The Dubai 2040 Urban Master Plan will cement the emirate’s place as the preferred destination in the Gulf for relocation amid increasing competition from neighbouring countries, according to a leading economist.
In recent times Dubai has announced a series of reforms designed to attract investment and human capital, with a focus on foreign ownership, visa regulations and citizenship.
Scott Livermore, ICAEW economic advisor and chief economist at Oxford Economics, told Arabian Business, this was not just about boosting the recovery from the Covid-19 pandemic – the city’s economy is forecast to grow 4 percent this year after contracting 6.2 percent in 2020 – but also “about putting some of the building blocks in place needed to achieve the Dubai 2040 Urban Master Plan”.
He said: “Dubai was already attractive to foreign businesses and expats as a base and this strengthens those perceptions. However, there was a risk that although Dubai was seen as the preferred place to locate in the Gulf, the big growth opportunities were elsewhere.
“The Master Plan goes someway to rebalancing those perceptions and, while it is hard to compete with opportunities offered for Vision 2030 in Saudi Arabia, this will strengthen the allure of Dubai.”
Saudi’s Crown Prince Mohammed bin Salman is driving a strategy to double the size of the capital, Riyadh, while last month it was announced the global companies looking to win government contracts will need to relocate their headquarters to the kingdom.
Scott Cairns, managing director of Creation Business Consultants, believed the plan is not a direct response to Saudi’s announcement although he conceded the announcement by Dubai can be seen as quite a strong counter-argument for those debating on where to set-up shop.
“It appears that Dubai has taken a different tact, targeting more the environmental aspects, sustainability and lifestyle for those potentially looking to choose between KSA and the UAE,” he said. “Although those with solely a bottom line to answer for may be forgiven for only considering the ability to bid for Saudi’s government work, Dubai’s strategy will definitely be strong food for thought for companies looking for a more balanced choice for their operations and employees alike.”
The people-centric plan, revealed on Saturday by Sheikh Mohammed bin Rashid Al Maktoum, vice president and prime minister of the UAE and ruler of Dubai, charts a comprehensive future map for sustainable urban development in the city.
A key element is a jump in population from 3.3 million people today, to 5.8 million by 2040.
Scott Livermore, ICAEW economic advisor and chief economist at Oxford Economics.
Livermore said: “If Dubai achieves this population growth, then it will be of a similar size as Singapore and Dubai will want to replicate some of Singapore’s success in other areas.”
According to a joint report from Boston Consulting Group (BCG) and Bayt.com, titled ‘Decoding Global Talent, Onsite and Virtual’, Dubai rose from number six in 2018 to number three for best cities for relocation in 2020, with respondents citing renewed Expo 2021 potential and the swift restart and support of the private sector during recent times as particular attraction points.
Gabriella De la Torre, director, consulting, at CBRE, told Arabian Business: “What will be critical in attracting companies and foreign investment will be the integration and implementation of the Master Plan in conjunction with the range of economic initiatives and reforms which have been announced over recent years, such as the retirement visa, 100 percent foreign ownership and others. These initiatives, coupled with continued focus on residents’ quality of life, will play a pivotal role in supporting economic growth.”
The plan is focused on development and investment in five main urban centres – three existing and two new centres that support growth of economic sectors and increased job opportunities for Dubai’s diverse population, in addition to providing a wide range of lifestyle facilities.
The existing urban centres include Deira and Bur Dubai, historic areas that highlight the emirate’s tradition and heritage; the business and financial heart of the city encompassing Downtown and Business Bay; and the hospitality and leisure centre taking in Dubai Marina and JBR that serves as an international tourism and leisure hub.
The two new centres include Expo 2020 Centre, an economic and growth hotspot featuring affordable housing and a focal point for the exhibitions, tourism and logistics sectors; and Dubai Silicon Oasis Centre, a science and technology and knowledge hub that drives innovation, digital economy development and talent generation.
Under the plan, the government envisages that more than half of the population will live within 800 meters (0.5 miles) of public transport and 60 percent of the desert emirate’s land will be protected as a natural reserve. A new urban planning law will be issued to support sustainable development at a time the government is looking to provide better housing for citizens.
Gabriella De la Torre, director, consulting, at CBRE.
De la Torre said: “There are numerous factors which influence business and economic activity, two of which are front and centre in the 2040 Master Plan – infrastructure development as well as talent pool development and attraction. Dubai benefits from world-class infrastructure as it is, however, the continued focus on enhancing this infrastructure and integrating new technologies serves to support future business needs and creates opportunities for new companies and business models.
“Similarly, having access to top talent is a major consideration for all businesses. Through the continued focus on quality of life, as evidenced in greater dedication of space to healthcare and educational facilities, enhancements to the public realm and provision of new leisure and tourism activities, Dubai is poised to enhance its attractiveness as a destination to live, work and play.”
Companies which utilise cutting edge technology that contributes to sustainability will be in “high demand” as a result of the newly published plan, according to Cairns. And he said he expects “a flood of new companies into the market to supply these much-needed services”.
He said: “One of the biggest draw cards for businesses looking to call Dubai home will be the environment within which their staff will be able to live and raise families. There is a heavy focus on sustainability, with lifestyle at the forefront of new developments. Families will benefit from many new public beaches, parks, cycling paths and other attractions. This heavy focus to transform Dubai into a greener city will make those coming from more leafy green homelands feel much more at home.”
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