’m trying to say and what you are perceiving I’m saying aren’t the same thing. I do agree that it’s a shame that the economy has impacted the progress there so much.
by red tees on Nov 12, 2009 11:40 AM EST up reply actions 0 recs
“Greed” is almost always the wrong word to use in a business discussion. It’s a tough word because it really can’t be defined. Most people who use the word “greed” are giving an emotional definition based in envy or class hatred. If you are successful in business, or are just rich – you MUST be “greedy”…right ?
"this ball will fit in that fairway"
by courtgolf on Nov 12, 2009 12:24 PM EST up reply actions 0 recs
Agreed – I can definitely see how the word can create unintended meanings.
It appears my brain has been tainted with all of the unethical business dealings floating around in the past few years that I can’t get beyond the idea that when things collapse it might have been due to short-sighted thinking. And I’m usually a pretty optimistic person.
by red tees on Nov 12, 2009 7:09 PM EST up reply actions 0 recs
I do think that Dubai could’ve pulled all of this off in a longer time frame – you know, forty years instead of 20. But, the free money was available, so why not try? They won’t be tearing down the buildings and stuff they started.
Find me! Email: ryan@thegolfnewsnet.com, Twitter: http://twitter.com/waggleroomryan, or Facebook: http://facebook.com/waggleroom.
by Ryan Ballengee on Nov 12, 2009 9:51 AM EST reply actions 0 recs
Though We're Often on Totally Different Pages...
… I totally agree with Court’s assessment here.
Dubai’s dynamic growth plans were based on the unbridled optimism that permeated many parts of the world over the last couple of decades.
Look at all of the over-the-top golf communities being foreclosed upon in the US now… acres and acres of opulent McMansions lie vacant in various parts of our country.
And what about retail space here in the US? I guess most folks don’t realize it because it hasn’t filtered down to the street yet, but we’ve got a serious over-supply of retail space here, created based on that same spirit of optimism that Dubai bought into. We’re going to have to transform it into something else (nursing homes?) or abandon it.
Court’s point about China is one to consider too. If China should get together with the oil producing nations – and there is speculation that this may already be happening – there could be dramatic consequences as relates to the dollar’s role…hence the dollar’s value… among other things. That’s why I think Tim Finchem’s hubris about The US being “the boss of golf” (I’m paraphrasing) is beginning to moderate. Even he realizes that we can no longer operate on the assumption that we’ll always be able to call all the shots.
by golfgirl on Nov 12, 2009 4:11 PM EST reply actions 0 recs
Very well said, Patricia. A lot of the emphasis on the economic pain felt in this country has been on residential real estate. The shoe will drop on commercial. From what I’m reading, that’s supposed to happen next year.
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by Ryan Ballengee on Nov 12, 2009 4:23 PM EST up reply actions 0 recs
Wow – this guy really doesn’t check his facts.
The two courses at JGE are built – where do you think DWC is being staged this week? In fact ,Earth has been ready since the early part of the year when Garcia, Kaymer, Rose et al previewed the final four holes. A decision was taken taken to let know one play the course fully until DWC to keep it special; in golf terms, surely something to be commended. FYI, the equally impressive Fire course is also complete and will open to members on December 1.
Entrance to DWC is free; just as it was at other Leisurecorp tournaments The European Open when 90,000 showed up and the SA Open which also had record crowds – why do people keep knocking the company; noone else is doing this.
In terms of the interest generated at the end of the season, The Race to Dubai has also been a huge success. Hong Kong, and many other tournaments, are experiencing their best ever fields as the leaders don’t want to lose ground on each other – McIlroy and Westwood (1 and 2) have identical schedules. Is this good for golf? I think so.
Ryder Cup? Wow, you must have just scanned an old (and incorrect Telegraph story) in which Spencer was asked was it a possibility. He said maybe, just maybe, the “UAE” could host it – Leisurecorp has never had any intention to bid.
Have you ever been to Dubai? Maybe you should watch DWC on the TV this week, I think you may be “pleasantly” surprised….
by azza888 on Nov 13, 2009 2:44 AM EST reply actions 0 recs
Easy there, Azza, that’s good stuff – I’d hate to see you give yourself a stroke. :-) The DWC is next week, not this week – personally I’m looking forward to watching. Of COURSE entry is free – that’s still a dangerous place to be – and most of the people in the galleries will be locals. I’m not going to hold my breath on a Ryder Cup ever being played in Dubai. The Ryder Cup is America vs Europe…so having it off the continent of Europe probably won’t happen.
"this ball will fit in that fairway"
by courtgolf on Nov 13, 2009 9:39 AM EST up reply actions 0 recs
I saw the Earth course the other day, so in terms of staging its very much this week :)
You’re very right, a Ryder Cup will never happen in the UAE and there are no plans to try.
Not sure what you mean by ‘Of COURSE entry is free’ – it’s a policy they’ve done in three different countries and economies now (SA, UK, UAE) to great effect. The Dubai Desert Classic charges about $60 to get in and gets big crowds with a lesser field and without the season finale status, so it’s not a pre-requisite to get the crowds in (if this is what you mean).
There have been 70,000 registrations for free tickets to DWC from all over the world, so if half of these show up it would be a good first year crowd.
by azza888 on Nov 14, 2009 8:02 AM EST reply actions 0 recs

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