Pep Monserrat for The National
Pep Monserrat for The National

Dubai is still a beacon of success



In the 1921 silent film The Sheik, Rudolph Valentino plays an Arab who sells women at his gambling table and forces himself on the helpless Englishwoman who has had the misfortune to catch his roving eye. From the obsequious easterner twirling his moustache and casting sly looks in old Hollywood films, to blood-drenched Palestinian terrorists in the late 1990s, the portrayal of Arabs in western popular culture has a long and sorry history. Last week the stereotypes were dusted off and given a makeover as news that Dubai's government asked Dubai World's creditors to extend its loan agreements by six months reverberated around the globe. The down-on-his-luck Gulf Arab and the most visible symbols of Dubai's wealth have been lampooned endlessly. There is a sense of schadenfreude in recent headlines in the British press such as "the glitz, the glamour - and now the gloom" and "Dubai: Just deserts" or "Dubai dream is over as the bubble bursts". On reflection, I hope the dream is not over. One important geo-political facet has been largely ignored by the pundits, and it is one that consumes policymakers in Washington and London who remain worried about the religious extremism and economic hardship that ravages much of the region. It is simply that Dubai remains a beacon of hope, opportunity and stability in the midst of a strife-torn region and, as such, helps stem a descent into extremism among the young. Within a 2,000-kilometre radius of Dubai lie Kabul, Islamabad, Baghdad and the Gaza Strip - all cities of despair. Muslim leaders trying to chart a more moderate course through the tangle of insurgency, sectarian conflict and occupation have no easy task. On a visit to America, King Abdullah of Jordan once jokingly remarked that back home he was surrounded by the neighbours from Hell. The facts about the lack of progress in the Middle East are depressingly familiar. The region has nearly half of all the refugees on the planet. Data from the World Bank shows the real GDP per capita in Arab countries grew by only 6.4 per cent from 1980 to 2004, which is less than 0.5 per cent annually. Arab countries are less industrialised today than they were in 1970. An estimated 65 million live in poverty. Dubai, however, offers hope and opportunity. It is like New York City in the late 19th century, raw and refreshing; attracting the hard-working and the ambitious from all over the Islamic world. The vast majority of its inhabitants are not the 20-something American investment bankers unable to splash out on Gucci luggage, or the British expat facing the prospect of giving up her Jumeirah beach house and returning to work at a supermarket back in Manchester. Dubai's citizens are Arabs, South Asians and Africans. When they arrive the dream does not always match the reality but, as immigrants in the last century who fled famine and oppression felt, the prospect of returning home is usually worse. In Somalia, smugglers taking terrified refugees across the Red Sea tell them upon landing on Yemen's shores that behind the first mountain is Dubai. South Asia's economies have become dependent on those long queues at the exchange offices in the shopping malls on pay day. Last year South Asian workers sent home an estimated US$66 billion (Dh242bn) in remittances, the vast majority from the Gulf states. In one month alone, March this year, Pakistanis in the Emirates wired $175 million to their families. For India, Bangladesh, Pakistan and Sri Lanka cash transfers represent between 4.2 and 11.4 per cent of the country's entire GDP. Those governments do not want their citizens back home either: the prospect of millions of jobless and angry men in rural Pakistan, India or Bangladesh is terrifying. The UAE has become a unique experiment in the Islamic world, admired and envied up and down Arab streets in their varying states of decay and chaos. In Kabul, where Afghans have realised via satellite television that a Muslim country can also be thoroughly modern whatever the Taliban say, anything fashionable has the word Dubai attached to it. The "Kabul-Dubai Wedding Hall" was opened with flashing lights and last year a song dedicated to Dubai became a hit. In particular, young and ambitious Arabs are drawn here. The youth unemployment rate in the Middle East is 25 per cent, twice the global average. The population of most Muslim-majority countries is overwhelmingly young and single. They lack educational and job opportunities. Young men have the potential to turn to extremist thinking in an attempt to find direction in their lives. "Islam is the solution," the slogan of religious zealots, has great appeal. By contrast, many of Dubai's expatriates are married, partly because they can afford to have houses, children and settle down. There are also many single men here, but they arrive with the goal of saving enough money to return home and start families. The Lebanese once led the region in business acumen but attempts to revive freewheeling 1960s Beirut struggle because of the conflicts with Israel. Instead, single women in Beirut complain bitterly about a lack of eligible bachelors because most have gone to the Emirates to find their fortune. Egypt is pushing free-market reforms and shrugging off its lumbering, Soviet-inspired bureaucracy, but unemployment among college graduates is almost 10 times that of people with a primary education. In any case, no one can get a job without wasta, a personal connection. Dubai is also home to the second-largest community of expat Iranians outside North America, up to 400,000. As Iran's economy suffers under the weight of sanctions and inflation, Iranians have moved to Dubai to do business away from stifling codes of social behaviour back home. The Dubai International Financial Centre has been populated by glamorous Iranian women, headscarves barely covering their hair, a style very slowly being copied by their daring Gulf Arab sisters. How the UAE influences change in the region will be interesting to watch. Saudi Arabia is the undisputed social, political and economic heavyweight in the Arabian peninsula. For a Gulf country to push out of its gravitational field is remarkable. Yet Dubai is only about 800km from Riyadh where women cannot drive and religious police maintain strict social control. Yet the kingdom is also trying to open up to the world. At a tourism conference in Dubai in September 2006, one Saudi prince announced that Saudi Arabia was licensing 16 tour operators to issue visas to non-Muslims from Asia and Europe and encourage them to visit the kingdom's scuba-diving sites. The starting base for education in the Muslim world is low. In The Times of London's ranking of top 200 universities, not a single institution in a Muslim-majority country made the grade. It will take more than a generation to make that change. The fact that 79 per cent of university students in the Emirates are women sends a powerful signal. Dubai was once praised for embracing unfettered, free market thinking and rising above the fray of explosive Middle Eastern politics which has kept the region undeveloped. It did not invent consumerism, but to its critics abroad the emirate has become a symbol of its worst excesses. Nevertheless, Dubai has achieved what other Arab countries have not been able to do: attract the attention and investment of Western Europe and North America, which are more accustomed to sending aid and armies to this part of the world. Let us hope that the Dubai dream is not over and that its beacon continues to shine across the Muslim world. hghafour@thenational.ae

