Sheikh Mohammed and the Making of “Dubai, Inc.”

Transcription

9-410-063
REV: MARCH 1, 2010
ANTHONY J. MAYO
NITIN NOHRIA
UMAIMAH MENDHRO
JOHNATHAN CROMWELL
Sheeikh Mohamm
M
med an
nd the Making
M
g of “D
Dubai,
Incc.”
d
[Dubaai] has transfoormed itself froom a spit of saand about the size
s of
Ovver the course of just a few decades,
Rhodee Island into th
he Singapore off the Middle Eaast… It is a poolitical, econom
mic and financiial success storry in a
region
n torn by confliict. And it’s alll the vision of one
o man: Sheikkh Mohammed bin Rashid All Maktoum.1
– Steve Kroftt, CBS 60 Min
nutes
Hiis Highness Sheikh
S
Mohaammed bin Rashid
R
Al Maaktoum (Sheik
kh Mohamm
med) has conv
verted
Dubai from a sleepy little coasstal village in
nto a world-cllass city know
wn for its am
mbition, drivee, and
omic promise.a He is the fo
ounder, part-owner, and visionary
v
behiind companiees such as Em
mirates
econo
Airlin
nes, a UAE-ba
ased airline serving
s
over a 100 destinaations, Nakheeel, the propeerty developeer that
built a trilogy of man-made islands,
i
and
d DP World, a leader in internationaal marine terminal
operaations, develo
opment, and logistics. Despite
D
being
g surrounded
d by politicall instability in
i the
Midd
dle East, Sheeikh Moham
mmed pursueed capitalism
m and embrraced Westeern culture while
mainttaining safety
y for millionss of annual to
ourists. By 20010, Dubai had the world
d’s tallest buillding,
the most
m
expensiv
ve hotel, and
d the largest shopping mall. But rap
pid developm
ment did not come
witho
out difficultiees. While hun
ndreds of tho
ousands imm
migrated to help build thee metropolis, labor
condiitions suffereed and somee local Emiraati felt like they lost asp
pects of theirr cultural ideentity.
Grow
wth was rapid
d, infrastructu
ure was weak
k, and the real estate bub
bble grew as the financial crisis
loomeed. To prod
duce econom
mic, social, an
nd cultural prosperity
p
forr the people of Dubai, Sheikh
S
Mohaammed had to
o balance his role as a busiiness leader and a politicall ruler.
Back
kground of
o UAE and
d Dubai
Regioonal Develop
pment
On
n January 4, 2006,
2
Sheikh Mohammed bin Rashid Al
A Maktoum, the third son
n of Sheikh Rashid
R
bin Saaeed Al Makttoum, became the Emir (ru
uler) of Dubaai and the ten
nth ruler from
m the Al Mak
ktoum
a With
hin the UAE reg
gion, it is proper to refer to roy
yalty with the words
w
“His Hig
ghness” before th
heir full name.
Many
publicaations from the region
r
will abbreeviate the title to HH Sheikh Moh
hammed. For th
he sake of efficien
ncy, “HH” has no
ot been
includeed in the rest of this
t
case. The word
w
“Sheikh” is an Arabic pre-fix
x used to design
nate an elder of a tribe, a revered leader,
or an Isslamic scholar. The
T feminine equ
uivalent is “Sheik
kha.” The word “bin,”meaning “son
“
of,” is the co
omponent that conveys
lineagee. The feminine equivalent
e
is “bin
nt” or “daughterr of.”
______________________
__________________________________________________________________________________________________
Lecturerr Anthony J. Mayo
o, Professor Nitin Nohria,
N
Umaimah Mendhro
M
(MBA 20009), and Research Associate
A
Johnathaan Cromwell prepaared this
case. Th
his case was developed from published sources. HBS casses are developed solely
s
as the basis for
f class discussion
n. Cases are not inteended to
serve ass endorsements, sou
urces of primary daata, or illustrations of effective or inefffective managemen
nt.
ght © 2010 Presiden
nt and Fellows of Harvard
H
College. To
T order copies or request permission
n to reproduce matterials, call 1-800-545-7685,
Copyrig
write Haarvard Business Scchool Publishing, Bo
oston, MA 02163, or
o go to www.hbsp
p.harvard.edu/educators. This publicaation may not be digitized,
photoco
opied, or otherwise reproduced, posteed, or transmitted, without
w
the permisssion of Harvard Bu
usiness School.
410-063
family lineage. Sheikh Mohammed’s father, Sheikh Rashid, fondly known as “The Father of Dubai,”
ruled Dubai for 32 years and was the Vice-President and Prime Minister of the United Arab Emirates
until his death at age 78.2 (See Exhibit 1 – Dubai Rulers, 1833-2009).
The Al Maktoum family descends from one of the most prestigious and highly regarded tribal
federations of Southern Arabia known as the Bani Yas tribe, which have been present in the region
since the 1580s.3 The Al Maktoum family comes from the Al Bu Falah subsection, one of the twenty
subsections of the Bani Yas tribal federation, whose leadership was acknowledged for at least ten
generations.4 Regardless of where subsections lived, the families were welded together by their
common tribe, religion, language, and traditions;5 the rulers were known as great warriors and
charismatic leaders. Recent rulers also positioned themselves as savvy politicians, shrewd
businessmen, and patrons of the arts.6 During the eighteenth century, pearling became an important
industry, and in 1833, an influential group within the Bani Yas tribe moved to the coastal village of
Dubai under the leadership of Maktoum bin Buti Al Maktoum, beginning the Al Maktoum family’s
reign as the rulers of Dubai.7 (See Exhibit 2 – Key Moments in Dubai’s History).
The region was absorbed into the British orbit beginning in 1820 with treaties between the British
and all the Sheikhs of the coast of the Arabian Gulf.8 While the Arabian Gulf was never a colony,
these treaties mostly safeguarded British maritime routes to India and established British supremacy
in the region against the claims of other European powers.9 In return, Britain upheld a policy to
protect the independence of the Trucial sheikhdoms against their enemies.10
In 1912, Sheikh Saeed bin Maktoum Al Maktoum, Sheikh Mohammed’s grandfather, began his
rule of Dubai. A deeply religious man, Sheikh Saeed based many of his decisions on the basic
teachings of Islam. Although Sheikh Saeed maintained cordial relations with the British authorities,
he was a leading figure in the emirates in heading a progressive movement. He formed an advisory
council, or Majlis, to strengthen the indigenous voice in organizing and managing local affairs.
During the early years of his reign, the pearling industry thrived in the Gulf, and Dubai established
itself as the leading port in the region.11
By the 1940’s, a depressed global economy threw the pearling industry into a steep decline; its
estimated value was £250,000 per year compared to £3 million in the 1920s.12 In response, Sheikh
Saeed sought to diversify Dubai’s economy by developing local commerce and trading ports.13 While
development in other parts of the Middle East began with the discovery of oil (Bahrain in 1932, Saudi
Arabia in 1938, and Kuwait in 1946), Dubai’s development started with Sheikh Saeed’s effort to
diversify the state’s assets away from the waning pearling industry and turn Dubai into a commercial
port.14
In 1958 Sheikh Mohammed’s father, Sheikh Rashid bin Saeed Al Maktoum (Sheikh Rashid), took
over as the ruler of Dubai.15 He took a hands-on approach to governing Dubai and made twice daily
tours to the town to speak with the man on the street.16 In the evenings, Sheikh Rashid regularly
convened traditional Majlis at his home, meeting people from all across the town, hearing their
grievances, and personally responding to all.17 Hamad bin Sukat, a lifelong friend of Sheikh Rashid,
noted:
He [Sheikh Rashid] was hungry to develop Dubai from its basic level. Sheikh Rashid used
his tremendous enthusiasm and powers of persuasion to fire up the people around him. In ...
the Majlis, I would see him talk men round to his ideas and polarize the efforts of several
people into beginning, and subsequently succeeding, projects which just hours earlier
[everyone around] thought improbable.18
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Sheikh Rashid built a bank and a hospital in Dubai, making Dubai the only center in the region
for banking transactions and healthcare. Around the same time, gold traders, looking to sell to the
Indian sub-continent, started to establish a base in Dubai. As commercial activity grew, Sheikh
Rashid worked to build the infrastructure of the state. In 1956, the Dubai Police Force and the
Customs Service were established, followed by a government municipality division in 1957 and a
private joint-stock establishment to supply electricity for the state. By the end of the 1950s,
telephones and piped drinking water were connected to the growing number of retail stores and
residences across the city.19 In 1959, Sheikh Rashid ordered the Dubai creek to be rebuilt. As the creek
project was completed, shipping lines began using Dubai as their main port in the Gulf.20 The Dubai
International Airport opened in 1960 with a modest terminal building and an air tower; within a year
it hosted Gulf Aviation and Kuwait Airways.21
Establishing the UAE as a Country
In January 1968, the government of the United Kingdom indicated its intention to bring its treaty
with the seven emirates to an end. The respective rulers of the emirates began a four-year discourse
of meetings and negotiations to form the appropriate political and constitutional structure to be
adopted upon British withdrawal.22 On December 2, 1971, the United Arab Emirates was formally
established, and the rulers of the seven Trucial States signed a governing body known as the
“Supreme Council of Rulers” into the Constitution. (See Exhibit 3 – Maps of UAE and the Middle
East). Formed to have overall command of the new state, the Supreme Council was responsible for
general policy matters including education, defense, foreign affairs, economic development, and the
ratification of federal laws. The seven members of the Supreme Council operated like the board of
directors of a corporation, and while the Supreme Council was not in session, the provisions of the
Constitution delegated most of the power to the President.23 Sheikh Zayed of Abu Dhabi was elected
the first President of the UAE, Sheikh Rashid was the first Vice-President, and his first son Sheikh
Maktoum was the first Prime Minister.24 The year the UAE was formed, Sheikh Mohammed turned
21.
