Purchase OBG Publications

Dubai is looking to place itself ahead of global trends by investing heavily in ICT and innovation. With an already highly developed market for ICT products and services, the emirate is seeking to harness the transformative potential of digitalisation to facilitate government-to-government and government-to-citizen transactions, and increase efficiency across a range of industries. While the public investment-driven nature of the sector’s momentum contrasts with the private sector model pioneered by Silicon Valley in the US, the approach is proving to have its own advantages. At the same time, the emirate is leveraging its free zone network to attract international investment, while pursuing policies aimed at developing the start-up ecosystem. This chapter contains an interview with Aisha bin Bishr, Director-General, Smart Dubai Office.

In a short time Dubai has established a vibrant education sector with an increasing variety of choice at all levels. While the private segment continues to dominate, recent reforms have seen major improvements to public sector schooling, modernising it and bringing it in line with international best practices. Inevitably, high rates of growth in the number of international schools and higher-education institutions have led to consolidation, gradually slowing expansion and creating greater barriers to entry for prospective players. In general, however, there remain opportunities for investors with savvy value propositions attuned to ongoing shifts in market needs in Dubai and in the broader region.

Medical tourism, pharmaceutical production and changes to insurance billing are the chief talking points in Dubai’s health sector at present. The private sector has led rapid growth in recent years, and while high average health spend and a favourable regulatory environment continue to encourage new hospital operators to enter the market, a tilt in the supply-demand balance means providers must closely watch market needs. In the long term a growing population, supportive governance and a focus on non-communicable diseases are likely to continue to create opportunities for both international and local players.

While upstream oil and gas revenue provided much of the financing for Dubai’s early development, the emirate’s road to modernisation has been built around economic diversification. Having historically relied upon natural gas imports for its electricity, Dubai is gradually reducing its dependence on hydrocarbons imports by investing in a range of power generation projects. This includes a number of plans to develop renewable energies, particularly solar power, as the emirate seeks to position itself as a regional and global centre for clean energy solutions. This chapter contains interviews with Saeed Mohammed Al Tayer, Managing Director and CEO, Dubai Electricity and Water Authority; and Ahmad bin Shafar, CEO, Empower Dubai.

For many residents, tourists and developers, retail remains a core part of Dubai’s identity. The sector contributes just over one-quarter of the emirate’s GDP, and is set to continue expanding. However, optimism surrounding the influx of new supply is tempered by slower economic growth brought on by lower oil prices. In this context, sector stakeholders are looking to Dubai Expo 2020 to provide a welcome boost to the sector. At the same time the growth of e-commerce is being actively supported by the government, which sees an opportunity to create a regional e-commerce centre within the logistics district in Dubai World Central. This chapter contains interviews with Colm McLoughlin, Executive Vice-Chairman and CEO, Dubai Duty Free; and Patrick Chalhoub, CEO, Chalhoub Group.

Attention in Dubai has already started to shift beyond Expo 2020 to the emirate’s long-term prospects as a tourism destination. Passenger numbers at its airport, one of the busiest in the world, have not been unaffected by regional economic headwinds. Nor have hotel occupancy rates and average daily rates emerged unscathed from the pre-expo supply boost. But the emirate remains a major draw, and by and large there is a sense among public and private sector stakeholders that the constant mining of new source markets, fine-tuning of regulation and willingness to adapt to changing visitor expectations will generate enough momentum to maintain growth both in the lead-up to Expo 2020 and beyond. This chapter contains an interview with Jose Silva, CEO, Jumeirah Group.