Diriyah%20project%20at%20a%20glance
%3Cp%3E-%20Diriyah%E2%80%99s%201.9km%20King%20Salman%20Boulevard%2C%20a%20Parisian%20Champs-Elysees-inspired%20avenue%2C%20is%20scheduled%20for%20completion%20in%202028%0D%3Cbr%3E-%20The%20Royal%20Diriyah%20Opera%20House%20is%20expected%20to%20be%20completed%20in%20four%20years%0D%3Cbr%3E-%20Diriyah%E2%80%99s%20first%20of%2042%20hotels%2C%20the%20Bab%20Samhan%20hotel%2C%20will%20open%20in%20the%20first%20quarter%20of%202024%0D%3Cbr%3E-%20On%20completion%20in%202030%2C%20the%20Diriyah%20project%20is%20forecast%20to%20accommodate%20more%20than%20100%2C000%20people%0D%3Cbr%3E-%20The%20%2463.2%20billion%20Diriyah%20project%20will%20contribute%20%247.2%20billion%20to%20the%20kingdom%E2%80%99s%20GDP%0D%3Cbr%3E-%20It%20will%20create%20more%20than%20178%2C000%20jobs%20and%20aims%20to%20attract%20more%20than%2050%20million%20visits%20a%20year%0D%3Cbr%3E-%20About%202%2C000%20people%20work%20for%20the%20Diriyah%20Company%2C%20with%20more%20than%2086%20per%20cent%20being%20Saudi%20citizens%0D%3C%2Fp%3E%0A
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
 
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
 
Round 3: February 7-9, Dubai Autodrome – Dubai
 
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
 
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
Five hymns the crowds can join in

Papal Mass will begin at 10.30am at the Zayed Sports City Stadium on Tuesday

Some 17 hymns will be sung by a 120-strong UAE choir

Five hymns will be rehearsed with crowds on Tuesday morning before the Pope arrives at stadium

‘Christ be our Light’ as the entrance song

‘All that I am’ for the offertory or during the symbolic offering of gifts at the altar

‘Make me a Channel of your Peace’ and ‘Soul of my Saviour’ for the communion

‘Tell out my Soul’ as the final hymn after the blessings from the Pope

The choir will also sing the hymn ‘Legions of Heaven’ in Arabic as ‘Assakiroo Sama’

There are 15 Arabic speakers from Syria, Lebanon and Jordan in the choir that comprises residents from the Philippines, India, France, Italy, America, Netherlands, Armenia and Indonesia

The choir will be accompanied by a brass ensemble and an organ

They will practice for the first time at the stadium on the eve of the public mass on Monday evening 

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

The specs

Engine: 3.8-litre, twin-turbo V8

Transmission: seven-speed automatic

Power: 592bhp

Torque: 620Nm

Price: Dh980,000

On sale: now

Living in...

