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Dubai’s Economic Goals

by Gtrav

Feb 1, 2004
2004 / February 2004

It’s a world of laughter and very few tears in Dubai. With virtually no crime, a surging economy
and a prime location, Dubai is establishing a track record of making the unimaginable real.

Do not judge a country by its size. At just 960,000 acres, slightly larger than Rhode Island, Dubai is one of seven small states that together form the United Arab Emirates. Over the course of the last 40 years, first under the leadership of Sheikh Rashid bin Saeed Al Maktoum and now his son Sheikh Mohammed bin Rashid Al Maktoum, Dubai has undertaken massive projects ranging from constructing dazzling architectural triumphs like the twin spires of the Emirates Towers that dominate the Dubai skyline, to creating the world’s largest man-made harbor, to building Palm Islands-two giant palm-shaped islands currently under construction off the Dubai coast.

“Our slogan, ‘Dubai is the world’s city’ will become ‘Dubai is the world,’” Sheikh Mohammed said last October, speaking to a gathering of dignitaries that included King Abdullah of Jordan. “Anyone who looks at these projects as separate ventures won’t realize that they form a chain of interlinked elements that are part of a clear strategic vision,” he said. “Nor will they realize that Dubai has the potential to be a destination that attracts millions of tourists.” In broad, grand strokes, the crown prince of Dubai then laid out his vision for the future- a $5 billion theme park called Dubailand.

If Dubailand sounds uncannily familiar, so does Sheikh Mohammed’s ambitious goal of attracting 40 million visitors annually by 2020. Last year, 42.5 million people visited Orlando, Fla., and plans for Dubailand involve much more than Disney ever envisioned, especially in terms of scale. At 45,900 acres, the park will be roughly the same size as the current city of Dubai itself. It will include Arabian-themed and Egyptian Pharaoh-themed parks, Dinosaur World, an indoor snow-covered ski slope, a large glass-dome-enclosed artificial rain forest, the largest zoo in the Middle East and the Mall of Arabia, billed as the “biggest shopping mall in the world.”

To many, Dubailand may seem redundant. From the dhows moored along the Dubai Creek to Wild Wadi Water Park on Jumeirah Beach and even the vertiginous 40-story glass elevator ride in the Emirates Towers Hotel, Dubai is in many ways a theme park itself.

Main Street U.A.E.

“Location is everything,” said John B. Craig, president of Boeing Middle East, former U.S. ambassador to Oman and presidential adviser.

Though the U.A.E. is one of the Middle East’s oil-rich nations, Dubai has relatively small reserves. Those are expected to be exhausted within 20 years. However, the U.A.E, east of Saudi Arabia on the edge of the Persian Gulf, enjoys a prime central position in the Middle East. In 1976, the first of Dubai’s Herculean projects took shape-the building of Jebel Ali. The enormous man-made harbor and one of the world’s largest container ports, was completed in 1979.

“People said they were crazy. Who’s going to come to this port,” Craig said. “And now, of course, it needs to be expanded.”

One of the obstacles to foreign investment, laws that required businesses that set up shop in Dubai to be at least 51 percent Emirati-owned, led to the creation in 1985 of the Jebel Ali Free Zone, where companies are treated as legally outside the U.A.E. Dubai provided the infrastructure and technology base, enticing corporations with offers of low rent and tax-free agreements. Now more than 2,300 companies from more than 100 countries base their Middle East operations in Dubai.

Internet City has made Dubai the IT hub of the Middle East. Media City has made it the source of most broadcast news as home to CNN’s Middle East operations and such Arabian networks as Al Jazeera. In October, Sheikh Mohammed presided over the opening of Knowledge Village and construction continues on the International Financial Center complex adjacent to the Emirates Towers on Sheikh Zayed Road.

“It takes vision,” said Craig. “That’s the thing you have to start out with. The leadership here has vision.”

And that vision is comprehensive. Everything is part of the plan, from the port at Jebel Ali to the free zone to the establishment of Emirates Airlines in 1985.

“It’s all integrated. There’s no question about that,” said Dale W. Griffith, senior vice president of Emirates Airport Services and 26-year veteran of Pan American. “To say this place is growth-oriented is a serious understatement.”

From an initial fleet of a couple of B-727s and one A-310, Emirates Airlines’ equipment roster has grown to include more than 50 wide-body aircraft. Its route map includes more than 70 destinations in over 50 countries. In 2002, the airline carried 8.2 million passengers. Griffith expects that number to be closer to 10.5 million when the final numbers are tallied for 2003. Last April, the airline gained global attention when it placed the largest aircraft order in history-$19 billion split between Airbus and Boeing-at the Paris Air Show.

