Document Sample
Michael Matly and Laura Dillon

Harvard Business School, February 27, 2007

Sponsored by the DUBAI INITIATIVE, Belfer Center for Science and International
Affairs, John F. Kennedy School of Government, Harvard University

             I. Introduction                     of Sheikh Mohammed as ruler of Dubai.
                                                 Sheikh Rashid understood that compared
Dubai is a monarchy, with all power              to its neighbors, Dubai had a limited
leading towards a single person. Dubai           supply of oil and gas reserves (1/20th the
has      non-transparent     government          reserves of Abu Dhabi) that would run
financials. Dubai is situated in a region        out by 2010 and was determined to build
that    is     strife   with     conflict,       up Dubai’s economy so that could it
fundamentalists, and hostile countries           survive the end of the oil boom. His
including Iraq, Iran, and Pakistan.              famous quote was "my grandfather rode
Dubai is located in the desert where             a camel, my father rode a camel, I drive
temperatures can reach 130F in one of           a Mercedes, my son drives a Land
the most humid locations on the planet.          Rover, his son will drive a Land Rover,
                                                 but his son will ride a camel." This quote
Yet, despite all this, Dubai, a tiny city-       signified Sheikh Rashid’s understanding
state, located in the Persian Gulf has           of the risks involved with the end of
undergone an impressive transformation           petrol money. Many have argued that
over the last four decades, managing to          Dubai’s success has been one of luck
shift their economy from that of fishing         rather than a thought-out development
and     trading     to    tourism,   mass        strategy. We intend to argue that Dubai
communications, shipping, and finance.           has been on a pathway set for nearly
Dubai has created for itself an image            thirty years, and while the rate of growth
synonymous with luxury, multi-billion            in the last decade may have been
dollar real-estate ventures, 12 million          surprising, the actual growth is not.
visitors in 2005; and as Vanity Fair has         Dubai’s Minister of Finance claims that
described it, a “city on crack”.i                there is a legend among the locals that in
                                                 fact Sheikh Mohammed (the current
       II. Creation of Dubai, Inc.               ruler of Dubai) has only implemented
                                                 one of the three strategic road maps that
But how did Dubai begin her                      Sheikh Rashid planned for Dubai.
transformation? Locals attribute the key         Whether true or not, the economic
milestones to be the dredging of the             development path of this tiny city-state,
creek and the establishment of Jebel Ali         in the minds of the citizens, is largely
Port (in the late 70s), both under the           attributed to their early rulers.
sterwardship of Sheikh Rashid Al
Makhtoum, ii,iii and finally the ascension

Boats and Planes                                successful trade with Europe, Middle
                                                East, and South Asia. This history is
By establishing itself as a hub of trade        still engrained in the minds of the
by sea and a center of tourism and              modern generation of Dubai’s prominent
business travel by air. The Mina (Port)         families.viii This set a cultural norm
Rashid was completed in 1972 and by             from the leadership of Dubai, planting
1978 the port had increased to 35 berths        the seeds for a people open to the west,
- including five berths large and deep          foreigners and their culture. Unlike
enough to handle the largest container          other Arab kingdoms whose borders
vessels. By 1979, the Jebel Ali Port was        were practically closed to westerners and
completed, located 35 km southwest of           those that were open forced expatriates
Dubai, and became the world’s largest           within fenced communities, Dubai
man-made harbors and the biggest port           citizens lived and worked with their
in the Middle East. In fact, by 1979,           foreign partners. When the first bars
Jebel Ali Port ranked alongside the Great       opened in UAE, the local response was
Wall of China and the Hoover Dam as             nearly muted. And it is this very culture
the only three man-made objects that            and openness that has now propelled
could be seen from space.iv The Jebel           Dubai past its GCC neighbors in terms
Ali Free Zone quickly followed in 1985          of FDI.
with an airport currently under
construction.     The facilities are a          In addition to the creation of the ports,
significant distance from Dubai, in the         Sheikh Rashid placed air travel as a top
midst of the desert and when initially          priority for Dubai’s development. The
planned, Sheikh Rashid’s advisors did           Dubai airport was established in 1959,
not believe that the Jebel Ali Port would       early in terms of Dubai’s economic
be successful.v Jebel Ali is also home of       situation at the time. In fact, Sheikh
DP Ports, one of the world’s largest port       Rashid purchased the plans for the
operators. The development of the ports         airport construction from the Ruler of
was also a slow, step-by-step process by        Qatar who sanctioned a study to build an
Dubai, which had been known as ‘the             airport in Qatar, but after local
city of merchants’. DP ports has since          disapproval, the plans weren’t carried
become the #3 operator in terms of              through. To complement the airport,
global coverage and #1 from Australia to        Dubai established its airline, Emirates In 2004, Dubai was the             Airline, in 1985 with a $10 million USD
third most important re-export center in        capital infusion from the Dubai
the world trailing Hong Kong and                government.ix Emirates Airlines has
Singapore with imports more than                now become one of the most successful
doubling between 1998 and 2004.vii              airlines in the world. For 2004–05,
                                                Emirates paid an increased dividend of
Sheikh Rashid’s strategy was to build on        Dh368 million ($100 million USD) to
Dubai’s successful history as traders.          the Government of Dubai, compared to
From its earliest history, Dubai was a          Dh329 million the year before. In the
trade hub from pearls to textiles. Many         first six months of the current financial
of Dubai’s prominent families built their       year, Emirates Airline has reported a net
financial empires not on oil (like              profit of US$323m, up 29% from
neighboring Abu Dhabi) but on                   US$251m for the same period last year.

