Eastern prospects abound

Dubai’s history is inextricably linked to trade. Trade helped Dubai build bridges to far-off lands and eventually, a new ‘silk route’ connecting Asia, Africa and Europe. Trade brought in the world’s leading businesses and created iconic brands out of Dubai, as the emirate established itself as a force to be reckoned with in terms of global commerce. The Government of Dubai has consistently focused on expanding the trade profile of the emirate, creating a fertile ground for entrepreneurship and investment.

Dubai was the first in the region to recognise that while oil wealth would provide a solid launch-pad for the Gulf Cooperation Council (GCC), its long-term prosperity depends on diversifying the economy. Diversification has brought in investment, knowledge, technology, and innovation, building a strong and resilient economic model.

A recent report into trade flows between GCC and the rest of the world has shown a growth of 15 percent with emerging markets since 1980, compared to only five percent with OECD countries. Poised between East and West, and with India and China already it’s top two trading partners, Dubai is perfectly positioned to continue to benefit from the changing patterns of global trade.

The Department of Economic Development (DED) is the governmental body entrusted to facilitate the structural transformation of Dubai into a diversified, innovative service-based economy. Dubai FDI and DED’s agencies – Dubai SME, Dubai Export, and Dubai Events & Promotions – create platforms for key players in the respective sectors to meet, interact and engage with the government in meaningful dialogue that can help enrich policy-making.

“The resilience of the Dubai economic model owes largely to its strong pillars, precisely, logistics, tourism, exports and re-exports. It’s from these vibrant sectors that infrastructure, entrepreneurship and the private sector in Dubai has traditionally prospered,” says Sami Al Qamzi, director general of DED.

“Our mandate in the Department of Economic Development is to take this equation to the next level through added focus on the most promising sectors, integration of global best practices, promoting public-private partnerships and enabling the private sector to positively influence decision-making,” adds Al Qamzi.

With its direct interface with the global investor community, Dubai FDI is a strategic arm of the Department of Economic Development, enabling it to direct investor focus on to the growth-oriented areas of the local economy. Dubai FDI promotes investment opportunities in Dubai and supports international investors to leverage the strategic and operational advantages of having their business based in the emirate.

“Dubai has a strategic location with a population of 2.5m spread across the Middle East, North African and South Asian (MENASA) region within a five-hour flight radius. Investors and entrepreneurs looking for new opportunities today see great advantages in Dubai being a gateway to wider markets abroad as well as in its economic fundamentals, infrastructure and business-friendly environment,” says Fahad Al Gergawi, chief executive officer of Dubai FDI.

Dubai FDI deploys its public sector expertise and knowledge capital to fast-track FDI and help investors to establish their business and gain traction. Investors are provided authentic information on sector specific opportunities, connections to a network of both governmental and non-governmental partners, and support throughout the investment lifecycle from setup to growth. Dubai FDI has also shown commendable initiative in driving through leadership, promoting sustainability and making policy recommendations to fine-tune the investment environment throughout Dubai.

In 2010, Dubai FDI co-ordinated and facilitated the opening of the UAE’s first carbon-neutral warehouse, which estimated to reduce power consumption by 30-40 percent. Another milestone on sustainability and innovative customer service was achieved earlier this year when Dubai FDI assisted DHL Express to open five 24/7 service points to drop off and pick shipments across Dubai. The service points, expected to reduce congestion and make life easier for customers, are the first-of-its-kind outside of Germany by DHL Express.

Dubai FDI’s expertise and resources were also recently utilised by Tenaris, a key supplier for the global oil & gas industry, and Rubenius, an alternative energy firm, to set up their global headquarters in Dubai. With global capital movement regaining momentum and search for new economic opportunities intensifying, Dubai FDI expects its role as a vital link between Dubai, the regional business hub, and the global business community becoming even more prominent in the future.

Global management consultancy A.T. Kearney recently ranked Dubai among the top 25 global destinations, which attract 75 percent of global FDI flows. Dubai was also ranked 11th globally and first in the MENA region in their FDI Confidence Index for 2010. From the trends seen in 2010, Dubai FDI estimates that FDI inflow will jump 30 percent in 2011, helped by rising confidence and influx of investors from Middle East, China and South America.

Dubai FDI is forging strategic partnerships and moving to the centre of the global shift in business and investment trends with sharp focus on the future. In 2010, Dubai FDI launched a partnership with The Links Group, leading company formation specialists in the GCC to help business start and relocate to Dubai. Within three months the partnership was able to facilitate the establishment of 40 new establishments in Dubai.

The Steering Committee of the World Association of Investment Promotion Agencies (WAIPA) selected Dubai FDI as its Middle East and North (MENA) director for the next two years in 2010, on account of the leading FDI position achieved by the emirate of Dubai in particular and the UAE in general.

For more information: Tel: +971 4 361-3063; Email:  info@dubaided.gov.ae; www.dubaided.gov.ae