June 27, 2004

Dubai

Dubai 2010 is a bold proposition. Introduced in 2000 by the Crown Prince of Dubai and the United Arab Emirates’ Minister of Defense, His Highness General Sheikh Mohammed Bin Rashid Al Maktoum, a.k.a. the CEO of Dubai, Inc., Dubai 2010 addresses Dubai’s rapid growth and success, a plan to ensure the city’s global competitive advantage for years to come.

Dubai Inc. takes off

One objective is to attract 15 million tourists by 2010, and the new direct flight to New York that Emirates Airlines offers will help to achieve this goal.

Though Dubai 2010 seems ambitious, overachieving is Dubai’s middle name and the city has yet to falter when the government sets a goal. As a tax-free haven with an open economy, a bureaucracy-free government fashioned after a corporation, and transparent business policies, Dubai has proven itself successful in transshipment, hospitality, tourism, trade, petroleum diversification, information technology, media and communications. Dubai 2010 is a strategy to consolidate the city’s role as a leading global center in these fields and many more.

Dubai aims to become the hub of a diverse market of two billion individuals and a total GDP of USD 1.3 trillion that comprises Egypt, the Indian subcontinent, North Africa, South Africa and the former Soviet Union countries. As one top Dubai executive states, “There is no city claiming to be the hub of all of this, so Dubai has decided to be that hub.” The potential for further growth is extraordinary.

Dubai’s astonishing accomplishments that have already been completed or are in the works include the world’s only seven-star hotel, two man-made palm-tree-shaped islands visible from outer space, a Formula One racetrack and the world’s richest horse race, the Dubai World Cup. Sheikh Mohammed says that everything that Dubai has achieved to date is only 10 percent of what the emirate will have accomplished by 2010.

Looking around Dubai, it is impossible to miss the wealth and prosperity that the city enjoys. Italian sports cars abound, luxury hotels dominate the modern cityscape, there are no homeless people or any poverty, and there is world-class health care and education for all. Approximately 80 percent of Dubai’s population is foreign, making for an exceptionally international atmosphere, and while the United Arab Emirates is very strict about entrance requirements, the government will facilitate visas quickly for those entering to help the economy and/or society.

Because of its policies and hard work, Dubai ranks as one of the safest cities in the world. There are more nationalities living in Dubai than there are countries in the United Nations, and yet Dubai remains peaceful and secure. Everyone in Dubai is employed, save retirees, students and children, and the safety record is in large part due to the government’s philosophy of job creation and economic stability as a means of fighting unrest and crime. Dubai believes, as evidence suggests, that productivity, respect for the government, and strict punishment for criminal behavior breed peace. The unknowing visitor is quick to assume that Dubai’s success is oil-driven, though further investigation reveals Dubai’s true wealth: brains and business plans.
Dubai is the second-largest emirate within the United Arab Emirates, a country slightly smaller than the state of Maine, with one of the highest GDPs per capita in the world, over USD 23,000. Abu Dhabi, the capital of the United Arab Emirates, holds the lion’s share of the oil wealth and has been instrumental in funding many of Dubai’s ambitious, gutsy real estate and development projects. Yet one reason Sheikh Mohammed developed the Dubai 2010 strategic plan was to ensure that in future Dubai would not rely on oil nor on Abu Dhabi’s support, but on its own strength as a global hub in the know-ledge age.

Dubai 2010, however, has a greater purpose. Historically, Dubai has served as a dynamic trading center that welcomed foreigners. Dubai 2010 continues this tradition, and though many look at the projects on Dubai’s plate in amazement, for Sheikh Mohammed and all those involved in the development of Dubai, such projects are simply the natural next steps in the game of global advancement and betterment. As Sheikh Mohammed says, “Dubai’s projects do not just help Dubai, or the United Arab Emirates, or the Arab world, or the region at large. Everything Dubai does advances the world and serves the world market.”

Dubai residents credit Sheikh Mohammed’s late father, Sheikh Rashid, the Vice President of the United Arab Emirates and the ruler of Dubai from 1958 to 1990, as the catalyst for Dubai’s tremendous growth and forward-thinking approach. First arranging finan-cing from other countries and then employing wealth accrued from oil, Sheikh Rashid consistently invested and reinvested in Dubai’s infrastructure and long-term development. His vision transformed Dubai from a modest trading city on the coast to one of the most modern cities in the world. His plans for advancement often provoked skepticism in his advisors, who even went so far as to question his decision-making capabilities. Sheikh Rashid’s critics have been proven wrong: the Jebel Ali Port and Free Zone, the Dubai International Airport and the Dubai International Convention Center, all built under his leadership when Dubai was mainly barren desert, are now key global hubs.

As one close advisor to Sheikh Rashid explains, “His vision did not look forward to just the next year or the next five years; he looked ahead 50 years, even more.” About the building of Jebel Ali Port, now the largest man-made port in the world and still growing, Sheikh Rashid was quoted as saying, “We have money, so what is the point of keeping it in the bank? Eventually we will definitely need more port capacity, and in 20 years, this could cost us double or triple the price it will cost us now to expand it.”

This philosophy has been handed down to Sheikh Rashid’s son, Sheikh Mohammed, who operates with the theory “build and they will come”, an approach that has been justified by Dubai’s success to date. As Sheikh Mohammed says, “Anyone who does not attempt to change the future will stay a captive of the past. With the passage of time, man works, creates and achieves, then the cycle of life begins and projects start small, then they grow bigger and bigger, one after another. Anyone who looks at these projects as separate ventures will not realize that they form a chain of interlinked elements that are part of a clear strategic vision, nor will they realize that Dubai has the potential to be a destination that attracts millions of tourists. They would not have realized that Emirates, in a few years, would become one of the fastest-growing and most profitable airlines in the world. They would not have realized that we would become the Middle East’s capital for information technology and that, in terms of the usage of information technology and its services, we would rival industrialized countries and that Dubai would become a center for international conferences, or that we would have an annual growth rate of 30 percent in our tourism sector and that 45 percent of the GDP would come from trade, industry and transport, increasing the GDP from Dhs49 billion in 1998 to Dhs69 billion in 2002.”