The Dubai Government is still the sole           Financial center (DIFC), a cluster
owner of Emirates Airline, despite not           initiative dedicated to the financial
putting any money into it except the             industry.
original $10 million USD.
                                                 By the time Sheikh Mohammed had
Another important initiative of the late         begun his rule, the concept of a free-
Sheikh Rashid was the creation of the            zone was already well established in the
Dubai World Trade Center which was               GCC, pioneered by the Jebel Ali Free
built in 1979, standing 39 stories, it was       Zone. A free-zone created a more liberal
the largest building in the Middle East at       regulatory environment which not only
the time. It has evolved as the center of        included freedom of ownership and
the largest exhibition center in the             management without taxes, but also a
Middle East with 7 exhibition halls. The         simplified approach to documentation
World Trade Center now also hosts                and government regulations. What was
government think tanks such as the               new was the creation of business parks
Dubai School of Government which has             dedicated to specific industrial sectors.
partnered with the Harvard Kennedy               And, in 1999, the Dubai Internet City
School of Government as a center of              was announced, Dubai’s first fusion
policy research and training for Dubai           business park/free-zone. 364 days later
and the region’s future government               (as a testament to Dubai’s speed) the
officials.x                                      result was 30 square million feet of land
                                                 with 4 buildings representing 1 million
Dubai, Inc. was now up and running.              square feet of leasable space. One
While Abu Dhabi and neighboring                  hundred and eighty tenants had joined in
countries were busy building their               the first year including Microsoft,
economies around the vast oil reserves,          Oracle, IBM, Dell, Siemens, Canon, and
Dubai was developing an economy that             SonyEriccson.      As Wadi Ahmad,
would be founded upon trade, business,           Director of Marketing stated:
and an airline to link it to the world.
                                                        “We have made Porter’s theory a
Business Parks and more Business Parks                  reality. If you bring all the
                                                        companies from the same
Sheikh Mohammed bin Rashid Al                           segment      together,     channel
Maktoum is considered by many locals                    development           opportunities
as responsible for Dubai’s next phase of                materialize.      It’s real life
development.     He is responsible to                   networking. It is bringing the
setting the “Dubai Vision 2010” which                   integrator together with the
would attract the world’s top companies                 software developers. Our ICT
to transform Dubai to a knowledge-                      cluster includes 600 companies
based economy. And in 2006, it is                       working within 2 km of each
working: one fourth of the world’s                      other. Our clients set up joint
global 500 companies have a presence in                 ventures together and do trade
Dubai.xi In fact, between 2004-2009,                    together. We are the only
Dubai has earmarked $40 - $60 billion                   managed entity in the work to
USD to projects like Dubailand, The                     house     that   many      brands.
Palm and the Dubai International                        Everyone who is anyone in the

