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Islamic finance is a highly competitive market in Dubai and the emirate is angling to become a leading centre for the sector. The UAE’s Islamic banks hold about 7% of global Islamic banking assets and have a market share of roughly 25% locally. The takaful segment has grown steadily since 2009 and this trend looks set to continue: total takaful contributions reached $1.16bn in 2013, up from $1.03bn in 2012. The UAE has been the world’s second-largest issuer of sukuk behind Malaysia, with $47.88bn issued between 1996 and 2013. Dubai has taken on a leadership role in shaping the future of sukuk as a financial instrument. In 2014 the emirate sponsored discussions and roundtables, with an eye to ultimately establishing a globally integrated sukuk market with harmonised structures that are less risky and easier for investors to understand. This chapter contains an interview with Adnan Chilwan, CEO, Dubai Islamic Bank.

The UAE’s 2014 upgrade from frontier to emerging market status by the MSCI is a major accomplishment for the state and one that has brought both more liquidity and greater international attention. Rules for listings are being relaxed to encourage more private sector companies to join the exchange, particularly SMEs, and a spot gold contract is due to be launched in the near future. In 2013 the emirate announced an ambition to crown itself as the capital of the global Islamic economy, and the Dubai NASDAQ is currently the third-largest market for sukuk worldwide in terms of capitalisation.

Dubai’s banking sector, which forms part of the wider UAE banking system, has continued to recover since the global financial crisis. Banking sector assets climbed 13.1% in 2013, from $487bn to $552.5bn, while deposits rose from $318bn to $348bn, a 9.5% advance, and capital adequacy ratios remained strong, at 18.3% overall. New regulations designed to protect financial institutions from systemic risk, including caps on lending to government-related entities, have been put in place, while single borrower exposure has been limited to 25% of available capital. A growing expat population and favourable exchange rates have supported growth in Dubai’s remittance industry, while the Dubai Gold and Commodities Exchange has seen strong expansion of forex trading activities in recent years. This chapter contains an interview with Peter Baltussen, CEO, Commercial Bank of Dubai.

With Dubai’s economy growing by 4.6% in 2013, and the emirate posting a GDP of $88.65bn, opportunities in various sectors, including Islamic finance and infrastructure and hospitality development, are drawing the attention of investors. The emirate is building up its reputation as an international centre for Islamic finance and under a new Islamic finance master plan it intends to focus on seven pillars, including finance, halal products and tourism. Meanwhile, Dubai International Airport is currently undergoing a major expansion of its runways that will see it surpass London Heathrow Airport in terms of capacity. The government has also put an increased focus on SME development and growth as it seeks to cultivate a spirit of entrepreneurship. This chapter contains interviews with Sultan bin Saeed Al Mansoori, UAE Minister of Economy; Hamad Buamim, President & CEO, Dubai Chamber; Lim Hng Kiang, Singapore Minister for Trade and Industry; Le Luong Minh, Secretary-General, Association of South-East Asian Nations (ASEAN); and Donald Trump, Chairman and President, The Trump Organisation.

The Bahraini constitution guarantees access to health care for all nationals. The government budget allocation for health care rose from $1.4bn in fiscal year 2011/12 to $1.8bn for 2013/14, while the sector currently contributes 2.5% to GDP, a figure set to grow to 7% by the end of the decade. Attitudes towards health issues among the local population shifting in recent times; an increased focus on healthy living is expected to fuel demand for health products while the government’s drive to increase the participation of the private sector to meet the medical needs of the growing population will provide further opportunities moving forward. As well as catering to local demands, government efforts are in place to expand Bahrain’s medical tourism offering, with various projects aimed at capturing a slice of the GCC’s medical tourist market.