Customer Reviews

City of Gold: Dubai and the Dream of Capitalism

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Krane is a longtime Middle East correspondent for the AP who was also able to see the inner workings of Dubai's governmental and commercial operations--a feat no other Westerner has pulled off.

Far from an academic book written from a distance, Krane's book is full of the kind of detail and characters that make a book and its message come alive. It also manages to break news on Dubai's relations with the U.S., Iran and Israel. In particular, it shows how the CIA has been recruiting spies from the ranks of Iranians showing up in Dubai at the U.S. embassy looking to escape life in Iran.

Contrary to the review above, Krane pulls no punches and is tough on Dubia's leaders regarding issues like slavery and human trafficking, labor abuse, their environmental depredations, and the lush subsidized lifestyle that is contributing to the city's problems--particularly the shortages of water and power. He also criticize the leadership for completely missing opportunities to mute the effects of the financial crisis, and their sinking real estate market.

The book is considered so negative, in fact, that it's not selling in Dubai or the UAE--stores there are refusing to carry it.

Krane's work also challenges Americans, in particular progressives, to reconsider how the Dubai Ports World debacle reflects poorly on America for its anti-Arab hysteria, rather than the more conventional view that it was too dangerous to allow Dubai to oversee management of a number of our ports. He lays blame squarely on Hillary Clinton and Chuck Schumer. That's some very unconventional thinking, and nothing like what you would see in an AP report.

Read this book. You will learn a great deal. If interested, you can also read my review of the book on HuffingtonPost: [...]

The author and I reconnected on LinkedIn and he had the publisher send me a copy of this book. I would not normally have bought it for myself, thinking it a "tourism" or "travel" kind of book, and I would have been very very wrong. The sub-title, "and the Dream of Capitalism," might better read "Case Study in Emirate Capitalism at Its Best."

This book starts very early in the history of Dubai, back when it was such a hole that no one even knew it was there or wanted to go anywhere within thousands of miles of it. The early part of the book persuaded me that the author has done some deep, serious, utterly professional and thorough homework, and the books reads easily, with gifted turns of phrase that educate and often inspire.

Putting the book down just now (and recommending the paperback that comes with a second epilogue for 2010) I reminded myself to recommend this book as a case study for both business and public administration graduate courses, as well as recommended reading for undergraduates. I certainly believe the author himself should be invited--and very well paid--to interact with the most serious and gifted of business and public administration adult students, both on and off the record. This book is a GOLD MINE of insights into what worked in an environment where, as the author describes so beautifully, the leadership knew that lawyers are generally worthless and bureaucracies are pathetic things to be dismissed. For that section alone this book goes into the Beyond 5 Stars (6 Stars and Above) and will be so rated at Phi Beta Iota the Public Intelligence Blog.

This book will be cataloged there in Capitalism, not just regional or country, in Leadership, and in a number of other categories as well. I have not, in as long as I can recall, had the pleasure of reading a book about a people, a place, a leadership, and a time that is as detailed, as harmonized in the telling, as instructive, and as enjoyable as this one.

The level of detail is EXTRAORDINARY and yet not burdensome. The detail is present as the filigree to the main wall, the story told in well-planned segments. The detail gives life to this book. This book is both educational and inspiring.

I am NOT "down on Dubai" and I don't think the author is either. In 58 years of travel and 48 years of reading--the last thirty focused on non-fiction, I have not seen any book do a better job of capturing the essence, in detail, of a culture, a place, and a living time.

The book ends with very serious challenges to Dubai being presented in a professional, responsible manner. The leaders of Dubai are clearly extraordinary people with extraordinary sensibilities, and I suspect they will rise to these challenges, not the least of which are spoiled citizens receiving $55,000 a year, and an energy and carbon footprint that could alone take down the Earth if proliferated. But even here, one sees the beauty of Emirate Capitalism as I choose to call it: every building now has to meet the LEEDS standard, and other measures are being put into place. Having said that, one must also recognize that Emirate Capitalism can be brutal to some, a form of robber=baronism, and that now that the world is in an economic decline, Dubai's leaders are going to have to think twice as boldly, listen to twice as many advisors, and be twice as tough and focused as they have been, if they are to survive.