Background of Sheikh Mohammed bin Rashid Al Maktoum
Education and Early Life
Born in Dubai in 1949,b Sheikh Mohammed spent his early childhood years in the Al Maktoum
family home in Al Shindagha with his parents, grandparents, and three brothers. Sheikh Mohammed
was an athletic and energetic child; as a toddler, he liked nothing more than to kick a ball around the
enclosed sandy courtyard of the Al Shindagha house.25 Hamad bin Sukat, a family friend,
remembered Sheikh Mohammed as “an inquisitive youngster, forever on the move, playing games
and exploring… wanting to know what was going on around him.”26
From a very young age, Sheikh Mohammed joined his grandfather on his daily Majlis, sitting
alongside him and intently listening to the discussions.27 He showed the most initiative amongst his
three brothers to take on responsibilities at a young age; it seemed to be a matter of character and
temperament. Neither of his brothers had Sheikh Mohammed's forcefulness and thirst for greater
involvement, which later resulted in his heavy participation in government roles.28 To prepare for
these roles, he received a diverse education starting at an early age.
b The exact day and month of Sheikh Mohammad’s birth are not known with certainty, possibly because they were never recorded, which is not
uncommon in Muslim cultures.
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When Sheikh Mohammed turned four, he received private tutoring lessons in Arabic and Islamic
Studies. At age six, he enrolled at the Al Ahmadiya School, a small primary school in Deira, Dubai,
where he learned Arabic grammar, English, mathematics, geography and history.29 During the 1950s,
education in Dubai was gradually moving from semi-formal to formal – with Al Ahmadiya
introducing a new curriculum in 1956 that included English, Sociology and Science.30 Outside the
classroom, Sheikh Mohammed became fond of the traditional Arabian sport of falconry, much like
his grandfather, and his father taught him the rudiments of horsemanship.
In August 1966 at age 17, Sheikh Mohammed enrolled in the Bell School of Languages in
Cambridge, England to improve his command of the English language. Two years later, he was
flown back to witness the formation of the UAE, and Sheikh Mohammed’s father began grooming
him to take responsibility for Dubai’s police and military forces.
To prepare for these roles, Sheikh Mohammed attended the Mons Officer Cadet School (OCS) in
Aldershot, forty miles from London. The Mons OCS was one of the two short service OCS institutes
in the UK that offered intense six-month training courses to career officers.31 Sheikh Mohammed
thrived in the tough military training environment and was promoted to Senior under Officer of
Kohema. He was later awarded the “Sword of Honor” for achieving the highest marks of all Foreign
and Commonwealth officer cadets in his intake.32 For Sheikh Mohammed, Mons OCS became a place
he recalled with fond affection, but dimmed by memories of penetrating cold. Upon his completion
of the Mons OCS program and not even 19 years old, Sheikh Mohammed began his first public office
position – the Head of Dubai Police and Public Security.33
Early Roles in Government
When the rulers of the Trucial States signed the provisional constitution that created the United
Arab Emirates in 1971, Sheikh Mohammed’s father named him a general and the Minister of Defense,
the youngest in the world at age 21.34 He was responsible for the federation's large and wellequipped forces, a position with many responsibilities. With much to learn and prepare for in this
role, learning to fly helicopters was among his first actions. When asked why, he responded, “So I
can understand what my pilots are talking about.”35
The principal military presence in the Trucial States consisted of British-led Arab security forces
and the personal bodyguard units of the ruling Sheikhs. Sheikh Mohammed began building a
national Union Defense Force (UDF), comprising 2,500 regular military personnel, for the seven
emirates of the UAE. At that time, local Arabs comprised about 40 percent of the military strength,
while Omanis, Iranians, Pakistanis, and Indians made up the remainder.36 Less than 12 months after
taking on this role, Sheikh Mohammed would deal with the events of the 1973 Arab-Israeli war, an
attempted coup in one of the neighboring states, Sharjah, and an aircraft hijacking at Dubai
International Airport.37 Terrorists from the Palestinian Liberation Organization (PLO) hijacked an
aircraft and landed in Dubai, demanding to be refueled. After three days of negotiating, Sheikh
Mohammed resolved the situation by granting them safe passage to Libya where the terrorists could
walk free.38
The UDF made its first operational foray in 1976, when Sheikh Mohammed committed troops to
Lebanon as part of the Arab Deterrent Force (ADF) to support the security situation in the wake of
the Lebanese Civil War and to authorize and supervise a cease-fire. The ADF was comprised of
30,000 troops, with the vast majority coming from Syria.39 The ADF, funded by the Arab League, was
to be a pan-Arab peacekeeping force for the region, however it failed to extend its mandate and
existence after Israel invaded Lebanon in 1983.40
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Sheikh Mohammed continued his role as Minister of Defense into the 1980’s. In Dubai, his
principal responsibility was policing the internal security – an immensely sensitive post in every Gulf
state. When UAE diplomats were attacked in Europe during the early 1980’s, the Maktoums were
concerned about potential conflict in their state.41
In May 1981, the UAE became a founding member of the six-member Gulf Co-operation Council
(GCC) comprising the UAE, Saudi Arabia, Bahrain, Kuwait, Oman, and Qatar. Founded in the
aftermath of the Iraq-Iran war, the GCC aimed to achieve greater security and stability in the region
and political and economic integration between the Gulf countries.42 Sheikh Mohammed said: “It
took Europe hundreds of years to arrive at some kind of unity, and it is still not as they wanted. We
in the GCC achieved it in 5 years. That does not mean we have to stop there, we need to exert further
efforts…to achieve more for our people.”43
Developing the Economy of Dubai
Early Business Development
Oil was discovered in Dubai in 1966, after which the state granted concessions to international oil
companies, including the Continental Oil Company (Conoco). As a result, a massive influx of foreign
workers came from nearby states, mainly the Indian subcontinent, increasing the population of the
city by more than 300% between 1968 and 197544 to 170,000 people.45 After taking over the role as
Head of Police and Security, Sheikh Mohammed was appointed the director of the Department of
Oil.46 In this position, Sheikh Mohammed worked closely with Conoco and several other foreign
companies while managing the growing number of expatriate advisers and thousands of foreign field
workers. He developed an intuition for financial intricacies, said to match his father's. It was not
always easy to distinguish between public funds and private money in Dubai, but some estimated
that Sheikh Mohammed was in direct control of as much as $1.8 billion in oil revenue per year.47
Beginning in the late 1970’s, Sheikh Rashid used oil revenue to expand the city’s global
orientation, setting out to create a “hub of hubs.”48 The Dubai Dry Docks, started in the 1980’s, was a
shipyard and ship repair facility that served as a major yard between Europe and the Far East and
repaired vessels from around the world. Sheikh Mohammed was asked to oversee this new project in
addition to his military duties. By 2009, the company owned a 350-meter wide entrance and attracted
up to 2,000 dockings per year,49 becoming the third largest re-export center in the world.50
As the Dubai Dry Docks project proceeded, Sheikh Mohammed’s father announced the formation
of a committee under Sheikh Mohammed that would take over the administration of the Dubai
International Airport. At the time, it only had a 6,000 foot long runway made of packed sand,
limiting the size of planes that could land. Between 1963 and 1970, 9,200 feet of asphalt runway, an
extension to the terminal, and several new buildings were added. After upgrading equipment and
systems, the airport could accommodate Boeing 747 and Concorde aircrafts.51 Dubai International
Airport became the stop-over and refueling destination for several international airlines
between Asia and Europe.
In the early 1980s, Gulf Air was the primary airline service in the UAE and operated out of Abu
Dhabi. Dubai’s airport operated with an open skies policy, inviting international airlines to flourish.
Gulf Air protested the competition, requesting special treatment from Dubai and threatening to
decrease its service to Dubai. In response, Sheikh Mohammed emulated his father; he provided $10
Sheikh
million to lease a fleet of Boeing 737s to start Dubai’s own airline – Emirates Airlines.52
Mohammed immediately set up a small team to develop the concept; and on October 25, 1985,
Emirates Airlines launched and flew its first flight from Dubai, UAE to Karachi, Pakistan.53 His team
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of advisors recommended dropping the open skies policy to protect the investment, but Sheikh
Mohammed rejected the proposal.54 While the vision for a Dubai-based airline was developed by
Sheikh Mohammed, he relied on the appointed executives of Emirates Airlines to convert that vision
into reality. Sheikh Mohammed believed:
A leader… is one with the clearest and most far-reaching vision… A leader must set out a
clear vision, which he must trust absolutely. If he loses that trust, he will begin to hesitate and
falter… I believe that if the vision is clear then objectives can be achieved easily.55
In 1985, with just two daily flights to Pakistan, the upstart carrier quickly became profitable and
went on to post 17 straight years of profitability.56 In the early 1990s, Emirates started courting longhaul business travelers, calling itself “the finest in the sky.” The company's revenue growth never
fell below 20% per year, and by 2006 Emirates ranked as the world's second most-profitable carrier
after Singapore Airlines.57
After the events of 9/11, airline competitors worldwide lost a combined $31 billion in the ensuing
two years, but Emirates Airlines continued to post strong numbers. Rivals began to question its
success. Some believed that as a subsidiary of the Dubai government, Emirates was getting
preferential treatment. The CEO of Qantas, Geoff Dixon, said, "Anybody that can control the airline,
government policy, and the airport should make a lot of money.”58 Others said, “Surely, such close
ties between state and airline--Emirates was wholly owned by the government--meant Emirates was
pocketing subsidies.” If nothing else, they suspected Emirates obtained oil at cut-rate prices.59
But Emirates executives denied the charges.
Their books were audited by
PricewaterhouseCoopers which supported company claims that it had received no government aid
since the original investment of $10 million by Sheik Mohammed in 1985.60 PricewaterhouseCoopers
also issued the statement: “We believe that the strengths of Emirates can be explained by the business
model rather than special treatment.”61 But no one accused Dubai of undercutting Emirates' rivals.62
The government continued operating an "open skies" policy, allowing more than 100 airlines to link
Dubai to 145 destinations worldwide.63
While Emirates Airlines received no direct financial support from the government, several unique
factors helped them achieve high profits. Sheikh Ahmed bin Saeed Al Maktoum, Sheikh
Mohammed’s uncle, was appointed Chairman of Emirates Airlines; he also served as the President of
the Department of Civil Aviation for the government.64 He declared from the beginning that Dubai's
airport would be open 24 hours per day while other airports were closed during night hours.