Aside from cultivating a thriving corporate environment, Sheikh Mohammed has put more emphasis in recent years on developing Dubai’s tourism industry-a natural, given Dubai’s pristine white-sand beaches, extraordinary emerald waters and year-round sunshine. Today, you can find more than 260 hotels in Dubai, at least 30 of which rank as five-star venues. The Jumeirah Beach Hotel and its sister property, Burj Al Arab, set a world-class standard. In fact, The Burj,
purportedly the most luxurious hotel in the world, has become an internationally recognized symbol of Dubai.

Business in the Magic Emirate

There is an energy-an excitement-in the streets of Dubai. Everywhere you look, the dynamic silhouettes of Dubai’s world-class architecture stand framed by hovering cranes building even more sleek skyscrapers. Billboard-style advertising promotes the new financial center under
construction. The Burj Dubai is slated to become the world’s tallest building when it opens in 2007.

Native Emirati are difficult to identify. At barely 12 percent of the general population, they are a minority. Instead, the streets are filled with people representing a variety of
nationalities and modes of dress. Given its proximity to the Indian subcontinent-barely three hours from Delhi and just two hours from Karachi-the majority of the immigrant population is Indian or Pakistani, though more than 100 nationalities can be found here. The area’s long history with England means that a fairly large number of British expatriates call Dubai their
home. Surrounded by modern architecture and Western dress, it’s easy to forget that this is an Islamic state.

“They’ve managed to create this kind of little ideal situation here,” said Boeing’s Craig. “The individual, whether foreign or Arab, feels comfortable in Dubai. There’s no harassment and very little crime, so the individual is free to go about their work in an atmosphere comparable to what you would find in the West-as a matter of fact, probably better than what you find in the West.”

Paul Johnson, division manager for General Motors Africa & Middle East, concurs.

“Certainly there are other great places in the Middle East, but I think Dubai is designed to cater to expats. They do a fabulous job.”

It is important to remember that Dubai is an Islamic nation, however, and that the legal system is based on Shariya Islamic law. It is best to dress modestly in public and to treat local customs with respect. Refrain from photographing locals as it is considered a vulgar invasion of privacy. Some buildings are also not to be photographed. Alcohol is forbidden to Muslims; however, it is easy to find in hotels catering to international visitors. The Internet is actively censored. You will not be able to download those colorful (make that “off-color”) images that make up more than 60 percent of Internet traffic elsewhere.

That said, Dubai’s officials seem willing to offer some leeway when it comes to foreign visitors.

“Any time you go outside of your own country, you’re subject to the laws of the country in which you reside or do business,” Craig said. “Here is probably the easiest entry and operating that I’ve found. It matches anywhere you can go in terms of the ease with which a businessperson can
come and get set up and isn’t hassled by the government.”

“You have to be sensitive to certain things like holidays,” Johnson said. “Ramadan for example-y ou can’t really do business as usual because everything shuts down.”

During Ramadan, the monthlong period of fasting, Muslims are forbidden to consume any food during daylight hours. Most businesses compensate by limiting daytime operations and extending their hours at night. Hotel restaurants stay open for international non-Muslim travelers, drawing curtains or erecting temporary walls to conceal daytime diners.

However, the show must go on, Emirates’ Griffith points out. “A lot of it has to do with the commercial objectives of the emirate. Obviously they want to cater to a worldwide populace, and they don’t want it to be understood that during a month of the year you can forget it.”

Said Craig: “It’s a myth that you can’t do business during Ramadan.”

In general, though, business here moves at a slower pace and involves a certain amount of personal relationship building.

“When you’re interfacing with a businessperson, there’s a definite hospitable part of the discussion, and then there’s the business part,” GM’s Johnson said. “In fact, it could very well be, depending on how important the topic is, that at the first meeting you wouldn’t even want to get into the actual topic. You’d want to establish some sort of relationship. You wouldn’t just sit down and say, ‘Here’s what I want to do,’ because it wouldn’t work.”

“Just try to hold back,” said Karen Bell-Wright, CRM manager for Hewlett-Packard Middle East. “Don’t come barging into the room and be the center of attention.”

As a Western woman working in Dubai, Bell-Wright is not as alone as you might think. There’s a growing number of women working in this quickly modernizing city (see sidebar, “Businesswomen in Dubai”).

