World Business Times Insight: Cities of tomorrow: Abu Dhabi and Dubai
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Moving in the right direction Focusing on smart government
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The falcon’s new nest Abu Dhabi’s MidďŹ eld Terminal, seeing is believing
Cities of tomorrow:
Abu Dhabi and Dubai
Young and rich Does the world really need another ďŹ nancial centre?
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WORLD BUSINESS TIMES SPECIAL REPORT DISTRIBUTED BY THE DAILY TELEGRAPH
April 2, 2014
Wireless cities in the new age Every city has its time to bloom. Some cities rode the wave of the steam engine. Some rode the wave of the computer chip. Abu Dhabi and Dubai are set to ride the wave of sovereign wealth and internet everywhere. Paul McNamara reports Abu Dhabi: The modern day desert oasis
Abu Dhabi and Dubai are in the unique position that they could both become leading cities of tomorrow. Not just great cities like Paris, Hong Kong or Sydney, but join the elite group of cities that includes only London and New York. A tall order? Yes, but entirely possible. For the past decade both cities have been in the news on a constant basis. Abu Dhabi, once the ugly duckling but always the capital of the United Arab Emirates, has taken a leaf from her sister Dubai’s book and is starting to get on board WKH SUHWWLĂ€FDWLRQ DQG 35 EDQGZDJRQV Nowadays soccer fans around the planet are just as likely to be seen sporting football jerseys with the Etihad logo as the Emirates logo. The competition between the emirates might be friendly, but the competition between their airlines is as Ă€HUFH DV HYHU Dubai’s breakneck growth throughout the earlier part of the 2000s came to a screeching halt at the onset of the global Ă€QDQFLDO FULVLV EXW DOO V\VWHPV DUH QRZ “Goâ€? again as the real estate market takes off and businesses and visitors alike come piling in to the land of hopes and dreams. How could these cities go about becoming some of the greatest on earth? Both cities have heaps of land that is currently unused and is still virgin desert. New technologies, particularly new cooling technologies, mean that this land is now useable and suddenly the land bank available for their use has enriched the two cities beyond measure. Most established cities simply do not have the room to grow that Abu Dhabi and Dubai have.
A glance at Singapore’s land reclamation efforts to date gives some sense of how hard and how costly it can be for land-poor cities to grow and expand. New York famously overcame the land shortage problem by going up and produced a startling skyline in the process. London seems to be going the other way of late as private home owners dig down, excavating beneath their properties in order to get more space. No such problems face Abu Dhabi and Dubai that need only to mark off the next 50 square kilometres of sandy desert and get building. And before the conservationists become alarmed, a quick look at the satellite imagery on Google Earth will reveal that only the tiniest fraction of the UAE’s landmass is currently developed. Equally importantly, the strong ties between the UAE and the Indian subcontinent means that there is a seemingly limitless supply of affordable labour available to build whatever needs to be built. With free land and cheap labour, the party looks set to continue. Perhaps most important of all is the fact that both cities have very young economies that are not dependant on heavy industries in decline. They simply do not have markets that can yet be undercut by keenly priced competition from China or other low cost hubs. This also means that they can invest in the newest technologies and the most future-proof solutions when designing working environments for the next 20 years or more. Living examples of this can be found in Kizad, the Khalifa Industrial Zone Abu
Dhabi and also in Dubai’s Smart City project, aimed at providing free Wi-Fi in all public places in order to ensure smart phone connectivity giving real time access to public and private sector services to all. What is perhaps most intriguing about this latter initiative is the tagline ‘happy living’, which gives a sense of understanding that the future has to be a place where real people would want to live. It is not about business or success RU SURĂ€W ,W LV DERXW SHRSOH ,W LV DERXW becoming the most interconnected city in the world in three years’ time so that HQHUJ\ FRQVXPSWLRQ WUDIĂ€F HPHUJHQF\ response, transport, water management, and every other service necessary to make a modern city function, interact, feed HIĂ€FLHQF\ DQG LPSURYH HDFK RWKHU Sheikh 0RKDPPHG ELQ 5DVKLG $O 0DNWRXP UXOHU of Dubai described the initiative as: “Our ambition is for Smart Dubai to touch every individual in our country - every mother in her home, every employee at his work or investor in his project or child in his school or doctor in his clinic.â€? Kizad, on the other hand, takes the whole concept of industrial zones and turns it on its head. Kizad is all about delivering solutions to clients who are already there and using the latest technological developments to make the process fast, HIĂ€FLHQW DQG FOHDQ HQG WR HQG This begins to hint at why the twin cities of Abu Dhabi and Dubai have every chance of becoming the global cities of tomorrow: they are reinventing what it is to be a city. Will the globe’s capital markets ever trust Dubai again after the ‘near default’ of
2009? What about Dubai’s debt overhang? There has been positive news on that front WRR ,Q UHFHQW PRQWKV 'XEDL JRW D Ă€QDQFLDO shot in the arm thanks to an agreement to UHĂ€QDQFH WKH ELOOLRQ ZRUWK RI ERQGV and loans that it owes to the central bank of the United Arab Emirates and Abu Dhabi at preferential rates. It is well known that Dubai has an overall GHEW SLOH RI DURXQG ELOOLRQ LQ WRWDO Abu Dhabi effectively bailed Dubai out in 2009 with two separate loans of ELOOLRQ HDFK ,W KDV QRZ H[WHQGHG PDWXULWLHV RQ WKHVH GHEWV IRU Ă€YH \HDUV DW LQWHUHVW UDWHV RI RQO\ SHU FHQW ZHOO below the 4 per cent agreed at the peak of the crisis. If there had been any doubt before, none remains now, as Abu Dhabi made it clear that it was backing Dubai to the hilt. In a statement issued by WAM, the state media agency, Hamad Al Hurr Al Suwaidi, chairman of Abu Dhabi Department of Finance, said the recent redrafting of the debt agreement, “is aimed at boosting the economic recovery the country is witnessing, and will contribute to realise the vision of our wise leadership, which aims at supporting sustainable economic development and ensuring prosperity and welfare for the UAE and its people.â€? Cynics point to the fact that half of the amount owed, the central bank bonds, fell due at the end of February, but questions about the expected rollover had been met with silence until after the expiration date. The other half of the debt was to mature in November and has been rolled over. While WKH ELOOLRQ SULQFLSDO ZLOO VWLOO KDYH WR be repaid, this gives Dubai far longer to get over its property collapse and build
up a fresh head of steam before the sums fall due.
much of the region and it is a prerequisite for truly global cities to remain responsive.
The collective investment of the two cities on infrastructure, on airports, roads, ports and waterways means that external communications are so good that they are likely to place undue pressure on internal communications. Put another way, Dubai airport, Dubai’s new Maktoum airport and the new Abu Dhabi airport, plus the various new seaport facilities will be able to bring people and materials in faster than the road system will be able to cope with. Dubai’s metro system will go some way to easing the burden but the roads will still need to see major improvements.
This goes hand in hand with an unquestioning and sycophantic media that never probes too deeply into the goings on at the big corporates, never names names or asks the hard questions. This is partly a cultural issue and partly a political issue but great cities breed great media: just look at the New York Times and the Financial Times, two of the world’s best newspapers from the world’s best cities.
The twin drivers of much of this recent growth have been Abu Dhabi’s oil wealth and Dubai’s trade and tourism revenues. The capital’s plans for diversifying the economy away from oil revenues is well entrenched in its development plan while Dubai’s recent successful bid to host Expo 2020 means that its near term growth in trade and tourist numbers are pretty much guaranteed for the immediate future anyway. None of this is to suggest that no problems exist, they do, and some of them are VLJQLÀFDQW :KLFK DUHDV FRXOG GR ZLWK À[LQJ XS" Like much of the Gulf, there is a need to get over the cult of personality that still haunts many countries in the region. This concerns the bad habit of ascribing credit to the governing elite for every success and initiative. What makes great countries great is that the normal man in the street has the ability to express his opinion on any subject he pleases. This is lacking in
Another real worry for the future is education, which is still lagging behind the development of the rest of the economy. Dubai in particular has become a magnet IRU KLJKO\ TXDOLĂ€HG HGXFDWRUV LQ WKH private sector but this has not spilled over into the state sector yet. It is a problem that is being addressed, but is essential to breaking the mould of youngsters leaving the education system to take up easy jobs in the public sector. There needs to be a concerted effort to re-instil a culture of entrepreneurialism and risk taking as well as the fever that seems to grip everyone in Silicon Valley to ‘be the best’. This is the best possible time for both Abu Dhabi and Dubai and while there are still a number of issues to be addressed, the train has already left the station and is gathering steam. The leaders of the nation know what needs to be done and seem to be trying to do it as fast as they can, as witnessed by the marvels of Al Maryah island and initiatives like Smart Dubai. For western enterprises looking for the next growth market, look no further.
Stepping into tomorrow Sport and the desert are not an obvious mix, but sports and the MICE industry will be increasingly important for Abu Dhabi. Pamula MacRan reports
T
he Emirates and Etihad logos might be found on countless soccer jerseys around the world but Abu Dhabi is not a place most people would associate with international sporting events, if only because of the weather. Neighbouring Qatar is already bearing the brunt of the soccer world’s disenchantment with the prospect of the Gulf’s summer temperatures. Dubai, meanwhile, is more associated with horse racing than soccer thanks both to Emirates as a sponsor and Dubai’s ruler, Sheikh Mohammed ELQ 5DVKLG $O 0DNWRXP DV WKH ZRUOG¡V biggest investor in, and patron of, the horse racing industry.
Zayed Sports City is another of Mubadala Development’s investment projects and Zayed Sports City has just released its UHYHQXH ÀJXUHV IRU ZKLFK VKRZ DQ LQFUHDVH RI SHU FHQW RQ ¡V ÀJXUHV with visitor numbers up by 20 per cent WR PLOOLRQ 7KH &LW\ ZDV LQDXJXUDWHG LQ -DQXDU\ DV D YHQXH WKDW UHà HFWHG the country’s passion for sport, as well as to provide a platform to develop the country’s sporting talent. When it was ÀUVW RSHQHG WKH YHQXH ZDV D VWDWH RI the-art facility and after three decades of continuous development and growth, it remains one of the premier entertainment and sporting destinations in the country.
Sport, sports tourism and the general mix of Meetings, Incentives, Conventions and Exhibitions (MICE) are set to play an increasingly important part in Abu Dhabi’s attraction for international visitors. Few people outside of the UAE, or outside of the region, will have heard of Zayed Sports City and yet it is a core part of Abu Dhabi’s pitch to secure more tourist dollars.
'XULQJ WKH QXPEHU RI HYHQWV KHOG LQ =D\HG 6SRUWV &LW\ MXPSHG WR IURP WKH SUHYLRXV \HDU 7KHVH HYHQWV range in size and scale and cover a wide spectrum like Kidsfest, which proved to be the venue’s largest single event in terms of footfall with 26,000 people attending. For the monster truck community, Monster -DP DWWUDFWHG DQ DVWRQLVKLQJ SHRSOH ZKLOH RQO\ SHRSOH ZHQW WR WKH
Mubadala World Tennis Championship. Other big draws to the City include ZUHVWOLQJ ZLWK WKH ::( 5DZ ZKLFK proved to be the biggest single revenue generating event and was perhaps more VLJQLÀFDQW E\ KHOSLQJ WR SXW WKH &LW\ on the radar screens of overseas visitors as sporting events increasingly play a VLJQLÀFDQW SDUW LQ WKH JURZWK RI $EX Dhabi’s tourism sector. Elsewhere the Abu Dhabi Grand Prix provides a focus for petrol heads but purpose built Yas Marina Circuit is also pitching itself as a venue for business events with a twist. Hard as it may be to believe, after a stressful day at work, businessmen can hop into the passenger seat of a Yas SuperSport SST racing car and belt round the circuit at over 200 kph to ease their tension. The SuperSport SST is a small, lightweight purpose built track sports car that looks a bit like a small version of the Le Mans racers, powered by a Hayabusa motorbike engine and gearbox.
Yas Marina Circuit, which opened in 1RYHPEHU KHOG DOPRVW GLIIHUHQW HYHQWV LQ DQG KRSHV WR KROG RYHU next year in a demonstrable sign of the sector taking off. Yas Island, meanwhile, also wants to pitch itself as a leading conference destination for events like the Gulf International Business Travel and Meetings event that opened at Abu Dhabi National Exhibition Centre last month. Dubai has traditionally been the UAE’s hub for such meetings with the Dubai World Trade Centre. A new ruling by the UAE Ministry of )RUHLJQ $IIDLUV H[HPSWLQJ FLWL]HQV RI European member states from requiring a pre-entry visa to the UAE should help increase the popularity of Abu Dhabi with European tourists. With citizens of the RWKHU (XURSHDQ PHPEHU VWDWHV DOUHDG\ being exempt, the announcement means that all citizens of the European Union holding an ordinary passport will be allowed to enter the UAE without having to previously apply for a visa. UAE team under-23 players celebrate victory!
This supplement is produced and published by World Business Times which takes sole responsibility for the content.
2 Cities of tomorrow
April 2, 2014
Moving in the right direction The next scarce resource is talent, not capital. The second Government Summit aims to ensure that the UAE makes the most of what it has. William Maimer reports
is critical to achieving happiness. “Happiness can be achieved by being a good citizen, by participating, by actively trying to solve the great problems of today,� according to Sachs.