Emirates Airlines also paid no income tax, saving it $250 million per year. Because of Dubai's
proximity to India and Pakistan and their source of cheap labor, Emirates's labor costs made up 18%
of their operating budget, compared with 27% for Lufthansa and 29% for United Airlines.65 Emirates
also had the luxury to take on more risk. “They can cease being profitable without ever having to
worry about investors pulling out," said Richard Aboulafia in 2006, an aviation analyst with the U.S.based Teal Group. “But, there is nothing wrong in what they are doing. An industrial policy is by no
means the same as a subsidy." The result: a low-cost juggernaut with luxurious infrastructure and
huge advantages in its own region.66
Expanding Economic Activity
In 1991, Sheikh Rashid died and his eldest son Sheikh Maktoum bin Rashid Al Maktoum became
the ruler of Dubai. While Sheikh Mohammed was not the ruler in name, his older brother heavily
relied on him to architect Dubai’s future as a modern business center and commercial hub.67 With his
new responsibility, Sheikh Mohammed continued his father’s effort to diversify Dubai away from oil.
He noted: “Dubai's varied economic activities depend on a policy to decrease dependence on oil as
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the sole source of income.”68 As a result of his diversification efforts, oil made up only 5% of GDP in
200969 compared to 50% in 1985.70 When oil and gas output were estimated to run out by 2015,71
Dubai expected to be 100% funded by nonoil industries such as trade, real estate, and services.72
Business Dubai’s location provided companies with market access to a regional population of
1.8 billion in 50 countries with a combined GDP of $1.6 trillion.73 Corruption was perceived to be the
lowest in the region, taxes were among the lowest in the world, and labor regulations were flexible.
No minimum wage, liberal immigration laws, and a large pool of foreign labor freed companies from
health- and pension-costs74 and meant that needs for temporary staff could easily be met.75
But Dubai had some drawbacks as well, particularly within its financial practices. Financial trade
within Islamic cultures follows guidelines that differ from Western approaches. The primary
difference: Islam prohibits interest-bearing transactions such as loans, savings accounts, and
mortgages. Interest is considered oppressive and a way to transfer wealth from the poor to the rich,
which is a violation of basic Islamic principles. However, each prohibited transaction has at least one
acceptable alternative within Islamic practice, helping bridge a gap to Western culture practice.76
To overcome these limitations, Sheikh Mohammed established free zones within Dubai that were
governed by state law, not Islamic law. Foreign firms had strong incentives to set up business in
Dubai.77 Free zones were specific boundaries where companies enjoyed 100% tax exemption for 50
years, 100% ownership (compared to 49% elsewhere in Dubai) and flexible labor laws.78 While each
zone catered to a different industry, they all had a common model that focused on service. The most
prominent free zones were the Jebel Ali Free Zone Authority (JAFZA) for manufacturing, the Dubai
Internet City (DIC), the Dubai Media City (DMC), and the Dubai International Finance Center
(DIFC).
JAFZA, the first free zone, launched with 19 companies in 1985. The success of JAFZA generated
interest from neighboring Emirs to explore similar options in their respective states. Several free
zones around the Arab world signed consultancy agreements or memoranda of understanding with
JAFZA management to benefit from their experience.79 By 2007, JAFZA increased the number of
operating companies in the free zone to more than 6,000 from 120 countries.80
The DIC was launched in 2000 and served as a strategic base for companies that targeted
emerging markets in the Middle East and the Indian subcontinent. The park extended over 30 million
square feet of land and had 1 million square feet of leasable space for businesses. With a focus on
providing services, its management team described it as a one-stop shop that offered solutions to all
the problems a company faced when entering a new country.81 By 2008, the DIC employed 10,000
workers and hosted nearly 850 companies including Microsoft, IBM, Cisco, HP, Sun, Dell, and
Canon.82 DMC was established one year later and served as the only global media hub in the Middle
East region, hosting companies such as Reuters, CNN, Sony Broadcast and Professional, Bertelsmann,
BMG, Arabian Radio Network, and RAI. At the launch of the DMC, Sheikh Mohammed said:
Growth is vital for business. As I look across the region at today's existing media capitals, I
see trade legislation and practices that inhibit the growth of business… The UAE has
understood that to flourish, media needs to be unshackled from policies and practices that
limit its independence and creativity… This awareness and practice of freedom is the
foundation of the creation of Dubai Media City.83
Despite DIC and DMC’s stated vision to enable freedom of information, some critics complained
of UAE’s censorship proxies. Users did not dial directly into the web but into a proxy server
monitored by Etisalat (the state telecom monopoly) which prevented access to sites on the banned
list. Popular social networking and communications services were also blocked.84
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The Dubai government continued to develop its economic foundation by opening the DIFC in
2004, which offered local financial services for privatization, brokerage, wealth management, and
Islamic finance.85 The DIFC broadened the range of traditional methods of financing provided by
regional banks; it facilitated initial public offerings and deregulated the market. With a solid
financial basis, Dubai opened their own regional stock market, which boosted the local economy by
providing opportunities to invest locally and keep money in the region. By 2008, 80% of Fortune 500
companies (including all of the top 10) established a presence in Dubai, and the UAE’s free zones
hosted numerous multinational and regional companies.
While free zones attracted foreign business to Dubai, several government-owned companies were
created to support the burgeoning economy. In 2006, Sheikh Mohammed founded Dubai World, a
holding company that managed and supervised a portfolio of businesses and projects for the Dubai
government and worked towards making Dubai a leading hub for commerce and tourism.86 In
addition to JAFZA, the largest companies under the Dubai World umbrella included Nakheel, a real
estate development company; Dubai Ports, the world’s leading port operators; and Istithmar World,
the asset management arm operation. Owned by the government of Dubai under Sheikh
Mohammed’s leadership, Dubai World was one of the largest holding companies in the world with
50,000 employees across five continents.87 The companies were run like private corporations, but
Sheikh Mohammed served as the vision, setting key targets and conveying critical guidelines through
official decrees.
As Dubai World’s fleet of companies generated surplus cash, Istithmar, which means investment
in Arabic, was responsible for investing that money primarily in real estate and private equity. It
owned a portfolio that stretched across development, marine services, commodities, ports, and freetrade zone divisions. Because Istithmar had one shareholder with deep pockets, the government of
Dubai, it had few of the constraints of its private sector competitors.88
Real Estate and Tourism Dubai enjoyed year-round warm weather and pristine beaches, but
the Dubai coastline was confined to only 43 miles. Believing that Dubai should not be limited by its
small size, Sheikh Mohammed set up a team to investigate the possibility of expanding Dubai’s
coastline.89 He decided to perform several intense land reclamation projects that dredged millions of
tons of sand from the Persian Gulf and quarried thousands of tons of rock from the UAE to build
artificial islands off the coast of Dubai.
In 2001, Nakheel oversaw the development of The Palm Jumeirah, the first of their ambitious
projects. Between 2003 and 2009, they added several more islands: two additional palm islands, the
Palm Jebel Ali and the Palm Deira; the World, a 300-island archipelago shaped to mimic the
continents that measured 40 miles across; and in 2008 announced the Universe, a series of islands
representing the sun, moon and the planets on 6,000 acres of land. Meant for private villas,
mansions, luxury apartment towers, and luxury hotels, these islands added more than 600 miles of
coastline to Dubai. The property value on these islands started high and consistently grew as
celebrities and speculators bought and sold property. In June of 2008, some questioned Dubai’s
ability to sustain property values, and the CEO of Nakheel attempted to address the concerns, “We
are still undervalued on a square footage basis against a number of cities across the world,” he said.
“Purchasers may need to be more discerning in what they buy.”90
Dubai’s real estate development played a major role in Sheikh Mohammed’s vision to build one of
the leading tourist destinations in the world. The government sought to captivate outsiders with a
series of sensational projects such as the sailboat-shaped Burj Al Arab Hotel, the world’s tallest, most
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expensive, and only ‘seven star’ hotel; and the Burj Khalifa,c the tallest building in the world standing
at more than 2,600 feet – nearly twice the height of the Empire State Building.91 Connected to it was
the world’s largest shopping mall.92 Dubailand, a $6 billion tourist city twice the size of Disneyworld,
featured an indoor ski resort with a 400-meter downhill trail93 and 45 theme parks, sports centers, and
discovery zones.94 At the height of the construction boom, there were reports that as many as 24%
(30,000) of the world’s cranes were located in Dubai.95 These projects employed up to 700,000 workers
and made real estate the most dynamic non-oil industry.96
As a result of these investments, the number of visitors to Dubai rose from 1 million in 1992 to 5
million in 2005,97 and Sheikh Mohammed wanted to increase that number to 15 million by 2010. Most
visitors were British, Russians, and Saudi Arabians, while North Americans arrived in smaller
numbers.98 With 22% growth in 2006 and more than 7 million tourists by 2007, tourism became the
fastest growing sector of the UAE economy.99 (See Exhibit 4 - Major Investments and Property of
Government-Owned Companies).
Economic Results
By the time Sheikh Mohammed took the reins as the official Ruler of
Dubai, on January 4, 2006, he was widely known as “the CEO of Dubai.” When Steve Kroft, in a CBS
60 Minutes special titled, Dubai Inc., asked Sheikh Mohammed if it was appropriate to call him the
CEO of Dubai, he responded, “I think, yes. I changed the way of the government… to make it work
like a big company.” When Kroft asked Sheikh Mohammed about his motivations for building
Dubai, he responded: “I want it to be number one. Not in the region, but in the world… Number
one in everything: high education, health, housing... give my people the highest way of living.”100 But
Sheikh Mohammed also understood the limit of the government’s role, saying:
We believe that the role of the government should be restricted to legislation and
regulation, in addition to the continuous development of the infrastructure, thus making the
private sector the engine of the development process.101
Dubai's exports grew by an average of more than 28% annually between 2003 and 2008, and GDP
rose at a rate of 8% per year between 2001 and 2006, one of the highest in the world.102 (See Exhibit 5 GDP Statistics for the UAE, 1973-2006).
