Two trips, one new program

I am a frequent visitor to the UAE and in my mind there are distinct differences between Dubai and Abu Dhabi.

Early evening arrival to Dubai International Airport (probably my 20th to the city). Like every visit it's an entirely new experience. A drive down Sheikh Zayed Road, the main artery into Dubai, unveils yet another fresh set of buildings, a new development, and 24-hour construction. This is a place in a hurry and has been for the past decade.

The spirit is evident, the prize for some is enormous. This is a window in time to expand, make new contacts and create more wealth. A visit to the Jumeirah Emirates Towers Hotel captures the scene. It is difficult to get a seat for an espresso. Local bankers or private equity chiefs meet expatriates who want to take part in the energy-driven boom. Oil at US$80 dollars a barrel certainly supports their cause.

I was there for six press interviews, plus two lunches with two editors, over two full days to unveil plans for our new program, CNN Marketplace Middle East. The interviews shared common themes: Why a program like this now? And why out of London? How are these investments from the Middle East being perceived abroad?

The answer, to sum it all up, is pretty simple and you can point to the numbers to explain. Twenty deals totalling US$44bn dollars in the past year. Government investment funds from the region are sitting on, by some estimates, US$2.5 trillion of assets and they are ready to put them to use.

While Dubai seems like a city on fast forward, Abu Dhabi, the capital of the UAE, exudes a sense of calm, which comes perhaps from knowing that you are sitting on top of about one tenth of the world's oil and natural gas reserves.

The Emirates Palace Hotel where the government of Abu Dhabi holds its meetings is a US$2bn structure. The hotel sits at the far end of the corniche and it's pretty obvious that this is the first of many structures to emerge over the next decade.

Abu Dhabi takes pride in being the quiet capital, but like many of the cities that make up this region, they are thinking 10, 15, 20 years ahead. I have been going to the Middle East on assignment for the past 20 years, but nowadays there is a sense of urgency from business and government leaders.

Take Khaldoon Khalifa Al Mubarak who wears two hats: one as chairman of the Executive Affairs Authority of Abu Dhabi and the other as CEO of Mubadala Development Company. He is 32, and is building a strategic investment fund on its way to US$100 billion. On my flight from London to Abu Dhabi he was connecting after an overnight journey from Washington where he signed a US$1.35 billion deal for 7.5 percent of the Carlyle Group, a leading private equity firm in the U.S. The firm has within its ranks George Bush Sr and James Baker III.

Money does capture influence and as the cliché goes, it does make the world go around. Our role at CNN Marketplace Middle East is to question the merits of these investments.

If one were to put the Middle East at the centre of the globe, we would all see the world a bit differently. Investments are going east to China and Southeast Asia, west to the U.S. and Europe and perhaps for the first time, in a sizable fashion, staying closer to home. Leaders in the region know they need to create sustainable economies and jobs.

And perhaps that is the irony: while generating record wealth from oil and gas, unemployment throughout the region remains above 10 percent; double that amongst its youth. Strategic investments, whether at home or abroad, need to have a lasting impact.

Print | Email | Discuss this article |

USER COMMENTS (0 COMMENTS)

POST A COMMENT

CLICK HERE TO POST A COMMENT

Add your Comment All posts are sent to the administrator for review and are published only after approval. ArabianBusiness.com reserves the right to remove any comment at any time for any reason. Please keep your responses appropriate and on topic.
Name *
Remember me on this computer
Email *	(Your email address will not be published)
City
Country
Subject *
Comment *
Notify me of further comments
Security Code *
Please click post only once - your comment will not be published immediately.