In large part, developing an emphasis on education by the government is the solution to overcoming the many challenges thrown up by today’s connected economies
Sheikh Mohammed bin Rashid Al Maktoum
February saw the second annual Government Summit take place in the UAE, an initiative that endeavours to weave together the twin strands of pre-planning and innovation. The Summit this year focused on the areas of talent and technology while ensuring that the entrepreneurial spirit of the people of the UAE remains the key to developing good governance. Over WKUHH GD\V GHOHJDWHV DQG PRUH than 60 speakers from the government, business, transport and the education sectors got together to thrash out a plan for the future. This should not be misinterpreted as being akin to Soviet-era macromanagement of market forces but rather like a high level corporate planning session. Professor Klaus Schwab, founder and executive chairman of the World Economic Forum, in his keynote speech at the Summit said, “Today, we are living in the Governance 2.0 world characterised
by new technologies that provide services and bring about an interactive relationship between the leadership and its citizens...This is much like a Google search bar: you type something in and you get the best possible result for your query.� Schwab went on to say that the next stage of governance will be characterized by citizens who are the co-owners and shapers of the IXWXUH ´*RYHUQDQFH ZLOO EH D platform where people can provide feedback, much like YouTube.� In large part, developing an emphasis on education by the government is the solution to overcoming the many challenges thrown up by today’s connected economies. That education must focus on creativity, innovation and entrepreneurship as the core attributes of tomorrow’s leaders and entrepreneurs, including what Schwab refers to as “entrepreneurs in public service.�
The forum also spent time exploring some of the many intangibles that make economies successful over the long run, like happiness. A trustworthy government is a big factor in achieving the happiness of citizens. Dr. Jeffrey Sachs, director of the Earth Institute at Columbia University, pointed to the success of the UAE, which is ranked ÀUVW LQ WKH $UDE ZRUOG DQG QXPEHU JOREDOO\ LQ WKH :RUOG +DSSLQHVV 5HSRUW DV D UROH PRGHO ´0RQH\ matters, but money isn’t everything. Being poor really hurts. Being wealthy helps but after a certain level the happiness gained from earning more functions on diminishing marginal returns. The pleasure from the extra dollar becomes less satisfying,� Sachs said. Modern governments can lay the groundwork for modern, happy and inclusive societies but ensuring that the man in the street feels involved in the process is vital too: active citizenship
Naturally governments have a VLJQLÀFDQW UROH WR SOD\ LQ HQVXULQJ WKDW people become engaged in day-to-day events and it is here that governments themselves can learn most from the private sector. Governments can embrace the foundation principles of successful businesses like service delivery, engaging staff in their SURFHVVHV DQG GHOLYHULQJ ÀUVW FODVV services.
Sir Tim Clark
Some of these lessons will come from the airline industry and both Sir 5LFKDUG %UDQVRQ IRXQGHU RI WKH 9LUJLQ
Group and Sir Tim Clark, president of Emirates spoke at the Summit and provided core insights into the multichannel service delivery model adopted by the two major airlines in addressing the needs of a wide range of customers across the globe. Branson said, “The staff must be happy with the service tools they are expected to utilize. Every single detail must be right. It will then be possible for the staff to offer great service to customers.â€? Branson went on to say, “The person in charge must be a good listener, he or she must come out and meet his people with a note-book in hand and take their feedback on their experiences,â€? and Clark added that, “Dubai recognized ‌ early on that if you are on a mission to improve a system, the system should be capable of achieving an upgrade on its own.â€? The problem that many modern governments face is one of integrating the many different departments so that each understands the objectives of the other and learns to form collaborative bonds between them at all levels. In this way, much like a successful modern business, collaboration between government entities and integration of various services through HIĂ€FLHQW LQIUDVWUXFWXUH FDQ EH HQDFWHG to achieve a successful transition towards a smart government. Mohammed Nasser Al Ghanim, director general of the 7HOHFRPPXQLFDWLRQV 5HJXODWRU\ Authority summed it up neatly. He said, “The customer is at the core of the smart government. The priority in the shift towards a smart government is to create the infrastructure that enables customers to meet their service requirements swiftly and smoothly using their mobile phones.â€? The biggest challenge in smart government is meeting customer expectations on services. The government of the UAE is already focusing on putting in place a secure and integrated infrastructure involving the government, the central bank and telecom companies to deliver WKLV 2YHU WKH ODVW \HDUV WKH 8$( government has made moves towards smart government but needs to do more. Governments need to understand customer needs and customers must
be able to reach decision makers and provide their feedback and this can mean that governments must provide the infrastructure to enable change in the move from the digital era to the smart era. Ever since the arrival of Wikileaks on the global stage there has been an interesting debate on the trade-off
The customer is at the core of the smart government between security and privacy. This is not a debate that is likely to disappear anytime soon. Osman Sultan, CEO of UAE telecom operator du, says that as the UAE moves ahead in creating smart cities, it must be the role of the government to create the right platform to collect, store and analyse data. Sultan portrays communication as a human right and the smart phone as a tool of empowerment for all of mankind. Platforms such as social media become important building blocks for creating positive change within societies and its power in driving small individual changes to become part of greater, collaborative force for change. New generations do not wait for guidance, but simply make their own changes.
Sir Richard Branson
Another time, another place Industrial zone operators and port operators alike should be quaking in their boots as Abu Dhabi’s new futuristic Kizad comes on stream, as Ilkley Satterthwaite reports In many ways Kizad is a planner’s dream. In the modern world when land values are at a premium, to be able to take a vast tract of vacant real estate and build a vision of the future with no encumbrances, no legacy heritage RYHUOD\V QR EURZQ Ă€HOG VLWHV UHTXLULQJ a workaround, just a blank canvas and a vision, is rare indeed. At least that this is the picture painted by the marketing pitch of Kizad, the Khalifa Industrial Zone Abu Dhabi, with the strapline ‘the industrial zone of tomorrow’. And it seems to be so. The planning behind Kizad is the key to its success as a concept. Take a chunk of land that happens to be at the heart of one of the fastest developing areas for business on earth and implement the best and most modern technologies from logistics to planning to security to stock control and the end result is a destination that is cheaper, IDVWHU DQG PRUH HIĂ€FLHQW WKDQ WKH competition. The fact that Kizad also happens to have its own seaport and is within spitting distance of two leading airports means that communications are VZLIW DQG HIĂ€FLHQW Khaled Salmeen Al Kawari, CEO of Kizad and chairman of Abu Dhabi Terminals, acknowledges the critical importance of planning in the development of the venture. “Everything we do is centred on the concept of delivering what the customer wants. You need to build infrastructure to be able to attract customers, so on the port we have put very clear targets.â€? In the time-and-motion clockwork precision required to make Kizad a
statement by Abu Dhabi government to create a wealth of opportunities on a global scale.
Khalifa Port Interchange
PRQXPHQW WR HIĂ€FLHQF\ QR GHWDLO LV too small to be overlooked. Kawari says, “It starts on the land side, where if you are coming to pick up or drop RII D FRQWDLQHU \RX KDYH D WRWDO RI minutes within which you have to be in and out. That is unparalleled worldwide and is automated. It means that you have to automate everything; clearance of customs has to be done online; scheduling of pickups has to be done online; registration of the pickup trucks is done online. Everything is done way ahead of time.â€? It sounds like an environment in which a great number of things could go wrong but apparently they do not. “The driver will arrive at the gate, license plate recognition will read the plate, the 5)' ZLOO UHDG WKH WDJ RQ WKH FRQWDLQHU and will check if the customs papers have been cleared, and if the driver is cleared. If everything is OK then the driver gets a printed piece of paper that will tell him where to go. As he is pulling out, the truck is GPS monitored so that on arrival to the appointed loading spot, the driver jumps out and stands on a pressure pad for safety, so that you are not loading or unloading
while someone is in the truck. Thirty seconds after the container is loaded or unloaded, the truck is off. As vehicles enter and leave, all the scanning is done through automated gates.â€? If it all sounds a bit Fritz Lang Metropolis, it is, but with a heart and soul. There will be cynics who think that it sounds too good to be true and Kawari acknowledges this but says, “For the last six months I can guarantee that on average we are well XQGHU WKH PLQXWHV 7KDW LV D .3, IRU customer service. This means you don’t have to wait for days and it means increased productivity. This gives us DQ DGYDQWDJH :H DUH WKH Ă€UVW DQG only semi-automated port in the whole Middle East.â€? As with everything new in Abu Dhabi at present, none of this happens by accident and Kizad is an integral part of the Abu Dhabi Economic Vision WKH RYHUDUFKLQJ SODQ WR WXUQ WKH emirate into a leading business hub of tomorrow. Industry is at the heart of the YLVLRQ DQG .L]DG ZLWK LWV PDVVLYH square kilometres of industrial land and facilities is nothing short of a mission
The main challenge seems to be in securing new clients that can take full advantage of what Kizad has to offer. ´%XVLQHVV GHYHORSPHQW ÀQGLQJ WKH right clients and developing a product for all the clients with different needs, is a challenge. This forces us to be as à H[LEOH DQG LQQRYDWLYH DV UHTXLUHG )RU instance with our aluminium clients, we take the molten metal and supply LW WR FOLHQWV DW F VR LW VDYHV WKHP the expense and time of remelting it so they can extrude it into whatever parts they make.� Apart from being ground breaking technology, this is also one of the many reasons that automotive and aircraft parts manufacturers are looking at Kizad as a centre for their own manufacturing operations.
for, you will choose the right one. Jebel Ali is excellent as a free zone and as a logistics hub. But Kizad is not a logistics hub. We are an industrial zone. Most of our guys are not on trading licenses, they have industrial licenses and that is a major difference.�
Everything we do is centred on the concept of delivering what the customer wants
Then there is the thorny issue of taxation and duties, the bane of many international manufacturing businesses. Thankfully the UAE is a largely tax free environment and the free zone model adopted by the UAE helps simplify such matters further. “There are a number of clusters within Kizad that are very attractive for investors and we can offer a very attractive environment, like zero taxes, zero customs on capital equipment coming in for the project and raw materials during operations. We can be extremely competitive for the GCC market. Normally in the GCC you have to pay DQ\ZKHUH EHWZHHQ DQG SHU FHQW just in customs duties for the product. In Kizad you do not pay these customs duties,� says Kawari.
It is all about strategy, starting with a location that is pitched at linking east and west with access to over 4.5 billion consumers within four time zones. There would be little point in going to the bother of building such a state of the art facility if industrial WHQDQWV ZHUH JRLQJ WR Ă€QG WKHPVHOYHV tied up with bureaucracy and red tape. That is why Kizad trumpets its ‘One Stop Shop’ business services concept, to help facilitate relationships with government and licensing authorities as well as utility companies, to ensure rapid processing and approvals. So how does it compete with other ports in the UAE? Kawari says, “It’s not a question of ‘either or’ with other ports in the UAE. Each port has a different value proposition and depending on what you are looking
Khaled Salmeen Al Kawari, CEO of Kizad and Michel Temer, vice president of Brazil
Cities of tomorrow 3
www.world-businesstimes.com
Setting the standard for regulation
Infrastructure is often the unsung hero of any rapid growth story. In the UAE, infrastructure could have come apart at the seams, if it weren’t for a team of dedicated professionals. Paul McNamara reports doing has cast something of a shadow on its apparent lack of progress in the areas of soft infrastructure like education and healthcare. Healthcare is catching up while education trails behind.
Nick Carter
In a nation growing as fast as the UAE, the strain on the infrastructure of the nation is enormous. This is both a blessing and a curse. The sheer volume of people now living in the UAE puts tremendous strain on the natural structure of roads, electricity supply, sewerage and water and myriad other services. Add to this the burden posed by the equally massive number of visitors that descend on some of the emirates, unevenly, throughout the year and the development problems can look almost unsurmountable. The fact that the temperature for half the year is beyond the tolerance of most humans puts yet further strain on resources and capacity. A picture soon emerges of a nation that simply cannot afford to do it the hard way, it has to do it the smart way. This is where the blessing comes in. As such a young nation, the UAE does not suffer from the post-industrial revolution overhang that still lingers in much of Europe. The UAE has a clean slate on which it can sketch RXW LWV SODQ IRU WKH QH[W ÀYH WR years, leveraging the best of new technologies, particularly in terms of energy conservation, recycling and reducing waste, to make the UAE a PRGHO RI HIÀFLHQF\ It is in these areas of hard infrastructure where the UAE, and Abu Dhabi in particular, has taken a lead and in so
The key to much of this growth lies in the area of regulation. Without regulation there would be no private sector involvement and investment, and without private sector involvement, there would be no constant entrepreneurial drive to remain cutting HGJH EHVW LQ FODVV DQG SURÀWDEOH In Abu Dhabi the realm of regulation lies squarely at the feet of the 5HJXODWLRQ 6XSHUYLVLRQ %XUHDX which regulates the water, wastewater and electricity sectors of Abu Dhabi. Its primary role is to ensure the continued availability of potable water for human consumption and electricity for use in hospitals and centres for the disabled, aged and sick and describes its general duties as ensuring the security of the supply of water and electricity in the emirate, amongst other things. While regulating water may sound like a rather dry agenda, in fact the UROH RI WKH 56% LV FULWLFDO LQ HQVXULQJ best practice in the sector as well as in making sure that Abu Dhabi is the leading example of modern day facilities’ regulation in the region and possibly the world.
generation of young Emiratis buys into the process and takes up the reins to become leaders of tomorrow. “We are very conscious of the future but careful about not rushing into the future,� says Nick Carter, director general of the 56% ´:H NQRZ WKDW XQOHVV (PLUDWLV are given a breadth of experience then they will not be able to meet the challenges that their future roles will hold for them. Once you are in a leadership role it is almost impossible to look back and ask for advice because you are expected to lead,� and this means a raft of training and mentoring for staff.
Much of what has been established by the RSB in Abu Dhabi has already been mirrored in Oman
56% GRHV WKLV E\ UHFRJQLVLQJ WKDW WKH days of centrally owned, vertically integrated utilities are a thing of the past. The future has to lie in encouraging the private sector to EHFRPH LQYROYHG VR WKDW HIĂ€FLHQF\ LV driven by the twin imperatives of cost PLQLPL]DWLRQ DQG SURĂ€W PD[LPL]DWLRQ The regulatory role comes in to make sure that the cowboys do not take over at the expense of the consumer.
