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Discuss this article (20 Comments)The party's just beginning
by This email address is being protected from spam bots, you need Javascript enabled to view it on Sunday, 08 November 2009
In spite of morbidly gloomy predictions by foreign pundits that Dubai’s bubble had terminally burst, the economy is back on track.
Recent headlines, such as “Hard Times for the Arab Capital of Cool”, recently emblazoned in Building Design and Construction, show that some so-called experts are still failing to accurately read the tealeaves.
Dubai is the Arab capital of cool -and so much more - but difficulties caused by the global downturn are fading into history.
Almost exactly a year ago, an article in Britain’s Sunday Times was almost gloating in its message “The Party’s over in Dubai”, which was peppered with depressing unsubstantiated quotes like “I knew Dubai wanted to be No. 1 in everything. I just didn’t realize that included the No.1 boom and bust”.
The writer got it spectacularly wrong. The lights may have flickered briefly, but the party’s just beginning. I’ll let the facts speak for themselves.
In the first place, the global recession is coming to an end faster than was envisaged according to the Organization for Economic Co-operation and Development (OECD), which predicts a dramatic turnaround for Asian economies generally and is positive on the recovery of most G7 nations. This welcome news will renew investor confidence worldwide.
Secondly, earlier this month, the International Monetary Fund (IMF) praised the UAE government’s reaction to the global crisis and says the country’s GDP is set to expand by 3 percent next year and a sustainable 5 percent in 2012.
Also forecast, is a growth in domestic investment, an increase in global capital, burgeoning exports and a 2009 inflation rate of just one percent.
Against such a fertile backdrop, Dubai is well-placed to surge ahead and especially when concerns that Dubai might fail to meet its debt obligations have been allayed, thanks to the government’s innovative capital-raising strategies.
Dubai’s Finance Department recently raised US$ 1.93 billion from a dollar denominated, fixed-rate Islamic bond or sukuk sell-off. The government has further published a Euro Medium-Term Note (EMTN) prospectus aimed at raising US$ 4 billion to be spent on financing infrastructure projects.
Those doom merchants who claimed Dubai would not be able to pay its debt due this year, will soon be eating their words in the same way that those who foresaw that Dubai World-owned developer Nakheel would default on its obligations already have. In mid-October, Nakheel rebuffed the skeptics by repaying Dh 4.4 billion in debt to various banks.
While remaining focused on its current obligations, the government is shoring up the future. The recently inaugurated Dubai Metro has already served 2.5 million passengers and Dubai International Airport, which witnessed a 19.5 percent passenger traffic increase in September, is due to open a third concourse in 2012.
Next year, the world’s largest airport Al Maktoum International Airport will open in Jebel Ali, while Emirates is bucking the international trend by expanding its fleet and adding new routes.
Symbolic of the emirate’s unflappable confidence is its planned bid to host the 2020 Olympics, which would be the first time ever that the games are held on Arab soil.
There is good news for the private sector too, which, I can state with confidence as a businessman involved with almost all sectors of the economy. Our construction business continues to be awarded lucrative contracts and our hotels are enjoying high occupancy rates.
Our automotive subsidiary sold more vehicles in October than previous months. Moreover, due to record high demand, we are expanding our leasing fleet of 9,000 cars.
Likewise, our schools have reported the highest number of student enrolments ever and have long waiting lists. We are certainly not alone in this positive evaluation. It’s no accident that Ferrari chose Dubai to open its largest merchandizing store worldwide this month.
Dubai’s property market is also signaling recovery with prices having rebounded by nine percent since last April. In October, Emaar’s third-quarter net operating profit rose by 53 percent while its chairman Mohammed Al Abbar announced that there are “clear signals of real estate prices gaining momentum in premium areas…”
Lastly, to those few individuals who would derive some kind of warped pleasure from seeing Dubai turn into a ghost town, I would say categorically, ‘that’s never going to happen’.
Dubai may not be the only destination that bridges Europe and Asia but it is the only business, trading and tourism destination whose name is boldly engraved on the international map.
Visionary leadership, entrepreneurial flair, skill and sheer hard work have combined to create a unique metropolis out of a coastal town dependent on dhows for its trading with India, Africa and other countries in less than five decades.
I wish that the bad news gloaters would reflect on this miraculous achievement that no amount of money could buy - and, indeed, Dubai, does not really have a significant natural resources.
And what a metropolis it is! There is nowhere in the region or the world that is anything like it in terms of stunning architecture, infrastructure, leisure facilities and individual opportunity. And there is nowhere else that can boast such a multi-cultural harmonious ambience.
