Economy
From The Report: Dubai 2018
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Dubai’s economy is among the most diversified in the region, thanks to factors such as a highly attractive business environment that has brought in large amounts of foreign investment. Despite producing little oil, growth has been affected in recent years by the knock-on effects of the fall in international oil prices and a consequent slowdown in neighbouring hydrocarbons-dependent territories. However, this has benefitted other sectors, such as transport, tourism and other indirectly related activities. A moderate oil price recovery in 2016, plans to step up infrastructure investment ahead of Expo 2020 and further diversification of the economy by boosting manufacturing output mean the emir- ate has one of the most dynamic short- and medium-term growth prospects in the region.

This chapter contains interviews with Hamad Buamim, President and CEO, Dubai Chamber; Abdul Latif Al Zayani, Secretary-General, GCC; Liam Fox, UK Secretary of State for International Trade; and Raja Easa Al Gurg, President, Dubai Business Women Council, and Managing Director, Al Gurg Group.

Articles from this Chapter

Overview

Charging ahead: Growth in the emirate set to take off after a few slower years
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Dubai’s economy is among the most diversified in the region, thanks to factors such as a highly attractive business environment that has brought in large amounts of foreign investment. Despite producing little oil, growth has been affected in recent years by the knock-on effects of the fall in international oil prices and a consequent slowdown in neighbouring hydrocarbons-dependent territories. However, this has benefitted other sectors, such as transport, tourism and other indirectly related…

Interview

Market insights: Hamad Buamim, President and CEO, Dubai Chamber, on key trends and initiatives driving business growth
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Interview:Hamad Buamim What are government entities doing to promote the development of Dubai’s entrepreneurial economy? HAMAD BUAMIM: Government entities are investing a great deal into new programmes, initiatives and solutions that aim to nurture the emirate’s entrepreneurial ecosystem and encourage the adoption of innovative technologies and solutions. Billions of dirhams have been allocated to initiatives such as the Dubai Future Accelerators and the Sheikh Mohammed bin Rashid Al…

Interview

Forward together: Abdul Latif Al Zayani, Secretary-General, GCC, on promoting continued regional cooperation
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Interview:Abdul Latif Al Zayani In what way does the GCC ensure regional security in collaboration with others? ABDUL LATIF AL ZAYANI: Regional security poses a great challenge, not only for the GCC states but for the entire region, particularly given the ongoing conflicts in Syria, Iraq, Libya and Yemen, and the threats posed by extremist ideology and terrorist organisations. The GCC has intensified its efforts to ensure regional security based on two main principles. The first principle…

Interview

Forward together: Abdul Latif Al Zayani, Secretary-General, GCC, on promoting continued regional cooperation
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Interview:Abdul Latif Al Zayani In what way does the GCC ensure regional security in collaboration with others? ABDUL LATIF AL ZAYANI: Regional security poses a great challenge, not only for the GCC states but for the entire region, particularly given the ongoing conflicts in Syria, Iraq, Libya and Yemen, and the threats posed by extremist ideology and terrorist organisations. The GCC has intensified its efforts to ensure regional security based on two main principles. The first principle…

Analysis

Local policymakers: Individual emirates lead government expenditure
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The UAE operates the most decentralised system of government finances in the world, according to the IMF. Under the fiscal model, the national government pays for federal infrastructure, including major roads passing through multiple emirates, as well as spending on social services such as health, education and housing, with emirate-level authorities responsible for nearly all other outlays. As such, the federal government accounts for only 11.5% of total public spending in the country, with…

Interview

A global partner: Liam Fox, UK Secretary of State for International Trade, on the future trading relationship
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Interview:Liam Fox How is the UK looking to develop trade with countries of the GCC in the post-Brexit environment? LIAM FOX: As we begin the process of leaving the EU, the UK will look to build stronger trading relationships with countries around the world, promoting the benefits of free trade, supporting UK companies to export and attracting inward investment. As part of this work, Theresa May, the UK prime minister, announced a working group on trade and investment between the UK and…

Interview

Headway on equality: Raja Easa Al Gurg, President, Dubai Business Women Council (DBWC); and Managing Director, Al Gurg Group, on fostering gender parity in the economy and supporting start-up growth
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Interview:Raja Easa Al Gurg What policies are being implemented to pursue gender equality in the economy? RAJA EASA AL GURG: Our leadership has been promoting gender equality and women’s empowerment. We are the most advanced country in the region in this matter, and now women here can take this progress to the next level. DBWC plays a very important role in this regard: we foster equality by providing platforms and running workshops that help and encourage women to start and run their own…

Analysis

By the book: Increasing efforts to grow the emirate’s halal economy
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The UAE is a major international centre in the global Islamic economy, and Dubai is key for Islamic finance in particular, hosting the stock exchange with the largest listing of sukuk (Islamic bonds) by value, as well as one of the world’s largest Islamic banks. The emirate has been seeking to further expand its sharia-compliant economy by crafting a strategy for the sector and establishing a think tank devoted to its development. Plans aim to position the emirate as the capital of the…

Analysis

Carry throughs: Private sector to benefit from increased government spending on infrastructure
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While government-related entities (GREs) play an important role in the economy, Dubai has one of the most dynamic private sectors in the Gulf. A diversified activity base and attractive business environment have drawn in high levels of foreign direct investment. Private firms are particularly dominant in the small and medium-sized enterprise (SME) segment, which accounts for a large portion of the economy, but large private conglomerates are active in the emirate as well. Various indicators…

Analysis

Grassroots growth: Entrepreneurship helps drive the economy
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Small and medium-sized enterprises (SMEs) dominate Dubai’s economy, accounting for around 95% of companies operating in the emirate, according to Dubai SME, the Dubai Department of Economic Development’s SME agency. They also generate nearly 40% of the economy’s value added and 42% of employment. The value-added figure breaks down into a contribution of 17% by medium-sized firms, 14% by small firms and 8% by micro-enterprises. Dubai SME defines a manufacturing or services SME as a…

Analysis

Eye of the law: The leading financial free zone in the emirate is expanding its business and legal influence
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Dubai is home to the region’s principal financial free zone, the Dubai International Financial Centre (DIFC). The zone hosted 1648 registered companies in 2016, including 447 financial services firms. The zone also hosts the Nasdaq Dubai stock exchange, which lists the largest amount of sukuk (Islamic bonds) in the world, with a November 2017 figure of $53bn. Business Trends Ian Johnston, chief executive of the Dubai Financial Services Authority, which regulates activities in the DIFC,…