UAE is among the most competitive countries in the world and a haven for businesses with no income or corporation tax.
With a 2.5 million population, a thriving tourist industry, commercial businesses reaching out across the globe, Dubai has a GDP which is now growing at an average of 16% per year, higher than the figures for China (growth rate 8.5%), acknowledged to be one of the fastest growing economies in the world.
The story of the success of Dubai tourism is inextricably linked to the success of it national airline Emirates. Due to the high rate of tourism, the official carrier of UAE has kept its place among the world‘s five most profitable carriers and ranked 15th in the world in terms of RPKMs (Revenue Passenger Kilometre).
Dubai has moved from nothing in global tourism to having the highest ratio of tourism income to GDP of any place in the world. Recently Dubai was described by the English Guardian newspaper as “probably, the most important city on the planet…not just a city at the centre of the Arab world, but an Arab city at the center of the world.“
Encouraged by the huge opportunities offered by the booming Indian market, UAE is looking at Asia’s second-fastest growing economy for expansion. India has emerged as Dubai’s largest export destination ahead of Pakistan, Iran and Kuwait.
However, China is the top exporter to Dubai followed by India. In 2006, the total non-oil trade between India and Dubai was $10.9 billion. Indian exports to Dubai in 2006 were $6.4 billion. India’s imports from Dubai were $ 4.5 billion.
During the recent visit to India, the Prime Minister of UAE, Sheikh Mohammed bin Rashid Al Maktoum, signed deals and agreements worth more than $20 billion. Most of the agreements were in the real estate sector; this will significantly boost the economy.
In preparation to host the cricket world cup, a media onslaught was going on across India, using cricket as the medium into people’s hearts and cash. Satellite TV service providers, sports gear and beverages were being sold through TV commercials, mega launches, Internet advertising and more. Massive budgets, more than US$250 million, according to some estimates, were set-aside for this.
Advertisers, broadcasters, media planners went into a dither as fortunes of their multi-core brands changed drastically overnight. In fact after India’s exit, the advertisers were offered up to 70% discounts.
Overall, the West Asia and Africa region are at a peak with India leading from the front and UAE with its multifold growth has shifted the business focus from the West to the East. Should this trend continue for another few years, the region is not far from becoming a superpower.
Dr.
Khalid Maniar
Chairman
West Asia & Africa Region, and
Managing Partner
AGN MAK
E.mail: makdubai@agnmak.com
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