The following is an edited translation of a speech given by UAE Vice President, Prime Minister and Ruler of Dubai His Highness Sheikh Mohammed bin Rashid Al Maktoum at an investment conference organised by Bank of America Merrill Lynch at the Raffles Hotel in Dubai.
In the name of God the Merciful, the Compassionate
Firstly, I would like to express my gratitude for the invitation to speak at this important gathering today.
I would also like to welcome you all to the UAE, your second country, and to Dubai, your second home, where I hope you enjoy a pleasant stay.
Most of you know how important time is to me, so I will get to the heart of the matter before us today, and that is Dubai's economy, which I believe concerns all of you. I will not waste your time narrating the details of the global economic crisis, because you are people of experience and competence in this regard.
Instead, today I would like to share with you some of my thoughts on the financial crisis, which has had negative repercussions from east to west, and become a global phenomenon around the world. The crisis first impacted the world's major economies before going on to affect emerging markets everywhere.
The fallout from this crisis has created a new economic reality in the world. Countries with open economies felt much more pain than those economies less connected to international markets.
Because of this, Dubai had to take the necessary measures to deal with the consequences of the shrinking global economy and market downturn. The fundamental steps we took in Dubai to address these problems weren't separate or exclusive from those taken by the Federal Government. After all, Dubai, as you know, is an integral part of the UAE Federation. However, I will not dwell on our response to the economic turmoil, as most of you are aware of the actions we took, both at the federal and local levels.
Today, I would prefer to talk about the constants and some important facts, which I will summarize in one simple message:
The global financial crisis, despite its temporary effects, will not dissuade Dubai from its ambition of development; it will not topple Dubai from its leading position; it will not distance Dubai away from playing an integral part in the global economy; and it will not break the determination of our people to continue the process of development.
While I agree with those who say that talk is easy and that the real test is in the application, I remain convinced and fully confident in our ability to act and deliver; achievements that stand proud and clear on the land of Dubai are the best proof of the reality that these accomplishments and our vision did not materialize from a vacuum.
We in the UAE, led by my brother, UAE President His Highness Sheikh Khalifa bin Zayed, are continuing the work begun by the late Sheikh Zayed bin Sultan and our father the late Sheikh Rashid bin Saeed in the early 1970s, when they took the first steps towards forming our blessed federation.
When my father decided to proceed with the creek expansion project; when he ordered the construction of Dubai International Airport and Jebel Ali Port as part of a series of enormous development projects; some people around him at that time did not hide their doubts about the economic feasibility these plans.
But, this is Dubai, and those were its offspring, who looked to the future with a watchful eye and approached it with firm steps. They worked hard and had faith in God. The people of Dubai believe in their ability to overcome all challenges, and to take steps, which at first sight appear to be far-fetched dreams.
Today, we are reaping the fruit which our forefathers' sowed. Our economy is diverse and does not solely depend on foreign investment, although of course we always welcome overseas business in the land of Dubai. We are proud of our national companies such as Emirates, Dubai Ports World and Jumeirah Group, all of which have proliferated around the globe, while at the same time earning stellar international reputations and becoming real economic symbols of development in Dubai.
These successes, in addition to others, are the practical and tangible effects that prove our ability to overcome economic challenges. These are our inspiration to continue with a new phase of growth and progress.
Early, we recognized the importance of investing in modern, advanced and reliable infrastructure; the importance of keeping pace with latest technology.
Our strategy is to start where others finished, and we are keen to shape our development model to guarantee that we able to face future obstacles in a flexible and effective manner. Our model prioritizes our human resources and places people at top of our agenda.
Perhaps there are some who believe that Dubai could have acted more quickly to address the global financial crisis. However, we waited patiently; we didn't hurry because we wanted to ensure that major business sectors in Dubai were ready, able and in a position to restructure in ways to adapt to the new economic realities. The global economy that emerged from the crisis was one that imposed slower rates of growth on major economies, and opened up promising new prospects in emerging markets like India and China, who will play a more important role in the coming years.
I am confident that the worst is over, and that the darkest clouds of the economic crisis have passed. Now as the signs of a global recovery emerge, Dubai is in a position to invest and make use of the underlying market conditions and continue on the race towards excellence. This is a race which the whole world has borne witness to over the past three decades, and one filled with success that has captured the peoples' imaginations around the globe.
My great confidence in Dubai's ability to overcome the crisis is not the product of a vacuum, but rather it is founded on facts and concrete evidence, which I would like to share with you. I believe that this reality was intentionally ignored or overlooked by some who prematurely cast judgment on Dubai's ability to deal with this crisis - a crisis brought on by international conditions from which Dubai was not immune.
