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Dubai was meant to be a Middle-Eastern Shangri-La, a glittering monument to Arab enterprise and western capitalism.

But as hard times arrive in the city state that rose from the desert sands, an uglier story is emerging.

In the swankiest new constructions – like the vast Atlantis hotel, a giant pink castle built in 1,000 days for

Dubai was meant to be a Middle-Eastern Shangri-La, a glittering monument to Arab enterprise and western capitalism.But as hard times arrive in the city state that rose from the desert sands, an uglier story is emerging.In the swankiest new constructions – like the vast Atlantis hotel, a giant pink castle built in 1,000 days for $1.5bn on its own artificial island – where rainwater is leaking from the ceilings and the tiles are falling off the roof.This Neverland was built on the Never-Never – and now the cracks are beginning to show.Johann Hari reports The wide, smiling face of Sheikh Mohammed – the absolute ruler of Dubai – beams down on his creation.

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Dubai was meant to be a Middle-Eastern Shangri-La, a glittering monument to Arab enterprise and western capitalism.

But as hard times arrive in the city state that rose from the desert sands, an uglier story is emerging.

In the swankiest new constructions – like the vast Atlantis hotel, a giant pink castle built in 1,000 days for $1.5bn on its own artificial island – where rainwater is leaking from the ceilings and the tiles are falling off the roof.

This Neverland was built on the Never-Never – and now the cracks are beginning to show.

Johann Hari reports The wide, smiling face of Sheikh Mohammed – the absolute ruler of Dubai – beams down on his creation.

His image is displayed on every other building, sandwiched between the more familiar corporate rictuses of Ronald Mc Donald and Colonel Sanders.

.5bn on its own artificial island – where rainwater is leaking from the ceilings and the tiles are falling off the roof.

This Neverland was built on the Never-Never – and now the cracks are beginning to show.

Johann Hari reports The wide, smiling face of Sheikh Mohammed – the absolute ruler of Dubai – beams down on his creation.

His image is displayed on every other building, sandwiched between the more familiar corporate rictuses of Ronald Mc Donald and Colonel Sanders.

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He knew he was guaranteed a pay-off when he resigned, so we said – right, let's take the pay-off, clear the debt, and go." So Daniel resigned – but he was given a lower pay-off than his contract suggested. As soon as you quit your job in Dubai, your employer has to inform your bank.Suddenly it looks less like Manhattan in the sun than Iceland in the desert.Once the manic burst of building has stopped and the whirlwind has slowed, the secrets of Dubai are slowly seeping out.They were largely illiterate nomads who spent their lives driving camels through the desert – yet now they had a vast pot of gold. Dubai only had a dribble of oil compared to neighbouring Abu Dhabi – so Sheikh Maktoum decided to use the revenues to build something that would last.Israel used to boast it made the desert bloom; Sheikh Maktoum resolved to make the desert boom. Every evening, the hundreds of thousands of young men who build Dubai are bussed from their sites to a vast concrete wasteland an hour out of town, where they are quarantined away.

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