       industry is here. Silicon Valley            class shopping and (2) unique, world-
       has some similarities but it is an          class projects. Whether it was through
       area, not a single managed                  the famous gold souks or the top couture
       entity.”xii                                 fashion boutiques, Dubai has established
                                                   itself as a shopping destination. This is
And with the successes of Dubai Internet           further supported by Dubai’s infamous
City, business parks began springing up            shopping festival known as the Dubai
all over Dubai: Dubai Media City, Dubai            Shopping Festival in which 3,000 retail
Studio City, Dubai Health Care City,               outlets and 40 shopping malls offering
Dubailand, Dubai Humanitarian City,                huge discounts.xiv         The shopping
Dubai Knowledge Village, Dubiotech,                festivals coupled with mega-projects
and Dubai Industrial City. And with                such as The Palm, The World, the Burj
each park came revenue from land sales,            Al Arab, Dubai is now placing itself on
revenue that was re-invested in new                the global map beyond business but as a
business parks.                                    major tourist destination.

Hotels, Gucci, and Snow Mountains                            III. Economic Profile

With a clear business park/freezone-               Over the past decade, Dubai has
cluster development strategy being                 recorded significant GDP and economic
implemented        in     Dubai,    Sheikh         growth, primarily driven by the non-oil
Mohammed turned to his second                      sectors. Dubai represents approximately
objective, transform Dubai into a                  29% of the UAE’s GDP and in 2005,
tourism destination. The Jumeirah group            Dubai’s GDP recorded a nominal growth
was established in 1997 to develop and             of 27%.xv Compared to other emirates
operate five-star luxury hotels in Dubai           and countries in the region, Dubai has
and more recently the world. Creating              relatively little oil and as previously
land-mark hotels such as the famous                mentioned, its reserves are estimated to
Burj Al Arab and Medinat Jumeirah                  last about another 10 years.xvi As a result
(which is part of a traditional Arab city          of this, Dubai has encouraged private
full of bazaars, canals, and luxury spas).         sector activity and had been very
In 2004, the Bab Al Shams resort was               successful in creating a diversified
built in the desert as a luxury desert oasis       economy which is no longer primarily
and spa.           By 2006, Jumeirah               reliant on oil and hydrocarbons. Exhibit
International had purchased international          1 shows that only 5.4% of Dubai’s GDP
properties such as The Essex House                 comes from the oil sector with the
(Central Park, NYC).          Jumeirah is          dominant sector now being trade and
currently boasting an average occupancy            repairing services, which in 2005
of more than 90% across its many                   represented 22.8%, emphasizing Dubai’s
properties, some of the highest in the             dominant position as a trade center.
world.xiii                                         Other major drivers of economic growth
                                                   include manufacturing, construction, real
With hotels and luxury resorts in place,           estate, financial services and transport
the next challenge was to create                   storage and communication also shown
attractions for tourists, this was                 in Exhibit 1.
accomplished in two ways: (1) world

