A High-Ceilinged Tower in an Undersized Economy – Burj Khalifa

Over 168-story tall, Burj Khalifa is now open for business since 4th January, 2010. It is taller than the former world’s tallest structures known as pyramids in Egypt. This is the first time that a tall (world’s tallest) structure has been erected in one of the Middle East countries.

Along with the foundation of Burj Khalifa, Dubai hopes to strengthen its economic balance and expects international customers to invest in the edifice. This once strong economic foundation was shaken considerably, when Dubai announced in November that it might not able to repay the debt of $60 billion. With the introduction of Burj Khalifa, it intends to regain the lost prestige of being known as top-notch financial center.

The giant structure was initially known as Burj Dubai. However, it was transformed to be Burj Khalifa to respect the president of Abu Dhabi, who helped the vicinity to be bailed out from the debts. The domestic and international investors heaved a sigh of relief when the government supported Dubai World, a government owned firm laden under debts.

The ever increasing list of government supporting private giants to prevent economic crises doesn’t seem to be in a mood to cease. Abu Dhabi, being the latest candidate, was least expected. However, such bailout doesn’t help much to the mass population of the country. Instead, add to their hardships. It transfers risk from Senior Professionals to common taxpayers.

To avoid the economic disturbance and to maintain sanity in the country, such bailout is mandatory. In short term, it hurts the common taxpayers. However, it is damaging the root in long run. The risk is eventually being transferred to the regulating government, causing a situation worse than ever. After a period of time, such countries could become bankrupt, like the diminutive Iceland.

Initially, we witnessed the fall of mighty corporations in many countries with strong economic background. To hold them up, the government contributed funds, eventually coercing them to collapse.

What this means to common people? What about the risk they are exposed to, every moment?

These fluctuations in global financial markets show no indication of recuperation. Such blows will continue to distress common people for the next few years. The only way to hedge against insecurity is being flexible.

Do not invest all your funds in a single asset class. Diversify your portfolio and invest a part in other economies. Generate multiple sources of income rather than relying only on your job.