A popular Australian blogger in Dubai, who lived in Dubai from 1977 to 1984 and then moved
back again in October 2005 to watch the incredible development as it happened, wrote: “It doesn't
take a genius to see that [people who have moved to Dubai from Western countries] have moved
their standard of living up to a level they never dreamed of in their own country.”103 Reporting on
Dubai’s quality of life, USA Today reported in its Dubai Overview section:
Dubai is a truly cosmopolitan city with a lively and modern environment that offers a
fantastic quality of life. The city benefits from excellent schools, modern medical facilities and
great shopping and entertainment opportunities.104
c Originally named Burj Dubai, Sheikh Mohammed renamed it to Burj Khalifa on January 4, 2010 in honor of Sheikh Khalifa
bin Zayed Al Nahyan, the ruler of Abu Dhabi.
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Consequences of Prosperity
Labor Conditions
Although Dubai’s rise was unprecedented, it came with some costs. The real estate and tourism
industries were built through countless days of work by expatriate laborers. According to a Dubai
city survey of 1997-98, around 228,000 people lived in collective labor accommodations.105 By 2007,
this number was estimated to be one million. The majority of these laborers came from the bottom of
the economic pyramid strata of neighboring Pakistan, Bangladesh, Sri Lanka, and India. The New
York Times reported:
They [UAE construction workers] still wake before dawn in desert dormitories that pack a
dozen men or more to a room. They still pour concrete and tie steel rods in temperatures that
top 110 degrees. They still spend years away from families in India and Pakistan to earn about
$1 an hour. They remain bonded to employers under terms that critics liken to indentured
servitude.106
With the cost of living rising, many abandoned their dreams of returning home with a fortune.
Some of the construction workers' camps were set up deep in the desert, adding a two hour commute
to the job site every morning, in addition to the workers’ 12-hour shifts.107 In December 2005, the
Indian consulate in Dubai submitted a report to the Government highlighting delayed payment of
wages, substitution of employment contracts, premature termination of services, and excessive
working hours.108 Denial of wages was the most common abuse of workers as contracting companies
typically waited to pay their workers until they themselves got paid. In the worst cases, workers were
denied wages for more than 10 months, only to lose the entire salary when the contracting companies
went bankrupt, leaving the men with few options.109 Some claim that these workers were not allowed
to move jobs because their passports were taken away from them as they entered Dubai – and if they
left the country they lost the money they were owed. Workers were mindful of the fact that if they
were deported, thousands of other workers were willing to take their place.110
Mr. Kumaran, one of the workers for the Burj Khalifa skyscraper, earned 550 dirhams every
month, or about $150. While he was not sure how he would repay the loan he took to get there, he
still sent home nearly half his earnings, barely enough to pay for food and cigarettes. Mr. Kumaran,
28, said his dream had long since faded. “I thought this was the land of opportunity, but I was fooled.
I wish the rich people would realize who is building these towers. I wish they could come and see
how sad this life is.”111
Most workers employed on the construction sites in Dubai toiled under severe and potentially
dangerous conditions.112 In 2005 alone, the Indian consulate estimated that 971 of its nationals died in
Dubai from construction site accidents, heat exhaustion, and suicide. Unionizing was forbidden, and
most workers had no recourse other than the Labor Ministry.
As these conditions continued, workers took matters into their own hands. In 2005, 800 workers
staged a protest march down a main highway in the heart of the city, setting off a national debate
about the treatment of foreign workers. In the same year, hundreds of workers building the Burj
Khalifa skyscraper chased security guards and broke into offices, smashed computers, scattered files
and wrecked cars and construction machines.113
The alleged labor and living conditions in Dubai attracted attention of various human rights
groups, and the Dubai government attempted to address the problems. The U.A.E. government took
action in September 2005; the Minister of Labor ordered one company to pay unpaid salaries within
24 hours, issued penalties, stopped government transactions with the company, and banned
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recruitment for six months.114 The U.A.E.'s Ministry of Labor tried to tackle problems by changing the
law to allow workers to change employers more easily and to impose strict penalties on employers
that did not pay their workers.115 Scrutiny also led to the establishment of the human rights unit at
the Dubai Police and legislation to allow trade unions. The government had an additional incentive
to make such changes because they were mandated by the International Labor Organizations for
countries that wanted to join the World Trade Organization.116
Infrastructure
While some were proud of Dubai’s achievements, some aspects of the rapid developments were
criticized; demands were constantly made for improvements in education, health service,
employment, and transparency.117
Emiritasation
In 2008, expatriate workers accounted for as much as 95% of the workforce in
the private sector;118 Singapore, which experienced similar development to Dubai, had only 36%
foreign employment. In response, Sheikh Mohammad made Emiratisation a priority:
Our vision is that we become one of the best governments in providing quality services,
nurturing creative minds, building national talent, innovating solutions and adopting
international best practices. Education centers of the highest level are vital to the development
of the country and would provide the necessary foundation for the modernization of Dubai.119
Sheikh Mohammed publicly announced a government strategy in 2007 that focused on multiple
aspects of social development. The strategy emphasized the government's role in developing
education and comprehensive training programs for UAE nationals to increase their competitiveness
in the labor market. They also promoted entrepreneurship among young UAE nationals so they
could launch and manage small and medium-sized enterprises.120
Several private companies in the Middle East sought to provide meaningful employment to local
nationals, and they invested to help train and promote their local workforce, especially to executive
positions. David Myers, a partner at a local petrochemical company, said "Within the region, there is
a movement to embody this into law. The UAE passed legislation that called for all human resource
executives to be from the UAE.” However, such government-enforced initiatives had both positive
and negative results. The government pushed companies to hire local talent for higher positions,
often before they were ready. In practice, companies placed a national in senior positions and
provided help by recruiting lower-level managers from abroad who knew the job and company
well.121
Education
In 2007, the Ministry of Education and Youth established a strategy for the next 20
years to continue to improve the education system of the UAE, including the development of
education methods and programs along with introducing the latest technology in education.122
The government also promoted an adult literacy program, in cooperation with the UAE Women's
Federation, improving the adult literacy rate from 54.2% amongst men and 30.9% amongst women in
1975 to 73.4% amongst men and 77.1% amongst women in 1998. The literacy rate for women in 2008
was close to 96%. In 2009, the Women’s Federation focused on comprehensive social planning,
including the role of women in the workplace.123 By 2005, 65% of UAE university students were
female, but only 15% of the UAE workforce was female. The imbalance in the workforce was
partially attributed to the fact that men comprised 95% of the expatriate workforce in the private
sector124 and that there were twice as many men as women in the country.125
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Sheikh Mohammed believed that education was the most effective tool to break the cycle of
poverty and he launched Dubai Cares, aiming to improve children’s access to primary education in
developing countries. Sheikh Mohammed encouraged UAE society to contribute money to the goal
of educating one million children in the developing world. By 2009, Dubai Cares reached more than
four million children in the developing world, built and renovated more than 2,000 schools, and
trained more than 20,000 teachers.126
Sheikh Mohammed’s sons and daughters played a critical role in advancing the campaign
through visiting the campaign's target countries, making appearances at fundraising events, and
spending time with the children who benefitted from the campaign.127
Sustainability Dubai's inhabitants were known to generate one of the world's highest
amounts of waste, and the city was near the top of the list in energy consumption. Although activists
campaigned to address energy conservation, water conservation, and the need for a recycling
program, they were overshadowed by publicity for real estate and tourist attractions.128
Giant projects that sprung all over Dubai disturbed the environment, harmed the Gulf’s marine
ecosystem, polluted air and water, and burned fossil fuels to meet high energy demand,129 of which
60% was for air-conditioning.130 Between 1975 and 2003, power generation in Dubai increased 3,340%
from 454 million kilowatts to 15,616 million kilowatts.131 Despite 320 days of sun each year and
summers hitting 122oF daily, the only solar panels were on parking meters and speed cameras.132
In October 2007, Sheikh Mohammed decreed that all urban structures in Dubai had to be built
according to environment-friendly green building standards. A month later, the prime minister of the
United Arab Emirates set out targets: all buildings had to cut standard levels of both water and
energy use by 30% and lighting costs by 9%. At the World Future Energy Summit in January 2008,
Sheikh Mohammed went a step further, announcing that the UAE would invest $15 billion in the
promotion of green energy,133 and he launched a widespread awareness campaign to promote
renewable energy.134
In 2008, through his “Green Decree,” Sheikh Mohammed issued a mandate that all new
construction in the Dubai World developments must comply with 32 points within the Leadership in
Energy and Environmental Design (LEED) certification building standards.135 The Burj Khalifa, the
most prominent structure in Dubai, took steps to be more sustainable. When completed in January of
2010, its chilled water pipes doubled as water condensers to produce thousands of gallons of fresh
water for irrigation. The building also shared a single cooling system with the entire Burj district,
saving significant amount of energy consumption.136
Additionally, the Emirate encouraged government agencies, such as the Department of
Electricity and Water Agency (DEWA), to act competitively because the potable water in the region
came from two sources: 10% from wells (ground water) and 90% from desalination facilities, an
expensive process.137 Although it was a government-owned monopoly in Dubai, DEWA proactively
ran its operations on a competitive basis and adhered to the government’s directives to focus on
customers and strive for excellence.138
Roads A need for a well-conceived road-sign system as well as consistency in mapping, retail
signs, and street-name labeling were all urgent problems.139 At peak commuting times, it took an
hour to drive five miles because planners under-estimated car usage. The Palms, the artificial islands
bearing 10,000 homes, became synonymous with over-dense development and under-investment in
infrastructure. Roads were clogged as most residents left for work at the same time each morning.140
In 2007, Sheikh Mohammed acknowledged these problems:
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The roads and transport area also face many challenges, as some roads witness very high
traffic, leading to high accident rates, especially in the northern emirates. We also lack uniform
standards and specifications for roads. 141
In response to growing concern, Dubai built two bridges, one tunnel, and several multilane
highways to alleviate traffic congestion. They also built an elevated state-of-the-art Metro system,
costing $7.6 billion.142 In 2009 alone, Dubai spent 45% of its state budget on infrastructure projects.143
Social Impact
Another effect of Dubai’s dramatic economic success was its change in demographics and what
some call damage to Dubai’s local culture and heritage. According to the 2005 Ministry of Labor
statistics, local Emiratis comprised less than 17% of the population of Dubai, and by 2008, foreigners
outnumbered local Emirati almost nine to one.144 (See Exhibit 6 – Dubai Population, 2005; and
Exhibit 7 - UAE Population Statistics, 1960-2008).
