Dubai's comeback?

http://www.economist.com/news/finance-and-economics/21569036-gulf-emirate-flashy-ever-it-still-has-structural-problems

Around late 2009 'Dubai World', a large government controlled investment firm, began to fall apart due to increasing debt, and its inability to pay back put the emirate's economy in a vulnerable position. Since oil reserves were also limited, Dubai had to be bailed out by the UAE's central bank and it's neighbor Abu Dhabi. The article highlights some of the ways in which Dubai's economy has been recovering and how it may very well be as strong as its former self soon enough. With GDP figures on the rise along with trade, transport, and tourism flourishing, things seem to be moving in the right direction.

"The number of passengers at Dubai International Airport was up by nearly 14%; and occupancy rates of Dubai’s hotels reach 80%, among the world’s highest. The property market is showing signs of renewed exuberance. In September Emaar put a 63-storey tower with 542 flats on the market and sold them all on the first day."

The economy, well aware of its limited oil reserves, has also diversified to a great extent and boosted its  tertiary industry significantly over the years. However, the article also focuses on the many structural problems that still remain. There is still a great amount of debt that has to be dealt with, and the emirate has had to get tough on banks to begin managing this problem. Also, the financial sector is not performing well as the proportion of non-performing loans in some of the largest banks have risen. This is troublesome as it will be hard to finance future developments and sustain the growth of its main strengths: trade, tourism, and transport.

There is a development in progress to build a city within a city, which will include the world's largest mall, the middle-East's largest entertainment center, and a park larger than London's Hyde park. Things look quite promising, but underlying problems must be addressed.