Much of Dubai’s success, particularly in terms of tourism attraction, is built upon the perception and the reality that it is a place of high-quality products and lifestyle.  It is a place that wants to be known for having the tallest, biggest and best.  The promotional videos that preceded several of our presentations were sprinkled with phrases such as:  “oasis of quality” and “the ultimate in exclusivity.”    

Beyond the gleaming facades of the city’s skyscrapers, this attention to quality is noticed in the cleanliness of the streets and buildings, as well as the quality of the food, clothing, cars and other consumer goods.  The “Dubai Standard,” of course, comes with a price as it is a very expensive city for those living there.  But the leaders of Dubai have created a place where the finer things are readily available and this plays no small role in attracting the talent that fuels Dubai’s creativity and industriousness. 

The advantages of being a completely multi-cultural city   

Only about 15 percent of the U.A.E.’s population is native to the country.  Nearly 200 nationalities are represented there, with the largest population being Indians and Pakistanis. 

The people we met in Dubai look at their multiculturalism as a huge asset.  For example, one of our tour guides pointed with pride to the fact that there are two Hindu temples next to the city's chief Mosque.  The hotel staff at the Meydan Racecourse includes young people from 40 different countries, from Bosnia-Herzegovina to Sri Lanka.  We enjoyed a variety of cuisine in Dubai, including an outstanding meal of Thai food, a Lebanese lunch and a complete international smorgasbord for breakfast at the Jumeirah Beach Hotel.

Aside from the good food and interesting conversations afforded by a truly international city, the mix of cultures present in Dubai provides a business benefit as well.  Matthew Becker of the Perkins Eastman architectural firm described some of those benefits to us.  He said the cross-cultural environment in Dubai gives his firm “learning points” on design and product ideas as well as new operational efficiencies they can take back to the U.S.

Becker also shared something with our group that we didn’t expect to hear.  He talked about situations when the Islamic call to prayer comes during the middle of a complex and important meeting.  When that happens, the meeting stops and the Muslims in the group go to a prayer room to observe their obligation.  Becker said the pause often causes people to reflect, gain some perspective and come back fresh.  When the meeting reconvenes the leader often will recap what has been discussed and the conversation will resume with new energy and focus.  “It’s very pleasurable compared to our style (in the U.S.) of charging right through,” said Becker. 

Young population / Sophisticated leaders

The energy of Dubai can be attributed, at least in part, to the youthful cadre of leaders in the business and professional community.  The average age of the general population in Dubai is only 38.  Many of the leaders we met were young, most were internationally educated, and all were highly sophisticated, well-spoken, thoughtful and hospitable.

The personal connections between the U.S. and U.A.E. are strong.  For example, the director general of the Dubai Chamber lived in Kansas City for three years while he received his MBA from the University of Missouri-Kansas City.  Likewise, the director general of the Abu Dhabi Chamber lived in the St. Louis area when he studied at Maryville University. 

The Emiratis we met who studied in the U.S. have very strong, positive feelings about our country.  In some cases, they do not agree with U.S. government policies, but they can easily distinguish between their opinions of our government and their feelings toward the American people.  I think this bodes well for future relations in the Arab world.          

Desire to reach for the top

With 108,000 members, the Dubai Chamber of Commerce and Industry is one of the largest in the world.  But they also want to be the best.  In order to begin working toward that goal, the Chamber decided to study some other leading Chambers of Commerce.  They didn’t focus on the other big cities in their region like Cairo, Amman, Istanbul or Mumbai.  Instead, they studied Hong Kong, Paris, London, Los Angeles, New York and Boston.

“Everything here starts with a global benchmarking study,” said Mohamed Salem of the Chamber, who worked on the project.  Thinking about the various presentations we heard in Dubai, Salem is exactly right. 

Leaders of the Dubai International Financial Center, for instance, know they rank 7^th worldwide among the top financial districts.  They are quick to note that puts them ahead of Frankfurt, Paris, Dublin and Luxembourg.  In the next ten years, they want to go upwards from the #7 spot – and to do so they’ve identified their primary competition and key benchmarks as London, Hong Kong, New York and not the other regional centers.

International rankings were recited frequently at almost every stop.  As noted previously, the Dubai airport is the world’s 6^th busiest, the Jebel Ali Port is also #6 worldwide and its operator, DP World, is the 4^th largest port operator in the world.  Leaders in Dubai know where they stand and they know where they want to go.    