Some local Emiratis felt that Dubai’s indigenous population was paying the price for the state’s
success. Professor Itbisam Al-Kitby noted: “People are put in a situation they didn’t choose. Nobody
asked them, is this what you want?” According to Al-Kitby, the people of Dubai had to live with the
dramatic changes in their society that came with the influx of foreigners and western values and
lifestyle.145 Amir Berbic, an Assistant Professor of Design at the American University of Sharjah in the
UAE, passionately explained his opinion about the rate of development in Dubai, the design of
buildings, and their effect on the identity of the people:
As skyscrapers and luxurious hotels are built with little reference to Dubai’s cultural or
historical context, nationals are constantly reminded of their dwindling culture. The
sheikhdom's hyper-productivity forces designers to create visual facades for this artificial
amalgam at lightning speed, conforming to clients' unreasonable demands. Instead, they settle
for an American or European "look" or a superficial depiction of the local "heritage.” Such
rapid change creates possibilities for inventive projects but gives the city an artificial and
perplexed identity. As a result, Dubai's cultural iconography has been lobotomized:
Representations of the traditional have been reduced to images of a falcon, a Bedouin on a
camel, or wind towers (structures that were used as cooling systems for buildings prior to airconditioning).146
As Dubia’s ports got bigger and tourism increased, Dubai became a hot spot for prostitution. A
2007 PBS documentary entitled Dubai: Night Secrets reported that prostitution in clubs was not only
prevalent, but tolerated by authorities. It was also reported that Dubai sanctioned trafficking of
young boys to serve as camel jockeys. In September 2006, Dubai's ruling Al Maktoum family was
served with a class-action lawsuit in the United States accusing them of masterminding an
international child slave trade to provide jockeys and attendants for the popular desert sport of
camel-racing. According to the suit, as many as 30,000 young boys from South Asia and Africa were
victimized. The lawsuit singled out Sheikh Mohammad and his brother as those who allegedly
kidnapped and enslaved children. The UAE has since banned the use of child camel jockeys.147
Despite these cultural strains, Dubai was a liberal society by any measure and was rated among
the safest in the world. It was also one of the few states in the region that allowed foreigners to freely
practice their religion in non-Muslim houses of worship, and the dress code was liberal. Women,
whether married or single, did not face discrimination and could drive, work, and move around
unescorted. Despite the changes caused by rapid development, Dubai remained closely linked to its
heritage. For example, alcohol was available in hotels and clubs, but restaurants outside hotels were
not permitted to serve alcoholic beverages. Arab culture and folklore found clear and articulate
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expression in poetry, dancing, songs, and traditional art; and traditional sports such as falconry,
camel racing, and dhow racingd continued to thrive.148
Because of the economic and tourist development, Dubai nationals enjoyed one of the highest
standards of living, and GDP per capita of nationals was more than $120,000.149 Some Emirati said
they enjoyed aspects of growth, but not the costs in terms of social change.150 Others felt that in some
cases the ruling family and government went too far in their efforts to accommodate foreigners, and
that the national identity of Dubai was under threat.151 In the summer of 2008, Sheikh Mohammed
commissioned a national identity study to investigate how the Emiratis felt about their national
identity and how to address any emerging concerns.152 Sheikh Mohammed’s “Dubai Strategic Plan
2015” listed the top two priorities: first, preserve national identity and second, increase nationals'
participation in the workforce and society.153
These efforts expanded on the work begun in the 1970’s; the government opened museums and
historic sites, including Al Shindagha, to celebrate memories of tribal society, fishing, and pearling.
The government also hosted cultural activities like singing, dancing, pottery-making, and cooking.154
When Sheikh Mohammed took over Dubai in 2006, he continued the government’s effort to maintain
a sense of cultural identity. He ensured comprehensive cultural content was communicated through
media, arts, and literature; and he increased the focus on the Arabic language because it encompassed
national history and culture.155 Sheikh Mohammed also improved nationals’ ability to participate in
the economy, updating educational curriculum and developing teaching resources.156
The Economic Crisis
Dubai experienced a multiyear building boom that helped the city-state fashion itself into the
Middle East's hub of finance, trade, and tourism. Dubai invested heavily in local construction when
loans were cheap and made property investments abroad as the market was peaking. But starting in
October of 2008, the world financial crisis struck Dubai's economy, slamming the brakes on its
development. Projects that were in full swing were delayed, tourism declined, and the government
explored ideas on collecting taxes, an unpopular practice in the Emirate state.157
Over a span of 6 months, Dubai home prices dropped nearly 40% on average.158 The stock for
Emaar Properties, one of the largest real estate developers in the Middle East, plummeted 62% from
the beginning of 2008 to November of the same year.159
It became extremely difficult to take out new loans and refinance outstanding loans for all
enterprises, including government-affiliated companies. The credit crunch revealed a weakness of
the "Dubai model," in which companies sustained their projects with borrowings worth several times
their actual funds on hand.160 Istithmar, the investment arm of the government-owned Dubai World,
froze its investment activity and laid off about 20% of its staff as it struggled to recover from its
debt.161
Other major government-linked developers put work on hold and cut jobs. After cutting more
than 20% of its workforce, Nakheel said it would halt work on the Burj Khalifa for one year,162 while
other Dubai contractors faced bankruptcy due to unpaid fees and dwindling work. Around $75
billion worth of projects in the United Arab Emirates were suspended or cancelled altogether
according to an HSBC report. "We have had to let go half of our staff and cut wages and it is not
d Long used as a mode of transport across the waters of the Arabian Gulf, dhows are traditional wooden cabin cruisers meant
for trading. Dhow racing has been an integral aspect of the history of Dubai and the Middle Eastern region at large.
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because we have no work, it is because we are not being paid for the work that we have completed," a
Dubai-based contractor said.
With consistent growth and a booming economy, Dubai World had used high leverage ratios to
take out large loans from international banks such as HSBC ($16 billion), Standard Chartered ($8
billion), and Barclays ($4 billion).163 Creditors jumped at the opportunity to finance Dubai projects
because they assumed the government would help if they overextended.164 Once the recession hit
Dubai, Dubai World faced nearly $60 billion in debt. As $3.5 billion in loans matured in December
2009, Sheikh Mohammed requested a 6-month extension on behalf of Dubai World, but provided few
details on how the government would repay its debt. This caused a worldwide scare. If Dubai
defaulted on its loans, some believed the world economy would be sent into a second wave of
recession.165
Although Dubai had massive debt, Sheikh Mohammed remained confident in his city-state’s
strength and few investors believed Dubai would default on any loans.166 Soon after the recession hit,
the federal government injected $10 billion (the first of $20 billion total) in a bond sale to the United
Arab Emirates central bank, based in oil-rich Abu Dhabi. Another $5 billion was raised in November,
just weeks before $3.5 billion in loans became due. Many analysts saw these transactions as a federal
Despite the fiasco, optimism persisted.
bailout of the U.A.E.’s most free-spending member.167
Richard Meddings, Finance Director of Standard Chartered said, “We retain a high level of
confidence in the prospects of the Middle East and we are very supportive of the actions that the
U.A.E. central bank has taken so far.”168
Dubai World also took action to save costs by undertaking a heavy reorganization of its
companies, reducing its global workforce by 15%.169 Dubai World facilitated the merger of its
property and investment arms, Nakheel and Istithmar.170 Nakheel’s international hotel assets were
shifted to Istithmar along with a number of Nakheel executives.171
The financial crisis also complicated business relationships in Dubai. Analysts said the root of the
problem was that Dubai's legal structures were outpaced by development. After the economic crisis
hit, the government criminalized debt, putting many struggling business people in jail where it
became even harder to repay their debts. Criminalizing debt put a weapon in the hands of landlords,
banks, and creditors, enabling them to send anyone to jail with a single document showing a bounced
check. The overall uncertainty of Dubai's legal system, and especially the risk of doing jail time for
debt, prompted many expatriates to flee when they were in financial trouble rather than filing for
bankruptcy and setting out a repayment schedule. Some financial analysts said the risk of arrest for
debt drove away potential investors and businesspeople, making it more difficult for Dubai to
recover from the financial crisis.172 It was predicted that the population would decline by 17.1% by
the end of 2009.173
But the financial crisis was a surprisingly welcome development for some Emirati natives. They
hoped the economic downturn would reduce the number of foreigners pouring into their country
and give them a chance to reassert their customs and way of life. Abdul Khaleq Abdullah, a political
science professor at United Arab Emirates University, said, ''This is a blessing - we needed it. The
city needs to slow down and relax. It's good for the identity of our country.''174 Sultan al-Suwaidi, a
banker and member of the National Council said he hoped that the country would rethink its
development model over the next decade and substantially reduce the number of foreigners. He
said:
We have to bring our local percentages up to 40%; then there will be good control in our
society. If this happened, the government would have had to encourage its own citizens to
move into industries like finance and banking.175
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Amid a slew of negative headlines about the country's economy, the government of the United
Arab Emirates tightened its media laws by replacing the 28-year-old Publications Law. The new law
threatened to fine anyone who knowingly published information that damaged the U.A.E.'s
reputation or harmed its economy. Potential fines ranged from $13,600 for minor violations to as
much as $275,000 for criticizing the ruling family, but the law still protected journalists from
imprisonment for carrying out their duties. Officials close to the government played down concerns
that it would crimp media freedoms: "News agencies and reporters need not to worry as long as
they're doing a professional job," said Abdulatif Al Sayegh, chief executive officer at governmentowned Arab Media Group.176
Before the crisis, Sheikh Mohammed gave a speech, urging media to “maintain objectivity in their
pursuance of truth... promising to iron out difficulties hindering them as they carry out their duties.”