“The people here are very entrepreneurial,” Johnson said. “It’s a good environment to develop strong partnerships, because of the social nature of business.

“It’s not natural to tell somebody they’re doing a bad job or they need improvement in areas,” Johnson added. “When doing performance reviews in the States, people are used to sitting down and having a frank discussion. Even our customers, when they fill out surveys, tend to rate us higher than maybe we deserve. It’s just built into their culture not to tell you bad things.”

Johnson also noted that when dealing with a home office in the United States or when setting up meetings from the United States, the time-change and differences in workweek schedules can be an issue. In Muslim nations, the weekend falls on Thursday and Friday.

“The most overused statement when I talk to them is ‘I know it’s your weekend, but…’ or ‘I know it’s late, but…’. It’s not unusual to have a conference call at 10 or 11 p.m.”

Living the Dream

“Almost every morning, I come out my door and look out toward the skyline and I pinch my cheek,” said Griffith. “I really am standing here. I really do work in this city.”

According to information posted on the American Business Council’s Web site (www.abcdubai.com), the crime rate is markedly lower and incidents of violent personal theft are virtually nonexistent.

“It’s very safe.” said Bell-Wright. “We’ve got two children and it’s a lovely place to raise kids because it is so safe and everyone here regards children quite highly. The children are very much accepted here and very much respected.”

Griffith agreed.

“As far as schooling, the safety of having a family in an Arab country and the laid-back attitude here with respect to foreigners literally doing almost anything they want to, it’s quite phenomenal.”

“My family loves it here,” said GM’s Johnson. “It’s very safe. They have rich schools. They have everything you want from an entertainment standpoint. You can get all your Western food. The only thing that takes a little getting used to is the summer.”

Dubai owes its very ability to expand and adapt, especially within the tourism industry, to two very simple inventions-air conditioning and the desalination process employed to produce nearly all of Dubai’s drinking water from the Gulf.

“It’s 100-plus every day for about four months,” Griffith said. “And at night it goes down to 85. But, saying that, the place is geared for it. All the shopping centers are air-conditioned.
If you want to go out in that kind of environment, we have miles and miles of beautiful beaches.”

“It’s only four months of the year that are really uncomfortable,” Bell-Wright said. “The rest of the time it’s absolutely gorgeous.”

When it comes to tourism, though, the climate is ideal. With an abundance of five-star restaurants and world-class beaches, Dubai has done a great job from a tourism perspective.

“When I first came here five years ago, tourism was in its infancy,” Johnson said. “It’s a bit far fo r the United States, but when Emirates opens its nonstop route from New York, it’s going to open up the possibility.”

A good 12 to 14 hours by air from New York, Dubai is not relying on American tourism to meet its objectives. However, tourism is in an upswing-up 31 percent since 2001.

“If you look around, the tourists that are here, the small minority of them are Western,” Craig said. “The rest are Arabs and people from countries to the East.”

With the U.A.E. already effectively the central commercial hub to a region that includes the Gulf nations, Africa, Central Asia and the subcontinent, with more than 1.5 billion people and a combined GDP in excess of $1.5 trillion, the market is clearly there.

“They’re going to duplicate Orlando, because they see that the business is there,” said Craig.

It’s a big world after all.

Businesswomen in Dubai

Contrary to what Westerners might expect of an Islamic country, Dubai counts a large number
of women among its professional ranks.

“There are lots of Western women here now and its become a very cosmopolitan city,” said Karen Bell-Wright, CRM manager for Hewlett-Packard Middle East. “There are the same opportunities, the same freedoms you would find someplace else.

“Of course, when I first arrived, if we wanted to go shopping in one of the souks, people
stopped and stared. But that was 10 years ago,” Bell-Wright said. “I don’t see that anymore.”

Women looking to work in Dubai will find the business environment fairly welcoming, though some Arab businessmen are more traditional and it’s always advisable to dress conservatively. Both men and women should wear long sleeves and clothing that is not too revealing.

“This is still a relatively sexist society,” said Claire Malcolm, director of public relations
for The Fairmont Dubai. “I’m a blond, single, white woman in Western dress. I’m used to being stared at. Some women have trouble with that. I say ‘Come on, girl, make it work for you.’ Sometimes men talk to you through car windows, but the truth is they would never do anything. Some nights I walk home from work alone at 2 a.m. and I feel perfectly safe. Where I grew up, walking anywhere alone at 2 a.m. would be just plain stupid.”

