Dubai is an expansively luxurious city that is trying to continue to grow. The city is mostly run by the government with the four largest businesses being government run, but it is still considered a capitalist market. Dubai has come close to failing before by spending too much money on diversifying their city and then being unable to repay their debts. If the government hits another road bump, they could easily fail again since it is the government that is unable to repay their debts.
Since the government is so busy planning and building infrastructure, they have lagged behind in creating policy to protect new businesses that are not government run. This makes it so that new businesses aren't interested in starting there to boost the economy and bring in more revenue because the risks of failure are too great.
This is a capitalist system, but it has a lot of government intervention. This could be part of the reason that it has almost failed before. Dubai has the potential to be an interesting economic system, but it has not had the best start.
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