The Corporate Office

“My biggest challenge is to turn our dreams into reality.”

Sultan Ahmed Bin Sulayem chairs a group of companies that are collectively considered to be the engines driving Dubai’s rapid development in many sectors. During the period of Bin Sulayem’s leadership, Dubai has upgraded its port to offer the fastest sea-to-air cargo transfer time (four hours) in the world, has changed its own geography through the construction of islands off its coast that will be the home of stunning new multipurpose developments. To say the least, Bin Sulayem’s companies have improved the lives of Dubai residents in a multitude of ways and have helped transform Dubai into one of the world’s top venues for business and leisure.

Explaining Dubai’s impressive success story, Bin Sulayem says that hard work and dedication to goals have made Dubai what it is today. “Dubai depends a lot on trade and services. Dubai was not as fortunate as many surrounding countries, so we had to work harder to provide facilities, create jobs for people and establish security. Our safety and security are not just a coincidence; they did not just happen. They are a product of years of managing this economy,” he says.

Bin Sulayem notes that in Dubai, security has been achieved through ensuring that all members of the population have jobs with excellent working conditions and that the economy is thriving. As he explains, “We believe that in Dubai, the best solution for national security is to create jobs for people. If people have jobs and the economy is good, it is less likely that someone will disturb the peace, and even if someone tries, the people who live here would not accept it. Our people are law-abiding by nature. They enjoy quiet, their work, their life. There is no breeding ground for bad things to happen. Bad things happen in countries where there is no sufficient security and where there are economic problems. In addition, here in Dubai, there is respect for foreigners and locals alike.”

Along with its safety and security, Dubai is distinguished by dynamic leadership willing to make bold moves to achieve success. As Bin Sulayem, who has worked with Sheikh Mohamed for 22 years, points out, “Sheikh Mohamed has a way of selecting the people that he wants to head each project. He wants risk-takers, positive thinkers, people who are doers. We cannot have negativity as part of our team.”

Among Dubai’s most ambitious projects to date are the Palm and the World, beautifully landscaped, man-made islands constructed offshore that will be home to luxurious residential, entertainment and commercial facilities, all featuring the latest technologies. Bin Sulayem has been instrumental in developing these amazing projects and says, “At first people could not believe that we would build the Palm and the World, and now we have many international investors interested in taking part in both.” As for his own role as a leader for these projects, Bin Sulayem says, “Many people want to forget about their work at the end of the day and go home. I cannot forget about mine. If I say that I am going to begin a project, then I have to make sure that it happens and that there is nothing left to coincidence.”

With its committed leadership, strategic location, highly developed infrastructure and excellent quality of life, Dubai offers ideal conditions for business. “One example”, as Bin Sulayem points out, “is the Jebel Ali Free Zone, where companies find state-of-the-art facilities, including ready-made warehouse and factory space. Companies operating in the Free Zone also enjoy easy access to Jebel Ali Port and Dubai’s ultra-efficient customs services, among other essential support systems for business. Jebel Ali Free Zone is now home to more than 3,000 companies, including around 200 from the United States.” As Bin Sulayem says of the free zone, “We never compromise on our standards and policies. The Free Zone is a haven where many investors are flourishing; we have mainly expatriates living and working there.”

Bin Sulayem points out that Dubai is continuing to expand rapidly, with many mega-projects in the works. He explains, “For example, total projects now in progress involving the Dubai construction enterprise Nakheel are valued at around USD13 billion. These are just Nakheel’s projects. I would not be exaggerating by saying we are the largest property company in the world by all international standards. No other country has this much work, and I can tell you that we have other projects that have not yet been announced that will markedly increase this amount.”

To United States investors who would like to take part in Dubai’s profitability and leisure activities, though may be uncertain of setting up operations there, Bin Sulayem points out how different Dubai is from other countries in the region and suggests that Americans investigate everything Dubai has to offer. As he explains, “If I were to listen to the negative media reports about America, I would not travel there. I have lived in the United States, however, and know what it is truly like.”

“The American companies that have already set up operations in Dubai are doing very well”, Bin Sulayem points out, “and Dubai hopes to expand its business ties with the United States.” As he says, “We have good relations with many American companies. We are utilizing American technology like Microsoft, Oracle, and more. These are our partners. We are breeding an atmosphere for investment in Dubai that American business will find attractive.”

As a trading nation located on a global crossroads, Dubai has had a large expatriate population throughout its history and is traditionally open and welcoming toward foreigners. As Bin Sulayem notes, “There is respect for foreigners and locals alike. We have a lot of foreign people who live in Dubai, and this has been true for centuries. In the past, when Dubai had a population of 100,000, we had maybe 30,000 locals and the rest were international. But all people have always been able to count on Dubai’s law and order, and our respect for foreigners.”

Along with its internationalism, Dubai offers a government committed to transparency, which ensures that foreign investors will find a level playing field where they will be treated fairly. One example of this commitment is Tejari.com, through which investors can find clear, accurate information about government tenders and opportunities available to all investors, both domestic and foreign. “We did not just say we would like to be transparent, but we have actually implemented transparency through Tejari.com,” Bin Sulayem explains, adding, “With Tejari.com, everybody knows that they are not going to experience bias and that they will get the best prices. This also helps remove the middlemen who might want kickbacks.”

Another of Dubai’s goals is to serve as an example for developing countries throughout the world. With one of the world’s highest percentages of GDP contributed to humanitarian causes, Dubai is a country that cares about others and seeks to help others achieve the prosperity that it has obtained for itself. As Bin Sulayem explains, “What we are doing in Dubai is making an example to show any Third World country that it is not necessary to have money in order to make money. You do not need oil to make money; instead, you need brains and you need implementation strategies and you need transparency. Transparency is what we are striving for. There is no place that is corruption-free, but we have transparency and a strong economy.”