If you are going to Dubai, if you know anyone at all in Dubai, if you own shares in any company based in Dubai, if you even THINK you might one day fly OVER Dubai, buy and read this book (the paperback, but frankly, although I got the new epilogue in Xerox form, it does not add that much, so for those of us that love hard-copy covers, go with the hard copy and forego the new epilogue, which I am suggesting to the author be put on line so as not to diminish sales of the remaining hard copies.

The author covers the Iran-US and other regional issues well enough, but this is not a book about politics, it is a book about Emirate Capitalism that should be studied for the next century, along with other books that needs to be written about Arab Capitalism as--and if--Arab Capitalism can be inspired by Emirate Capitalism.

This book needs a sequel, perhaps one that expands north and south and brings us all up to date on Emirate Capitalism, Iranian/Persian Capitalism (it does exist), and Arab Capitalism.

As one person cited in the book points out, Dubai is both the most magnificent fastest built marvel of the Earth, and also a microcosm of everything that is wrong with Western engineering ignorant of ecological economics or "true cost" of goods and services. Dubai is an OPPORTUNITY. City of Gold is the opening act--I cannot wait for the sequel. This is "jolly good stuff" and an absolutely riveting read--and not one to be skimmed over, either. This is a serious book for serious people.

I am not going to link to other books here. This book has no peers. Visit Phi Beta Iota the Public Intelligence Blog for the 1,600 or so non-fiction books, organized in 98 categories, which provide the backdrop from my praise of this book by this author. Righteous!

Over the past 30 years, Dubai has changed faster than perhaps any other place in the world. It has been a wild ride, and this book captures both the core substance and the freewheeling flamboyance that have accompanied Dubai's rise to recognition on the world stage. "City of Gold" is both well-researched and heavily documented, but Krane writes with a flowing, conversational style that works well with the subject. Yes, it is a "journalistic account," but what's wrong with that? Krane gives direct voice not only to the bigshot power brokers, but also to the armies of expatriate office workers, construction workers, taxi drivers, prostitutes, etc. that are part of this very colorful demographic mosaic.

As other reviewers have pointed out, Krane rightly highlights Dubai's dark side. Indeed, local UAE bookstores are not selling it because there is sensitivity to what he writes. He doesn't pull punches--either about human rights and labor abuses, prostitution, or Dubai's difficult balancing act between the US and Iran, or about the short-sighted Arab-bashing in the US Congress that characterized the Dubai World ports deal. Krane calls 'em like he sees 'em. "City of Gold" is an enjoyable and eye-opening read.

There is no shortage of journalism about Dubai, nor is there a lack of desire to know more about the emirate. The demand for information on Dubai--from those outside the emirate as well as those who call it their "residence"--is, especially these days, almost unlimited. However, most pieces tend to stumble into one or a couple of pitfalls: they are usually surface level analyses, picking and choosing from a series of stereotypes in order to support some already-articulated generalization; and they are usually far from impartial--either writers want to tell the tale of Dubai's success, or theorize about and/or encourage its potential downfall. It is rare to find a piece about Dubai that is not along one of these extremes. In addition, perhaps most frustrating for interested readers, despite Dubai's being a relatively young city, authors often any avoid any discussion of its history--any mention of a larger perspective on Dubai's origins, its lifeline, its intended future. Instead, most articles try to position Dubai as the main character in a story about the current era--the financial excess, the daring innovations, etc.--rather than telling the tale of Dubai itself. In City of Gold, Mr. Krane not only avoids all of the mentioned tendencies, but his writing seems to be in direct response to these failings.