“One of the recent initiatives we have undertaken in this regard is career development and so I have recently interviewed every Emirati member staff as part of a career review and development programme. We have set up a succession planning approach. So it is one thing working within the Bureau and understanding how we work but it is another thing to gain experience from the other side of the fence and so we put people in companies within the sector to gain experience there. And this is part of the strategy to make sure that in a few years time they can become directors,� says Carter.
In order for these efforts to be sustainable in themselves, it is imperative to make sure that the next
7KH 56% KDV D PDQWUD WKDW LW HPSOR\V only the best people, whether they are UAE nationals or foreigners. “We have
superb Emiratis here. We will not take on people that we feel cannot do the work. Promotion is the same. They are not promoted because they are UAE nationals,â€? according to Carter and this is of critical importance in maintaining the quality levels necessary for the fast developing Abu Dhabi market. ,QGHHG WKH DSSURDFK WKH 56% LV WDNLQJ and the methodologies it has adopted have made it something of a role model for regulatory bodies in the region. How practical it would be to export some of the ‘best practices’ IURP 56% WR RWKHU SDUWV RI WKH *&& LV an interesting point. “I think it is very practical in the sense that we have had many visits from places like Saudi Arabia, Sudan, Libya and Egypt. A whole range of countries are looking at how we regulate and looking at the skill sets of the staff, how we structure the organization, how we write most of our regulations,â€? Carter says. Much of what has been established E\ WKH 56% LQ $EX 'KDEL KDV DOUHDG\ been mirrored in Oman and the Omanis regulate on a similar basis looking at monopoly operations, price controls and private generation in a style that ERUURZV PXFK IURP WKH 56% WHPSODWH And it doesn’t end there. “Saudi Arabia is copying the independent power project model and in fact the Independent Water and Power Projects are being copied all around the region DQG WKH\ ZHUH Ă€UVW VWDUWHG KHUH $QG it’s a great model for setting up project Ă€QDQFH Âľ DFFRUGLQJ WR &DUWHU
Curiously the Abu Dhabi model has not been copied by neighbouring Dubai, which still operates a vertically integrated, stock standard, oldfashioned system that has not changed much in the last 20 years.
What seems clear is that the regulations EHLQJ SXW LQ SODFH QRZ E\ WKH 56% will help in determining the future of the industry, but this is regulation that relies heavily on consultation. “We always consult with who we believe are the affected stakeholders. For example, we are just doing a project on waste water recycling, so the affected stakeholders would be the department of municipal affairs and large users of waste water, so we are looking at setting up a waste water irrigation company. We are going to issue wastewater regulations in terms of how that water is managed, so that it is not stagnant or injurious to health, because recycled water is heavily dosed with chlorine and although it is perfectly safe to handle it is not ideal for drinking. We are at the consulting phase of this at the moment and the
regulations should be issued this year,â€? Carter says. The future of the industry undoubtedly involves ‘going green’ and this can affect a wide range of activities. “We are in the middle of a Home Makeover SURMHFW ZKHUH ZH ZLOO WDNH YLOODV that have high consumption and we are changing everything from AC units to fridges to light bulbs to window GUDXJKW SURRĂ€QJ DQG ZH DUH WU\LQJ WR see what savings can be made without changing the pattern of behaviour of the people who live there.â€? 7KH EHQHĂ€FLDULHV RI WKHVH VRUWV RI projects will be the government because the sectors themselves are so heavily subsidised in a fast evolving market. The end game is to achieve embedded generation renewable energy that will spawn lots of new business particularly for SMEs. Indeed, the VHFWRU FRXOG EH D VLJQLĂ€FDQW PDJQHW for SMEs and this, in itself, could help make sure that the future of the sector will look very bright.
$Q\ PHQWLRQ RI SURMHFW Ă€QDQFH PDNHV the ears of investment bankers across WKH ZRUOG SULFN XS %XW SURMHFW Ă€QDQFH will only attract serious capital if the environment is right. “They key thing DERXW SURMHFW Ă€QDQFH LV WKDW \RX QHHG good laws and you need an offtake agreement and you must have an independent regulatory body. Without that, people will not invest.â€? State of the art water treatment plant in Abu Dhabi
4 Cities of tomorrow
April 2, 2014
A step forward for thought leadership For the UAE to move into the premier league of intellectual thought will require putting in place the building blocks for the next generation to think differently. That is where the ECSSR comes in. The problem for many developing nations is finding enough home grown talent to take responsibility for the wide range of growth initiatives that are envisaged by the leadership. In the UAE’s case the problem is doubly acute since the absolute numbers of local Emiratis is painfully low, five of the emirates are often overlooked and half of the Emirati population is female. Many Arab countries, the UAE included, remain behind the curve in terms of integrating women fully into the work force. The result is that Emiratis with leadership qualities tend to be called upon to fulfill a broad range of roles across a diversity of sectors. With such a premium on finding good business leaders, it can leave the field of academic and intellectual endeavor rather wanting. Emirati intellectuals and thought leaders that make it onto the global stage tend to find themselves in high demand. A case in point is HE Dr Jamal Sanad Al-Suwaidi, Director General of the Emirates Center for Strategic Studies and Research. The ECSSR is a prominent scientific research institution based in the UAE that has shown itself in recent years to be one of the most dynamic and effective bodies in the UAE for monitoring global events. HH General Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, Deputy Supreme Commander of the UAE Armed Forces and President of the ECSSR, says “Through its many concrete achievements, the ECSSR has proven its ability to surmount all challenges and obstacles, and has consequently become a well-established intellectual institution not only in the United Arab Emirates but also in the Gulf and the Arab world. Furthermore, the ECSSR has acquired distinguished academic and research status at the international level…there is a need to continue our support for the Center within the context of strengthening scientific and intellectual traditions that lay the foundation for building modern societies that aspire to follow the path of accelerated development and progress.” Al-Suwaidi received his PhD from the University of Wisconsin and, in addition to holding the title of Director General of the ECSSR in Abu Dhabi, he is also a professor of Political Science at the United Arab Emirates (UAE) University in Al-Ain. He has taught courses in Political Science Methodology, Political Culture, Comparative Governments and International Relations at the UAE University and the University of Wisconsin. Al-Suwaidi is an intellectual in the true sense of the word and has informed opinions on a wide range of topics, particularly those that affect the growth and stability of the UAE. For instance while many observers believe that China will soon overtake the USA as the dominant world economy, in Al-Suwaidi’s new book Prospects for the American Age:
Sovereignty and Influence in the New World Order, he suggests that the USA will have a dominant influence on world events for many decades to come. He told us, “China is often called the ‘factory of the world’, which is often confused for being the ‘economy of the world’. Although the Chinese economy has grown substantially, China still lacks the innovation, level of education and creativity of the USA. On top of this, China will suffer from a demographic problem due to its one-child policy, which will result in a large aging population and not enough young workers to keep the economy running at an optimum level. For these reasons, I see the USA maintaining its lead over China and other countries for the foreseeable future.” These are strong words, coming at a time when the USA is itself only slowly emerging from its worst financial crisis in decades. Al-Suwaidi’s words, however, take on a tinge of prescience at a time when China is starting to see its first high-level defaults in the corporate bond market; defaults that have led some analysts to predict that we are witnessing the start of China’s own Lehman Brothers-style collapse. Who would benefit most from reading this book? “World leaders and politicians, naturally; the young men and women of the Middle East; but most importantly those who fervently believe the USA is a declining power. They might have to think again.” From a Western point of view, it is fascinating to see how the world looks through Arab eyes and this is one of the main reasons why Al-Suwaidi’s new book is likely to be received warmly in the West even if it is received more coolly in the East. Al-Suwaidi says, “I saw a need for a study of the new world order that includes a historical perspective and a projection of the power balance in international relations for the coming decades. No other book has taken this approach to the academic analysis of geostrategic politics.”
too expensive to develop feasibly. However, it is not realistic to think that alternative energy resources will replace oil completely; ultimately there will be a mix of traditional resources such as oil and gas and alternatives, depending on need and price.” What the development plans of all leading oil and gas producers show is a grim determination to have developed their economies to be diverse and integrated. Inevitably this means that from a sociological perspective, nations like the UAE will look very different in 20 years’ time. Al-Suwaidi concurs, “The UAE economy will be far larger and will have matured and therefore be more resilient to geostrategic uncertainty. Hopefully, the economy will also be noted for its industry and innovation, rather than a reliance on consumer spending. The problem for Emiratis will be the demographic imbalance, which is only set to get worse in the future.” Here Al-Suwaidi is hinting at the emergent reality that Emiratis are destined to remain a minority in their own country. Amongst other things, this helps to explain why the intellectual elite recognizes the need to integrate Emirati women more into the workforce of the UAE. It also goes a long way to explain why there has been such a focus on improving road safety over the last five years, since a depressingly high number of road fatalities in the UAE involves young Emirati men in fast cars. An emerging nation like the UAE can ill afford to lose relatively high numbers of its young nationals so needlessly at a time when it is fast approaching the tipping point of becoming a centre of the future.
From the UAE’s perspective this clarity of thinking remains crucial to its positioning in the world, both as a source of hydrocarbon energy for decades to come as well as an increasingly important logistics and transshipment hub.
Naturally there are other impediments that the UAE will have to overcome to ensure it becomes an engine of global growth and, by and large, these are dealt with through the growth plans of both Abu Dhabi and Dubai. “To become an engine of global growth, the UAE must develop a culture of inquiry, creativity and innovation. This needs to start in schools where the skills of critical thinking must be encouraged. Teaching people to question does not lead to chaos, it only leads to refinement and improvement,” says Al-Suwaidi.
The UAE, alongside other major GCC-based energy exporters, is only too aware of the finite nature of its natural resources. Does Al-Suwaidi believe that change in the geopolitics of oil economies is keeping pace with developments in finding alternative energy sources? He remains sanguine, “Oil economy geopolitics respond to, and reflect, the advancement of alternative energy sources. By this I mean if geostrategic instability in oil-producing regions causes the oil price to go up, it becomes economically feasible to develop alternative resources such as shale gas and solar or wind. If there is geostrategic stability, the oil price comes down and alternative resources may become
This recognizes that the building blocks for a truly advanced society start as soon as children enter the mainstream. They must be taught to be inquisitive and value the importance of rigorous intellectual debate, something that modern Gulf states often lack. But growth and development have to take place against a backdrop of the indigenous culture of the nation and modern-day businesses can still learn lessons from the traditional Bedouin approach. As Al-Suwaidi puts it, “Bedouin culture focuses on developing a trusting relationship with someone before moving to the matter of business; it also teaches patience. Both these attributes would be welcome in a modern business sense.”
The perfect solution would involve taking the best of the West and combining it with the best of Arabic thinking while at the same time introducing the germ of innovation into the development petri dish. Would this be enough to wean Emiratis away from reliance on jobs in the public sector and into the private sector? Al-Suwaidi recognizes that this is a major challenge in itself, “To see more Emiratis entering the private sector will require either the public sector to reduce benefits to match the private sector, or the private sector to increase benefits to match those of the public sector – either way there has to be equality of appeal. How to achieve this would probably depend more on developing the private sector to be large enough that the range of possibilities and options is too irresistible to ignore. Moreover, referring back to education again, the skills base of Emiratis must be sufficient for them to find a profitable niche in the private sector.” One of the easy mistakes to make is to assume that development in the UAE is all about Abu Dhabi and Dubai, but this misses the rich cultural fabric of the other five emirates that make up the union. What can Dubai and Abu Dhabi do to be more inclusive of the other emirates in their current growth trajectories? “The federation of the UAE has to move together as one. The strengths of Abu Dhabi and Dubai have to be shared with the other emirates to encourage a sense of shared success and pride and cement national identity and loyalty. This could include assistance with new business development in the other emirates to improve their economies, as well as promoting industries such as tourism. Also it must include a strong element of Emiratisation,” according to Al-Suwaidi. The reality is that the other emirates are not as well funded and cannot afford the largesse of the two richer emirates. Sharing and inclusiveness will have to be legislated for and made to work if the UAE is to mine the rich seam of talent that lies at the heart of its young nationals. This might involve providing a forum by which Emiratis can develop their strategic thinking abilities in the way that students in markets like the USA take for granted. Perhaps there could be a platform for them to publish books, articles and thought pieces? Al-Suwaidi says, “Strategic thinking comes not only from a good education, but also from listening to and considering the opinions of others. This requires a degree of freedom of expression and opinion, which could be channeled through various media platforms acceptable to the population, including publishing. Sharing ideas about the future helps us all to prepare for it.” Al-Suwaidi seems to be hinting at the fact that freedom of expression is not yet a cultural norm in much of the Gulf but perhaps could grow through time. Experience suggests that real life mentors are essential for the success of such undertakings.
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There’s the rub
In a society as fast developing as the UAE it would be hard to overestimate the importance of a strategic think tank like the ECSSR. Thankfully there seems to be little chance of that happening. development of UAE nationals through a variety of training programmes: skills that are badly needed. The ECSSR has a busy schedule and a full agenda and encapsulates a wealth of ground-breaking initiatives such as its 19th Annual Conference that ran over two days in Abu Dhabi in March of this year, titled Technology: Influences, Challenges and Future, which discussed emerging trends and impacts of technological development globally, and on the Arab world in particular. One of the main challenges is media convergence in the Middle East and creating a culture of understanding for what convergence is all about. It is no longer just about technology but is also concerned with understanding how media outlets are coming together and operating from a single media platform to produce a new format that is fitted for new media.