As part of its international outreach, Dubai has become very active in managing ports around the world to bring its own successful port-operation strategies to other countries. Bin Sulayem points out, “We manage Djabouti Port, Jeddah Port, Costanzan in Romania, a port in India, and a Free Zone in Kuala Lumpur. All these projects are really involved in transferring our management skills. Djabouti Port, for example, is bringing economic success to a poor country. Through these projects, people realize that success and achievement are possible. Dubai is becoming an example for the rest of the world.”

As for the future, Bin Sulayem says, “Our idea is to turn Dubai into an ultramodern place that still holds on to its roots, its traditions. If you want to see old Dubai, you can, and if you want to see modern Dubai, you can, and if you want to go to our beaches, you can. All these things should be in the Dubai of the future.” As for his own role, he concludes, “My biggest challenge is to implement all of our ideas and turn our dreams into reality.”

Dubai Ports Authority (DPA)

“Dubai Ports are the most efficient ports in the world.”

Dubai Ports Authority (DPA), combining Port Rashid and Jebel Ali Port, handled TEUs 5.15 million in 2003, a record 23 percent growth over 2002, and expects to handle TEUs 6.2 million this year. Growth is not the only accomplishment of this dynamic organization. Dubai has achieved the fastest sea-to-air cargo transfer time in the world (four hours), making it the most efficient port in the world. Soon, Jebel Ali will not only be the fastest moving, but also the largest port on the globe.

Sultan Ahmed Bin Sulayem is Executive Chairman of 23 companies, including DPA, that together are largely responsible for Dubai’s exemplary successes in recent years. He explains, “When we built Jebel Ali Port in 1976, everybody was shocked. They said that it was crazy and that we did not need it. Today, we are in the process of expanding it three times its original size. Dubai Ports are among the most efficient ports in the world. We set high objectives and work very hard to achieve them.”

There are close to100 shipping lines serving DPA. Ranked eleventh among leading container ports, it has a 65 percent share of the regional market. DPA handled 13,232 vessels in 2003, including 5,216 container vessels, and was awarded the Dubai Quality Award for services. In addition, DPA has achieved an impeccable security and safety record.

As Jamal Majid Bin Thaniah, DPA’s CEO, explains, “Dubai is the meeting point between East and West.” He adds that DPA will expand its capacity to TEUs 9 million within three years, and by 2020 will expand Jebel Ali Port with large number of quayside cranes to cope with TEUs 21.8 million.
Dubai’s traditional trade links have been enhanced by expanding trade with other markets, including the United States. In 2003, DPA discharged a total of TEU 105,406 to the United States, a 28 percent increase over 2002, and loaded TEU 21,294 to the United States, a 7 percent increase.

One of DPA’s competitive advantages is its application of the latest technologies. DPA has created a high bandwidth networking infrastructure and data centers at both Jebel Ali and Port Rashid, and its state-of-the-art Commercial Management Information System provides port management and customers with up-to-date volumes and trade information. DPA has also instituted exceptional standards of customer service, a financial management system and Dubaitrade.ae, an innovative portal that is the first of its kind in the region. As Bin Sulayem points out, “We will continue to deliver to our customers. We will not let them down.”

Dubai Ports International (DPI)

“We reach local industry.”

Dubai Ports International (DPI) was founded in 2003 to provide state-of-the-art management of ports and container services in leading international ports. Today, DPI also works with local partners to develop free zones and airport facilities. DPI’s first project was Jeddah Islamic Port in Saudi Arabia, where DPI collaborates with its local partner in managing and operating the South Container Terminal. Productivity levels have increased by over 100 percent and last year the terminal became the first in Saudi Arabia to exceed TEUs 1 million.

Along with its Jeddah project, DPI has a project in Djibouti, where the port’s productivity levels have been doubled and DPI is also working with the government to improve local airport operations. DPI also has projects in Visakhapatnam, where it operates a new container terminal; Constanta, where DPI has a 20-year contract to manage a new container terminal; and Cochin, where DPI recently won a 38-year concession to manage the container terminal and develop new facilities.

Mohammad Sharaf, DPI Managing Director and former deputy managing director of highly successful Dubai Ports Authority, studied banking in the United States and is very open to working with American companies. He has an international outlook concerning DPI’s development. He says, “We are looking toward the Bahamas and also parts of West Africa. In developing countries, ‘free zone’ is the new buzzword, and we help bring value to these zones. Within developed countries, our job is to help them better understand their customers. We reach local industry and become part of the community.”

Dubai Maritime City (DMC)

“DMC will be a world-class maritime facility.”

Dubai Maritime City, known as DMC, is the first development of its kind in the world. Envisaged on a grand scale by Sheikh Mohammed, it is an integrated state-of-the-art development bringing together world-class facilities and services for maritime businesses both in the region, and globally.

Located on a 195-hectare manmade peninsula connected to the mainland by a causeway, DMC will be a hub for six sectors: marine marketing, management, services, recreation, education, ship design and manufacture.

There will be four different areas within the DMC. The commercial area will comprise the harbor area, offices for maritime-related businesses, support services, a leisure area, and an exhibition site. The leisure area will contain berthing for yachts, and a naval history museum. The repair area will provide a dockyard, ship repair area, ship building facilities, and maritime retail. There will also be an extensive research area, and a marine academy with an oceanographic research center.

DMC will be able to provide a globally unrivalled level of infrastructure and services. Its services will range from ship classification, and supplies, to cargo, vessel and life insurance agencies and lawyers. It will be able to undertake ship safety and damage assessments, as well as vessel registration and global inspection.
Exhibitors, trade shows and media information groups will find DMC an ideal venue for international trade seminars and ship shows. Ship designers and manufacturers, from state-of-the art vessels to traditional dhows, will find a home at DMC.