For one, City of Gold is by no means a stale history of Dubai's development; rather, it is a vibrant telling of the emirates beginnings with the aim of putting into context the current Dubai. Mr Krane has the ability to parcel out the relevant from irrelevant and to assemble the pieces of the puzzle in a way that, even for those who know a bit already, is new and interesting. In building a coherent history, Mr. Krane sheds more light than almost any other author on the true conditions under which the current Dubai is being operated: Sheikh Mohammed's aspirations seem outrageous until Sheikh Rashid's "crazy" but ultimately successful ideas are taken into account; Dubai's current reliance on Abu Dhabi seems scandalous and a bit embarrassing until the legendary Sheikh Zayed's true political savvy is revealed; many of Sheikh Mohammed's decisions suddenly make more sense when one considers that Cordoba--and not L.A., or Las Vegas--is his model, and business (not government) his method. Moreover, for the first time, we get a sense of the many worlds that in fact make up Dubai--we do not just hear from the finance men (although there is a very useful testimony from the head of Morgan Stanley in the region), but we learn about the jewelry trade, the real issue with traffic, the otherwise unknown anecdotes about The Palm, the controversial relationship with Israel, the nuts and bolts of the seemingly clear-cut "citizenship" debate, the rapid births of Internet and Media City. Of course, these worlds would not be complete without commentary from the key characters, and Mr. Krane seems to have spoken to most--he even gains access to a party thrown by the Sheikh himself. Finally, in all his investigation, Mr. Krane walks a fine line between remaining impartial and asking the tough questions that both sides have: has Dubai been given an unfair rap? Is the city actually sustainable? What, exactly, will its future hold? These questions are not brushed aside (as would be easy to do with one of the least predictable cities in the world) but are rather addressed head on--with thought-provoking and even satisfying responses provided.

While Dubai is usually a flash in the headlines, City of Gold reveals it as a city with a very rich story to tell--even if it is still unfolding.

This overview of Dubai is more provocative and much lighter in tone than Christopher Davidson's "Dubai: The Vulnerability of Success" (which I also recommend). In Krane's book, roughly a third is about the early history of Dubai, a third is a paean to the wisdom and vision of its ruling sheiks in turning a patch of desert into a world-class city, and a third is about the scandals that exist behind the facades. This is a good book to read backward: Start with the shocking exposes of scandal at the end of the book, and if your interest holds up, go back to the beginning to read about Dubai's history.

Dubai is an extraordinary phenomenon by any measure: An impoverished fishing village, without significant oil, has been developed into a forest of high-rises and grandiose mansions, in which citizens comprise less than 5% of the population. An absolute monarch bestows largesse on his citizens, while the typical resident is a non-citizen who worries about having his visa renewed. Behind the scenes, the manual labor is done by enormous numbers of Indian workers who are virtual prisoners in labor camps. These laborers are not permitted to leave the country, are paid less than what they were promised, and suffer from kidney disease because they're not even given sufficient water to drink. On the backs of such workers this grandiose city has been built, with such excesses as the world's tallest skyscraper, the world's most expensive hotel, indoor ski slopes, and other projects that make the city a cross between Disneyland and Las Vegas. In fifty years, will Dubai be a ghost town of abandoned skyscrapers or one of the world's major cities? In the 21st century, how long can an absolute monarchy survive?

This book does seem disjointed at times -- is the same author who heaps praise on the ruling sheik the same author who highlights the abuses in treating laborers and sex-trade slaves? But at least the reader hears both sides of the story.

Perhaps the book's most jarring inconsistency is what relationship, if any, exists between Dubai and Al-Qaida. Krane says there are reliable rumors that (unnamed) UAE emirs pay protection money to Al-Qaida, and that certain UAE emirs participated in a 1999 hunting trip with Osama bin-Laden. Yet when the Dubai government proposed to take over operations of US ports in 2006, the author eviscerates those Americans who opposed the deal due to terrorism fears. Krane labels this opposition a "lynching" that "made no sense on rational grounds." It's hard to believe the same author wrote both passages. No one is suggesting that the emir would condone terrorism, but it's not irrational to ponder the possibility of radicals infiltrating the ports agency. While it's nice to have both sides of the argument aired, the author's wide oscillations of opinion from chapter to chapter impart a split-personality tone to an otherwise excellent book.