Dubai has grown very aggressively in             construction there are many other
many sectors including tourism where             ambitious projects being planned for the
Dubai leads the region with innovative           next 10 years including Dubai Land,
and modern multi-billion dollar projects.        Dubai Light Rail Transport and
Dubai also focuses on attracting business        redevelopment of Dubai’s World Trade
conferences, new festivals and also high         Center.xvii
profile sporting events to the country, in
addition to heavily investing in                 Real estate has also been a key driver of
advertising to promote Dubai as the              growth and has been a steady and robust
tourist destination in the Middle East.          performer over the past 5 years. The
Exhibit 2 shows the significant increase         vision of the government to turn Dubai
in tourism numbers over the past 5 years         into the trade hub of the region has
which demonstrates the success of these          stimulated interest and much economic
initiatives. Dubai’s strategic positioning       activity. Factors that have been critical
midway between Europe and Far East               to the strong development of this sector
has assisted this tourism growth, but has        include property rights, transaction costs
also led to a strong trading and                 and capital gains taxes. With the opening
transportation hub with a large re-export        up of the market to allow freehold
market. Exhibit 2 also shows the                 ownership of properties to foreigners in
increase in transportation and freight           Dubai there has been an excess demand
numbers from 1990 to 2001. As has been           for buildings relative to the supply.
previously described, over the decades           International investors have driven a
Dubai has heavily invested in large              huge demand for properties and over the
infrastructure and companies such as             past few years, given the limited supply,
ports, airports, Emirates Airlines and           prices and rents have sharply increased.
Dubai Ports which leaves this small              Real estate prices and returns are
emirate very well positioned to capture          expected to stabilize over the coming
this market. Exhibit 3 highlights Dubai’s        years as supply begins to match demand
increasing role as a major re-exporter           with the entrant of new private
and hub in the region – exports from             developers such as Emmar, Nakheel and
Dubai to other GCC countries increased           Dubai Properties.xviii
49% to AED 19.2 billion in 2005 with
Saudi Arabia being the dominant trade            There also appears to be a significant
partner.                                         relationship between the real estate
                                                 sector and the financial sector in Dubai.
In addition to trade and tourism, much of        Exhibit 5 shows a statistical significance
Dubai’s economic prosperity is due to its        between the trends in share prices of
booming real estate and financial                companies in the finance sector and real
services       sectors.      Construction        estate sectors. The finance sector
contributed 11.9% to total Dubai GDP             represents almost 10% of Dubai’s GDP
and Dubai represented 48% of total               and has been growing strongly. Dubai
construction in UAE. As demonstrated             also wishes to position itself as the
in exhibit 4, Dubai has a vast range of          financial services hub of the Middle East
projects in its construction pipeline that       and the DFM (Dubai Financial Market)
represents approximately $25 billion. In         commenced operations on 26th March
addition to the projects currently in            2000.xix Dubai is also currently

developing a banking “free zone” called          Zone, and the Jebel Ali Free Zone. The
Dubai International Financial Center             United Arab Emirates has also pegged
(DIFC) and is replicating global best            its currency to the US dollar which gives
practices. The UAE’s capital markets             investors relative confidence. From an
have also undergone rapid growth and             export perspective this currently makes
development in recent years. The DIFC            Dubai very attractive and puts it in a
launched the Dubai International                 very competitive position. However,
Financial     Exchange       (DIFX)     in       pegging the currency to the USD also
September 2005 and the Dubai Gold and            has other implications which will be
Commodities Exchange (DGCX), the                 discussed later with the challenges that
Middle East’s first gold exchange was            are currently facing Dubai.
started in November 2005.xx As of 31st
May 2006, the DFM comprised 34                               IV. Why Dubai?
public joint stock companies with a total
market capitalization of AED 316                 Western investors have turned to Dubai
billion. The DFM is highly concentrated          to establish their regional headquarters
in a few companies and hence due to              while young entrepreneurs are creating
these dominant businesses, individual            companies in this tiny emirate; yet, with
movements of stocks can swing the                Qatar, Bahrain, and Oman establishing
overall market to a significant extent.          similar incentives on paper, why is
Exhibit 6 shows the DFM performance              Dubai still the destination of choice?
from May 2000 to May 2006. It is                 We argue it is due to three drivers: (1)
interesting to note the sharp market             speed, (2) culture and (3) Governance.
decline in 2006 which is very difficult to
explain in terms of market fundamentals.         Dubai has astonished its western
Potential reasons for this sharp decline         partners in the speed from project idea to
may include lack of investors confidence         launch.xxii In a region where speed is not
due to limited transparency and lack of          known, Dubai’s growth rate is one of the
trust in financial statements and analysts       highest in the world.              Sheikh
recommendations. Speculative trading             Mohammed has established a reputation
and desire to cash in on market gains are        for being notorious for his time
additional explanations for the change in        requirements. He has taken projects
investor confidence.xxi                          away from prominent families because
                                                 of delays; in fact, one requirement to
Other factors that have contributed to the       invest in the free-zones, development
economic growth and activity are due to          must begin within 24 months. However,
the government’s vision including                speed has its disadvantages including
strategic and policy changes. Free-zones         poor construction quality and labor
in Dubai have attracted a lot of FDI from        abuses.
foreign owned companies. These
economic free-zones have various                 Pro-western culture has also been
economic incentives to encourage                 attractive for the foreign investor. Dubai
investment and commercial development            is notorious for being open to western
and examples include the Internet and            culture, full of night clubs, world-class
Media Cities, the International Financial        restaurants, and open to alcohol
Centre, Maritime City, the Airport Free          consumption. Locals and expatriates live