Covering a total area of 25 million square feet, DMC will be located between Dubai’s Port Rashid terminal and Dubai Drydocks. Land reclamation has already begun, and the project is due for completion in 2006. According to Executive Chairman Sultan Ahmed Bin Sulayem, “Everything is progressing according to schedule, but the challenge really is how quickly we can do it. We want to do it faster than normal.”

Bin Sulayem explains that DMC belongs to the Ports, Customs and Free Zone Corporation in Dubai. There has already been significant interest from regional and international maritime firms. “To put it simply, DMC will offer the best purpose-built infrastructure, to the maritime industry,” says Bin Sulayem.

Techno Park

“Techno Park provides the right kind of infrastructure and industry framework.”

Dubai’s Techno Park was created to provide an ideal environment for transforming innovative ideas into real-world applications and to enhance Dubai’s attractions as a global business base. The park aims to stimulate the activities of knowledge-based enterprises, develop technology clusters applicable to the regional market, facilitate international knowledge transfer, and support world-class research and business activities.

Covering around 10.53 sq miles with more land in reserve, Techno Park is ideally positioned to serve as a base for International companies. As Techno Park CEO Abdullah Al Qurashi explains, “Techno Park provides the right kind of infrastructure and industry framework, and is strategically located near Jebel Ali Free Zone, home to over 3,000 international companies.”

The park will initially contain three main sectors: a desalination cluster, reflecting the fact that more than USD 30 billion is expected to be invested in desalination projects in the Gulf region in the next 15 years; an oil and gas cluster to serve a region where more than USD 40 billion will be invested in natural gas projects in the Gulf region over the next six years alone; and an environmental resources and management cluster focused on marine research, conservation, the prevention of desertification, and clean and unconventional energy. Under the visionary leadership of HH Sheikh Zayed Bin Sultan Al Nahyan, the United Arab Emirates is emerging as a leading player in the environmental conservation field.

The second cluster which is a dominant activity in the region is Oil and Gas and Techno Park is attracting investors to provide a home for huge developments in this sector. As Al Qurashi explains, “Foreign investors are welcome to invest in training, research, laboratories, industries and expertise in the desalination and oil and gas industry.” Already leading companies in the world have shown keen interest and registered with Techno Park.

With state-of-the-art infrastructure and facilities, Techno Park will operate according to the highest international standards. By employing the resources and image of Techno Park, companies within various clusters will benefit from vertical and horizontal linkages amongst themselves and with companies located in the region. Techno Park is a full and active member of the International Association of Science Parks.
Al Qurashi says, “Our mission 5 years, but our vision is for 100 years.”

Dubai Aid City (DAC)

“We provide international aid organizations with a unique solution to conduct their operations and activities in this part of the world.”

Reflecting Dubai’s humanitarian spirit and innovative approach to development, the government has created Dubai Aid City (DAC) to provide international humanitarian organizations with a hub from which to organize humanitarian efforts, to store and distribute aid cargo to destinations throughout the world and to conduct their governance and coordination activities.

DAC’s vision is to set the standard for excellence in international relief efforts. It enhances Dubai’s role as a country that cares about the less privileged regardless of political, ethical or religious factors.
As Barbara Elisabeth Castek, Head of Operations for DAC, explains, “DAC began as Dubai started seeking ways to speed up help during a humanitarian crisis. Logistically, Dubai has everything, and it is a safe haven surrounded by many areas needing humanitarian aid; 80 percent of the world’s crisis areas are within a four-hour flight. When Dubai helps with a humanitarian crisis, there is a fast track for aid workers through customs, and everything is in place to be efficient and effective.”

DAC’s policy is to work closely with local NGOs in establishing priorities for humanitarian aid following a crisis. Castek is currently looking to establish more links with NGOs throughout the world and to encourage more NGOs to operate out of DAC. She explains, “We go around the world, talking to NGOs and getting their stories. We are facilitators.”

Among its services, DAC is looking into being the platform for a 24-hour emergency response unit, with a crisis team on hand around the clock to assess incoming information about a crisis, determine what aid is needed, and contact the appropriate aid organizations. In addition as training needs for NGOs are essential, DAC will offer facilities for such needs too.

DAC includes a full range of warehouses and land for lease/sale at competitive rates, as well as intelligent office space, research and conference facilities, administrative assistance, procurement support through contacts with low-cost local and regional production centers, and of course world-class logistics that includes access to Dubai’s state-of-the-art ports as well as trucking, fast-track customs service, and special agreements with major logistics providers. “We provide international aid organizations with a unique logistical solution from which to store, stockpile and distribute aid cargo via sea, land or air to various destinations around the world,” explains Sultan Ahmed Bin Sulayem, Executive Chairman of the Ports, Customs and Free Zone Corporation.

In the long term, DAC aims to provide fund-raising and networking assistance through offering access to its database. It also aims to promote intelligence exchange and training within its offered facilities. As Sheikh Mohammed observes, “DAC is a modern, civilized vision added to Dubai’s achievements that assists in serving people in every part of the world so that they can live in love and peace.”

Jebel Ali Free Zone

“In Jebel Ali Free Zone, people find it easy to do their business, it is the perfect example of the power of partnership.”

Subtrategically located Dubai is achieving astonishingly rapid economic growth while also benefiting the lives of its residents. Dubai has no unemployment and one of the world’s lowest crime rates. In addition, its port has the fastest cargo handling time of any port in the world; it takes only four hours for land-sea transfer. One of the country’s main engines of growth is the Jebel Ali Free Zone (JAFZA), part of the Ports, Customs and Free Zone Corporation (PCFC).

