Session Held As Part Of Dubai Economic Leadership Program Highlights 3 Strategies Underpinning Emirate’s Success

The Mohammed bin Rashid Center for Leadership Development (MBRCLD) hosted a discussion as part of a series of workshops it is organising for participants in the Dubai Economic Leadership Program, launched by His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council of Dubai, with the aim of equipping them with the critical skills required to lead Dubai’s vital sectors, in line with the objectives of the Dubai Economic Agenda (D33).

The session featured His Excellency Essa Kazim, Governor of the Dubai International Financial Center (DIFC), who shared his insights about Dubai’s development journey and how it has been geared for growth and progress from the outset by aligning with free market principles, transforming Dubai into one of the world’s key economic centres.

Starting off with a general overview of economic fundamentals, HE Kazim noted that the basic idea behind all economic planning and reviews by economic experts is to address the timeless question of investing limited resources efficiently to meet unlimited needs, stressing that the answer lies in framing robust, inspiring economic policies.

HE Kazim identified three key strategies that had helped establish Dubai’s economic leadership over the years, the first of them being the free market principle, which Dubai adopted early on. Since around 1894, Dubai had succeeded in attracting traders by offering complete economic freedom and low-to-no custom tariffs, which boosted its import/export market, he observed.

The second strategy focused on directing all available resources – financial, human, and otherwise – towards creating an attractive framework of laws and systems that have regulated the trade sector since 1955. To this end, Dubai has, from its early days, developed the necessary infrastructure to facilitate export, import and freight activities at the Dubai Creek, he added.

“The 1960 project to dredge the Dubai Creek to allow larger vessels through was one of the first projects launched by Dubai, with a GBP 500,000 feasibility study done at the time, that was instrumental in boosting trade in the emirate,” he noted.

“Well-planned investments of Dubai’s oil revenues in infrastructure that facilitated trade meant Dubai has been prepared to respond to economic progress, which is the third strategy,” he added, citing examples of the Rashid Port built in 1972, the Jebel Ali Port built in 1979, and the Jebel Ali Free Zone that came up in 1985.

The Multiplier Effect

According to HE Kazim, Dubai has adopted the Multiplier Effect principle in directing its investments, focusing on its local economy as opposed to foreign investment portfolios. This principle promises far higher returns on investments, he pointed out.

Building on this success, the Dubai Economic Agenda (D33)has set in place ambitious growth targets for the next decade, with the DIFC expected to play an active role in helping place Dubai among the world’s top three urban economies, he added.

HE Kazim highlighted the role of DIFC in supporting the economy of the UAE in general and Dubai in particular. Established for the purpose of diversifying revenue and boosting the economy, the financial free zone came as a response to strong demand from foreign banks wishing to enter the regional market. To accommodate this demand, the UAE issued its Federal Law No. 8 of 2004, which allows the establishment of financial free zones in any of the emirates by federal decree.

Comprising three distinct authorities – Dubai Financial Services Authority (DFSA), Dubai International Financial Centre Authority (DIFCA) and DIFC Courts – DIFC recorded three well-defined stages of growth. Currently, it houses 5,500 firms and a total of 41,500 employees, and issues around 1,000 licences annually.

Shaping future leaders

Workshops under the Dubai Economic Leadership Program are aimed at helping participants develop key skills that prepare them to lead the economy of the future in line with the D33 objective of doubling the emirate’s economy over the next decade.

The workshops have been led by a group of top economic minds and international experts, helping participants tap into their leadership skills and develop forward thinking that helps translate strategic plans into reality.