I sound like a proud national that’s because I am. It gives me a warm feeling just to stroll around and register the smile-count as compared to other places. It may sound simplistic, but people here are happy in a stable, secure and open environment. Just to list Dubai’s international awards for excellence would fill the pages of this newspaper.
Most importantly, Dubai opens its arms to anyone willing to contribute to its growth in return for a virtually tax-free lifestyle that is envied the planet over. Even America’s talk-show doyenne Oprah Winfrey looked incredulous during a recent segment when she learned that Dubai imposes zero personal taxation, provides free medical treatment and no-one here goes hungry or is homeless.
I would like to invite Ms Winfrey to come and see for herself; an invitation that is extended to anyone resolved to ignore those cheerless headlines and experience my incredible home town first-hand.
Khalaf Al Habtoor is chairman of the Al Habtoor Group
READERS' COMMENTS
Disclaimer: The views expressed here by our readers are not necessarily shared by ArabianBusiness.com or its employees.
Congratulations
Posted by Madhav Rao, Dubai on Wednesday 11 November 2009 at 11:00 UAE time
i salute Mr Habtoor on this visionary article, Dubai is 2nd to none, it has the worlds tallest tower, the most luxury cars and the most dynamic business environment.
Naysayers should just stay shut and see Dubai rise yet again, go Dubai!
Posted by Madhav Rao, Dubai on Wednesday 11 November 2009 at 11:00 UAE time
i salute Mr Habtoor on this visionary article, Dubai is 2nd to none, it has the worlds tallest tower, the most luxury cars and the most dynamic business environment.
Naysayers should just stay shut and see Dubai rise yet again, go Dubai!
Let's stay positive
Posted by Rajiv Singh on Tuesday 10 November 2009 at 15:48 UAE time
I congratulate Mr. Al Habtoor for his article. It is great that someone of such stature and experience has chosen to write this article, because Mr. Al Habtoor is someone we can all believe in. He has earned his respect in Dubai over many years. I hope he will continue to update us in this way.
Posted by Rajiv Singh on Tuesday 10 November 2009 at 15:48 UAE time
I congratulate Mr. Al Habtoor for his article. It is great that someone of such stature and experience has chosen to write this article, because Mr. Al Habtoor is someone we can all believe in. He has earned his respect in Dubai over many years. I hope he will continue to update us in this way.
Time to listen
Posted by Bashar on Tuesday 10 November 2009 at 15:45 UAE time
A lot of people have given their opinion on this story, but I think the only valid opinion is that of Mr. Al Habtoor. If you do your research, you will see that he has personally played a huge role in the development and growth of Dubai. He has the experiece and the wisdom - and we should listen to him. I applaud his positive commentary, and believe it is also correct.
Posted by Bashar on Tuesday 10 November 2009 at 15:45 UAE time
A lot of people have given their opinion on this story, but I think the only valid opinion is that of Mr. Al Habtoor. If you do your research, you will see that he has personally played a huge role in the development and growth of Dubai. He has the experiece and the wisdom - and we should listen to him. I applaud his positive commentary, and believe it is also correct.
AB
Posted by Mounir, Abu Dhabi, UAE on Tuesday 10 November 2009 at 14:34 UAE time
Again, AB is only interested in posting replies that attack me personally. I have YET to see ONE person refute ONE point that I said and prove me wrong. Can power and water bills be considered as taxes? Can a non citizen expect to be treated as a citizen? Can someone expect more than a fair salary for their salary? and if someone does not think they're getting a fair salary, whose fault is that? theirs for staying around or the country for failing to give that person more money?
All of these are questions i bring up time and time again, and yet NO ONE argues against them. People insult me knowing full well that they cant argue with my points!!!! AB, stop banning posts that answer my questions, lets have a civil debate for once if possible.
Posted by Mounir, Abu Dhabi, UAE on Tuesday 10 November 2009 at 14:34 UAE time
Again, AB is only interested in posting replies that attack me personally. I have YET to see ONE person refute ONE point that I said and prove me wrong. Can power and water bills be considered as taxes? Can a non citizen expect to be treated as a citizen? Can someone expect more than a fair salary for their salary? and if someone does not think they're getting a fair salary, whose fault is that? theirs for staying around or the country for failing to give that person more money?
All of these are questions i bring up time and time again, and yet NO ONE argues against them. People insult me knowing full well that they cant argue with my points!!!! AB, stop banning posts that answer my questions, lets have a civil debate for once if possible.
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