JAFZA is headed by Chairman Sultan Ahmed Bin Sulayem. Of JAFZA, he says, “The International Union of Free Zones has chosen JAFZA as the world’s best free zone for its excellent facilities and services, its compliance with international rules and regulations and its commitment to keep its environment safe and secure. JAFZA has also won the Dubai Quality Award in services, while Dubai Customs has won the Dubai Quality Award for its innovation and continuous drive for excellence.” JAFZA supports Sheikh Mohammed Bin Rashid Al Maktoum’s vision of making the UAE and Dubai the world’s top investment destination.

More than 3,000 companies, including 40 Fortune 500 enterprises and 140 Global Fortune 500 companies, are currently operating in JAFZA, and around 350 more companies are expected to set up operations there this year. General Motors and Black & Decker are only two of the many American firms with thriving operations in JAFZA. The free zone’s investors are attracted to JAFZA’s investment incentives; transparency; state-of-the-art e-services and infrastructure, including port services; easy access to a market of more than 2 billion, including the newly opened Iraq market; lack of corporate taxes for 50 years; and the freedom to operate a company as a wholly owned entity.

JAFZA has devised procedures to make setting up a business as simple and rapid as possible. “Our singular mission is to provide a conducive infrastructure for manufacturing and distribution, supported by quality, value-added services, which together with unrivaled incentives and proactive marketing, will attract and maintain reputable business that contribute to the diversification and growth of Dubai’s economy,” Bin Sulayem says.

The free zone’s choice of facilities includes office buildings, light industrial units, warehousing, and building sites for long-term lease. Amenities include a multinational residential area, food court, staff accommodation, a branch of the Dubai Chamber of Commerce, on-site Jebel Ali customs services, a medical facility, 24-hour security and fire protection, and a number of other services such as banks, consultancy firms and more. Sulayem points out, “I say with pride that the UAE is one of the safest areas in the world for investment, and Dubai is one of the most successful. The local market is upbeat, and the integrated services we offer at JAFZA are recognized as among the best in the region. Why do so many companies come to the Free Zone? Simply because the infrastructure is there. It’s not just that it has all the facilities, electricity, water, industrial park, so that you can start your business, we even have factories so that you can move in and manufacture something. People find it easy to do their business here.”

Having achieved the coveted ISO 9001:2000 certification – the first free zone in the world to do so – JAFZA is continuing to invest in the latest technologies to ensure the highest possible international standards. One example is DubaiTrade.ae, which consolidates all the services of myDPA, eMirsal, e-ATA and myJAFZA sites within a single service-oriented portal in Arabic and English versions.

Suggesting that American investors should target JAFZA, Sulayem adds, “We are breeding an atmosphere for investment in Dubai that American business will find attractive because it is similar to what they have in the States. We want to make the Middle East as attractive, organized and modern as the West. JAFZA is the perfect example of the power of partnership, combining the technical and marketing expertise of our highly professional team with your business acumen.”

Nakheel

World’s largest development company changes history by changing geography, putting Dubai on the map and a map on Dubai…
With USD 13 billion of total projects under construction, Dubai’s Nakheel Group is the world’s largest property company. Following the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Nakheel is undertaking some of Dubai’s most spectacular projects, such as: The Palm and The World.

Using land reclaimed from the sea, these islands have already been termed the eighth wonder of the world; they are the only other man made structures to be visible from space, besides the Great Wall of China and soon Dubai’s Jebel Ali Port. As Nakheel Chairman Sultan Ahmed Bin Sulayem says, “The Palm island put Dubai on the map of the world. And now with The World, we are putting the map of the world on Dubai.”

The Palm

Two largest man-made islands in the world.

Visitors to Dubai have long been amazed at the scale, variety and quality of accommodation and leisure facilities available. Nakheel, with its creation of The Palm islands – The Palm Jebel Ali and The Palm Jumeirah – is taking these amenities to an entirely new level.

Imagine two giant palm-shaped islands located off the coast of Dubai in the crystal-blue waters of the Arabian Gulf, rising from the sea as they are gradually reclaimed through the ongoing construction process. Visible from the moon with the naked eye, due to their immense scale, both islands are being created in a distinctive palm shape, each with their own trunk, crescent and fronds.

The Palm Jumeirah is the first to be built. It will have more than 5,000 residents, as well as many visitors. Investors can choose from around 2,000 stunning homes in a number of different styles, ranging from villas to townhouses and apartments. The idea for the palm shape came from Sheikh Mohammed himself as he pondered how to give Dubai more beachfront property. Brainstorming on a napkin one day, he drew crescent shapes jetting out of the coastline. After drawing four crescent shapes, the answer appeared: palm tree islands, the trunk providing access to the mainland. The fronds not only create a symbol of Bedouin desert culture, but also allow unobstructed beachfront views, and the variety of elegant homes will be among the world’s finest.

The trunk of The Palm Jumeirah will feature shopping and dining facilities along the Golden Mile. In this 72,000 square yards stretch, there will be 800 luxury apartments, as well as 220 boutique shops and restaurants. Conceived as a complete leisure experience, The Palm Jumeirah is also the location of Sol Kerzner’s Atlantis resort, offering unique amenities and entertainment. The Dive Experience will be a water park giving divers and snorklers the opportunity to swim with sea creatures.

The Palm Jebel Ali is the second man-made island, located 13.64 miles from The Palm Jumeirah. The Palm Jebel Ali is 50 percent larger than its sister island, with 17 fronds and a crescent forming a breakwater. At the Palm Jebel Ali, the crescent has been extended to 9.61 miles with a break at the top for boats to enter. The ends of each crescent will feature luxury apartment blocks.

The Palm Jebel Ali will have six marinas and a Sea Village with underwater attractions for visitors, located on the trunk of the island. Close to the Sea Village will be eight hotels, at a maximum height of eight stories and 400 rooms each, providing fantastic sea views.

