In a region previously most known for political conflicts and terrorism, Dubai has managed to create a political and economic success story. Sheikh Mohammed Bin Rashid Al Maktoum is the name of the man who leads the vision behind Dubai. He is the man who drives around in his car with the number plate No. 1.
He is the old style king that leads his country in a modern way and when Dubai's youth vote for their greatest idol, "Sheikh Mo” wins. He is a true leader with an extraordinary vision, just like his extraordinary official name: "His Highness Sheikh Mohammed Bin Rahsid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai" and in “Sheikh Mo´s “ country, everything is possible.
This week (September 9th, 2009) Dubai Metro will open for business. The Metro is already the world's second longest metro system and next year it will be the world's longest. They started building Dubai Metro in March, 2006. Is it really possible to build the world's longest metro system in 4 years? It is. Crazy.
In September 2008, Dubai's new icon, Burj Dubai, was officially named the world's tallest building. Later this year, in December, the building will be inaugurated - something very hard to understand for us who have followed the progress since its inception in September 2004. During this time, in the same area, a new "downtown" has also emerged. Here you will find the world's largest shopping mall - Dubai Mall, 5 different hotels and a new residential area, which is as large as a small city itself. Impressive.
So what about the Dubai "major crisis" that media keeps reporting? To deny that Dubai has not been affected by the global economic crisis would obviously be wrong. Just like the rest of the world, both companies and individuals have been affected. Many people have lost a lot, many have left and construction sites are on hold. But even before the crisis, several local companies conducted their business in a somewhat unsustainable way and therefore
I believe these companies will benefit now from what they are being forced to do now, review, streamline and restructure their operations. I am convinced that the crisis has been good in the long run for the local businesses that will survive. But what the media and the Western world generally do not understand is that Dubai is just one of seven emirates in the United Arab Emirates (UAE). Not far down the highway you find the country's largest emirate, Abu Dhabi. Abu Dhabi is the capital and home to the countries power. As one of the world's largest producers of oil and gas there is also plenty of money. But despite being a separate emirate, the President of UAE & Abu Dhabi, Sheikh Khalifa bin Zayed Al Nahyan, keeps a close eye on Dubai. Abu Dhabi will not let Dubai go down. Why? Simple math: Abu Dhabi is depending on Dubai’s survival and the crisis has actually made the two emirates start acting more like one nation and not as two competing cities.
Sheikh Khalifa, Sheikh Mohammed and UAEs government is in general constantly working to improve the conditions for people who live in the country and for those who want to come here and contribute to the countries development. In the wake of the economic downturn the government responded to a to a net decline in numbers of business registrations by scrapping the minimal capital guarantee. (approximately 60,000 EUR for establishing a business in Dubai).
The governments target is to grow small and medium companies by five percent annually. According to the Dubai Economic Department, 98 percent of the businesses registered in Dubai are small and medium sized companies and the all play an important part of the commercial community the government is trying to build.
Another important player in the expansion of the nation are the airlines. Emirates Airlines has since their start in 1985, never grown by less than 20 percent per year, a fantastic number in a time where the entire airline industry is in a crisis. But please remember one thing, Emirates is the official carrier to Dubai. Just 45 minutes down the road you will find Abu Dhabi Airport. This is the base of Etihad Airways, the official airline of the UAE. Etihad, that translated to United in Arabic, started their business back in 2004. By the end of 2009, they are expecting to carry over 7 million passengers from more than 50 destinations and today they have over 8500 employees from over 120 nations. The country is no doubt growing.
Sweden and Swedes have a good reputation in the UAE. In addition to this Sweden offers highly specialized skills within areas that are time to market in the Middle East. IT, Environment & Health Care to name a few. However, if you are not physically present you are just not seen.
Two years ago, the Saudi-based Sheikh Mohammed Al Amoudi spoke at a conference in Stockholm. Sweden’s leading financial newspaper, Dagens Industri's, front page quoted the oil billionaire, "Al Amoudi condemns Swedish companies." The article read: "Swedish companies must become better at promoting themselves in the Arab countries, otherwise the companies will not benefit from the hundreds of oil-billions that are being invested."
He is right. Doing business in Dubai is different. Business and trading has historically always been based on relationships. Dubai is an old fishing village, where all trading took place between families around the Gulf. Even today it is no secret that the Middle East's economic landscape is controlled by large family empires. In a report last year,
TNI (The National Investor) analyzed the business structure in the Gulf region and among other things found that "the families with the largest number of directors on the company board are the companies that have the most economic influents in the region". Another important point was that "Individual power is diluted. Instead, the power lies in a small group of the region's royal and leading business families ".
Despite the above, one of Dubai's concepts to be successful is to be open for foreign establishments.
There are currently two ways to start a business in Dubai:
- To go "solo" and register the company in a so-called Free Trade Zone.
- To establish a company outside the free zone which requires a local sponsor.
Both options have pros and cons however without experience from the region it may be difficult to manage on your own. The local partner can either be a "silent" partner where the sponsor signs an agreement not to interfere, or alternatively be an active partner who through his experience and understanding of the region can be an important factor for the success of your business.
Sheikh Mohammed's vision of Dubai is to become number 1. Not only in the region, but worldwide. Together with "big brother" Abu Dhabi the country is on track and the adventure will continue, despite the economic crisis, believe me. To get an idea of a "normal" project in work of the ambition to become number 1, take a look at the video on Masadar City.
See the video
here
You are most likely thinking, “Is this really possible". But that’s my whole point, it IS possible in this country. With a vision to become the world leader in Sustainable energy, the UAE government has created the Masdar City. (Masdar is Arabic and means "The Source")
Masdar is the world's first green city where over 50 000 people are expected to live. There are no cars and no waste. Does that sound impossible? Let's wait and see. Dubai and the UAE is still just a baby who will continue to grow and you are lucky to be invited to join this journey into the future.
More inspirational links related to this article: www.sheikhmohammed.co.ae www.burjdubai.com www.masdar.ae