The rationale is that the UAE and generally the Gulf States at a point decided to invest their money instead of investing them in funds in Europe of the Americas. They had a vision to create a 'Singapore' in the desert and they almost achieved it.
The financial crisis that hit the world - and which did not originate - in that part of the World created most of the mess in Dubai as well as numerous other places. They also saw all our overseas investments devalued which caused problems in restructuring their debt.
There is no comparison with 'Stiltsville'. Trying to save their Companies and investments and paying their creditors cannot be labeled a failure.