Here are the facts. Dubai is a combination of the right ingredients that make it the perfect choice for the global investment community whether some people like it or not. Dubai has attracted investment and venture capital from a wide array of companies seeking to break into a colossal market with an estimated population of over two billion people. These emerging markets are full of promise and opportunities, which on inspection, are absent in mature and saturated economies.
I would like to emphasize the following points:
- The global crisis will not remove Dubai from its geographically strategic location at the heart of the world, at the crossroads between east and west.
- The availability of state of the art infrastructure and efficient air and marine networks allow us to access markets and engage effectively with business partners across the region.
- Jebel Ali Port is the sixth largest port in the world and the largest in the Middle East.
- Dubai International Airport ranks sixth among the largest airports in the world in terms of passengers serviced, and is used by 125 airlines to fly to more than 210 destinations on six continents.
- Upon completion, Al Maktoum International Airport will be the largest airport in the world with a capacity to handle up to 165 million passengers per year and 12 million tons of cargo at any one time.
- In addition to our geographical location and infrastructure, Dubai was, and is keen to develop legislation to support one of our major sectors - the financial services sector.
- The world has witnessed Dubai's success as a fully fledged financial market interacting with major international markets from New York and London in the west to Hong Kong and Tokyo in the east. Dubai is the central link based on its organizational structures, most notably the Dubai International Financial Centre. This centre has succeeded in winning the respect and admiration of the global financial community with its international standard legal framework.
- Dubai has succeeded in building a business friendly environment to meet investor needs and requirements, such as full exemption from income and corporation taxes, high-tech facilities and infrastructure and a dynamic real estate market with family orientated conveniences.
- Among the numerous business parks here are Dubai Internet City, Dubai Media City, Knowledge Village, Academic City, Dubai Biotechnology Zone and Dubai Outsource Zone in addition to many other projects. With these facilities we have proudly planted the roots of a knowledge economy. More will follow.
I will not spend too much time or go into much more detail describing our belief in Dubai's ability to emerge from this transitory crisis. However, I would like to stress that those who believed that Dubai's economy and success were based solely on the real estate sector were pointedly wrong. It's true that there was a substantial real estate boom in the past few years, but it's unfair undervalue the Dubai story as that and only that. Putting the property surge aside, Dubai's success and development is far broader and runs much deeper than that, as a result of diverse strategies and strategy diversification.
Dubai is not alone in the UAE. The union is sturdy, robust and mutually reinforcing. Thus Dubai's success is an extension of Abu Dhabi's success and vice-versa. The same dynamic applies to the other emirates; Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah and Fujairah. The union of these seven emirates represents an unshakable force and an impregnable fortress that cannot be weakened by challenges.
This union is the source of all our confidence and our strength.
Respected attendees,
My optimism that the end of the crisis is near; my confidence in Dubai's ability to restore its strong growth rates in the not too distant future; this is based on the philosophy and legacy of my inherited Bedouin origins, of which I am proud. The Bedouins are a resilient people who remain steadfast in the face of unrelenting adversity. This is well-known.
Those who know me well, have great in trust my confidence. They believed me when I stated that the second tranche of the Dubai bond program would be heavily subscribed and that the proceeds would be directed towards meeting Dubai's obligations over the next few years.
Our journey of development has been and will remain a race for excellence; a race to consolidate Dubai's position as an evolving, leading and unrivalled contender for the title of the Middle East's financial and commercial capital.
Ladies and gentlemen,
Over the past twenty years, Dubai has maintained healthy growth rates and many have directly benefited from this growth. However, the economic slowdown has given us time to pause, contemplate and study the things around us. Perhaps that pause was needed to consolidate and work to renew our competitiveness before resuming this race. We don't deny that the financial crisis put us in a state of silence. We don't refute that an information vacuum followed. We are fully aware that this created a fertile environment for rumours to thrive. I say now that we must not allow this to happen again in the future. Transparency and open dialogue are effective and vital elements in the structure of mature and civilized nations.
I have listened with great care and attention to the views of many business leaders in Dubai, the UAE, Asia, Europe and the United States over the past year. I have paid heed to CEOs from many sectors, including airlines, hotels and investment banking. I took notice of their hopes and aspirations. I can assure all of you before me today that we will continue to invest heavily in our infrastructure to serve our domestic interests and promote investor success in all fields.
Distinguished attendees,
Our recent celebration marking the launch of Dubai Metro demonstrated our firm determination to position Dubai as a global city of excellence. By the way, have you ridden the metro yet? If not, I would strongly recommend that you do so, as it's the first driverless metro in the region.
I say with great sincerity that I would like to see you climb on board with us for the next phase of our development journey. We plan to move forward brimming with resolve and optimism. This will be a drive to overcome the challenges and to prove to everyone that our determination, strategy and vision for the future are our real resources in the quest for excellence and success.
May you have the peace and mercy of God.
Thank you.
