Sultan Ahmed bin Sulayem, Chairman, Ports, Customs and Free Zone Corporation; and President, Dubai Maritime City Authority (DMCA): Interview

Interview: Ahmed bin Sulayem

In which areas will the local maritime industry face the biggest challenges in terms of human capital?

AHMED BIN SULAYEM: Maritime operations and engineering; ports and shipping; recreational maritime services; and offshore support services are key areas that require a highly skilled human capital base. All components of the sector supply the labour market with more than 75,000 jobs. Of these fields, maritime operations and engineering, and ports account for 51% and 25% of employment in the sector, respectively, with job rates in these areas expected to increase in the coming years as the local sector flourishes. As a result, both fields will require strategic support to fulfil the enormous expected human capital requirements.

What areas of the maritime sector's legal framework might be targeted for further development?

SULAYEM: The Emirates Maritime Arbitration Centre (EMAC) is the first initiative of its kind in the Middle East, addressing and resolving disputes related to various maritime commercial operations in the emirate, such as affreightment; cargo shipping; shipbuilding and repair contracts; used ships sale contracts; assurance and reinsurance contracts; and marine collisions. The centre will also bolster investors’ trust and confidence and help attract more international ship owners.

Additionally, EMAC will help modernise and develop the UAE’s maritime community, as well as the global maritime network more broadly. As the first Arab nation to introduce safety and security regulations for vessels and crafts not otherwise covered by international maritime treaties in the GCC, the UAE will continue to abide by all global legislation and treaties concerning maritime safety and environmental protection.

Which sub-sectors will drive the next growth phase?

SULAYEM: The UAE currently accounts for an estimated 60% of the GCC’s maritime industry activity. Additionally, between 2014 and 2017, total investment in the Middle East’s maritime sector is projected to reach $170bn-190bn, of which the UAE will contribute an estimated 30-35%, around $66bn.

To ensure there is a well-defined plan to reinforce the emirate’s status on the global maritime landscape, the DMCA established the Dubai Maritime Sector Strategy, focused on local maritime clustering and implementing the highest levels of excellence in maritime safety, ports, financing, brokerage, logistics, marine insurance, equipment supplies and other relevant segments – all of which are set for growth, enabling significant contributions to GDP.

How can demand be stimulated for maritime financing, insurance, shipbuilding and maintenance?

SULAYEM: Dubai has been implementing a wide range of ambitious projects aimed at creating a safe and vibrant maritime environment. The emirate is continuously integrating infrastructure and operational processes and improving its legislation and regulations to support marine cargo handling activities and deliver world-class services related to maritime education, industries, insurance, funds, classification societies, ship owners and operators. The local maritime sector accounts for 5% of the UAE's economy, at an overall value of Dh200bn ($54.44bn), and is set to rise to 25%.

What can UAE ports do to boost synergies and increase the country's maritime competitiveness?

SULAYEM: With 80% of world trade moving by sea, the international maritime network is a key pillar of global economic growth. Countries are investing heavily to construct world-class infrastructure and expand port capacities to handle surging cargo volumes. The UAE has been playing a key role, with the Dubai government making major improvements to expand the capacity of its seaports, airports, free zones and logistics and Customs administrations, and meet the exponential increase in Dubai's foreign trade. In 2013, the emirate’s foreign trade reached a record Dh1.32trn ($361.8bn) – over nine times its value of Dh143bn ($38.9bn) in 2000.