Dr Jamal Sanad Al-Suwaidi
Strategic thinking, intellectual rigour and punchy delivery are some of the prerequisites for modern societies to stay at the head of the curve in thought leadership and international relations alike. Who is best placed to deliver on these needs? Generally speaking think tanks like Chatham House or the Brookings Institution. The UAE cannot boast anything quite so grandiose as these two august organizations, but it still manages to punch above its weight with the Emirates Center for Strategic Studies and Research. The ECSSR, established in 1994, is an independent research institution whose agenda involves keeping abreast of new developments at the political, economic and social spheres of human endeavour and which hopes to formulate the most suitable responses and strategies for keeping UAE society on top of its game. Since its launch, the Center has managed to set new benchmarks of excellence and expertise in the field of strategic studies and research. The Center uses a strategic and rational approach to explore pivotal issues facing the UAE while placing a premium on rigorous discipline in academic and scientific enterprise. The ECSSR manages to involve a group of well-educated Emiratis in its day-to-day operations in the hope that this will feed through to society at large and provide a real, tangible national benefit. The focus of the Center is on scientific
research and studies on social, economic and political issues of interest, primarily to the UAE and the Gulf, but also to the Arab world in general.
“The ECSSR manages to involve a group of well-educated Emiratis in its day to day operations in the hope that this will feed through to society at large� The Center’s overall objectives are to conduct studies and research on topics relevant to the national security and economic and social well-being of the UAE and the Gulf and on other relevant international concerns. It also hopes to provide community services through scientific activities and the convening of symposia, lectures and conferences on topics related to the research agenda of the Center. Another equally important objective is helping to promote the professional
The landmark conference looked at the challenges facing media convergence including technological, content and financial issues in addition to looking at government regulation; areas where the Arab world continues to lag behind in terms of infrastructure as well as broadband connectivity, compared to other parts of the world. To address this gap, the conference suggested that pupils at schools and students in universities should be better educated on how to handle new forms of technology. This would mean ensuring that university curricula include content about new media and convergence. “We believe that good planning will allow us to use technology as a tool to achieve our aims and overcome the challenges that may be experienced by other societies,� explained HE Dr Jamal Sanad Al-Suwaidi, Director General of ECSSR. He went on to make the point that all individuals, institutions and decision makers need to work closely to exchange their ideas in order to reach a development plan that can maximise the use of human resources and technological advancements in the best possible manner. In the keynote speech at the conference, HRH Princess Rym Ali, founder of the Jordan Media Institute, outlined how the Internet held enormous potential for development, stating that, “Some countries are in the middle of the phase with increased government controls while others are struggling to preserve the values of the UN-approved communication channel.�
where our perspectives of our current position and our future prospects are both too small and too large. We have a right to be interested in both aspects of the technology because our current position should tell us whether we are using such technology profitably and our vision of the future should help us prepare ourselves and our society for the next generation.� IT has automated major tasks in all of the ‘seven classic categories’ of social activity, ranging from production, commerce, finance, security, accounting, management and politics.
“The role of the ECSSR is to make sure that the world’s best thinkers are aware of the challenges facing the Arab World.� The quality of debate and the calibre of discussion witnessed at the conference give some indication of the integral place that the ECSSR has in the development of the UAE as a whole, but the conference itself is hardly a stand-alone event. Earlier in March, President Olafur Ragnar Grimsson of Iceland gave a lecture at the ECSSR in which he acknowledged the key role the UAE has been playing on the global clean energy scene. Grimsson spoke about Iceland’s economic situation during the 2008 global financial crisis, saying the economy at that time was on the brink of collapse. “Our country has recovered now, thanks to the approach of investing in clean energy to boost the national economy,� he said. In essence, the role of the ECSSR is to make sure that the world’s best thinkers are aware of the challenges facing the Arab world and the UAE, and that a veritable two-way exchange of information and insight is achieved so that the next generation of young Emiratis can take up the torch not simply as participants in the conversation, but as a core element in the discussion process.Young Arabs have a lot to offer the world, but sometimes the language and the rubric used has to be one with which the academic world is familiar. The ECSSR hopes to provide the medium and the message to make sure that future insights are of benefit to all.
As a nod to the quality of debate at the conference, David Alan Grier, associate professor of International Science and Technology Policy and International Affairs, at the George Washington University, United States, said, “We have reached a point in the development of information technology
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6 Cities of tomorrow
April 2, 2014
The possible dream
Fixing the UAE school system seems like a thankless task but the early work is being done, as Daniel Cliff reports
learning. It also involves continuing to provide a benchmarked curriculum that DOORZV VWXGHQWV WR DSSO\ VW FHQWXU\ skills. ,Q WHUPV RI WKH VSHFLĂ€F UROH RI WU\LQJ to lift the level of domestic education, Qubaisi says that ADEC will, “Support the elevation of schools quality in Abu Dhabi to international standards through implementing an ambitious student assessment system based on local and international standards, including participating in at least two rounds of international assessments VXFK DV 3,6$ 7,066 DQG 3,5/6 WKDW will support good student outcomes through feedback to school leaders, teachers, students and parents.â€? ,Q WKH QH[W Ă€YH \HDUV $'(& KRSHV WR accomplish the full implementation of the New School Model in all schools, improving the student learning process and aligning UAE schools with nations around the world. This will involve elevating the school quality to international standards, communicating and measuring professional standards and guidelines while ensuring international equivalence.
Dr Amal Al Qubaisi
T
he subject of education is rather a sore point in the UAE. While the private sector has a plethora of schools catering to the needs of the majority expatriate population, the level of education for local state schools lags some way behind. This is an area that the authorities have been taking steps to address over the past decade but there is still a long way WR JR $W SUHVHQW D VLJQLÀFDQW QXPEHU RI 8$( QDWLRQDOV ZKR ÀQLVK VFKRRO have to undertake remedial courses before they are ready to enter the university system. In some cases, their basic levels of numeracy and literacy need additional work before proper tertiary education can begin. We spoke to Dr Amal Al Qubaisi from the Abu Dhabi Education Council to get a sense of the steps being taken
in the emirate to improve educational standards and to ensure that Emiratis are better equipped in the future to deal with the challenges of such a fast developing nation.
Qubaisi has a PhD Degree in Architectural Engineering and holds the world’s only doctoral degree on the Conservation of the UAE’s Architectural Heritage. She graduated LQ ZLWK D %DFKHORU 'HJUHH LQ Architectural Engineering from UAE University. She is also First Deputy Speaker of the Federal National Council, the UAE parliament and the ÀUVW ZRPDQ WR EH LQ FKDUJH RI D OHDGLQJ political role across the GCC. ADEC’s strategic goal for the HGXFDWLRQDO VHFWRU RYHU WKH QH[W ÀYH years involves reaching all children and making the switch from teaching to
New school model to be implemented across the board Without doubt there is a lot to be done and the sooner major advances are achieved the better. What strategies can the UAE adopt to ensure that it improves its scores in the Programme for International Student Assessment (PISA) tests? Qubaisi says, “Teachers and students will be introduced to PISA-like assessments to know what to expect when the new cycle of PISA is administered. PISA skills are revised, elaborated clearly in the curriculum and made available to both teachers and students. Our key strategy is to identify and remediate areas where the education system can support the improvement of student outcomes. We are using the PISA data to identify
NH\ IDFWRUV WKDW LQà XHQFH DFKLHYHPHQW within Abu Dhabi’s schools. PISA provides information on knowledge and cognitive skills that enable us to identify strengths and weaknesses. We also obtain background information on students, schools and teaching practices that can be associated with achievement.�
children studied were Emirati children and adolescents with only a small percentage of expatriates. The children in the study were randomly selected IURP RXW RI SXEOLF VFKRROV LQ Abu Dhabi, Al Gharbia and Al Ain. The ÀQGLQJV RI WKH \HDU ORQJ VWXG\ ZHUH published in the International Journal of Obesity.
The plan is that ADEC will employ quality teachers who will focus on the curriculum and teach in creative student-centred methods. There is also a need to develop continuous teacher HGXFDWLRQ DQG GHĂ€QH FDUHHU SDWKZD\V to make sure that teachers are properly trained to recognize international standards and teach at that level. The UAE also intends to work to develop UH TXDOLĂ€FDWLRQ SURJUDPPHV IRU QRQ TXDOLĂ€HG WHDFKHUV DQG VR HQVXUH alignment with high standards.
As with children in most countries, technology is a great enabler and Qubaisi says, “Students are daily using technology to demonstrate the mastery of the curriculum. Technology highly motivates our children to express themselves.� Schools are “collaborating to use smart devices to facilitate collection, management and reporting of longitudinal data
In a nation that is suffering badly from child obesity, it is clear that the role of education has to be more than simply DERXW WHDFKLQJ WKH 7KUHH 5V 7KHUH also has to be a focus on improving the ‘non-educational’ side of learning in the UAE such as providing healthy food in cafeterias and canteens to help tomorrow’s students emerge wiser and Ă€WWHU DV ZHOO DV EHWWHU HGXFDWHG In this regards the new curriculum is supported by many campaigns VXFK DV Âś$' 5HDGV¡ WR SURPRWH WKH awareness and the love of reading. Other important issues such as health and safety and cyber security are either included as part of the curriculum ZKHUH WKH FRQWHQW LV Ă H[LEOH IRU QHZ issues or through awareness campaigns. Qubaisi adds, “The food service in our schools will provide our students with healthy options with wellness as a goal. ADEC is considering expanding services for our students to include extra curricular offerings in sports, music and art.â€? This may prove to be too little. A new study from the middle of last year says that one in three children in state schools in the UAE is overweight or obese and at risk of early diabetes and K\SHUWHQVLRQ 5HVHDUFKHUV VWXGLHG FKLOGUHQ DQG WHHQDJHUV DJHG VL[ WR DQG IRXQG WKDW SHU FHQW ZHUH RYHUZHLJKW DQG D IXUWKHU per cent were obese. Most of the
ADEC’s strategic goal for the educational sector over the next ďŹ ve years involves reaching all children and making the switch from teaching to learning
from classroom walkthroughs, teacher observations, teacher evaluations, and staff appraisals. Faster access to data means better decisions which in turn produce better results,â€? according to Qubaisi. “As we increase access to computers and other devices, interactive projectors and Internet services in our schools, students and teachers are able to change the way they work. Our focus has changed from teaching ICT skills in isolation to all subjects enhancing learning opportunities by embracing technology. Our curriculum writers, eLearning facilitators and teachers are all working to provide more opportunities for VWXGHQWV WR GHYHORS VW FHQWXU\ VNLOOV through working with technology.â€? The educational challenges ahead would seem to be enormous but it is clear that the UAE leadership recognises the importance of its own people as the future of the nation. As the UAE grows as a global hub, the demands on its young population will increase and it remains imperative that the next generation is given the best foundation possible to be able to meet these challenges head on. It may be a long and troublesome road, but at least WKH Ă€UVW VWHSV KDYH EHHQ WDNHQ
Sheikh Mohammed bin Zayed Al Nahyan, Abu Dhabi Crown Prince takes education seriously
Water. Electricity. We regulate them to keep Abu Dhabi going.
The Regulation and Supervision Bureau is the independent regulator of the water, wastewater and electricity sector in the Emirate of Abu Dhabi. Our main duty is to keep Abu Dhabi running. So we plan carefully and work tirelessly in order for our community to enjoy secure water and electricity for generations to come. Get to know us at www.rsb.gov.ae
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The falcon’s new nest
Another airport, another success story. Abu Dhabi’s oil wealth is being put to good use in providing top quality infrastructure for tomorrow, as Pamula MacRan reports FRQÀGHQW WKDW KLV OHDGHUVKLS ZLOO WDNH ADAC beyond this vast infrastructure project and on towards meeting our ambitious goal of becoming the world’s leading airports group.�
Tony Douglas
It’s hard not to be impressed by the things that are possible if you have access to seemingly endless free real estate and a bottomless wallet. Some people might think that the last thing that the UAE needed was another airport as Dubai rapidly makes its way to becoming the busiest airport on earth. But they would be people who have not yet met up with Abu Dhabi Airports Company’s CEO Tony Douglas. Douglas certainly has the kind of resume you would expect for a man charged with the responsibility for delivering one of the most important infrastructure assets in the UAE’s canon. Douglas is a former Heathrow airport CEO who has also spent time as CEO of Abu Dhabi Ports Company. The challenge he and his team now face is to transform Abu Dhabi’s international gateway into one of the most ambitious airport expansion schemes in the world. The goal is to boost airport capacity to PLOOLRQ SDVVHQJHUV D \HDU DQG IRUPV a crucial element in the capital’s vision to become a global commercial hub and thriving destination for international tourism. Upon his appointment, a little over a year ago, Ali Majed Al Mansoori, chairman of ADAC, said, “Tony joins ADAC at a critical stage in the company’s journey to deliver an iconic air hub for Abu Dhabi. I am
Douglas has some pedigree in delivering large projects on time and to budget. At ADPC he led the team responsible for delivering Khalifa Port and Kizad. This year has not seen too shabby a start for ADAC with passenger growth at Abu Dhabi International Airport seeing a further GRXEOH GLJLW LQFUHDVH ZLWK D per cent rise for January compared to the same month last year. The airport’s passenger statistics show WKDW SDVVHQJHUV XVHG WKH DLUSRUW LQ -DQXDU\ XS IURP LQ WKH FRUUHVSRQGLQJ SHULRG IRU $LUFUDIW PRYHPHQWV DOVR VDZ D VLJQLĂ€FDQW LQFUHDVH RI SHU FHQW growth compared with the same month ODVW \HDU WR UHFRUG PRYHPHQWV But the world’s eyes are on ‘The Big Project’ for ADAC and February VDZ WKH DVVHPEOHG Ă€UVW VWHHO DUFK RI WKH 0LGĂ€HOG 7HUPLQDO %XLOGLQJ WKDW Abu Dhabi Airports Co. unveiled: D VLJQLĂ€FDQW PRPHQW LQ WKH ELUWK RI the project. This milestone marks the launch of the roof structure sequence for the mega project and forever changes the skyline of Abu Dhabi, prompting Mansoori, to say, “Today, once more Abu Dhabi Airports delivers on its promises and demonstrates its unwavering commitment to its mandate of developing the airport infrastructure for the emirate, in support of Abu 'KDEL YLVLRQ 7KH 0LGĂ€HOG Terminal Building is now rising into the sky, which is a clear testament that it will be the gateway to the capital city E\ Âľ The iconic design of the MTB is directly connected to the engineering concept behind these steel arches. Each arch rises above its base in an incline format, rather than the vertical design
that is commonly used and spans over a considerable length, with the largest DUFK UHDFKLQJ PHWUHV LQ OHQJWK 7KH Ă€UVW DUFK LV RQH RI WKH DUFKHV WR make up the steel primary structure for the MTB roof and the MTB is destined to become the future home of Etihad Airways. None of this would be possible without employing the very latest in technology and this is a feature that runs through much of the ADAC agenda. “Technology change has been at many different levels and a lot of them are broad enablers. We simply would not have seen the same level of aviation growth without technology change. But equally, the Internet and smart devices allows end-users to interact in a different way, which means that nowadays you wouldn’t think twice about online booking, pre-check-in, etickets,â€? says Douglas.