But free press was still questionable because a majority of Dubai newspapers were owned or
subsidized by the government. As internet censorship cast doubt over free press, there was a near
universal abstinence from criticizing the government. Expatriate journalists especially had to err on
the side of caution, choosing to self-censor lest they lose their job and get deported.177
The Sheikh and Dubai
While Dubai suffered heavily from the economic crisis, some remained optimistic about its ability
to recover. Michael Geoghegan, group chief executive of HSBC said, “I am confident that Dubai and
the UAE will overcome any short-term issues they face.” Bloomberg reported that while problems
may be severe, the viability of its economic model remains sound. “Don’t count Dubai out,” said
Carlyle Group co-founder David Rubenstein. “It has world-class infrastructure, a high-quality talent
pool, and will continue to be an important financial center for decades to come.”178
Still, Dubai is dominated by only a handful of people and their decision-making and finances are
obscure. “To lower the perception of risk, Dubai must become more transparent quickly,” said
Matthew Vogel, head of emerging markets research at Barclays Capital in London. Sheikh
Mohammed’s leadership will also be tested; he will be forced to make difficult choices about
developer Nakheel and other troubled enterprises.179
Despite its debt problems, Dubai remained one of the most dynamic business hubs and was a
model for its neighbors. For example, it was the first in the region to open up its real estate market to
foreign investment in 2003. It was an important economic experiment in a strategically vital region.
In a region of conservative, autocratic countries dependent on the boom-and-bust cycles of the oil
industry, Dubai created an open economy that diversified well beyond energy. Nearby states took
notice and began following its lead. Gas-rich Qatar began promoting its own financial center and
Abu Dhabi announced an $8 billion financial-services joint venture with GE.180
As Dubai’s economy experienced dramatic swings of momentum during the 2000’s, so did the
level of scrutiny for Sheikh Mohammed’s leadership. While some praised him for building a
prosperous cosmopolitan city with an open culture in the conservative Middle East, others criticized
him for moving too fast. Sheikh Mohammed believed he had no choice:
I have a vision. I look to the future, 20, 30 years. I learnt that from my father... I follow his
example. He would rise early and go alone to watch what was happening on each of his
projects. I do the same. I watch. I read faces. I take decisions and I move fast, full throttle.181
The first duty of an official is to make his people happy and provide them with security,
stability, welfare and progress… True joy is that which comes from progress and success… I
want everyone in this country to benefit and to be of benefit at the same time.182
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Exhibit 1
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Dubai Rulers, 1833 - 2009
Rulers
Tenure
Sheikh Maktoum bin Buti
1833 - 1852
Sheikh Saeed bin Buti
1852 - 1859
Sheikh Hasher bin Maktoum
1859 - 1886
Sheikh Rashid bin Maktoum
1886 - 1894
Sheikh Maktoum bin Hasher
1894 - 1906
Shiekh Buti bin Suhail
1906 - 1912
Sheikh Saeed bin Maktoum
(Sheikh Mohammed’s Grandfather)
1912 - 1958
Sheikh Rashid bin Saeed
(Sheikh Mohammed’s Father)
1958 - 1990
Sheikh Maktoum bin Rashid
(Sheikh Mohammed’s Brother)
1990 - 2006
Sheikh Mohammed bin Rashid
2006 – Present
Source: Graeme Wilson, Father of Dubai: Sheikh Rashid bin Saeed Al-Maktoum (Dubai: Media Prima, 1999), p. 16.
Sheikh Mohammed has been married twice. His senior wife, Sheikha Hind bint Maktoum bin Juma
Al Maktoum, whom he married in 1979, is Sheikh Mohammed’s cousin. Sheikha Hind is a private
person and an avid supporter of women rights and progress in the UAE. Sheikh Mohammed has 12
children with Sheikha Hind. In 2004, Sheikh Mohammed married Princess Haya bint al-Hussein,
daughter of King Hussein bin Talal of Jordan and half-sister of the current king, Abdullah II bin
Hussein. Sheikh Mohammed’s second marriage was viewed as having the potential for enhancing the
existing strategic and geopolitical cooperation between the two important Arabian sub-regions. With
his second wife, Sheikha Haya, Sheikh Mohammed has one daughter, born in 2007.a
a.
Biography Resource Center on Sheikh Mohammed bin Rashid Al Maktoum, (accessed April 2009).
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Exhibit 2
Key Moments in Dubai’s History
Year
1820’s
Description
The region is absorbed into the British orbit to safeguard British routes to and from India.
1833
Maktoum bin Buti Al Maktoum settles Dubai and becomes the first Al Maktoum member to rule Dubai.
1920’s
The local pearling industry is the primary source of GDP with annual revenue of £3 million.
1940’s
The pearling industry goes into a steep decline with annual revenue of £250,000
1950’s
Dubai builds a hospital, bank, and infrastructure for telephones and piped drinking water. Dubai
creates the Dubai Police Force and Customs Service.
1959
The Dubai Creek is rebuilt and Dubai becomes one of the major ports in the region.
1960
The Dubai International Airport opens and hosts Gulf Aviation and Kuwait Airways.
1966
Oil is discovered in Dubai.
1968
The British end their treaty with the seven emirates known as the Trucial States, and leave the region.
1970
The Dubai Airport expands and is able to accommodate Boeing 747’s and Concorde aircrafts.
1971
The United Arab Emirates are formed with a federal constitution and federal governing bodies.
1973
Arab-Israeli war breaks out and Sheikh Mohammed resolves a terrorist crisis at Dubai’s airport.
1980’s
The Dubai Dry Docks is created, leading Dubai to becoming one of the top ports in the world.
1985
Emirates Airlines is created with $10 million of startup capital from Sheikh Mohammed.
1985
Jebel Ali Free Zone Authority (JAFZA) is the first to allow 100% foreign ownership and tax exemption.
2000
The free zone Dubai Internet City is launched.
2001
The Palm Jumeirah, the first of four man-made island projects to expand beach front property, begins.
2003
The free zone Dubai Media City is launched, becoming the only media hub in the Gulf region.
2004
The free zone Dubai International Finance Center opens along with the Dubai stock market.
2005
800 workers from the Burj Khalifa stage a violent protest down the center of Dubai.
2006
Sheikh Mohammed bin Rashid Al Maktoum becomes official ruler of Dubai.
2006
Dubai World, the world’s largest holding company, is created and owned by the Dubai government.
2008
Local nationals account for 10-15% of the population.
2009
Dubai borrows $15 billion from the UAE federal bank to repay debts.
2010
The world’s tallest building, the Burj Khalifa, is completed.
Source:
18
Compiled by casewriter.
Exhibit 3
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Maps of UAE and the Middle East
Source: Courtesy of the University of Texas Libraries, University of Texas at Austin, accessed August 2009.
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Exhibit 4
Major Investments and Property of Government-Owned Companiesa
Property or Investment
Dubai
Discovery Gardens
Description
26,000 unit apartment community located in Jebel Ali.
Palm Deira
Man-made islands in the shape of a palm tree off the coast of Dubai.
Palm Jebel Ali
Palm Jumeirah
The World
Archipelago of 300 man-made islands off the coast of Dubai.
The Universe
Proposed man-made islands in the shape of the Earth’s solar system.
Waterfront
Proposed man-made islands off the coast of Dubai.
DubaiLand
$4.9 billionb theme park that includes five major worlds: Sports and
Outdoor World, with five mega projects; Eco-Tourism World, for nature and
desert-based activities; Themed Leisure and Vacation World, for exotic
locales without leaving Dubai; Retail and Entertainment World, the largest
mall in the world; and Downtown, which includes dining, entertainment, and
nightlife.c
Jumeirah Beach
Residence
The largest single phase residential project in the world, costing $1.6 billion
d
and expected to house 25,000 residents.
International Locations
Las Vegas
Invested $2.7 billion in a long-term project with MGM Mirage to construct
the mega-gaming resort called CityCenter. CityCenter includes 4,000 hotel
rooms, 2,600 condos, and a half-million square feet of retail, gaming and
entertainment space.
New York City
Three hotels including the Mandarin Oriental Hotel.e
Britain
Three ports and the Metropole Hotel.e
South Africa
Cape town mall, three wildlife reserves, and a golf estate.e
Djibouti
$800 million worth of ports, free-trade zones, and luxury hotels.e
China
Six ports, including two in Hong Kong.e
Source: Adapted from Dubai World Report and Nakheel Report, Hoover’s, Inc., http://www.hoovers.com, accessed April,
2009.
a.
b.
c.
d.
e.
20
Includes subsidiaries of Dubai’s largest Holding Companies: Dubai World, Dubai Holding, and Emaar Properties.
“Should you buy in Dubai?” The Economist, Dec 6, 2003, available from LexisNexis, <http://www.lexisnexis.com>
(accessed October, 2009).
Ten guide, “Dubailand,” < http://guide.theemiratesnetwork.com/living/dubai/dubailand.php> (accessed March
5, 2010).
Christopher M. Davidson, Dubai: The Vulnerability of Success (New York: Columbia University Press, 2008), p. 130.
Barney Gimbel, “Welcome to Dubai World,” Fortune, March 3, 2008, Vol. 157, Issue 4, pg 76-82.
Exhibit 5
Year
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
410-063
GDP Statistics for the UAE, 1973-2006
GDP (billion Annual GDP Per Capita
US$ 2000)
Growth
(US$ 2000)
$18.67
21.38
22.71
26.13
30.69
29.97
37.43
47.31
48.66
44.64
42.24
44.18
41.28
33.53
35.62
34.77
39.48
..
14%
6%
15%
17%
-2%
25%
26%
3%
-8%
-5%
5%
-7%
-19%
6%
-2%
14%
$49,329
47,533
42,854
42,158
42,727
36,517
40,634
46,606
44,186
37,820
33,638
33,192
29,269
22,435
22,512
20,765
$22,310
Year
GDP (billion Annual GDP Per Capita
US$ 2000) Growth
(US$ 2000)
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
46.40
46.49
47.75
47.32
50.79
54.82
58.20
62.08
64.73
67.24
70.60
71.79
73.66
82.42
90.42
97.83
$107.03
18%
0%
3%
-1%
7%
8%
6%
7%
4%
4%
5%
2%
3%
12%
10%
8%
9%
1995
2000
$24,850
23,638
23,064
21,708
22,088
22,546
22,586
22,706
22,318
21,885
21,739
20,965
20,444
21,812
22,907
23,837
$25,192
GDP Per Capita, 1973-2005
$50,000
$45,000
GDP Per capita
(US$ from 2000)
$40,000
$35,000
$30,000
$25,000
$20,000
$15,000
$10,000
$5,000
$0
1973
1975
1980
1985
1990
2005
Source: World Development Indicators database, http://worldbank.org, accessed October, 2009.