Facing the current financial challenge

It is these best-in-world aspirations that drive Dubai and truly gave us a sense of the Emirate’s ambition to remain at the center of the global stage.  Staying in that position is not without challenges. 

We noticed a sizeable number of construction projects sitting dormant during our week in Dubai.  Even during our time there, news stories outlined the status of efforts to restructure the $22 billion of debt facing the state-owned conglomerate Dubai World.  We toured The Palm Jumeirah luxury development, one of the most ambitious projects of Dubai World’s real estate company Nakheel.  The Palm Jumeirah is a series of man-made island’s formed in the shape of a huge palm tree.  Likewise, The World development is a series of islands created to resemble a map of the World.  By the way, we were told that Greenland is available for around $30 – 40 million.  These symbols of Dubai’s over-the-top aspirations have also become the prime examples of Dubai World’s financial woes.        

Aside from the financial challenges facing Dubai, some locals expressed concern about the Emirate’s dwindling cultural heritage.  The recent building spree in Dubai has wiped out neighborhoods, parks and other places of local flavor.  And while the influx of internationals has brought many new cultures into the city, the small native population that remains is grasping to protect and preserve their Emirati culture.  This might become one of the real trade-offs with being a multi-national, global hub for business and commerce.

His Highness Sheikh Mohammed appears to be in tune with those concerns.  Among the many public improvement projects underway, the renovation of fishing villages along the coast is mentioned in the same breath as new hospitals and housing developments in the booming parts of town. 

Calling this time in Dubai’s history a “challenge, not a crisis,” His Highness spoke to our group about the U.A.E.’s goals for more equitable development, his government’s humanitarian projects in Africa and elsewhere, his love of horse racing, and his take on leadership.  “Everybody calls themselves a leader when times are good,” he said.  “But when it’s a challenge, some people hide and lay low.”  Dubai seems to have a leader that won’t lay low at a time of challenge.

So how do they do it?

During five days in Dubai, we observed a city that has a shared vision, a driving ambition, a commitment to quality and a focus on excellence.

After we returned home and began telling people about the things we saw and heard in Dubai, the first question was often “so how do they do it?”  I think the best answer was provided by Mohamed Salem, a management consultant for the Dubai Chamber.  Over dinner one evening with a few members of our delegation, Salem told us “It is more accurate to think of Dubai as a company, not as a city.”

This description makes a lot of sense.  The organizations making Dubai’s development happen are either directly or indirectly owned by the government and the top leaders are appointed by Sheikh Mohammed.  Their success provides the revenue to continue the city’s growth.  Dubai is choosing a strategy to eliminate business taxation and make it an easy and attractive place to operate, banking on the revenues that will flow from such a wide open business environment.  As a trade-off, Dubai’s main stream of public revenue is generated by sales tax, value-added tax, and a tourism tax.  Tourists and residents help fund the Emirate to a significant degree.   

The other key part of the strategy relates to the population imbalance between U.A.E. nationals and expatriates.  Emiratis receive a bounty of benefits from their government.  The details were hard to pin down, but it sounds like the government provides health care, higher education (at home or abroad), housing allowances and other incentives to natives of the U.A.E.  For instance, if two Emiratis marry each other they receive a $125,000 down payment on a house that they will own in 25 years. 

Despite being incredibly open to other cultures and nationalities, the U.A.E. does not grant citizenship to these visitors – even if they are born in the country.  This creates a unique situation in which 85 percent of the population living in the United Arab Emirates cannot access the government-provided social services.  This, of course, allows the government to keep expenses down and remain focused on creating a thriving business environment.  Unemployment is zero percent in the U.A.E.  This seemed impossible to believe until we learned that if a person does not have a job they are granted a 90-day grace period in which to find a job or they must leave the country.  A lot of people left Dubai during the recent financial meltdown of Dubai World and the ongoing global economic downturn. 

The level of Dubai’s rebound remains to be seen.  In its bailout of Dubai World, the government of Dubai signaled it has no intention of letting the company fail.  And if Abu Dhabi continues to provide a safety net by sharing its oil revenues, Dubai might soon be able to continue its high-flying ways. 

During our memorable visit to the Royal Palace, Sheikh Mohammed reiterated his sense of determination when he said, “Nothing is impossible, if you have the will to do it.”  Even if wagering were allowed in the U.A.E., I wouldn’t bet against them.