World

Apr 29th: Inflation threat to UAE

Apr 28: Dubai has stunned the world with its transformation from sleepy trading town to modern metropolis and, like the capital of the United Arab Emirates, Abu Dhabi, it has yet further plans for growth and development. But this expansion comes at a cost: inflation is becoming a serious problem affecting not just labourers, brought in from Asian countries, but the skilled middle classes, from Asia, the rest of Arabia and beyond. In this in-depth report, Roula Khalaf, the FT's Middle East editor, talks to leading figures in Dubai and Abu Dhabi to discover how serious is the threat to their economies and how they hope to continue the success story.