and work together, creating a nurturing           Roman Catholic Church xxv and a
environment for the western expatriate.           collection of Christian churches in Jebel
While other countries have attempted to           Ali Free Zone (St. Francis of Assisi
create similar incentives for FDI, they           Church, Mar Thomite Church, the
still lack the cultural platform to support       Anglican Church, Syrian Orthodox
new entrants and this may remain the              Church and the Dubai Evangelical
most significant challenge for new                Church Centre).xxvi
market entrants, attempting to capture a
share of this emerging market.                               V. Why not Dubai?

The third strategic point for Dubai that          The rapid growth and fast pace of
makes it stand out is its attempt to              Dubai’s economic development also
improve governmental transparency.                brings with it challenges and problems
Gulf countries are notorious for their            which need to be addressed. Some of
lack of transparency in government                these potential issues include inflation,
finances as well as how the royal                 revaluation of the currency, talent drain,
family’s finances are intertwined with            increasing inequality between the
the government. Dubai hopes to change             classes, clash of cultures, transparency,
that, first by creating an executive              expatriate      community      integration,
council which would serve as a                    allocation of resources, leadership and
legitimate forum for governance as well           the potential for the ‘bubble to crash’.
as improve financial accountability                       Leadership and governance is
among the Ministries (known in Dubai              increasingly important and complex as
as Departments).xxiii In addition, free           Dubai grows to a high profile and
zone governances have also been                   dominant position in the Middle East. It
incredibly thorough in order to maintain          is very important to balance economic
credibility among large multinationals.           growth and prosperity with traditional
For example, the Dubai International              culture and norms. As the economy
Financial City (DIFC) modeled their               develops and life becomes increasingly
regulatory framework after many of the            complex, it becomes more and more
UK charters, even the royal government            difficult for Sheikh Rashid to anticipate
can (should this say cannot Michael?)             the need’s of Dubai’s population. In
intervene in the governance of the                addition, conflicts of interest are also
DIFC.xxiv                                         appearing that may mean what is best for
                                                  Dubai Inc. is no longer best for the
Dubai is also very open from a religious          overall population of Dubai.xxvii An
perspective and this is another                   example of this is the increasing traffic
differentiating factor from other                 problem in Dubai, which could be
countries in the region. While Islam is           solved with more roads. Dubai’s
the official religion of the UAE, Dubai is        authorities have apparently refused to
very respectful of other religions.               build the extra roads however, due to the
Foreigners are free to practice their own         fact that this would lower property prices
religion. There are a number of inter-            in Dubai and raise them in Sharjah due
denominational churches in Dubai                  to increases ease of access. It is
including Holy Trinity and United                 speculated that this may be true due to
Church of Dubai (UCCD), St Mary’s                 the levels of investment that Dubai’s

