Falling Oil Price Prices Ding Dubai, Chevrolet
Dubai gas prices might reach parity with Oklahoma City prices in the near future, as the Emirates of Dubai and Abu Dhabi contemplate raising their standard prices from 6.2dhs per Imperial Gallon (or $1.38 per US Gallon). The rising gas prices only hint at the start of problems from plummeting oil prices in the UAE as ADNOC (Abu Dhabi National Oil Company) and ENOC (Emirates National Oil Company) have started to prohibit cars bearing plates from other Emirates from using their filling stations, as they are the cheapest areas in the UAE. Residents of Sharjah have created the greatest outcry thus far as they complain they are all citizens of the UAE, not one particular emirate, and should have equal filling opportunities no matter where they are. Other victims of the oil crash: the massive building sprees Dubai and Abu Dhabi went on trying to create a tourist destination paradise from a gravel parking lot covered in sand dunes.
Nakheel Properties, the people who brought you the billowing sail Burj Al Arab hotel, the Palm Islands, and the World Islands has canceled 40-60 percent of their building projects (depending on which news organization you listen to… I trust Al Jazeera of all things). Blame declining income from oil and reduced trade coming through the Jebel Ali Free-Trade Zone in Dubai.
Chevrolet has also fallen victim to reduced spending in the UAE; their sales have also started to plummet as compared to Toyota. The newly introduced Lumina SS, Epica sedan (rebadged Suzuki Forenza) and GMC Acadia have seen a significant sales stall as most UAE residents see them as “cheaper” alternatives to the ubiquitous Toyota and Nissans preferred by the general working populace.
Maybe GM should pull a Michael Jackson and ask a rich oil sultan for a handout? In the meantime, the Emir of Abu Dhabi has stressed to the citizens of the UAE to not overreact, and trust the government to make the right decision in the global economic crises (i.e. we are going to make sure the money keeps pouring from our oil operations).
They better hope so. Tsarat al-bieru al-muattala katzran machidan (the water wears aways the stone.
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Cadillac and Hummer have seen increases yes, as well as the Chevrolet Caprice and Suburbans, however, the Lumina and the others... not so much. Radio 1 this morning reporting slow sales for those three I mentioned, and problems for Chevrolet with the problems stateside, as most of the Chevrolets, and other GM products sold in the UAE are North American market vehicles (minus the Australian imports).
I thought Dubai and Abu Dhabi were were both attempting to position themselves as the Singapore/Hong Kong of the middle east and diversified themselves against the risk of falling oil prices. Guess not! Russia, Iran and Venezuela are hurting too. Irony?