We are going to make sure that this is the most amazing space anywhere in the world. This building will become as iconic a structure as the Sydney Opera House or the Eiffel Tower While most businesses these days try to leverage technology to best effect for a competitive edge, the scale that ADAC
is employing cutting edge IT is borne as much by necessity as by design. As Douglas puts it, “We are about to open the world’s largest airport building under one roof here in Abu Dhabi, it will be the gateway to the capital city LQ %\ GHĂ€QLWLRQ DW WKDW WLPH LW will be the world’s most modern piece of airport infrastructure and when you try to project three years into the future, that’s when this industry gets really exciting.â€? Today’s airline customer is looking for a lot more than simply a seat on a ‘plane’. They are looking for a much richer overall experience and this has been factored into much of the planning and logistics work undertaken by ADAC. Douglas sums this up by saying, “What I think we will see is that hub airports in particular, where a lot of passengers are in transit, then the experience you have in transit will be a very important part of the end-to-end experience and should enhance the experience rather than detract from it. So we have designed a terminal experience that has got the transfer journey very much in mind. In Abu Dhabi it will be the most creative experience that you are likely to see. I am not going to pre-empt too much of it but I think that it is fair to say that some of the world’s greatest technology provider will use this as an experience environment.â€? If this sounds intriguing then most RI XV ZLOO KDYH WR ZDLW XQWLO WR indulge in the experience in full. “We will be talking about a footfall of DURXQG PLOOLRQ SDVVHQJHUV SHU \HDU going through this facility, being able to play with and experience the next generation of technology. In addition the retail footprint within this facility will be the same as in the Abu Dhabi Mall. That’s how big this building is. It is enormous. We are going to make sure that this is the most amazing space anywhere in the world. This building will become as iconic a structure as
the Sydney Opera House or the Eiffel Tower,â€? says Douglas. This is certainly big talk but is there not a danger of the UAE becoming over-airported, if such a word were to exist? The new Maktoum airport in Dubai, for instance, is also in its infancy and there must surely be a limit to the number of passengers willing and able to use airports in the UAE. It is here that Douglas reveals the real genius of the UAE’s strategy. “Two thirds of the world’s population DQG RI WKH ZRUOG¡V FDSLWDO FLWLHV DUH ZLWKLQ VL[ Ă \LQJ KRXUV RI KHUH Forecasts for travel going forward is enormous. When Etihad puts on a new route, within a very short space of time LWV ORDG IDFWRU LV LQ WKH KLJK V RU ORZ V <RX SXW DOO RI WKDW WRJHWKHU DQG P\ sense is that you are more likely to see additional players coming in.â€? What the UAE lacks in terms of domestic population it makes up for in its geographic location. The world’s JURZWK FHQWUHV IRU SDVVHQJHU WUDIĂ€F are the countries with the biggest populations, China and India, where WKH JURZLQJ OHYHO RI DIĂ XHQFH DOORZV new generations of passengers to contemplate international travel. But neither China nor India has a world-
class airline that passengers trust. Meanwhile the UAE with a fraction of the population or geographical area has two very well trusted global airlines, both growing faster than ever, connecting the emerging world to the rest of the planet. Where is the opportunity for growth and development for ADAC? “I think we will see sustained growth and D JURZWK SURĂ€OH WKDW ZLOO FRQWLQXH to accelerate. Here it is also linked LQWR 9LVLRQ VR QRQH RI WKLV LV D surprise. It is a planned event. We will continue to see the Indian subcontinent growing and growing and growing. Ask yourself the question; is there a mainline carrier in India of the same scale as the UAE? Etihad has a strategic relationship with Jet Airways to enable the demand for travel to feed LWV ZLGH ERG\ Ă HHW WR FRQQHFW WR PDQ\ other destinations. I think you will start to see North America opening up as a destination from Abu Dhabi airport. Another interesting one is the east coast of Africa because it’s got population,â€? says Douglas.
Abu Dhabi MidďŹ eld Terminal construction site
8 Cities of tomorrow
April 2, 2014
Shock treatment
The next 10 years will see a massive boom in the UAE healthcare sector as new technology and new wealth come together to provide unparalleled service. Ilkley Satterthwaite reports 7KH ÀJXUHV DYDLODEOH IURP 'XEDL +HDOWK $XWKRULW\ IRU VKRZ that medical tourists contributed DERXW SHU FHQW RI WKH WRWDO KHDOWK sector revenue with an estimated PHGLFDO WRXULVWV FRPLQJ IRU WUHDWPHQW DW KRVSLWDOV ÀYH GD\ VXUJHU\ IDFLOLWLHV DQG FOLQLFV Patient numbers are increasing at a FRPSRXQGHG DQQXDO JURZWK UDWH RI SHU FHQW IURP SODFHV OLNH 5XVVLD 4DWDU Kuwait, Saudi Arabia, the UK, India and Pakistan, according to DHA data. These patients are looking for a range of orthopaedics and sports medicines, plastic surgery, ophthalmology, dental procedures and dermatology.
Cleveland Clinic, Ohio
For up and coming businesses in the healthcare sector, the UAE provides a fertile ground for growth. Both Dubai and Abu Dhabi have ambitions of providing world-class integrated health systems that ensure excellence in health and promote the emirates as globally recognized destinations for medical care. In practice this involves developing and implementing plans, policies and legislation that promote excellence and support the achievement of global standards in preventative, curative and rehabilitative healthcare. For the private sector this means big opportunities in conventional medicine as well as in alternative medicine and therapies. Some of the public hospitals, SDUWLFXODUO\ LQ WKH OHVV DIĂ XHQW HPLUDWHV OLNH 8PP $O 4XZDLQ DUH VWLOO Ă€UPO\ Third World but even here major advances are being seen. While only a few years ago such hospitals would have made many expats squirm the new Sheikh Khalifa General Hospital in Umm Al Quwain is said to offer patients access to modern facilities, deliver top-quality care and aims to make maternal and neonatal services among the best in the country. The hospital is said to be changing the expectations about a government hospital and its quality of care to mirror that of a privately run unit. The hospital reached completion in the last month and local media quoted residents as describing the new unit as ‘the iPhone 5 of hospitals’. High praise indeed.
But a short walk around Dubai Healthcare City shows where the lure of the big medical dollar resides. This is not just from residents needing both necessary and elective medical procedures, but also from medical tourists who come from everywhere to get everything from breast implants to spinal reconstruction surgery. Data from Patients Beyond Borders VXJJHVW WKDW DURXQG PLOOLRQ PHGLDO tourists from across the world seek overseas treatment every year, contributing to a global industry worth ELOOLRQ 'XEDL LV NHHQ WR JHW D slice of that pie and in the middle of March the Dubai Executive Council approved a strategy for medical tourism to make Dubai a leading health-care destination. The medical tourism strategy presented by the Dubai Health Authority aims to provide competitive, high-quality health services that attract visitors and tourists to the emirate. The plan also aims at establishing a health system that provides excellent services within a tourism theme by focusing on highly TXDOLÀHG PHGLFDO WHDPV ZKLFK ZLOO help attract more people to visit Dubai for treatment. This strategy is focused on investing in six medical disciplines — dentistry, cosmetic surgery, eye surgery, general medical screenings, orthopaedic surgery and sports medicine.
Days after this initiative was announces, new CEOs of four government hospitals were approved in a move seen by analysts as bolstering Dubai’s fast-growing health care sector. The CEOs are Dr Abdulrahman Mohammad Saleh Al Jassmi, CEO of Dubai Hospital; Dr Alya Saif Al 0D]URXHL &(2 RI 5DVKLG +RVSLWDO 'U Moza Ajaif Al Zaabi, CEO of Al Jalila Children’s Speciality Hospital and 'U 0XQD $EGXO5D]]DT 7DKODN &(2 of Latifa Hospital. Eisa Al Maidoor, Director-General of the DHA, said the appointment “reinforces the faith that the country has in the children of the nation to develop the future of the nation.â€? Kay Zwingenberger, CEO of Siemens Healthcare told us, “We face the same challenges in the region as the government. As there is a build-up of hospitals, you need to staff those hospitals not only with doctors but also practitioners, nurses – this is the biggest challenge and it is our job as a healthcare equipment provider to support and overcome those problems.â€? DHC is also home to a range of medical related hoopla that helps keep it in the headlines, likes the annual autism conference, the UAE’s Ă€UVW SDHGLDWULF VLPXODWLRQ WUDLQLQJ course, Siemens and DHC forming a partnership to support medical education, DHC and GE signing an MoU to deliver world-class healthcare and leadership training at Mohammed
ELQ 5DVKLG $FDGHPLF 0HGLFDO Centre and DHC bringing cuttingedge Hyperbaric Oxygen Therapy technology to the nation. It is a never ending jamboree and increasingly the ZRUOG¡V EHVW SUDFWLWLRQHUV DQG Ă€UPV DUH being lured by the seemingly endless demand for their services. Zwingenberger told us, “Another very important area for us is in the level of service, so we help our customers in WHUPV RI ZRUNĂ RZ URRP SODQQLQJ IRU LQVWDQFH ,I \RX EX\ DQG 05, \RX GR not just put it in the corner, you need to build a cabinet and we help customers with that process. We focus on things like the time it takes for installation. We have our own teams doing this, we GR QRW VXEFRQWUDFW DV VRPH RWKHU Ă€UPV do.â€?
Dr Toby Cosgrove
It doesn’t end there. A new teaching hospital and associated medical college are to be built in Dubai at a FRVW RI PLOOLRQ WR DGGUHVV WKH serious shortage of medical graduates. 7KH EHG 8QLYHUVLW\ +RVSLWDO LQ another of Dubai’s free zones, Dubai Silicon Oasis, will create at least 4,000 jobs and should have the capacity to WUHDW SDWLHQWV D \HDU ZKHQ LW RSHQV LQ 7KH DVVRFLDWHG )DNHHK Medical University will open two years later. Indeed the DHA believes that Dubai had all the right elements to attract a million foreign patients by the end of the decade, including its own airline, an airport and a plethora of hotels, while it was ploughing millions of dollars into improving and expanding health services. Abu Dhabi has spotted the same lucrative niche and is pursuing it aggressively. The Cleveland Clinic, the Ohio-based medical centre is a relative newcomer to the UAE in large part because it is becoming a new hub for the medical world. Its Abu Dhabi ORFDWLRQ LV WKH &OHYHODQG &OLQLF¡V Ă€UVW move outside of North America where it has branches in places like Palm Beach, Las Vegas and Toronto. “Cleveland Clinic has long-standing relations with the government of the 8$( VSDQQLQJ RYHU \HDUV DQG D strong history of treating patients from the region at our main campus in the United States. With such strong relations and mutual trust, we were invited by the UAE government authorities to bring Cleveland Clinic’s patient-centred, innovative care to the people in this region and surrounding areas‌Medicine has grown more specialized. Surgery is more complex. It is important on a global level that people have access to healthcare of the VW FHQWXU\ 7KDW LV ZK\ ZH SDUWQHUHG with Abu Dhabi’s Mubadala Healthcare to bring our model of care to the region by establishing Cleveland Clinic Abu Dhabi and have also partnered with Abu Dhabi Health Services Company WR PDQDJH LWV EHG WHUWLDU\ KRVSLWDO Sheikh Khalifa Medical City since
Âľ VD\V 'U 7RE\ &RVJURYH &(2 and president, Cleveland Clinic. The clinic is on the city’s Sowwah Island, a master-planned development that will become Abu Dhabi’s new business district. The clinic is pitching itself at patients from all over the 8$( DQG WKH ZLGHU UHJLRQ ZLWK Ă€YH specialized institutes and state of the art technology. Cosgrove says, “There is an undercurrent of optimism. We need to continue to innovate; we need WR EH PRUH HIĂ€FLHQW DQG HOLPLQDWH unnecessary costs; we need to get patients to the right institutions for care. We need to focus on wellness and prevention, which will ultimately bring up a healthier generation with fewer chronic diseases. Heart disease, diabetes, stroke, lung disease and certain cancers are almost entirely preventable if we would eat healthier, exercise more, stop smoking and limit our alcohol intake. Our role is to also educate the communities; change will always start from home.â€? Late last year Mubadala Healthcare, a unit of Mubadala Development, announced another new hospital, Healthpoint. Mubadala Healthcare is a strategic investment company owned by the Abu Dhabi Government. +HDOWKSRLQW LV D EHG PXOWL speciality hospital at Zayed Sports City and Dr Ihsan Al Marzouqi, the CEO of Healthpoint and senior vice president at Mubadala, indicated that orthopaedics, spinal surgery and paediatrics were DPRQJ WKH WRS Ă€YH DUHDV IRU ZKLFK Emiratis sought treatment abroad. Healthpoint, managed by the German operator Asklepios, also hopes to meet a rising demand among expatriates. The hospital began treating outpatients LQ -XQH DQG ZLOO HYHQWXDOO\ HPSOR\ GRFWRUV QXUVHV DQG technicians and medical support staff. The hospital is to be the new base for the Abu Dhabi Knee and Sports Medicine Centre, which specialises in the treatment and rehabilitation of sports, work and general orthopaedicrelated injuries. Unlike some other growth sectors in the UAE, the healthcare sector seems a prime area for overseas players to get in early before all the groundwork is laid. The globe’s giant healthcare providers are already moving in and the smaller, niche players are quickly beating a path to the same door.
