Economy
From The Report: Dubai 2015
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With Dubai’s economy growing by 4.6% in 2013, and the emirate posting a GDP of $88.65bn, opportunities in various sectors, including Islamic finance and infrastructure and hospitality development, are drawing the attention of investors. The emirate is building up its reputation as an international centre for Islamic finance and under a new Islamic finance master plan it intends to focus on seven pillars, including finance, halal products and tourism. Meanwhile, Dubai International Airport is currently undergoing a major expansion of its runways that will see it surpass London Heathrow Airport in terms of capacity. The government has also put an increased focus on SME development and growth as it seeks to cultivate a spirit of entrepreneurship.

This chapter contains interviews with Sultan bin Saeed Al Mansoori, UAE Minister of Economy; Hamad Buamim, President & CEO, Dubai Chamber; Lim Hng Kiang, Singapore Minister for Trade and Industry; Le Luong Minh, Secretary-General, Association of South-East Asian Nations (ASEAN); and Donald Trump, Chairman and President, The Trump Organisation.

Articles from this Chapter

Overview

Investors looking at new opportunities in Dubai’s Islamic finance sector
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Located at the mid-point between Europe and Asia, Dubai has built a diverse, competitive economy, well connected to the rest of the world by major transportation links. While the focus in recent years has been on Dubai’s recovery from the global financial crisis of the late 2000s, resumed growth has shifted the emphasis to a forward-facing outlook as Dubai seeks to introduce new catalysts for growth while reducing exposure to old risks. This means a continued effort to take advantage of its geographical…

Interview

Thinking big: OBG talks to Sultan bin Saeed Al Mansoori, UAE Minister of Economy
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Interview:Sultan bin Saeed Al Mansoori What new strategies are being pursued to further diversify the country’s exports? SULTAN BIN SAEED AL MANSOORI:The GDP contribution of non-oil economic sectors has risen in the last decade from 61.2% in 2003 to 76.3% in 2013. The country’s concerted efforts have enabled us to introduce a number of policies that focus on diversifying our economy internally and boosting the volume of exports. As part of an ambitious strategy, the UAE is currently…

Analysis

Starting small: The government hopes to incentivise the creation of more SMEs
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Developing small and medium-sized enterprises (SMEs) is a priority for the Dubai government. As in many developing countries, these businesses account for the bulk of commercial establishments — about 95%, according to government figures. However, while they employ 42% of the workforce and account for 40% of the total value added in the economy, they are not seen as a crucial source of employment in the country. Instead, SMEs are seen as a way to provide greater opportunity and for their potential…

Interview

Hamad Buamim, President and CEO, Dubai Chamber: Interview
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Interview:Hamad Buamim Given continued soft growth projections for Europe, the US and China, in what regions is the UAE seeking stronger two-way trade and investment ties? HAMAD BUAMIM:We have been strengthening ties between the UAE and emerging markets, particularly India, Africa and the Commonwealth of Independent States. India was Dubai’s main trade partner with total non-oil trade worth Dh137bn ($37.3bn) in 2013 – a 10% share of total non-oil trade. The diverse destination portfolio…

Interview

Lim Hng Kiang, Singapore Minister for Trade and Industry: Interview
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Interview:Lim Hng Kiang What is the current state of GCC-Singapore economic relations? LIM HNG KIANG:Our relations are growing from strength to strength. The GCC and Singapore have long-standing ties that stretch many generations. As we move into the 21st century, our relations, including economic ties, are growing stronger. Indeed, Singapore traded more than $50.4bn worth of goods with the GCC in 2013, making the GCC states our fifth-largest trading partner. This is not surprising…

Analysis

By the books: Global Islamic financial markets present opportunities and unique challenges
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With Dubai now putting the global financial crisis behind it, policymakers are seeking new opportunities to shape the emirate’s economic narrative in the years to come. The lead-up to Expo 2020, which will require major development efforts to accommodate an influx in tourists, will serve as a guideline for forecasting growth in highly correlated sectors such as construction, real estate and tourism. However, a second, much different planned development came in the end of 2013, when Dubai announced…

Analysis

Performance budgeting: A new way to gauge spending should boost efficiency and outcomes
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The adoption of a technique called performance-based budgeting (PBB) could help Dubai’s government boost its efficiency, fulfil a government-wide mandate to leverage information and communications technology, and get the most out of its public spending. This process has the potential to save millions of dirhams, essentially by helping to anticipate costs more accurately and provide incentives to public agencies and workers to achieve better outcomes. At the heart of the PBB process is the concept…

Interview

Le Luong Minh, Secretary-General, Association of South-East Asian Nations (ASEAN): Interview
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Interview:Le Luong Minh How could ASEAN economies make better use of the Gulf as a bridge between Asia and Africa? LE LUONG MINH:Given the two regions’ respective comparative advantages and geographic proximity, economic relations between the GCC and Africa are growing. A study by the Gulf Research Centre in 2010 discussed on how the two regions have become mutually reinforcing, in terms of bilateral trade investment: on the one hand, the GCC supplies Africa with energy and heavy…

Interview

Le Luong Minh, Secretary-General, Association of South-East Asian Nations (ASEAN): Interview
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Interview:Le Luong Minh How could ASEAN economies make better use of the Gulf as a bridge between Asia and Africa? LE LUONG MINH:Given the two regions’ respective comparative advantages and geographic proximity, economic relations between the GCC and Africa are growing. A study by the Gulf Research Centre in 2010 discussed on how the two regions have become mutually reinforcing, in terms of bilateral trade investment: on the one hand, the GCC supplies Africa with energy and heavy…

Analysis

International sukuk sales raising Sharjah’s profile
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The administration of Sharjah, one of the UAE’s seven emirates, continued to implement its long-term economic plan in 2014, with major progress points including the government’s first international sale of sukuk, the sharia-compliant equivalent of bonds, and a partial opening of the real estate sector to foreigners. Efforts are ongoing to enhance infrastructure, deploy public-sector involvement in the economy in order to facilitate private-sector investment, and support new activity in an already…

Interview

Donald Trump, Chairman and President, The Trump Organisation: Interview
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Interview: Donald Trump Given the central role of real estate sector plays in the Dubai economy, how do you see the structural risks within the market? DONALD TRUMP: We see very little in the way of structural risks for the market at present, as officials have learned a big lesson and done a commendable job bringing Dubai back to the forefront of global interest. It is an incredibly vibrant, high-growth region of the world, with a capable labour pool and rapidly expanding consumer demand. Private…

Analysis

Standing strong: Despite some challenges the emirate is set to see more growth
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Strong fundamentals and a diversified economy are keeping concerns at bay in Dubai, despite a potential cooling of investor sentiment across the region and weakening global conditions. Dubai announced a balanced budget for 2015 at the start of January, as it plans to increase spending by 9% year-on-year, with spending and revenues both projected at Dh41bn ($11.2bn), according to an official statement. The absence of a budget deficit – the first time since the global financial crisis – is expected…