The Sea Village will form part of an entertainment leisure center with attractive and amusing activities enough to take one’s breath away. Along with its world-class golf courses, the Palm Jebel Ali will be a complete leisure destination. It will be connected via a bridge to the mainland, and the entire project is due for completion in 2007.

Another unique feature of The Palm Jebel Ali will be a chain of exclusive water homes built on stilts, stretching from the fronds to the crescent. When viewed from the air, these beautiful homes spell out an inspiring Arabic verse of wisdom from a poem written by Sheikh Mohammed.

Nakheel Executive Director Wahid Attalla says that both Palm islands have already attracted a significant number of overseas buyers. He recommends The Palm islands and The World as secure investment opportunities for Americans.

“There are many opportunities in Dubai itself, due to its location and position, which could be attractive to property developers and/or for resort investments,” he says. “We have of course the Atlantis that is beginning development on The Palm Jumeirah. This is a testament of a good assessment and vision from the Kerzner Group for selecting Dubai and The Palm to be the location for that project.”

Attalla stresses that Americans are often misled by the United States media, who do not distinguish between the safety and security in Dubai, the United Arab Emirates and the Gulf, versus flashpoints like Iraq or the Palestinian Territories. “I think it is very important to explain what Dubai is, and how it is markedly different from what Americans hear about the Middle East,” he comments.

Attalla adds that Dubai offers what United States businesspeople are looking for: return on investment, transparency, a strong legal system, and favorable taxation. “We don’t have corporate or income tax. That makes a big difference,” he says. Attalla also points to the statistics and predictions regarding the huge anticipated growth of tourism in Dubai. To invest in The Palm will be to secure a position at the heart of the world’s most exciting leisure and tourism development.

The World

Own an exquisite private island in the Arabian Sea

Another spectacular project conceived and currently underway from Nakheel is The World. Located 1.7 miles off the coast of Dubai, The World is a collection of 300 islands created in the shape of the continents of the globe. Viewed from above, the development will resemble an actual map of the world.

Each of the islands will be approximately 150 to 300 feet apart, making it possible for example to live in “Brazil,” sail to “South Africa” for lunch, and arrive in “Japan” for dinner with friends! Each island will range from 100,000 square feet to 450,000 square feet in size (5-20 acres), and the entire project will create more than 10 million square feet of beach from over 350 million cubic meters of rock and sand. Nakheel is creating an integrated system of waterways, canals, lakes and marinas, and access to the islands will only be possible by sea or air.

Located halfway between The Palm Jumeirah and Port Rashid, The World will be completed by the end of 2008. It will feature world-class infrastructure – IT connections, GPS navigation and marinas – but otherwise it is a virgin paradise for investors to live out their dreams.

For anyone who has ever aspired to own their own island, The World is the answer. Each of the 300 islands has unlimited potential as a secluded home, an exotic resort, a golf course, or a corporate retreat. Investors are guaranteed privacy and exclusivity. Since The World is still within UAE territory, owners of islands are only restricted in that they may not set up a new rule of law, as developers always foresee the prospects yet are certain to always abide by the rules and regulations of Dubai.

Imagine life on an island paradise, the ultimate status symbol and sanctuary. For private or commercial use, The World can be anything an investor determines. It is anticipated that many of the islands in The World will be themed after the country they represent, although investors have the freedom to create their own vision.
The World was officially unveiled in September 2003, and in May 2004 all the islands became available for purchase. Nakheel Chairman Sultan Bin Sulayem says, “I think as far as foreign direct investment in Dubai is concerned, The Palm island and The World – resorts on these projects and other such projects all over Dubai – are seeing many foreign investors, and will continue to see many foreign investors.”

The World, like The Palm, is being reclaimed from the sea in a state-of-the-art construction program. After less than six months, the island representing the UAE was the first to break the surface of the Arabian Gulf. It is now standing at its final elevation of three meters above the water, and 14 meters below the water’s surface. The islands of North America and Asia have also recently broken the sea’s surface, as a whole new world of luxury develops.

Shelter provided by breakwaters on the outer perimeters of the islands will provide a home for a variety of exotic marine life. Nakheel is working extensively with specialist firms in environmental protection, as well as a UN environmental organization, to ensure that both The Palm and The World do not negatively impact the environment.

Nakheel Executive Director Wahid Attalla says, “I invite anybody who’s interested to go to The Palm and dive, and see how much marine life has improved since the reclamation has begun, both above and below the water. If you walk around The Palm in the early morning, you will see hundreds of birds.”

Sultan Bin Sulayem acknowledges that the sheer scale and size of The Palm and The World are staggering. He reflects that in 1976 when Dubai built Jebel Ali Port, of which he is chairman, people were shocked and thought it unnecessary, but today it is being expanded to four times its size. “When you think about what we’re doing, it’s things like building The Palm or The World,” he explains. “People couldn’t believe it at first, and now we have interested international investors coming constantly.”

Sultan Bin Sulayem, who finished his education in the United States, shares his vision for the future with His Highness Sheikh Mohammed. “Our idea is to turn Dubai into an ultramodern place that still holds onto its roots, its traditions. If you want to see the old Dubai you can, if you want to see the modern Dubai, you can, if you want to go to the beaches, you can. All these things should be and are in Dubai.”

And with The Palm and The World, Nakheel is helping to create exactly this vision of a dynamic, welcoming and spectacular commercial and leisure location.

Istithmar

A new force in Dubai’s Development.