Keeping in Touch The UAE’s two telecom operators are going to play a crucial role in making sure that the nation delivers peak services to both consumers and businesses. Initiatives like Smart Dubai will only be the tip of the iceberg. William Maimer reports What are the biggest issues facing the telecoms industry in the next 2-5 years? The general issue facing the telecoms sector is that the sector as a whole is seeing usage grow exponentially. Internet everywhere is changing everything in our lives and this is fuelling great opportunities. That is the good news, but it is putting pressure on the hardware requirements from an infrastructure point of view. Billions of dollars worth of investment will have to be made all over the globe in infrastructure. Osman Sultan
Once upon a time the UAE had only one telecoms player, Etisalat, and then along came du, the Emirates Integrated Telecommunications Company. du’s role was to shake up the market and ride the wave of the burgeoning telecoms, mobile and Internet booms. In an exclusive interview, Osman 6XOWDQ FKLHI H[HFXWLYH RIÀFHU RI GX shared his thoughts on some of the PRVW VLJQLÀFDQW LVVXHV IDFLQJ WKH UAE’s telecoms sector and provided some insights on what the future might hold in store.
The challenge for the telecoms sector is to monetise this opportunity correctly and get the right return on its investment. This is the challenge, but it will happen. Other players are now in that same game, the global Internet players, in the same value chain. So the challenge and the opportunity is how these two categories of players can talk together and act together, to enable and connect billions of people and at the same time have a viable and sustainable ecosystem. Today we are only at the beginning of that conversation. In the Gulf the situation looks like this: Usage is growing fast, fuelled
by a young population, fuelled by an appetite for all these new applications like social media. You have to see how you can optimise the investment in infrastructure and I think we will see more and more operators sharing LQIUDVWUXFWXUH VSHFLĂ€FDOO\ EHFDXVH Internet usage is heading towards very high bandwidth indeed. You have a huge appetite for video content and this is going to require a lot of capacity. But the main challenge for the Gulf is to use communication as an engine of growth for all other sectors and to ensure the right investment to deliver the right speed in their telecoms infrastructure to support this increased usage.
Where do you see the opportunities for most growth in the Gulf telecoms sector? At present the UAE has major advantages. We have the most developed telecoms infrastructure. The two operators in the UAE were the ÀUVW WR RIIHU IRXUWK JHQHUDWLRQ PRELOH telecommunications infrastructure. 0RVW RI RXU LQIUDVWUXFWXUH LV ÀEUH optic and the UAE will probably be WKH ÀUVW FRXQWU\ WKDW LV ZLUHG FRDVW WR FRDVW E\ ÀEUH RSWLFV ,QLWLDWLYHV
on Wi-Fi in public places is being pursued very aggressively. You have a clearly stated political willingness on behalf of the leadership of the country to move fast into becoming a smart country as Dubai is a smart city. This has been an initiative of UAE smart government and Dubai will be the smartest city in the world within three years. So you have multiplication of components that are converging that will put the UAE in top position, not only in the level of this region but probably on a global stage.
Where do you see opportunities for partnerships in this growth story? 8QOLNH \HDUV DJR ZKHQ WKH communication chain was occupied predominantly by the telecoms sector, today convergence is opening doors for a lot of other stakeholders. The main names like Facebook, WhatsApp, Google and so on will be joined by additional stakeholders that are the third parties. The ecosystem will be built, in the context of a smart city, and you will see bright individuals who will have great ideas for an application and they will be able to succeed brilliantly. A whole
level of entrepreneurs will exist and will really make a change. A culture of venture capital will develop much more rapidly once this is in place. This is already starting to develop.
What does the future hold in store for du? At du we are really moving ‘heads on’ with the move to digital. We look to partners all over and we do this by just keeping our eyes open. We try to see how much we can stimulate this by using the ecosystem that we have built here in this country. Our commitment is to the UAE market, we do not have other geographic markets. In the future we will be more of an aggregator of capabilities. We will see some verticals emerging and I DP WKLQNLQJ KHUH VSHFLĂ€FDOO\ DERXW things like mobile healthcare. The way we pay for things will be different OLNH Ă€QDQFLDO VHUYLFHV XVLQJ PRELOH payments. Healthcare, education, Ă€QDQFLDO VHUYLFHV DUH VRPH RI WKH PDLQ DUHDV WKDW ZLOO EHQHĂ€W
How will the world be different tomorrow? Back in 2000 we were all spending a lot of time looking at things like how
the Internet would change things like mobile payments and at the same time there were these really smart people who were coming up with what we now call social media. That is an innovation that transforms. There was no technological innovation in Facebook, it is just conceiving the right idea. What I am trying to say is that then we try to answer a question like what the future may be like, we really need to have a disclaimer of KXPLOLW\ 7KH IXWXUH ZLOO EH GHĂ€QHG by our children. It is our children who have a completely different concept of what being connected is. It is in their DNA. Philanthropy will certainly be GLIIHUHQW 5HODWLRQVKLSV ZLWK governments, when they are smart, will be different. The relationship with your community, your city, your neighbourhood, your family will all be different. And we need to be very optimistic about this. Of course there are challenges. Yes, there will be issues of privacy, of security, of copyright but we need to create the balance. The ultimate goal of all of this is making people happier, making the world better.
Cities of tomorrow 9
www.world-businesstimes.com
Flying start The centre of gravity for the global aerospace business has shifted to the GCC over the past 10 years with the rise of Emirates, Etihad and Qatar Airways. Why this has happened is not such a mystery, as William Maimer reports
O
ne man you think would be able to shed some light on the rise of the GCC as an aviation and aerospace hub would be Homaid $O 6KHPPDUL &(2 RI $HURVSDFH Engineering Services at Mubadala where he oversees Mubadala’s aerospace, communications technology and defense services portfolios. Mubadala, the Arabic word for ‘exchange’, was established in 2002 by the government of Abu Dhabi as a SULQFLSDO DJHQW LQ WKH GLYHUVLĂ€FDWLRQ of Abu Dhabi’s economy. Before joining Mubadala, Shemmari was a lieutenant colonel in the UAE Armed Forces, with involvement in military aviation, maintenance, procurement and logistics.
Air Arabiya and these new players being very, very global. This helped to make the GCC a focus point. Airlines in the region are now responsible for almost 20 per cent of the global orders from Boeing and Airbus and the other original equipment manufacturers (OEMs). So we have 20 per cent of the new products being VROG KHUH DQG WKLV LV GHÀQLWHO\ JRLQJ to increase interest in the region. The component manufacturers want to be here to support the aircraft, the engine manufacturers want to be here, the OEMs themselves, the guys who do the entertainment systems, the guys who do the furniture. All of these people want to be closer to the customer.�
So is it true that the centre of gravity for the global aerospace business has shifted to the GCC? Shemmari says, “There are a few factors that have come together to give that impression. One is the rise of the east as a major economic power together with changes in the global economy, China becoming the second biggest economy in the world, India with its population and potential. You look at the map of the world and the GCC is smack in the middle of the new markets of the east and the old markets of the west. Of course oil and gas still play a major part in this so a lot of focus comes to us from both sides and this brings a lot of potential and a lot of business opportunities and a lot of people coming in. This requires D ORW RI DLU WUDIĂ€F DQG VR \RX KDYH WKH emergence of airlines.â€?
Manpower is a major issue for us, especially when it comes to the UAE talent pool
It would be a mistake to think that this was a recent development and the UAE has been putting the building blocks in place for some time. As Shemmari puts it, “Emirates Airline KDV EHHQ LQ RSHUDWLRQ IRU \HDUV and then you had the demise of Gulf Air and the weaknesses of Kuwait, weaknesses of Saudi Air and the emergence of Qatar and Etihad and
Is there truly a strong economic argument for a new mega airport in the UAE? Shemmari thinks there is. “If you were talking just about the residents of the GCC you would conclude that another airport was too much. But compare us to the US. We are moving almost 50 million people RXW RI 'XEDL $OPRVW PLOOLRQ RXW of Abu Dhabi, perhaps another 20 million out of Doha. Quite simply the
It sounds like someone has thrown a party in the Gulf and the entire aviation industry has been invited along. “Then you have the airports. We are building the most modern airports in the world here,� says Shemmari, in something of an understatement.
demand says that we need this level of infrastructure.� So if the need is there and the UAE has the capacity to build and run the facilities to meet the demand, it seems that the rise of the aviation industry in the region is set to continue. “Mubadala and Abu Dhabi and Vision DUH TXLWH FOHDU WKDW DHURVSDFH DQG aviation is one of the major sectors we are focusing on. We are putting our capital to partnering with the OEMs VXFK DV %RHLQJ $LUEXV *( DQG 5ROOV 5R\FH WR FUHDWH DQ LQGXVWU\ DQG D business for us.� Many non-residents of the UAE will never have heard of Al Ain, unless they happen to be passionate soccer fans, but Al Ain is destined to become part of the lingua franca of the growing industry in the region. Shemmari says, “Nibras Al Ain Aerospace Park is a partnership that we have with ADAC (Abu Dhabi Airports Company) and they were granted 25 square kilometres of land around Al Ain international airport that should take whatever investment we can mange for the next 60 years. There is an intention to develop the
economy of Al Ain city and grow the SRSXODWLRQ IURP WR PLOOLRQ E\ DQG WKLV ZLOO PHDQ DWWUDFWLQJ D lot of businesses. That is where Strata (Mubadala’s composite aerostructures manufacturing company) comes in and we have developed partnerships with Boeing and we want to manufacture aircraft components in Al Ain. It requires a lot of capital and a lot of energy.â€? Nibras Al Ain Aerospace Park is an ambitious project all of its own. “What we are going to do with Nibras over WKH QH[W Ă€YH \HDUV" :H DUH KLWWLQJ the ground running with Ammroc [a military joint venture with Lockheed Martin] that should be operational in -DQXDU\ LQ $O $LQ 7KDW ZLOO KDYH MREV E\ :H DUH JRLQJ WR have an engine shop with GE. We are going to build an engine shop with 5ROOV 5R\FH 7KHVH ZLOO EH WKH Ă€YH RU six anchor tenants,â€? says Shemmari. On top of the 25 square kilometres that has been granted from the government, Mubadala has DOVR EHHQ JUDQWHG $(' ELOOLRQ PLOOLRQ RI infrastructure budget from the government to HVWDEOLVK WKH Ă€UVW Ă€YH square kilometres and make it
Strata - shop oor
ready for both Mubadala’s companies and international investors. Shemmari acknowledges that Mubadala is operating in a fast moving sector and remaining at the sharp end of the industry is critical to long-term success. This is achieved by working closely with the leading players in the private sector with access to the latest research and thinking. “For us it is always important to have relationships with aircraft suppliers and to be ahead of the curve. We need to be 20 per cent ahead of the technology demand and be ready for demands from commercial customers and military customers. We need to train our nationals and our expatriate workforce to be able to deal with any issues that come up. Today you see that Khalifa University has an aerospace engineering degree. American University in Sharjah has an aerospace engineering degree. We have a queue of people waiting to go into these degree courses,� says Shemmari.
Homaid Al Shemmari
Focusing on training young Emiratis as well as drafting in the best foreign talent is a challenge in itself. “Manpower is a major issue for us, especially when it comes to the UAE talent pool. If you look at Abu Dhabi \RX VHH WKDW ZH DUH FUHDWLQJ D range of industries all at the same time and this is causing manpower issues. This is where we need a balance of UAE nationals and expatiates coming in to help us. We always said that we ZDQWHG WR KDYH MREV LQ WKH UAE around aerospace by 2022 and my aspiration is to have 50 per cent of them as UAE nationals. At the moment in total we would probably have around SHRSOH VR ZH VWLOO KDYH D ORW WR grow and if you bring in the military side of things and Ammroc then we get WR DURXQG Âľ Like every other project being undertaken by Abu Dhabi and Dubai, these are undertakings that require enormous effort, focus and money. So far, the future is looking pretty bright.
10 Cities of tomorrow
B
igger. Better. Taller. Faster. Dubai has run through its fair share of superlatives over the years to describe its projects but Smart Dubai is the most serious project of the lot. The agenda of Smart Dubai, quite simply, is to make Dubai the smartest city in the world in three years’ time. “Our ambition is for Smart Dubai to touch every individual in our country - every mother in her home, every employee at his work or investor in his project or child in his school or doctor in his clinic,� according to Sheikh 0RKDPPHG ELQ 5DVKLG $O 0DNWRXP ruler of Dubai. But what does it all mean? In essence the Smart Dubai strategy involves transforming Dubai by making it the most wirelessly interconnected city in the world over the next three years. This is coming direct from the ruler of Dubai himself on his Twitter page, a communications medium he embraced some time ago.
