Closure of Emirates 24/7 newspaper a sign of the times in Dubai

News yesterday that the Emirates 24/7 business newspaper is to cease printing in mid-July but stay as a website is both a sign of the harder economic climate in Dubai and the rise of the Internet.

It is also a reminder that government ownership of media has its downside in terms of credibility. The constant positive reports in Emirates 24/7 since the recession struck Dubai 21 months ago have become a laughing stock among local business readers. Advertisers have deserted the paper in droves as a consequence.

Government media

Perhaps this is extending government ownership a step too far. Holding stakes in local papers is already a possible impairment to impartiality. Direct control of media is self-defeating from a practical business standpoint, quite apart from what it means for readers, or lack of them.

However, it is also true that before the recession struck Dubai that Emirates 24/7 prospered and having a wider range of business coverage and comment added some value. Hopefully the new electronic version will find commercial success and take the opportunity to become more critical in its analysis.

On the other hand, the news website space is very overcrowded in the UAE with 10 substantial sites offering business news – often with considerable editorial freedom – so this is not going to be an easy task.

This is a microcosm of the challenge facing the whole of Dubai. The first stage has been to acknowledge the extent of the problem. That is always the first prerequiste to finding a solution. A more active local media might have assisted this discovery phase.

Recovery sprouting

But the green shoots of recovery are appearing. The government is cleverly focusing on what it does best: tourism, aviation and logistics. The new Maktoum International Airport opened this week, Dubai’s second airport, albeit only for limited cargo movement at the moment.

Then there is the recent order for 32 more A380 superjumbo jets. And over the next twelve to 18 months a record number of new hotels will open in the emirate.

Dubai’s reputation as a business hub city has taken a knock in the recession, and the $23.5 billion Dubai World debt rescheduling is not yet signed off. But Dubai will recover.

The government will be in the driving seat but it should not occupy every seat. The media functions best and has most credibility if it is independent, or at least at arms length from the government like the BBC.