When Ahmed Butti Ahmed, Chief Executive Officer of Istithmar, a Dubai-based investment holding company, says “we are looking for new opportunities” this is a clear sign that the ‘vision of Dubai’ is firmly on course.
Istithmar was formed by the Ports Customs and Free Zone Corporation to invest in new organizations and projects that will generate exceptional returns and grow investment opportunities in the Emirate and beyond. Initially, Sultan Ahmed Bin Sulayem, the company’s executive chairman, and Ahmed Butti are taking advantage of the opportunities found through other members of the Ports, Customs and Free Zone Corporation group – this includes the founding of a securitization company; an Islamic mortgage company; district cooling and others. These companies will grow by providing services for the significant real-estate projects that the group is leading, which combined exceed over 7.5 billion dollars worth of development.
Concerning opportunities for American companies, Ahmed Butti Ahmed, explains, “We are looking for reputable companies. I believe in joint ventures because they create educational experiences and knowledge transfer that can benefit both sides. This know-how can be transferred to the local population to provide opportunities.” Further explaining Istithmar’s role, he adds, “We are active investors, not passive, in all of our joint ventures, providing capital and strategic advice, while the management teams guide the companies on a day-to-day basis.”

Istithmar’s goals are to earn an exceptional return on capital for its investors, and to support the operations of its chosen partners with strategic and financial advice, as well as capital. Butti explains that Istithmar will initially focus on supporting companies in sectors with particularly strong development potential, including financial services, real estate, tourism, logistics, manufacturing and retail operations.

The company’s first investment was Serco Gulf, a facility management company formed to improve the quality and efficiency of engineering and other support services at Jebel Ali Free Zone Authority, Dubai Ports Authority, Dubai Customs and throughout the UAE.

Other projects to date include Tamweel, an Islamic finance institution that provides mortgage and financial services to residents of the UAE, including both UAE nationals and foreigners; Emirates National Securitization Corporation (ENSEC), a joint venture between Dubai Islamic Bank, Istithmar and the Island Capital Group that will provide real estate securitization services; and Clement Systems Gulf, a joint venture engaged in design, construction and installation of floating concrete pontoon structures for the Palm Islands development and other projects, including eight new marinas.

Istithmar is highly proactive. As Butti explains, “After Serco Gulf, which started in September 2002, we needed a financial entity. With Nakheel constructing a large number of residential homes, people needed mortgage financing, so Tamweel was created to provide mortgages. Then there was the issue of having sufficient funding for our financing, so ENSEC was established to add securitization for future endeavors.”

New projects in the works are a district cooling enterprise for the Palm Island development, an initiative in a field that is seeing extremely rapid growth throughout the region, as well as the development of Atlantis, The Palm, a 50-50 joint venture with Kerzner International Limited, the owner, developer, and operator of Atlantis, Paradise Island in the Bahamas.

Istithmar is very well placed to partner with enterprises involving American companies and individual investors. “We are looking for new opportunities,” Butti says, adding, “We are open to new proposals and to meeting people to learn from these ideas. We research each proposal even if it is not in a priority industry. We accept projects from every sector and geography.”

Butti, with a master’s degree in applied mathematics from a university in the United States, has a very international outlook. As Managing Director of Jebel Ali Free Zone, he worked with investors and management of the more than 3,000 companies operating there. He says, “Our port forced Dubai to look outward, and we have formed strong partnerships with countries from the Gulf region as well as such Western countries as Germany and the United States.”

Many multinationals, such as Sony, have initially established small operations in Dubai and then quickly expanded these operations when they have recognized the area’s potential. As Butti points out, “Dubai is strategically located, and provides access to approximately 1.4 billion people across the Middle East, Indian subcontinent, Africa and the CIS.”

Over the next five years, Butti anticipates strong growth for Istithmar. He says, “I would like to increase our portfolio, and not just in numbers, but profitable companies who are contributing significantly to the economy of our country. I want to establish strong, reputable companies with high profits. I am very optimistic about what we are doing. I can see the number of companies growing very rapidly.”

Dubai Metals and Commodities Centre

“Our aim is to position Dubai as a global commodity hub.”

Dubai Metals and Commodities Centre (DMCC) is one of the most modern developments in Dubai. It is located on Sheikh Zayed road and has over 70 towers that are currently under construction. There are four gold refineries also within the centre which will be fully operational very soon. We have in it a manufacturing complex that will house precious metal and gemstone manufacturing operation. Basically, the intention is to attract the entire value chain of DMCC’s core segments, namely: Gold & Precious Metals: Diamonds and Colored Stones: and, Commodities to create a fully interdependent market base. So, it’s an interesting project that compliments Dubai,” says Chairman Sultan Ahmed bin Sulayem. “We are the first country in the Middle East to ratify and accept the Kimberly Process, an American issue concerning the fair trading of diamonds.”

Dubai Metals and Commodities Centre, established in 2002, is enhancing Dubai’s role as an international trading hub at the crossroads of East and West. The government aims to make Dubai a top global center for diamonds and precious metals as well as for other commodities, building on Dubai’s strategic location with easy access to a two-billion-strong regional consumer market as well as its state-of-the-art international logistics services. The DMCC is proving instrumental in achieving these goals.

Tawfique Abdullah, CEO, explains that the government has carefully laid a strong foundation for commodities activities, for example through establishing industry-specific market infrastructure such as the Dubai Diamond Exchange, facilitating trade of rough and polished diamonds in and through the region: the Dubai Commody Receipt, an innovative finance instrument for the commodity trade which will be implemented in June and the Dubai Tea Trading Centre, aiming to link international tea producers with regional buyers. In addition, the UAE was the first Middle East signatory to the Kimberly Process Certification scheme. “Our aim is to position Dubai as a diamond hub. There is a gap in the global diamond-exchange map, and Dubai can fill that gap,” he says, noting that Dubai held the World Diamond Council meeting this past March. Dubai fills the commodity trading demand as well: “As for commodity trading, there is no other commodities market in this time zone, so Dubai has a fantastic opportunity to serve regional markets.”
The DMCC will not only supply the local market but will serve as an international transshipment center for markets throughout the Middle East and beyond. “Our vision is to deliver world-class and specialized market infrastructure to participants who choose to join our growing community and to industry players wishing to trade through Dubai,” Abdullah says.