“Sheik Mohammed wants a smart city, smart economy, smart education and smart environment; he wants to make a different life, not for upcoming generations, but a different life now.� The strategy features six core pillars DQG LQLWLDWLYHV FRYHULQJ WUDQVSRUW communications, infrastructure, electricity, economic services and urban planning. Under the strategy, JRYHUQPHQW VHUYLFHV ZLOO ‘go smart’ in the next three years. 5HDOO\ ZKDW LW PHDQV LV DSSO\LQJ smart communications technology to every area of everyday life for
April 2, 2014 individuals, corporates, government and government services. The six pillars have been grouped under the headings of smart life, smart transportation, smart society, smart economy, smart governance and smart environment. The aim of the project is to encourage collaboration between the public and private sectors to achieve all the targets in each of the six focus areas and presumes that everyone will have a smart phone to be able to utilise the services fully. According to Sheikh Mohammed, “Our country is ‌ ushering in a new era for the improvement and development of quality of life through this gigantic project which got underway through an unprecedented public-private partnership to make a new reality for all.’’ Dubai Smart Government, a mouthful in itself, describes itself as being ‘a pioneering initiative in the region to provide government online services across the spectrum of corporate and community life in the emirate.’ To facilitate all of this, the government has enabled an entirely new department, the Dubai Smart Government Department that will direct and supervise the implementation of what it describes as the eTransformation in Dubai government. The Dubai Smart Government Department is part of WKH 'XEDL 5XOHU¡V &RXUW XQGHU WKH leadership of Ahmad Bin Humaidan, director general. Dubai’s Crown Prince, Sheikh Mohammed’s son and general supervisor of the project, Sheikh +DPGDQ ELQ 0RKDPPHG ELQ 5DVKLG Al Maktoum said, “Sheikh Mohammed does not want to just develop the services, but he wants to change the way of life in Dubai. He did not set for us goals in customer satisfaction, but this time the goal is the happiness of man ‌ (He) wants a smart city,
smart economy, smart education and smart environment; he wants to make a different life, not for upcoming generations, but a different life now.â€? Sheikh Hamdan also said that Dubai will have the largest open global laboratory for creative people and specialised companies to test drive all that is new in science and apply it as quickly as possible. 7KH LQLWLDWLYH LQYROYHV VSHFLĂ€F targeted developments for each of the existing government departments. The 5RDGV DQG 7UDQVSRUW $XWKRULW\ KRSHV to implement a plan to ensure access to provide the smartest transportation system in the world through the GHYHORSPHQW RI WUDIĂ€F V\VWHPV transportation and the creation of a ÂśXQLĂ€HG FRQWURO FHQWUH¡ IRU DOO PHDQV RI WUDQVSRUWDWLRQ DQG WUDIĂ€F DV ZHOO DV providing more than 200 services for VPDUWSKRQH XVHUV E\ WKH HQG RI LQ DGGLWLRQ WR 57$¡V FXUUHQW VHUYLFHV Dubai Electricity and Water Authority hopes to launch a number of initiatives including the development of a ‘smart electrical grid’ to encourage owners of houses and buildings in Dubai to use solar energy and sell the surplus to the government through the network itself, as well as ‘smart meters’ that contribute to rationalising the consumption of electricity and water. In this regard DEWA seems to be borrowing ideas IURP LQLWLDWLYHV Ă€UVW LPSOHPHQWHG E\ $EX 'KDEL¡V 56%
of solutions and applications that serve the retail trade in Dubai and its transformation into a smart business to control and monitor trends of consumers. Dubai Municipality, meanwhile, is working on the transformation of 450 e-services into smart services and working on the implementation of smart parks and beaches projects WKDW SURYLGH VSHFLĂ€F LQIRUPDWLRQ RQ weather conditions, sea conditions, temperatures and safety guidelines, as well as the launch of “I-Dubaiâ€?, which provides information relating to the services of the municipality as well as the “Smart Addressâ€? and other initiatives and services the Dubai Municipality intends to transform into Smart models over the next two years. 7KH 'XEDL 3ROLFH SODQ IRU includes the implementation of a number of smart phone services that aim to reduce the burden on members of the public and ensure that none of them need to visit the police stations except in cases that requires personal attendance.
GO WITH THE FLOW Dubai’s ruler wants not only to develop services, he also wants to change the way people live in Dubai. Welcome to the future. Ilkley Satterthwaite reports
According to the state news agency WAM, ‘the Dubai Design District will be transformed into the smartest spot in the world where companies can provide smart solutions tailored to meet the needs of customers and facilitate transactions such as licenses, visas, customs and other government services.’ The Department of Economic Development will provide a package
Freedom is frightening The media and communications industry in the UAE has been something of a dark horse until recently when the world’s global players moved in. Change is in the air as Pamula MacRan reports Bloomberg opted to have an address in the DIFC rather than DMC. The Financial Times kept its leading man in Dubai but plumped for Abu Dhabi as the home to its main, but still small, team.
Ghassan Harfouche
Media and communications in the UAE look very different today from the days before Dubai Media City was established in 2000. Prior to the opening of DMC the media landscape was dominated, like much of the developing world, by a small number of English language media that paid their way by kowtowing to the nation’s rulers and currying favour with big advertisers. The formula is one that is repeated across the globe’s emerging markets as tired editors who can no longer hack it in their home country take up a retirement sinecure in which to see out their fading careers and top up their fading bank accounts. All that changed with the opening of DMC and more recently TwoFour54 in Abu Dhabi. The magic wand that DOORZHG WKHVH IUHH ]RQHV WR à RXULVK was the foreign ownership provision that meant that serious western media houses could move in and run their regional operations as wholly owned VXEVLGLDULHV UDWKHU WKDQ DV à DN\ -9V with a majority-shareholding local partner. 7KH à RRGJDWHV WRRN TXLWH D ZKLOH WR open and it was not really until Dubai started its remarkable growth spurt in 2004 that the big guns of western media took the plunge and upped the size of their local presence from a handful to a small army. The biggest of these remain Bloomberg and Thomson 5HXWHUV ERWK RI ZKLFK KDYH D VHULRXV regional presence in Dubai, although
Dow Jones had taken an early lead in the race by forming a partnership with OHDGLQJ EXVLQHVV DQG ÀQDQFH SRUWDO Zawya only to be gazumped at the altar E\ 7KRPVRQ 5HXWHUV ZKHQ LW VQDSSHG Zawya up for an undisclosed sum in 7KH MXU\ LV VWLOO RXW RQ ZKHWKHU 7KRPVRQ 5HXWHUV KDV PDQDJHG WR ZHDYH VXIÀFLHQW PDJLF RYHU =DZ\D WR make it more indispensable than it was pre-acquisition, but then it did have a major economic meltdown in the UAE to deal with that now seems to be receding in the rear view mirror. The free zone media centres of the UAE have also seen the birth of FRXQWOHVV PHGLD RXWÀWV RIIHULQJ everything from regional trade magazines to leisure offerings. Some are world-class and some are not but the fact remains that they employ, collectively, a lot of people and provide an outlet for huge advertising dollars, which appear to be migrating online more slowly than in other more developed markets. This is doubtless great news for the avaricious media buying shops of the region but less so for the hapless global brands trying to grapple with the nuances of a media landscape that would make brave men tremble.
are world-class and some are not. 9HU\ RIWHQ FOLHQWV KDYH QR Ă€UP LGHD of what they want and this can lead to a merry-go-round of the media leading the agency leading the media, irrespective of whether the media itself is English, Arabic, Malayalam or Tagalog. The question some agencies are faced with is whether homegrown clients are sophisticated enough to require international exposure. Ziad Hasbani, CEO of Weber Shandwick MENA thinks they are, “In the UAE, yes, especially the banks are more advanced than in some other countries. They value the role of communication and they know how important it is. Not only this, they are hiring big consultancies. After the crisis, some of them went to the smaller agencies but now they are going back to the agencies where the value they counsel that we give them. That is because they are prepared to go outside and they know that there is a lot of competition out there and you have to talk differently to the target audience not only in terms of what to sell and what to say but how to say it. Social media is very important and we see that more and more banks are adopting social media. Social media is being seen as an opportunity rather than a risk.â€? Indeed social media is the new bogeyman that clients around the world have to contend with. Hasbani says, “If customers are unhappy about having to
The UK’s leading circulation audit bureau, the ABC, pulled out of the UAE in 2006 after an aborted attempt to move in and offer a similar level of service to that which was offered at home. ABC UK’s decision to pull out of the region was put down to the market, requiring extraordinary resources but the truth was possibly more prosaic and could have had something to do with the routine padding of print invoice, circulation statements and readership claims by some players in the market, rendering the ABC’s compliance regime unworkable for some. Backing up the media owners themselves is a swathe of ancillary industries supporting the media, from 35 DJHQFLHV WR FUHDWLYH KRXVHV PHGLD buying agencies to market research ÀUPV $V ZLWK WKH PHGLD LWVHOI VRPH
wait half an hour then they are going to say so whether you like it or not, so banks are taking the opportunity and they have started engaging with their audiences to address some of the issues. So there is a big shift from looking at communications, particularly in social media, from risk to opportunity. This is not limited WR WKH ÀQDQFLDO VHFWRU EXW DOVR WKH government sector.� The constant craving for high quality communications offering seems to indicate that there is still plenty of scope for growth in the market.
I still think this region has huge potential in terms of new brands coming on board Ghassan Harfouche, group CEO of MCN says, “I still think this region has huge potential in terms of new brands coming on board.â€? But Harfouche is not sure that the quality of offering is yet high enough. He says, “I don’t think we have enough local and regional brands that are working properly in this industry‌The limitations to growth for companies here lies in the capital structure of the companies in that they are family owned and they don’t understand the EHQHĂ€WV WKDW 0DUFRPV FDQ GHOLYHU LQ terms of the bottom line.â€? The general market conditions make for a media that lacks the true journalistic impartiality that makes the media the Fifth Estate in other parts of the world. In part this is because if the editorial is not glowing in its praise for a client then the bills will not get paid. Add to this the fact there is little, if any, political comment in the domestic media because of ‘self censorship’, which essentially means that if a writer commits to something in print or online and the powers that be take umbrage WKHQ WKH ZULWHU FDQ Ă€QG KLPVHOI LQ KRW water.
Ziad Hasbani
The truth is often there to be found,
Twofour54 Abu Dhabi
but frequently this means relying on the news emerging from the globe’s leading media houses rather than the media that is owned and run from the UAE. From the communications agency perspective, there are some who believe that the space is overcrowded ZKLOH RWKHUV EHOLHYH Ă€UPO\ WKDW WDOHQW will stand out. Hasbani says, “In the agency space, then for me yes there is saturation. For others, probably not. We are in a free market and we know that today clients are asking for the big names. They try the small agencies and the medium agencies but today they are after the big names. Size is not important. It is the services that you offer that are important. If you offer the right sort of counsel that your clients expect you to offer, then yes they will work with you but they are more comfortable working with big names. Lots of clients in the region are looking at going abroad. They are global brands that happen to have been born in this
region. Like Jumeriah, Etisalat, Etihad, Qatar Foundation, DP World and others in the banking sector.â€? Harbrouche hopes that this dawning UHDOLW\ ZLOO Ă€OWHU GRZQ WKURXJK DOO strata of the market. He says, “Now we have reached the stage of development where everyone has to recognise the value of communicating and reaching out to people properly to enrich the bottom line and increase the brand’s value.â€? While Qatar’s Al Jazeera has done a lot to put Doha on the map because of its willingness to broadcast views that do not sit comfortably with some regional governments, the lack of any regional copyists of Al Jazeera speaks volumes about how the issue of freedom of speech is viewed throughout the Gulf.
Cities of tomorrow 11
www.world-businesstimes.com
Young and rich Competition can be healthy, but having two fully-edged ďŹ nancial centres ďŹ ghting for supremacy can dilute the overall message to the outside world meaning that both centres lose out. Paul McNamara reports
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an the UAE seriously hope to compete to be a global centre IRU ÀQDQFH" 7KH JOREH¡V WZR OHDGLQJ ÀQDQFLDO FHQWUHV /RQGRQ DQG New York, have little real competition within hailing distance and certainly none of any note within their own borders. But the UAE is attempting to EXLOG QRW RQH EXW WZR ÀQDQFLDO FHQWUHV to compete on the global stage and potentially risks diluting its own efforts by supplying its own competition: the Dubai International Financial Centre and the Abu Dhabi Global Market. Some proffer the view that the two centres can differentiate themselves by focusing on different areas of VSHFLDOLVDWLRQ ZLWKLQ ÀQDQFH EXW WKLV misses the point that both London and New York can offer everything and do not have to compromise on product offering. The Dubai International Financial &HQWUH KDV WKH EHQHÀW RI JUDFHIXO ROG age, since it opened its doors back in 2004 and has managed to become an enviable success story in the region. A slow walk around the air-conditioned precincts of the DIFC and the sculpted terraces of the Gate district show a bustling environment with workers who seem fairly happy to be there. Smart chichi restaurants nestle next to budget sandwich bars and cafes and everything seems to work. Tenants might complain about the high rents, but the DIFC is indisputably the place to be.
retains many loyal fans in spite of this setback. Ahmed Humaid Al Tayer, an HVWDEOLVKHG VHQLRU EXVLQHVV ÀJXUH LQ Dubai and chairman of some of its leading banks, was appointed governor of the DIFC to replace bin Sulaiman.
Dubai International Financial Centre
Things were not always so easy and the DIFC’s birth was not straightforward, PDUUHG E\ WKH KLJK SURĂ€OH VDFNLQJ RI its twin leaders, Philip Thorpe and Ian Hay Davison, while the DIFC was still in its infancy. The dispute centred on the perception of lack of transparency and corporate governance. Hay Davison told The Daily Telegraph at the time, “I’m very disappointed that rather than listen to our advice about what was necessary to build D VXFFHVVIXO LQWHUQDWLRQDO Ă€QDQFLDO centre, Mr al Jallaf has chosen to Ă€UH XV :H KDYH EHHQ ZRUNLQJ ZLWK them over the last two years and he decided he didn’t like our advice.â€? Anis al Jallaf was chairman of the DIFC at the time. Hay Davison is the former deputy chairman and CEO of Lloyd’s of London. Thorpe went on to become chairman and CEO of the QFC 5HJXODWRU\ $XWKRULW\ DW RQH WLPH WKH rival of the DIFC.