In terms of meeting new clients or business contacts, Bell-Wright suggests a slow approach. “It’s better to watch and wait until you can assess how comfortable the businessman is with you. It’s the same with shaking an Arab man’s hand. You know I learned that the hard way. You rarely extend your hand first, because occasionally they will not return the gesture and that can prove awkward.”

But would Bell-Wright encourage other women to come to Dubai? “In the past, I’ve been asked if it’s difficult for women to succeed here. I am a strong believer that it’s not. I think there are big opportunities for women in the region.”


Where to Stay

Dubai is divided into four sections: the old business district of Deira; residential area Bur Dubai; the dynamic developed strip along Sheikh Zayed Road; and the Jumeirah Beach resort area, popular with business travelers for its stunning beaches and proximity to Jebel Ali.

Emirates Towers
The fraternal twin towers that dominate the skyline have the distinction of being the tallest buildings in the Middle East. The shorter one houses the 400 guestrooms and 18 restaurants of the Emirates Towers hotel. Rooms are spacious and business-friendly, with high-speed Internet for a nominal charge. Excellent spa, two gyms and shopping center on the ground floor.
Emirates Towers, Sheikh Zayed Road
tel 971 4 330 0000, fax 971 4 330 3030
www.jumeirahinternational.com

Fairmont Dubai
The 394-room Fairmont Dubai has a spectacular glass elevator at its colorful heart. With a dozen restaurants and bars you won’t go hungry. Free WiFi in the lounge, two pools and an excellent spa and gym round out the package.
Fairmont Dubai, Sheikh Zayed Road
tel 971 4 332 5555, fax 971 4 332 4555
www.fairmont.com

Taj Palace Dubai
Sleek glass-and-steel lobby belies the old-world comforts inside Taj Palace Dubai. The rooms are soothingly decorated in earth tones and natural woods. Relax in the rooftop pool or the Ayurvedic spa. Rooms have all business amenities, including high-speed Internet for a nominal charge. BYOB
Taj Palace Dubai, Deira
tel 971 4 223 2222, fax 971 4 227 8222
www.tajpalacedubai.co.ae

J.W.Marriott Dubai
Arranged around a giant indoor piazza called the Town Square, the sprawling 309-room hotel is a self-contained world unto itself. Guestroom decor is pure Americana, with dark wood furnishings and cozy fabrics. High-speed Internet. Large adjacent shopping mall.
J.W. Marriott Dubai, Abu Baker Al Siddique Road, Deira
tel 971 4 262 4444, fax 971 4 262 6264
www.marriott.com

Sheraton Dubai Creek
As close as Dubai comes to having a grande dame in its midst, following an extensive renovation, the 25-year-old hotel is once again a prima donna. Very business-friendly with high-speed Internet.
Sheraton Dubai Creek, Baniyas Street
tel 971 4 228 1111, fax 971 4 221 3468
www.sheraton.com/dubai


Where to Dine

With the number of hotels and tourists, restaurant choices are wide ranging and most often found inside international hotels.

Handi
Traditional Indian food in a very homey comfortable environment. The open kitchen takes center stage. Watch as the chef prepares spiced Indian specialties, including ever-popular Indian bread. BYOB.
Taj Palace Dubai, Deira
tel 971 4 223 2222, fax 971 4 227 8222
www.tajpalacedubai.co.ae

Vu’s
The view from this literally top-flight restaurant is distracting; but try keeping your eyes on it when the waiter brings one of chef Nancy Kinchela’s delightful Mediterranean dishes, such
as roast lamb loin with vegetable ragout or oven-roasted monkfish with foie gras and truffles.
Emirates Towers, 50th floor, Sheikh Zayed Road
tel 971 4 330 0000, fax 971 4 330 3030
www.jumeirahinternational.com

HoffBrauhaus
Every day is Oktoberfest at this utterly transporting dining venue. True to its Munich namesake, HB serves up beer in sure-to-please 1-liter steins. Enjoy meaty Viennese specialties in this nearly authentic Bavarian keller-style restaurant.
J.W. Marriott Dubai, Abu Baker Al Siddique Road, Deira
tel 971 4 262 4444, fax 971 4 262 6264
www.marriott.com


Getting Around

There are no subways or buses; however, taxis are plentiful and cheap. At present, the city has no street numbering system. To go anywhere, just tell the cab driver the name of the building. A typical ride from Deira across Dubai will cost between $3 and $4.

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