21
410-063
Exhibit 6
Dubai Population Statistics, 2005
Country of Birth
India
Pakistan
Arab (from SW Asia and North Africa)
Bangladesh
Philippines
Sri Lanka
Europe
USA
Other Countries
Total Foreign Born
Total Population
Population
538,560
168,960
116,160
95,040
31,680
19,008
11,616
3,168
71,808
1,056,000
1,272,000
% of Foreign Born % of Total Population
51%
42.34%
16%
13.28%
11%
9.13%
9%
7.47%
3%
2.49%
1.8%
1.49%
1.1%
0.91%
0.3%
0.25%
6.8%
5.65%
100%
83.02%
-
Dubai Foreign Born
Europe 11,616
USA 3,168
Other Countries
71,808
Sri Lanka 19,008
Philippines 31,680
Bangladesh 95,040
Arab (from SW Asia
and North Africa)
116,160
Pakistan 168,960
Source: Ministry of Labor Statistics (2005)
22
India 538,560
Sheikh
h Mohammed an
nd the Making of
o “Dubai, Inc.”
Exhib
bit 7
4
410-063
UAE Population
P
Staatistics, 1973-22008
Year
Pop
pulation
A
Annual
Growtth
Year
P
Population
Annual Grow
wth
1973
1974
4
1975
1976
6
1977
8
1978
1979
0
1980
1981
1982
1983
4
1984
1985
1986
6
1987
1988
8
1989
0
1990
37
78,576
44
49,838
53
30,029
61
19,822
71
18,218
82
20,640
92
21,055
1,0
015,200
1,1
101,231
1,1
180,440
1,2
255,630
1,3
331,173
1,4
410,376
1,4
494,346
1,5
582,491
1,6
674,476
1,7
769,455
1,8
867,083
18%
17%
16%
16%
15%
13%
12%
10%
8%
7%
6%
6%
6%
6%
6%
6%
6%
5%
199
91
199
92
199
93
199
94
199
95
199
96
199
97
199
98
199
99
200
00
200
01
200
02
200
03
200
04
200
05
200
06
200
07
200
08
1,966,946
1
2
2,070,157
2
2,179,646
2
2,299,264
2
2,431,533
2
2,576,988
2
2,734,039
2
2,900,316
3
3,072,388
3
3,247,219
3
3,424,368
3
3,602,931
3
3,778,838
3
3,947,132
4
4,104,291
4
4,248,476
4
4,364,746
4
4,484,199
5%
5%
5%
5%
6%
6%
6%
6%
6%
6%
5%
5%
5%
4%
4%
3%
3%
3%
UAE Popullation Grow
wth, 1973-200
08
4,500
4,000
Population (1,000s)
3,500
3,000
2,500
2,000
1,500
1,000
500
0
1973
1975
5
1980
1985
1990
1995
20
000
2005
2008
ober, 2009.
Source: World Development Indicators database, http://worldbank.orrg, accessed Octo
23
410-063
1
Sheikh Mohammed bin Rashid Al Maktoum, interview by Steve Croft, A Visit to Dubai Inc., Steve Kroft
Reports On A Success Story In The Middle East, CBS 60 Minutes Special, August 3, 2008.
2
M. Davidson, Dubai: The Vulnerability of Success (New York: Columbia University Press, 2008), p. 139.
3
Geoffrey R. King, Ibrahim Al Abed, ed., and Peter Hellyer, ed., “The Coming of Islam and the Islamic
Period in the UAE,” in United Arab Emirates, A New Perspective (London: Trident Press, 2001), p. 92.
4
Frauke Heard-Bey, Ibrahim Al Abed, ed., and Peter Hellyer, ed., “The Tribal Society of the UAE and its
Traditional Economy,” in United Arab Emirates, A New Perspective (London: Trident Press, 2001), p. 103.
5
Ibid., pp. 112-114.
6
Davidson, p. 138.
7
Heard-Bey, “The Tribal Society of the UAE and is Traditional Economy,” p. 106.
8
Abdullah Omran Taryam, The Establishment of the United Arab Emirates, 1950-85 (London: Croom Helm,
1987), p. 9.
9
Ibid., p. 14.
10
Davidson, p. 21.
11
Taryam., p. 9.
12
Davidson., p. 31.
13
HH Sheikh Mohammed bin Rashid Al Maktoum, “Dubai under Sheikh Rashid,” History Home page,
<http://www.sheikhmohammed.co.ae/vgn-ext-templating/v/index.jsp?vgnextoid=499b4c8631cb4110VgnVC
M100000b0140a0aRCRD> (accessed April 2009).
14
Taryam, p. 20.
15
“Sheikh Rashid bin Saeed Al Maktoum,” The Times, October 9, 1990, available from LexisNexis,
<http://www.lexisnexis.com> (accessed December, 2009).
16
HH Sheikh Mohammed bin Rashid Al Maktoum, “Sheikh Rashid,” History Home page,
<http://www.sheikhmohammed.co.ae/vgn-ext-templating/v/index.jsp?vgnextoid=69d84c8631cb4110VgnVC
17
Graeme Wilson, Father of Dubai: Sheikh Rashid bin Saeed Al-Maktoum (Dubai: Media Prima, 1999), p. 65.
18
Ibid, p. 61.
19
Taryam, p. 20.
20
King.
21
Davidson, p. 95.
22
Ibrahim Al Abed, “The Historical Background and Constitutional Basis to the Federation,” in United Arab
Emirates, A New Perspective (London: Trident Press, 2001), p. 121.
23
Frauke Heard-Bey, “UAE: Statehood and Nation-Building in a Traditional Society,” Middle East Journal,
59:3, July 1, 2005, available from Factiva, <http://www.factiva.com> (accessed October, 2009).
24
Davidson, pp. 62, 140
25
King.
26
HH Sheikh Mohammed bin Rashid Al Maktoum, “Formative Years,” Biography page,
<http://www.sheikhmohammed.co.ae/vgn-ext-templating/v/index.jsp?vgnextoid=29fc5c1090cc4110VgnVC
M1000007064a8c0RCR D> (accessed April 2009).
27
24
Ibid.
410-063
28
Philip Jacobson, “Profile on Sheik Mohammed Al Maktoum,” The Sunday Times, July 21, 1985, available
from LexisNexis, <http://www.lexisnexis.com> (accessed October, 2009).
29
HH Sheikh Mohammed bin Rashid Al Maktoum, “Formative Years.”
30
Government of Dubai, “Al Ahmadiya School,” Department of Tourism and Commerce Marketing Web
site. <http://www.dubaitourism.ae/CultureHeritage/HistoricalSites/AlAhmadiyaSchool/tabid/177/
language/en-US/Default.aspx> (accessed April 2009).
31
The History of RMA Sandhurst, “Mons Officer Cadet School: 1947-1972,” Royal Military Acadamy Website,
2009 <http://www.army.mod.uk/documents/general/history_of_rmas.pdf> (accessed December, 2009).
32
HH Sheikh Mohammed bin Rashid Al Maktoum, “Becoming a Leader,” Biography page,
<http://www.sheikhmohammed.co.ae/vgn-ext-templating/v/index.jsp?vgnextoid=43fc5c1090cc4110VgnVCM
1000007064a8c0RCRD> (accessed April 2009).
33
King.
34
HH Sheikh Mohammed bin Rashid Al Maktoum, “Becoming a Leader.”
35
Jacobson.
36
Military, “Emirati Forces,” Global Security Web site,
<http://www.globalsecurity.org/military/world/gulf/uae-mil.htm> (accessed April 2009).
37
Lamia Rustum Shehadeh, ed., Women and War in Lebanon (Florida: The University Press, 1999), p. 18.
38
Davidson, p. 281.
39
Shehadeh, ed.
40
Lebanon – A Country Study, “The Riyadh Conference and the Arab Deterrent Force,” Country Data Web
site, < http://www.country-data.com/frd/cs/lbtoc.html#lb0154> (accessed April 2009).
41
Jacobson.
42
Peter Hellyer, Ibrahim Al Abed, ed., “The Evolution of UAE Foreign Policy” in United Arab Emirates, A New
Perspective, 2001 (London: Trident Press, 2001), p.162-163.
43
HH Sheikh Mohammed bin Rashid Al Maktoum, “His Highness Quotes,” Quotes page,
<http://www.sheikhmohammed.co.ae/vgn-ext-templating/v/index.jsp?vgnextoid=2b44142042525110VgnVC
M1000007064a8c0RCRD&QueryPage-page=1> (accessed April 2009).
44
Bassen Younes, PhD., “Roundabouts vs. Intersections: The Tale of Three UAE Cities,” Institute of
Transportation Engineers, <http://www.ite.org/traffic/documents/AB00H5001.pdf> (accessed April 2009).
45
Graham Norwood, “Bright lights, boom city?” The Sunday Telegraph, March 4, 2007, available from
LexisNexis, <http://www.lexisnexis.com> (accessed October, 2009).
46
Ann Fyfe, “Obituary: Sheikh Rashid bin Said al-Maktoum,” The Independent, October 9, 1990, available from
LexisNexis, <http://www.lexisnexis.com> (accessed December, 2009).
47
Philip Jacobson, “Profile on Sheik Mohammed Al Maktoum,” The Sunday Times, July 21, 1985, available
48
Dubai International Finance Center, “About DIFC,” Dubai page, <http://difc.ae/about_difc/dubai/>
(accessed March 2010).
49
Dominic Ellis, “Meteoric Rise of Dubai Drydocks,” Lloyd’s List, June 14, 2007, available from LexisNexis,
<http://www.lexisnexis.com> (accessed October, 2009).
50
PricewaterhouseCoopers, “Doing Business in Dubai International Financial Center” Dubai International
Financial Center Web site, < http://www.difc.ae/press_centre/archive/2009/593.html> (accessed October,
2009), p. 6.
25
410-063
51
Dubai International Airport, “Dubai International - History,” Dubai International Web site,
<http://www.dubaiairport.com/DIA/English/TopMenu/About+Dubai+International/Dubai+International++History/#> (accessed April 2009).
