Investment in Dubai

Investment in Dubai

By: Samy Sharif

2007

Table of Contents

Executive Summary

Background

The Case of Dubai

Dubai & The Creation of a 'Global' Image

The Megaprojects

Dubai & Commercial Growth

Dubai as a world city

A permanent hub linking world economies

The Market

The Business Environment

The Costs

Doing Business

Special Investment Incentives

Free Zone Incentives

Dubai Business Climate

Licensing

The New Republic

Conclusion

Executive Summary

Long recognized as the leading regional trading hub in the Middle East, Dubai has established itself as a truly international business centre of global significance.

Background

The city-state of Dubai, a small emirate located on the Arabian Gulf, has been a crossroads for transient residents and travellers since its establishment as a small fishing village in the nineteenth century. Within the last two decades it has witnessed rapid urban growth due in part from the income generated from oil revenue, but mostly from various economic and industrial developments. Its multi-cultural (hybrid) nature is evident from its unique population make up: a city of approximately 1 million residents, where locals form a minority while the majority are of Arab, Asian and Western nationalities. Given this unique population as well as its location at the tip of the Arabian peninsula, Dubai has become a border region in which one can detect a variety of 'conflicts': West/East, modernization/fundamentalism, Arab/Asian and so on. These conflicts are resolved spatially through a policy which on the face of it attempts to reconcile through co-existence, but a closer examination reveals an exclusionary direction through the development of clearly defined 'borders' i.e. zones or enclaves.

This is evident in modern projects such as the luxurious Burj Al-Arab (Tower of the Arabs) Hotel and the more recent Palm Islands development in which authorities have created an instant, easily recognizable image of a city which is on the verge of joining the global community. Burj Al-Arab has, as this chapter will show, become a symbol of Dubai; in its imagery it evokes the sail, thus 'recognizing' Dubai's historical seafaring tradition. Located next to this tower is another mega project in which the city is embarking on a $1.5 billion development to create 'the largest man-made island' in the Arabian Gulf, a project which, it is claimed, is 'visible from outer space'. Shaped like a palm tree (in its site plan) the island is appropriately known as 'The Palm-Jumeirah' and will contain exclusive residences, hotels and shopping/entertainment facilities. The palm was chosen because it is 'one of Dubai's most enduring symbols of life and abundance' - another allusion to the past. Both of these projects are physically removed from the shore and are accessible via bridges, thus highlighting their exclusive nature. Their image - whether it is sails or palms - is directed towards the global media thus affirming what some have described as being 'the most globalized of all Arab societies'. (Adulkhaleq Abdulla, UAE University as quoted in The New York Times, 14 October 2001, 'Sweeping a tale under Gulf land's pretty rug')

The Case of Dubai

During 2003 the International Monetary Fund (IMF) and the World Bank held their meeting in Dubai, with more than 14,000 delegates descending on the city which had undertaken massive construction efforts, from a new convention centre to new roads, in preparation for the gathering.