Aerial view of Dubai in stark contrast to the natural beauty of developments like this one in coastal BA.

World financial markets were rocked yesterday when news surfaced that Dubai World, the Dubai corporation responsible for some of the UAE’s most lavish developments, was unable to meet interest payments on the over $80 billion in debt it holds.

According to The Times, “Dubai World began the panic on Wednesday by demanding a standstill on its interest payments (and) worsened the mood when it postponed a teleconference for its bond holders, saying the phone lines were overwhelmed.”

So what would you expect to find today on the front page of the UAE’s leading English-language newspaper? A probing analysis of Dubai World’s leverage? A soul-searching essay questioning why anyone would want to live in overpriced, garish desert casino castles like this? No on both. How about a glowing review of Buenos Aires?

“With its beautiful buildings, lively social life and colourful history, it is no wonder that Buenos Aires is fast becoming South America’s favourite capital,” writes Julianna Barnaby in today’s Khaleej Times and, she concludes, “one visit to Buenos Aires is definitely not enough.”

Of course Dubai will be fine, because Abu Dhabi won’t allow it to fail, but the case for investing in waterfront real estate is much more compelling in Argentina than Dubai in terms of pricing, natural surroundings, building design and cultural similarities.

For more information on coastal opportunities in Argentina and Uruguay, download the new issue of InvestBA Privada.