I first started traveling to Dubai in the early 1990's as a Special Agent for the Department of the Treasury. Many of the trails of transnational crime that I followed eventually led me to Dubai. From a criminal investigative standpoint, Dubai was and is a "target rich" environment; i.e. money laundering, transshipment of munitions and high technology, narcotics, trade fraud, smuggling, terrorism finance, etc. Over the years, I became enthralled at the tremendous growth of the city state and captivated by the international collection of peoples drawn to Dubai. Jim Krane not only tells a fascinating story, but he gave me incredible insights into the why and how of the futuristic city that just a short time ago was a backwater pearling village. The "City of Gold" is fast paced, well written, and I highly recommend it.

John Cassara, Author

Hide and Seek: Intelligence, Law Enforcement, and the Stalled War on Terrorist Finance

I'm halfway though Mr. Krane's work and I just had to post a quick review. My prior knowledge of Dubai is only from vague headlines and outrageous photographs of world famous athletes smacking balls from the top of a hotel helipad. Jim Krane has the ability of bringing to life the people and places of this golden city in way that is completely engaging. I can't say enough about his writing style. He takes on some very complex themes and subject matter yet presents them in such a way that isn't dull but is as exciting as the city itself.

This book provides a fascinating behind the curtain look at the City of Oz. Krane captures the unihibited ambitions of the leading royalty. The architecture, built at an unheard of pace, is a mismash of Le Corbusian sameness and a Disney-esque pastiche. The model of centralized governing by a ruling family seems reborn in a capitalist world, only to be thrown into crisis by the international banking collapse.

Krane's Dubai is so Arab on the one hand and American on the other. Could there be a Dubai if America never exhisted?

Get this guy on Charlie Rose. He is a true master!

In "City of Gold," Jim Krane delivers a well-balanced, highly readable account of Dubai's lightning transformation from an impoverished speck of a Persian Gulf port town to the Middle East's ultra-modern, over-leveraged, financial hub.

Giving credit where credit is due, Krane writes admiringly of how, through a series of high-risk financial gambles, Dubai's ruling sheiks' used modest assets -- a small port and relatively meager oil reserves -- to construct one of the world's wealthiest city-states, and the Middle East's most religiously and socially tolerant society.

However, he also casts a cold eye on Dubai's severe mistreatment of foreign laborers, inability to confront human trafficking, disregard for the environment and shaky financial underpinnings.

But beyond the pros and cons, "City of Gold" is a fascinating detailed history of this little understood region, an examination of the pivotal role it plays today between the West and the Islamic world, and a forecast of what the future holds for Dubai and why it matters.

For someone that knows the headlines about Dubai but is looking for a deeper examination of the economic and social phenomenon, this is the book for you. This is a well-written, deeply-researched entertaining book that reads like a well-crafted novel. I am a financial professional (a global fund manager) and was looking for a single book to introduce me to Dubai, a city I know I will have to stay on top of in the years ahead, being a vital point on the map, very suddenly. Jim Krane offers a credible history of the experiment that suceeded against all odds, a story of success in a troublesome neighborhood, and yet he examines the dark side of Dubai, as well.

I read 2-3 books a month and this is the first review I've ever written. Good work, Mr. Krane.

Hard to believe up through the 1960 Dubai had little electricity and no plumbing. This book traces the story of Dubai from the days of desert bedouin to the pearl diving boom to the amazingly quick transformation to modernity and beyond, masterminded by Sheikh Rashid and Sheikh Mohammed. I especially enjoyed the stories of how the ideas for the Palm Jumeirah and the Burj Al Arab came about. The book also includes discussion of the darker side of Dubai including the labor camps and sex trade. More broadly, the geopolitical importance of Dubai with regards to foreign policy is discussed. The author has an impressive wealth of knowledge and is a great writer. The books keeps you interested and does a good job of laying out the big picture while entertaining with anecdotes. Overall a great work exploring the triumphs and costs associated with the rise of a fascinating place.