One of the DMCC’s key activities is gold refining, a particularly appropriate endeavor for Dubai, known as the City of Gold. The DMCC will house three high-tech gold refineries; the first to go on stream is the 48,000 sq yard, 110-short-ton Al Ghurair Giga Gold refinery created at a cost of Dh 50 million.

The DMCC also includes a state-of-the-art manufacturing complex for the production of jewelry, diamonds and other stones, and precious metals. Built according to the highest international standards, the center is being created in three phases; 80 percent of phase one has already been reserved by companies from throughout the world. The complex will include six 12-story buildings containing units ranging from 60 sq yards to 600 sq yards on each floor.

Urging investors and traders in the United States to investigate opportunities at the DMCC, Abdullah concludes, “Trade is the core to our success. Keep an eye on DMCC. We are a new landmark in the commodities market.”

Tejari

“Being online takes away a lot of border restrictions.”

Tejari, which means “commerce” in Arabic, Hindi, Urdu, Turkish, Persian and Afghani, represents a new form of trade and commerce in the Middle East. One of the most exciting e-commerce companies in Dubai, it launched simultaneously with Sheikh Mohammed’s e-government initiative, which also included Dubai Internet City and Dubai Media City.

In less than four years, Tejari has changed the supply and procurement industry. It runs an online procurement marketplace, which has attracted buyers including Emirates Airlines, the Nakheel Group and HSBC, and many United States-based technology, pharmaceutical and medical suppliers.

Tejari provides competitive prices through e-business practices like buyer auctions, consortium buys and open market purchases. Offering real-time access to local, regional and global suppliers, it allows organizations to leverage rapidly changing market efficiencies. By mandating standard buying practices, organizations can achieve greater procurement transparency and budgetary control.

CEO Lubna Al Qasimi explains that Tejari has developed in several stages. It began with auctions, delivering savings for clients of 5-30 percent. It moved to streamline the process by integrating buyers and suppliers automatically from procurement to order management. It then began developing electronic catalogs for clients, and offering a project collaboration service for clients in the construction industry.

Later this year, Tejari is launching a consultancy division based on clients’ spend analysis, undertaking strategic sourcing on their behalf. She says, “We look for the interests of the client and start to create more services, so we go beyond the marketplace as an auctioning site.”

Early support from the government brought in many pre-qualified public sector suppliers, and procurement from 24 government departments in Dubai. Now transactions are a 50:50 split between the public and private sector. To date more than USD 600 million has been transacted through auction, making Tejari profitable in a record three years.

Using its operational knowledge of procurement, Tejari has franchised its concept and plans to roll it out in Iraq, Kuwait, Syria, Lebanon and Jordan. Al Qasimi points out that this will allow people within these countries to procure locally and across borders.

She stresses that suppliers come from everywhere. “Tejari provides an opportunity for major companies to have access to this market,” she comments. “It’s also an excellent opportunity for small to medium-sized enterprises in the United States who do not want to invest a lot, to establish a presence in the region and these markets.”

Interview With Sheikh Ahmed Bin Saeed Al Maktoum, Chairman of Dubai Civil Aviation and Emirates Airline, the second best airline in the world.

We are proud of the whole country and all the things going on. We try to have all of the successes compliment each other. Dubai is at a point where when you need a job to be done, there are more and more people ready and willing to do it. And this is what Dubai has managed to create, a language that all of us speak, all of us thinking the same way and moving in the same direction toward our objectives and goals.

We all have the opportunity to add our objectives and our opinions; we are not blocked in any way. This comes from the leadership. If an instruction is issued by the top, a goal is established and everyone moves to achieve the goal. And I think this is the main reason for all the success in Dubai, whether it is an airline or the airport.

Maybe in some other countries, things are not happening as fast because everybody is not moving toward the same goal.

Other airlines are now entering the market and other airports in the region are expanding as well. How will this affect your business?

We feel that today there is no competition at all. Other airlines may operate out of Abu Dhabi and elsewhere and we are in Dubai. Because of the growth we have here in this part of the world, and the hub that we are in Dubai, we will see the market continue in the positive way for some time to come. The whole business is not about buying more aircraft and if you can afford to buy more aircraft, people travel to a destination. This is something that we have going for Dubai, as people travel here more and more.

How do you see the direct flight between Dubai and New York helping your business and Dubai as a whole?

We see that with every direct flight out of Dubai, business from that area grows from day one. No doubt about it. However our objective is, always and foremost, to help people travel from one place to another in the least amount of time as possible.

Many say that Emirates is one of the most powerful growth engines present in Dubai, helping Dubai to become what it is today and will be in the future. How does that make you feel?

We are promoting all of Dubai, Dubai as a destination, as an economy, as a place to visit and to stop over, even if you are not staying, but just connecting to another flight. Dubai is convenient if you are coming from Europe and going somewhere else. But we still try to show them, even during their brief layover, what Dubai has to offer so that hopefully, the next time they pass through Dubai, they will stay longer. So we are contributing to the economy in that way and also because of the growth of Emirates, which helps Dubai.

The Middle East only captures 1 percent of the annual global FDI. How are you helping to change this?

I think if you look at what’s happening in Dubai, looking at the big projects underway, like Dubai land that will help increase FDI. It is an opportunity for many people outside of the Arab world to come and invest. It’s a good opportunity as Dubai is very safe and stable. And with Emirates’ direct flight that began June 1st, it is touching only a small part of the American Market, but it is a first step.
To what do you attribute your success as a leader of so many prominent organizations?
I am lucky because I have a very strong team.

Where do you see yourself, your organizations, and Dubai in 2010?

I think we will be there, we will have 15,000,000 tourists by 2010. We are very sure of the number we will receive in 2010. In the next five years, we will be over double our capacity now.

Do you think New Yorkers will be attracted to Emirates Airline?

We have excellent standards and service so I think so. We always try to be as big as we can be, we never like to do anything small.

Could you give one headline for all that you are doing here in Dubai?
Dubai is a place to visit.