This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.

How to watch Ireland v Pakistan in UAE

When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.

In numbers

1,000 tonnes of waste collected daily:

  • 800 tonnes converted into alternative fuel
  • 150 tonnes to landfill
  • 50 tonnes sold as scrap metal

800 tonnes of RDF replaces 500 tonnes of coal

Two conveyor lines treat more than 350,000 tonnes of waste per year

25 staff on site

 

Specs
Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
On sale: Now
Price: From Dh158,000 (Cooper), Dh168,000 (Aceman), Dh132,000 (Countryman)
Jewel of the Expo 2020

252 projectors installed on Al Wasl dome

13.6km of steel used in the structure that makes it equal in length to 16 Burj Khalifas

550 tonnes of moulded steel were raised last year to cap the dome

724,000 cubic metres is the space it encloses

Stands taller than the leaning tower of Pisa

Steel trellis dome is one of the largest single structures on site

The size of 16 tennis courts and weighs as much as 500 elephants

Al Wasl means connection in Arabic

World’s largest 360-degree projection surface

WHAT%20IS%20THE%20LICENSING%20PROCESS%20FOR%20VARA%3F
%3Cp%3EVara%20will%20cater%20to%20three%20categories%20of%20companies%20in%20Dubai%20(except%20the%20DIFC)%3A%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ECategory%20A%3A%3C%2Fstrong%3E%20Minimum%20viable%20product%20(MVP)%20applicants%20that%20are%20currently%20in%20the%20process%20of%20securing%20an%20MVP%20licence%3A%20This%20is%20a%20three-stage%20process%20starting%20with%20%5B1%5D%20a%20provisional%20permit%2C%20graduating%20to%20%5B2%5D%20preparatory%20licence%20and%20concluding%20with%20%5B3%5D%20operational%20licence.%20Applicants%20that%20are%20already%20in%20the%20MVP%20process%20will%20be%20advised%20by%20Vara%20to%20either%20continue%20within%20the%20MVP%20framework%20or%20be%20transitioned%20to%20the%20full%20market%20product%20licensing%20process.%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ECategory%20B%3A%3C%2Fstrong%3E%20Existing%20legacy%20virtual%20asset%20service%20providers%20prior%20to%20February%207%2C%202023%2C%20which%20are%20required%20to%20come%20under%20Vara%20supervision.%20All%20operating%20service%20proviers%20in%20Dubai%20(excluding%20the%20DIFC)%20fall%20under%20Vara%E2%80%99s%20supervision.%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ECategory%20C%3A%3C%2Fstrong%3E%20New%20applicants%20seeking%20a%20Vara%20licence%20or%20existing%20applicants%20adding%20new%20activities.%20All%20applicants%20that%20do%20not%20fall%20under%20Category%20A%20or%20B%20can%20begin%20the%20application%20process%20through%20their%20current%20or%20prospective%20commercial%20licensor%20%E2%80%94%20the%20DET%20or%20Free%20Zone%20Authority%20%E2%80%94%20or%20directly%20through%20Vara%20in%20the%20instance%20that%20they%20have%20yet%20to%20determine%20the%20commercial%20operating%20zone%20in%20Dubai.%C2%A0%3C%2Fp%3E%0A
THE SPECS

Engine: 1.5-litre turbocharged four-cylinder

Transmission: Constant Variable (CVT)

Power: 141bhp 

Torque: 250Nm 

Price: Dh64,500

On sale: Now

THE SPECS

Engine: 6.75-litre twin-turbocharged V12 petrol engine 

Power: 420kW

Torque: 780Nm

Transmission: 8-speed automatic

Price: From Dh1,350,000

On sale: Available for preorder now

A State of Passion

Directors: Carol Mansour and Muna Khalidi

Stars: Dr Ghassan Abu-Sittah

Rating: 4/5