ruling family have in the Dubai real              exhaustion or from falling off the high
estate market. Dubai’s lack of                    rise   buildings    that    they    are
democracy is also a concern for investor          constructing.xxix
confidence and from a transparent
political and business perspective.               As Dubai’s population increases there
                                                  are     infrastructure    and    transport
In addition, global terrorism is an               challenges. In addition, the high inflation
increasing concern particularly in some           rates are leading to an increased cost of
of the countries in Dubai’s neighboring           living and higher costs for businesses,
regions. Dubai’s increasing dependence            making Dubai relatively less attractive.
on tourism and its increasing high profile        Individuals and businesses are beginning
status leaves it particularly vulnerable to       to look towards some of the other
terrorist attacks. In addition to the             surrounding emirates and countries as
potential of terrorist attacks, Dubai could       alternatives. The surrounding regions are
struggle to meet its ambitious tourism            looking to increase foreign investment
targets due to aircraft delays. Emirates          and hence they are beginning to replicate
Airlines has very aggressive expansion            some of the free zones and methods of
plans and has ordered 43 A380s from               attracting foreigners to invest in their
Airbus Industrie, a European aircraft             countries. Dubai free zones are being
manufacturer which announced long                 given a run for their money as regional
delays in delivering these double-decker          free zones expand and upgrade as they
aircrafts.xxviii                                  try to lure investors from Dubai to other
                                                  Arab countries. If something is not done
There are also social implications of this        to control the skyrocketing costs in
rapid economic growth. The majority of            Dubai, free zones could see an outflow
people living in Dubai are foreign                of companies to other regional free
workers and particularly in the                   zones offering the same facilities but
construction sectors, these workers come          having lower operational and production
from Asia with the dream of earning     
good wages and moving to a better life.
The reality that they find once they reach        The fast pace of construction in Dubai
Dubai is very different. Workers live in          has also led to questions over the
labor camps an hour outside the city in           sustainability of the building and
the deserts and live in very small,               construction quality. It has been rumored
cramped rooms. Human Rights Watch                 that some of the large construction
have said that Sheikh Mohamed and the             projects under-taken in Dubai, when
UAE government have done very little              they were tested for building quality,
to protect workers rights. These foreign          were found to leak from the floors and
laborers are working in a system where            roofs. Speed and fast development can
they are not free to leave their job, where       be very beneficial for economic growth,
their passports are withheld and                  but if not achieved in a sustainable and
employer’s consent is required to change          quality fashion, this will lead to long
jobs. In addition, safety and the safe            term problems and require many repairs.
working conditions of these laborers are          Other challenges which the high speed is
a growing concern, where hundreds of              causing include lack of prioritization and
them are dying either from heat                   wasted resources.

Other challenges for Dubai include              has set the company back in terms of
building a strong talent base of Dubai          international publicity.
nationals and becoming less reliant on
foreigners and expatriate workers to help                  VI. Beyond Dubai
lead Dubai to the next phase of
economic growth. Also, cultural                 Dubai’s phenomenal growth over the
differences between UAE nationals,              past decade has spurred a great
expatriates and tourists need to be             entrepreneurial spirit and led people to
carefully managed to ensure that cultural       have even greater dreams and visions.
traditions and standard of living are           Dubai’s next phase of growth includes
maintained. Also, the sharp decline in          international expansion. Dubai has
the stock market as witnessed earlier in        changed from a region heavily reliant on
2006, shows the volatility of the stock         oil and hydrocarbons to a truly
market and its reliance on investor             diversified economy. The next phase is
confidence. The decline in the market           to diversify their investments and
even though there was no change in              holdings geographically. Dubai will
economic fundamentals, leads me to be           continue to focus on its ambitious
concerned for the fickleness and                internal development including all the
transience of the capital in the DFM. In        aspects discussed in this paper with
addition, the dependence of the UAE             particular emphasis on their huge
Dirham on the dollar is of concern. The         construction projects, tourism and the
dollar has declined relative to other           financial markets.
major currencies and as the AED is                      International investors have
pegged to the USD, the cost of imports          found Dubai to be an attractive
to Dubai has increased and the value of         investment opportunity and now Dubai
the AED has also decreased. From a              is similarly looking to expand its global
foreign investment perspective, capital         reach. Clear examples of this
invested in Dubai is subject to a               international diversification include the
depreciating dollar and hence declining         Dubai Investment Group which is the
in value. Kuwait has revalued its               global financial investor of Dubai
currency and leaves the question as to          Holding and has local presence in New
whether the UAE will revalue the                York, London, Hong Kong and Kuala
Dirham in the future. Currently using the       Lumpur. In the tourism sector, Jumeirah
Big Mac Index and on a PPP basis, the           was established in Dubai in 1997 and
UAE Dirham appears to be under-valued           now has the goal “To be a world class
(however, relative to the other GCC             international hotel and hospitality
countries is the least under-valued).xxxi       company, committed to being the
This undervaluation is good for Dubai’s         industry leader in all our activities
competitiveness and exports, however            through dedication to our customers and
may cause other economic problems               colleagues”.xxxii They already have
such as high inflation and issues               hotels in London and New York and
regarding imports.                              have announced new plans for Asian
        Finally, the Dubai World Ports          expansion. In transport, trade and
fiasco which occurred in February 2006          logistics, DP World is one of the global
has damaged the reputation of Dubai and         leaders in international marine terminal
                                                operations and development, logistics

and related services and is headquartered
in Dubai. In addition to traditional
businesses, Dubai is looking at
investments in other sectors too – such
as investing in sports teams such as
Liverpool Football Club in UK.
        As is clearly seen, Dubai
businesses are expanding not only within
UAE and Gulf Region, but are truly
expanding and making investments
globally. Sheikh Mohammed’s goal to
build Dubai into a major commercial and
economic center is becoming a reality.
The real questions are how do they
sustain the momentum and ensure long
term growth sustainability of the


