Dubai country briefing

Filed in archive Global Economy on October 11, 2003

There are just a few spots in the middle east that fully embrace economic growth and globalization. One of them is Dubai that managed to grow from a small settlement in 1960 to a 1 mio. metropolis in modern times. It boosts GDP growth figures between 5-8% and does play in an already high income area (USD 20.000). Dubai ranks third worldwide in shopping area per capita as it has major retail outlets and provides half of shipping tonnage on the eastern Arabian peninsula. Property investments hit USD 63bn this year and the construction boom might last a while as property prices are still in check.

There is even an infant VC market growing in the region. But

"(the) region is severely lacking in VC infrastructure. Local IT companies find themselves relying on banking institutions to back their ventures. This problem is compounded by local business themselves, who are reluctant to adapt from the family-owned system to an external professionally managed system."

according to Injazat Technology Fund.
Other Private Equity firms like Chescor Capital have tried their luck nurturing entrepreneurial spirit in incubators. Until now a startup scene has failed to establish. Most high-tech companies established in the region are subsidiaries of US or Europe based IT giants providing sales and support for the region. Dubai still enjoys high growth by pushing trade, retail, and finance industries. So entrepreneurs are more reluctant to enter high-tech with little local experience.

As it is weekend today here are some good and short video clips, illustrating Dubai a bit better:

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• Palm Island -- my favorite real estate in the UAE with an incredible marketing - click to see the video


• Jumeirah International, a pretty successful hotel brand in the region - click to see the video


• Dubai's verve for shopping centers - click to see the video