The DIFC soon got over the early blow of these twin departures and began to grow and capitalise on the success of Dubai Inc. and the region as a whole. 7KH QXPEHU RI ÀQDQFLDO ÀUPV VHWWLQJ up shop within DIFC skyrocketed until WKH JOREDO ÀQDQFLDO FULVLV NLFNHG LQ DQG EDQNV EHJDQ KXUWLQJ $V ÀQDQFH KRXVHV tried to grapple with the scale of the crisis, they began culling headcount and counting pennies. Suddenly the DIFC’s high rents were a source of VRPH DQJVW DQG VRPH ÀUPV EHJDQ moving out. In November 2009 Omar bin Sulaiman, the governor of the DIFC during much of its stellar growth phase, was removed from his post DQG LQ 0DUFK KH ZDV DUUHVWHG by agents of state security, accused RI DEXVLQJ KLV DXWKRULW\ E\ SURÀWLQJ from public funds. Sulaiman was a thoroughly charismatic leader and
,Q -XQH $O 7D\HU KLPVHOI ZDV replaced as chairman of Emirates NBD by Sheikh Ahmed bin Saeed Al Maktoum, the uncle of Dubai’s ruler, and the following month Al Tayer was replaced as governor of the DIFC by Abdullah Mohammed Saleh. Effective IURP -DQXDU\ (VVD $EGXOIDWWDK Kazim succeeded Saleh as governor of DIFC, who remains a member of the DIFC Board of Directors. Abu Dhabi Global Market will be hoping that its own birthing process is simpler. Like the DIFC, the ADGM LV EHLQJ HVWDEOLVKHG DV D Ă€QDQFLDO IUHH ]RQH DQG KDV MXVW PDGH LWV Ă€UVW VHQLRU executive appointment in recent months recruiting Jan Bladen as executive adviser and programme leader. Bladen was the COO of the Dubai Financial Services Authority until recently. “It’s a major challenge and a huge strategic initiative for Abu Dhabi and the UAE,â€? he said upon his own appointment. He will report to the free zone’s chairman, (PLUDWL RIĂ€FLDO $KPHG $O 6D\HJK $O Sayegh said, “Bladen is ideally suited to address our key priorities which are to develop the legal, regulatory and operational platforms that will provide the foundation for the growth of The Global Market.â€?
His immediate focus will be ensuring that the three main pillars of the ADGM, the registrar, the regulator and the courts, are given a solid foundation. He will also be hoping to lure top global banks to the wealthy capital of the UAE. The spirit of ADGM owes much to the DIFC in that it is a full-service ÀQDQFLDO ]RQH ZKLFK $EX 'KDEL is building on an island near its downtown area and it will certainly compete head-to-head with the DIFC’s well established regulatory environment. Dubai’s lifestyle and world-class airport have conspired to make the city an attractive launch pad IRU ÀQDQFLDO FRPSDQLHV VHHNLQJ WR WDNH advantage of the next big thing. Abu Dhabi is far more conservative and to date lacks the sheer breadth of lifestyle choices that Dubai offers. Abu Dhabi will be focusing much
effort on luring more companies to Al Maryah Island, the site of ADGM. :KLOH DOUHDG\ VRPH ORFDO ÀUPV KDYH PRYHG VWDII LQWR WKH QHZ RIÀFH VSDFH on Al Maryah’s Sowwah Square development, the pitch to foreign banks DQG ODZ ÀUPV FRQWLQXHV LQ WKH KRSH of attracting many more to the yet conservative number that have opened RIÀFHV WKHUH VR IDU The carrot, if one is needed in DWWUDFWLQJ ÀQDQFH KRXVHV WR D SXUSRVH EXLOW VWDWH RI WKH DUW ÀQDQFLDO FHQWUH LQ D EXUJHRQLQJ UHJLRQ LV WKDW ÀQDQFLHUV hope the Abu Dhabi government will encourage foreign companies seeking to provide services to Abu Dhabi sovereign funds, such as Abu Dhabi Investment Authority and Mubadala, to locate staff in the capital. In Abu Dhabi, money talks, and so does power. The UAE capital has both in spades.
Sowwah Square
Standing on the verge of getting it on As the UAE’s equity markets look up, the time could be ripe for some signiďŹ cant changes. William Maimer reports The equity markets in the UAE have had a tricky time of late. There are those who have argued that the size of the market does not merit two stock exchanges, the Abu Dhabi Securities Exchange and the Dubai Financial Market. The dwindling number of brokerage houses would seem to FRQĂ€UP WKLV YLHZ 7KHUH LV QRW HQRXJK investor money to go around resulting LQ FRQWLQXHG SUHVVXUH RQ WKH Ă€QDQFLDO situation of many of the brokerage companies, some of which have operated in the UAE for decades. -XVW D IHZ \HDUV DJR WKHUH ZHUH brokers in the UAE and this number collapsed to 50 as the worst ravages RI WKH JOREDO Ă€QDQFLDO FULVLV ZHUH felt. The years between 2009 and SURYHG SDUWLFXODUO\ KDUG IRU WKH brokerage space. There has been a constant call for a merger between the two exchanges, in the hope that
a consolidated offering would have a stronger regional presence and appeal. But rather than give up altogether, the exchanges are hoping to revive interest in other ways. Abu Dhabi Securities Exchange recently announced that it ZDV LQ WKH ÀQDO VWDJHV RI FRPSOHWLQJ the process of replacing its current trading system Horizon with the
The years between 2009 and 2012 proved particularly hard for the brokerage space
new trading system X-stream from NASDAQ OMX. The exchange VDLG WKDW LW KDG VXFFHVVIXOO\ Ă€QLVKHG its third mock session on the new WUDGLQJ V\VWHP $'; &(2 5DVKHG Al Baloushi, said, “Technology performance is important to meeting our business performance demands and we’re committed to maintaining a leadership role in every aspect of our exchange operations. We’re always monitoring our performance and searching for ways to improve our platforms, services and support.â€? This year should also see the launch of separate screens for investors to trade shares that are currently bought and sold over the counter, according to the federal stock market regulator, in an effort to target not only the local market, but the regional market and then the wider Middle East. This is the IUXLWLRQ RI DQ LGHD WKDW ZDV Ă€UVW PRRWHG
LQ 7KH KRSH LV WKDW WKH H[FKDQJHV will become a platform for private joint stock companies on national and regional levels.
LQ DQG WKH HDUO\ SDUW RI WKLV \HDU 7KH QH[W PRQWKV FRXOG EH D pivotal period as the economy at large rebounds and listed companies see their businesses boom.
7KHUH DUH VWLOO VRPH YHU\ VLJQLÀFDQW domestic equities that are traded outside the market and these are known as private joint stock companies and include Abu Dhabi Cooperative Society, Manazel, Al Qudra Holding, Noor Capital, The National Investor DQG 5$. 3HWUROHXP ,W LV DQ RGGLW\ RI the local market that some companies stay off the main market because they place a higher value on the company that the exchanges would or because their owners want to keep control or treasure privacy. The twin exchanges often see VLJQLÀFDQW YRODWLOLW\ DQG LQGHHG both DFM and ADX were among the world’s best-performing bourses Abu Dhabi Securities Exchange
Positive vibrations
While the rest of the world frets over recession and tapering, the UAE’s tourism sector continues to go from strength to strength. Daniel Cliff reports Over a decade ago Dubai decided that LW ZDV JRLQJ à DW RXW IRU WKH WRXULVW dollar and since that time has built up an incredible infrastructure to support it. Dubai’s Tourism Vision for 2020, announced under the directive RI 6KHLNK 0RKDPPHG ELQ 5DVKLG Al Maktoum, ruler of Dubai, plans in some detail how the emirate will double its annual visitor numbers from PLOOLRQ LQ WR PLOOLRQ LQ 2020. An ambitious target, but not one that analysts feel is unrealistic. In essence the tourist experience starts when visitors leave their plane in the massive Dubai airport and make their way through the battery of immigration desks and onto the taxi queue. No matter what time the visitor arrives, there appears to be an endless supply of air conditioned taxis waiting for them, including special pink taxis reserved for ladies and families, and driven by ladies dressed in what looks like a modest, pink approximation of a Thunderbirds costume. And then there are the hotels. Perhaps the worst that can be said about many of the luxury hotels that the UAE sports is that the visitor will never look at another hotel with the same eyes ever again. After Dubai, hotels in London, Singapore, Hong Kong and
New York look, quite simply, run down and tatty. It’s a strategy that seems to work. Dubai’s hotels welcomed more than PLOOLRQ JXHVWV LQ DQ LQFUHDVH RI MXVW RYHU RQH PLOOLRQ RQ WKH numbers and a positive indication that Dubai is on the way to achieving its target. Helal Saeed Almarri, director general of DTCM said, “The strong growth shown in hotel establishment JXHVWV LQ LV D SRVLWLYH Ă€UVW VWHS RQ our journey to 2020. Having announced the Tourism Vision for 2020 in May D SHU FHQW JURZWK LQ KRWHO establishment guests demonstrates WKDW ZH DUH RQ WUDFN WR GRXEOH WKH PLOOLRQ WRXULVWV UHFHLYHG LQ WR 20 million per year by 2020 and is an DIĂ€UPDWLRQ RI WKH GHVWLQDWLRQ¡V HYHU increasing appeal.â€? How does Dubai do it? By employing endless armies of ancillary staff that are forever polishing, cleaning, arranging, rearranging, fetching, carrying and generally being busy. The staff seems to want to be there, earning money and sending it home to their families in India, Pakistan, the Philippines and other parts of the Arab world. And there is no shortage of jobs for them to do as the number of new
hotels continues to increase. Last year saw the opening of the MÜvenpick +RWHO $SDUWPHQWV 7KH 6TXDUH 6RÀWHO Dubai the Palm, Conrad Dubai, Oberoi Dubai, Anantara Dubai Palm Jumeirah 5HVRUW 6SD DQG WKH 0|YHQSLFN +RWHO Jumeirah Lakes Towers. For the visitor the end result is a level of pampering and luxury that they are unlikely to come across anywhere else. It can be quite jolly, as long as the visitor does not spend too long wondering about how much these hard working drones get paid. Much the same can be said about some of the mega shopping malls in Dubai, ZKLFK KDYH WUXO\ UHGHÀQHG WKH PHDQLQJ of what a shopping centre actually is. Some of these centres are so sprawling and massive that they defeat all but the most hardened of shoppers who ÀQG WKDW WKH\ KDYH WR œGR¡ VKRSSLQJ centres in stages, staggered over a few days because they are too big to take in during a single visit. Of course, it is not all shopping. There is the Emirates Classic Car Festival for instance. And the Dubai Duty Free Tennis Championships, DP World Tour Championship, the Omega Dubai Desert Classic, the Emirates Festival of Literature, the Dubai Jazz Festival, Art
Dubai, a performance residency from Cirque du Soleil as well as a range of other events across the arts, culture, heritage and sport.
The UK’s Guardian newspaper chose Abu Dhabi’s Sir Bani Yas island as one of the Top 40 Holiday Hotspots Can it carry on? It seems likely. January saw Dubai International airport UHFRUG PRQWKO\ WUDIÀF RI RYHU PLOOLRQ SDVVHQJHUV XS SHUFHQW IURP WKH FRUUHVSRQGLQJ ÀJXUH LQ $QG it’s not all about Dubai. Abu Dhabi’s hotels also had their best year yet in terms of guest arrivals, guest nights, OHQJWK RI VWD\ DQG UHYHQXHV IRU )LJXUHV IURP $EX 'KDEL 7RXULVP Culture Authority suggest that last \HDU RYHU PLOOLRQ JXHVWV FKHFNHG
LQWR WKH HPLUDWH¡V KRWHOV DQG KRWHO DSDUWPHQWV XS SHU FHQW RQ 7KHVH YLVLWRUV GHOLYHUHG PLOOLRQ guest nights, a 26 per cent increase on WKH \HDU EHIRUH DQG ZRUWK D FRRO billion. Sheikh Sultan Bin Tahnoon Al Nahyan, chairman of TCA Abu Dhabi, said, “This is a highly satisfying performance particularly as we KDYH VHHQ PRUH KRWHOV DQG KRWHO DSDUWPHQWV RSHQ WKURXJKRXW DQG QRZ KDYH SHU FHQW PRUH KRWHO rooms, totaling just over 26,000, than ZH KDG DW WKH HQG RI Âľ The good news seems to be carrying LQWR ZLWK Ă€JXUHV IURP 7&$ $EX 'KDEL VKRZLQJ WKDW guests checked into the emirate’s DFFRPPRGDWLRQ LQ -DQXDU\ XS SHU FHQW RQ -DQXDU\ ,Q DOO WKH DUULYDOV GHOLYHUHG JXHVW QLJKWV ZKLFK is an increase of 26 per cent on the same month-by-month comparison. Jasem Al Darmaki, deputy director general, TCA Abu Dhabi said, “January UHDSHG WKH EHQHĂ€WV RI WKH LQWHUQDWLRQDO holiday seasons and the hosting of numerous major events in the emirate including the World Future Energy Summit and the Abu Dhabi HSBC Golf Championship,â€?
Sharjah, the third largest of the seven emirates, does not want to be left out in the cold and recently announced a project to build a 200 room hotel named Expo Hotel Sharjah at a cost of PRUH WKDQ PLOOLRQ ZLWK WKH DLP RI serving the emirate’s various sectors and events. Sharjah lacks much of the razzle dazzle of its sister Dubai and this KRWHO LV WKH ÀUVW RI LWV NLQG LQ 6KDUMDK The UK’s Guardian newspaper chose Abu Dhabi’s Sir Bani Yas island as one of the Top 40 Holiday Hotspots IRU IURP D OLVW FRPSLOHG E\ WKH newspaper’s expert travel writers, the only Gulf destination to make the list. Sir Bani Yas ranked as the 22nd best destination in large part because of its two newest resorts, the Anantara Sir Bani Yas Island Al Yamm Villa 5HVRUW DQG WKH $QDQWDUD 6LU %DQL <DV ,VODQG $O 6DKHO 9LOOD 5HVRUW ZKLFK were highlighted for unique guest experiences. It seems that Abu Dhabi is not going to let Dubai make all the running.
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