Exhibit 1:

Source: UAE Ministry of Economy ;, “The Economic Bulletin, September 2006, Volume
3, Issue 27”

Exhibit 2:

Source: Dubai International Airport, Dubai Tourism and Marketing Department, “EIU -
UAE Country Profile 2006”

Source: An Economic Profile of Dubai, DubaInc

Exhibit 3:

Source: UAE Ministry of Economy, “The Economic Bulletin, November 2006, Volume
3, Issue 29”

Exhibit 4:

Source: UAE Ministry of Economy, “The Economic Bulletin, February 2006, Volume 3,
Issue 20”

Exhibit 5:

Source: UAE Ministry of Economy, “The Economic Bulletin, January 2006, Volume 3,
Issue 19”

Exhibit 6:

Source: Dubai Financials Market, UAE Ministry of Economy, “The Economic Bulletin,
November 2006, Volume 3, Issue 29”

Exhibit 7:

Source: Dubai Financials Market, UAE Ministry of Economy, “The Economic Bulletin,
October 2006, Volume 3, Issue 28”

     “Dubai” Vanity Fair. Monday, May 29, 2006
      Author’s interview with Saeed Al Muntafiq (CEO, Tatweer), Nov. 1, 2006
      Author’s interview with Mohammad Sharaf (CEO, DP Ports), Nov. 1, 2006
  “Jebel Ali – History” Accessed Nov. 20,
      Author’s interview with Mohammad Sharaf (CEO, DP Ports), Nov. 1, 2006
      Author’s interview with Jamal Bin Thania (Group CEO, DP World)
       “Dubai Internet City: Serving Business” IMD International. 224: v 07.01.2005. p. 2
  Author’s interview with Mohammed Al Shehi (Director of Finance, Dubai
Government), Nov. 3, 2006
  “Emirates Airline” Accessed Nov. 19,
 Authors interview with May Al Dabbagh (Senior Researcher, Dubai School of
Government), Oct. 31st, 2006.
      “Dubai Internet City: Serving Business” IMD International. 224: v 07.01.2005. p. 2
       “Dubai Internet City: Serving Business” IMD International. 224: v 07.01.2005. p. 5

   “Dubai Shopping Festival 2006-07, a 45 day long event” Accessed on December 2,
  UAE Ministry of Economy, “The Economic Bulletin, September 2006, Volume 3,
Issue 27”
       Oxford Business Group, “Dubai Country Profile”
  Dubai Chamber of Commerce and Industry, “The Economic Bulletin, February 2006,
Volume 3, Issue 20”
   Dubai Chamber of Commerce and Industry, “The Economic Bulletin, March 2006,
Volume 3, Issue 21”

  Dubai Chamber of Commerce and Industry, “The Economic Bulletin, November 2006,
Volume 3, Issue 29”
      Oxford Business Group, “Dubai Country Profile”
  Dubai Chamber of Commerce and Industry, “The Economic Bulletin, November 2006,
Volume 3, Issue 29”
        Author’s interview with Saeed Al Muntafiq (CEO, Tatweer), Nov. 1, 2006
   Author’s interview with Fahd Al Shehi (Deputy-Director for the Department of
Finance), November 2, 2006.
  Author’s interview with Dr. Martin Berlin (Chief Strategist, The Executive Office),
November 2, 2006.
        The Emirates Academy of Hospitality Management, December 2006
xxvi, December 2006
         “The Milken Institute Review”, Fourth Quarter 2006
         Economic Intelligent Unit, “UAE Country Report November 2006”
        ABC News, “Dark Side of Dubai’s Boomtown”, November 17, 2006
        Khaleej Times Article, 5 November 2005
   Dubai Chamber of Commerce and Industry, “The Economic Bulletin, October 2006,
Volume 3, Issue 28”
xxxii, December 2006


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