In his book Leadership Dubai Style, author Tommy Weir tells the story of how in the 1970s, when Sheikh Rashid of Dubai decided to build Jebel Ali port, some Emiratis were against it. "Your father wants to build a new port at Jebel Ali," Weir recounts the businessmen telling Sheikh Mohammed bin Rashid, now Vice President and Ruler of Dubai, "The country is suffering from stagnation, and the new port will lead to overcapacity and losses."
But Sheikh Rashid remained firm, judging that the city would one day require a third port. Looking at the metropolis that Dubai is today, it is clear that it was the right decision.
The same reasoning applies to the enormous, Dh165 billion industrial strategy that Dubai has just announced. Seeking to create tens of thousands of new jobs by 2030, the strategy sets out priorities in a number of industries, including aluminium, pharmaceuticals, aerospace and machinery. One of the core parts of the strategy is increasing the number of companies in the Jebel Ali Free Zone.
The industries chosen are not coincidental. Some of the industries that will be prioritised, such as aluminium and machinery, are labour intensive. Others, like aerospace, are knowledge-intensive. To grow as a city, all the pillars of the economy need focus. The more labour-intensive industries allow for future growth, while the knowledge-intensive industries will provide skills for Emiratis.
This second strand is almost as important as the first. The increase in the industrial sector is hugely important for the economy in general. But a second urgent task is to make sure Emiratis with the right skills can contribute to the knowledge economy. By making the creation of jobs a key part of this strategy, the city ensures that its sons and daughters will be ready to take on the new jobs that these new industries will create.
As the oil price remains low, it is natural that governments would seek retrenchment, seeking to manage their commitments and keep the economy where it is. It takes bold judgment to start a strategy that will grow the economy. But as with Sheikh Rashid’s decision, thinking big will pay off in the years to come.