52
Davidson, pp. 109–110.
53
The Emirates Group, “Our History,” The Emirates Group Web site,
<http://www.theemiratesgroup.com/english/our-company/our-history.aspx#y1985> (accessed December,
2009).
54
Davidson, p. 110.
55
HH Sheikh Mohammed bin Rashid Al Maktoum, “His Highness Quotes.”
56
Matthew Maier, “Rise of the Emirates Empire,” Business 2.0, October 1, 2005, available from Factiva,
<http://www.factiva.com> (accessed October, 2009).
57
William Underhill and Vibhuti Patel, “The Wings of Dubai Inc.,” Newsweek, April 17, 2006, available from
58
Maier.
59
Underhill and Patel.
60
Ibid.
61
Maier.
62
63
“Arabia’s field of dreams; Dubai,” The Economist, May 29, 2004, available from LexisNexis,
64
The Emirates Group, “HH Sheikh Ahmed Bin Saeed Al Maktoum,” The Emirates Group Web site,
<http://www.theemiratesgroup.com/english/our-company/leadership/hh-sheikh-ahmed-bin-saeed-almaktoum.aspx> (accessed December, 2009).
65
Maier.
66
67
Davidson, p. 145.
68
69
PricewaterhouseCoopers, “Doing Business in Dubai International Financial Center” Dubai International
Financial Center Web site, < http://www.difc.ae/press_centre/archive/2009/593.html> (accessed October,
2009), p. 6.
70
“Oil share dips in Dubai’s GDP,”AME Info, June 9, 2007, <http://www.ameinfo.com/122863.html>
(accessed April 2009).
71
“Arabia’s field of dreams; Dubai.”
72
William Goetzmann and Irina Tarsis, “Dubailand: Destination Dubai,” HBS Case No. 207-005 (Boston:
Harvard Business School Publishing, 2007), p. 5.
73
Pranay Gupte, “Dubai’s new export: the Internet City,” The Straits Times, July 28, 2009, available from
LexisNexis, <http://www.lexisnexis.com> accessed October, 2009.
74
“UAE Business Environment: Diversity of Growth,” Euromonitor International, July 27, 2007, available from
Euromonitor International <http://www.euromonitor.com> (accessed October, 2009).
75
26
International Institute for Management, p. 5.
410-063
76
Aidit bin Haji Ghazali, ”Consumer Credit from the Islamic Viewpoint,” Journal of consumer Policy 17 (Dec.
1994): 447-448, available from Proquest, <http://proquest.com> (accessed December 17, 2009).
77
PricewaterhouseCoopers, p. 6.
78
79
Shihab M. Ghanem, Ibrahim Al Abed, ed., and Peter Hellyer, ed., “Industrialization in the UAE,” in United
Arab Emirates, A New Perspective (London: Trident Press, 2001), p. 270.
80
Jebel Ali Free Zone, “JAFZA Facts at a Glance,” Jebel Ali Free Zone Web site,
<http://www.jafza.ae/en/about-us/jafza-facts-at-a-glance.html> (accessed April 2009).
81
82
Davidson, p. 117.
83
HH Sheikh Mohammed bin Rashid Al Maktoum, “Sheikh Mohammed Announces Dubai Media Center,”
Events link, News page, November 5, 2000, <http://www.sheikhmohammed.co.ae/vgn-ext-templating/v/
index.jsp?vgnextoid=4dd96ccfdac44110VgnVCM1000003f140a0aRCRD&vgnextchannel=b0b24c8631cb4110VgnV
CM100000b0140a0aRCRD&vgnextfmt=default&date=973438291110&mediatype=EVENT> (accessed April 2009).
84
85
PricewaterhouseCoopers, pp. 4-8.
86
Ellis.
87
Dubai World, “About Us,” Dubai World Web site, <http://dubaiworld.ae/en/About%20Us/Index.html>
88
Sudip Roy, “Dubai World’s Istithmar: The new kid on the block,” Euromoney, April, 2007, available from
89
Andrew Moody, “The Universe Up for Sale?” The Observer, June 15, 2008, available from LexisNexis,
<http://www.lexisnexis.com> accessed October, 2009.
90
Ibid.
91
Amir Berbic, “Oasis Lost,” America’s Graphic Design Magazine, March 1, 2005, available from Factiva,
<http://www.factiva.com> (accessed October, 2009).
92
John Fitzgerald, “The Middle East’s new mission; With oil resources dwindling, countries from the UAE to
Oman are investing big-time in tourism,” The Globe and Mail, June 11, 2005, available from LexisNexis,
93
Ibid.
94
“Should you buy in Dubai?” The Economist,
Dec
6,
2003,
available
from
LexisNexis,
95
“The crane rules in Dubai, the world’s fastest growing city,” The Globe and Mail, June 28, 2006, available
96
“UAE Business Environment: Diversity of Growth.”
97
98
Fitzgerald.
99
PricewaterhouseCoopers, p. 6.
100
Sheikh Mohammed bin Rashid Al Maktoum, interview by Steve Croft.
101
27
410-063
102
“UAE Business Environment: Diversity of Growth.”
103
Seabee < [email protected]>, “Whinge. Whinge. Dubai’s expensive. Whinge. Whinge.” Februrary
4, 2006, Dubai Thoughts: Life in Dubai < http://dubaithoughts.blogspot.com/2006/02/whinge-whinge-dubaisexpensivewhinge.html > (accessed April 2009).
104
“Dubai Overview” USA Today, 2009, <http://www.usatoday.com/marketplace/ibi/dubai.htm> (accessed
April 2009).
105
HSBC Bank Middle East, “The Changing Demographics of the UAE,” 2004,
<http://www.hsbc.ae/1/PA_1_1_S5/content/uae/pdf/eco_bull_04_eng_demo.pdf> (accessed April 2009).
106
Jason DeParle, “Fearful of Restive Foreign Labor, Dubai Focuses on Reform,” The New York Times, August
6, 2007, available from LexisNexis, <http://www.lexisnexis.com> (accessed January 7, 2009).
107
Hassan Fattah, “In Dubai, an Outcry from Asians for Workplace Rights,” The New York Times, March 26,
2006, available from LexisNexis, <www.lexisnexis.com> (accessed October, 2009).
108
M A R Fareed, “Indian workers strike for better deal,” The Times of India, November 2, 2007,
<http://timesofindia.indiatimes.com/Indian_workers_strike_for_better_deal/articleshow/2510594.cms>
109
Fattah.
110
Julia Wheeler, “Workers' safety queried in Dubai,” BBC News, September 27, 2004,
<http://news.bbc.co.uk/1/hi/world/middle_east/3694894.stm> (accessed April 2009).
111
Fattah.
112
Parker, “The Mirage: The Architectural Insanity of Dubai,” The New Yorker, October 17, 2005, pp 128- 143.
113
Fattah.
114
Sunita Menon and Diaa Hadid, “Ministry cracks the whip,” Gulf News, September 20, 2005,
<http://archive.gulfnews.com/articles/05/09/20/182637.html> (accessed April 2009).
115
Fattah.
116
Heard-Bey, “UAE: Statehood and Nation-Building in a Traditional Society.”
117
Ibid.
118
Allan Faulkner Jr., “Dubai’s Dirty Secret,” The National Post, November 22, 2006, p. A20, available from
LexisNexis, <http://www.lexisnexis.com> (accessed December, 2009).
119
120
“HH Sheikh Mohammed Bin Rashid Unveils the UAE Federal Government Strategy,” Middle East Company
News, April 17, 2007, available from Factiva, <http://www.factiva.com> (accessed October, 2009).
121
Esther D’Amico, “Talent Management: Bridging the Cultural Divide,” Chemical Week, August 9, 2006, p. 17,
available from LexisNexis, <http://www.lexisnexis.com> (accessed November, 2009).
122
“HH Sheikh Mohammed Bin Rashid Unveils the UAE Federal Government Strategy.”
123
HH Sheikh Mohammed bin Rashid Al Maktoum, “Women in the UAE,” History Home page,
<http://www.sheikhmohammed.co.ae/vgn-ext-templating/v/index.jsp?vgnextoid=7d3c4c8631cb4110VgnVC
124
Heather Sharp, “Dubai Women Storm World of Work,” BBC News on the Web, August 4, 2005,
<http://news.bbc.co.uk/2/hi/middle_east/4719639.stm> (accessed April, 2009).
125
“Future Demographics – United Arab Emirates,” Euromonitor International, available from Euromonitor
International <http://www.euromonitor.com> (accessed December, 2009).
28
410-063
126
Dubai Cares, “About Dubai Cares,” Information page, 2009, < http://www.dubaicares.ae/Introduction>
127
AMEInfo, “Sheikha Maitha Bint Mohammed visits Sudan on Mission of Hope,” October 2, 2007,
<http://www.ameinfo.com/133713.html> (accessed April 2009).
128
Berbic.
129
Dubai Electricity and Water Authority, Dubai.
130
Norwood.
131
Dubai Electricity and Water Authority.
132
Norwood.
133
Elliot Wilson, “Dubai World group’s Limitless: Testing the limits of green development,” Euromoney,
March 2008, available from LexisNexis, <http://www.lexisnexis.com> (accessed November, 2009).
134
“HH Sheikh Mohammed Bin Rashid unveils the UAE Federal Government Strategy.”
135
“Cubellis and Nakheel are Rethinking Retail Today for Dubai’s Tomorrow; Partnership between Nakheel
Shopping Malls and Design Firm Cubellis Create Dramatic Plans,” PR Newswire, November 10, 2008, available
from LexisNexis, <http://lexisnexis.com> (accessed December, 2009).
136
Jim Kavanaugh, ”Dubai Reaches for the Sky,” CNN Online, January 4, 2010, available from CNN,
<http://www.cnn.com/2010/TRAVEL/01/04/dubai.skyscraper/index.html> (accessed January 4, 2010).
137
“Water Consumption Peaks in the UAE,” DubaiCityGuide.com, <http://www.dubaicityguide.com/
specials/index.asp?id=1177> (accessed January 18, 2006).
138
Anne Field and Wendy Garling, “Balanced Scorecard: Hall of Fame Report 2009,” (Boston: Harvard
Business Press, 2009), pp. 15-16, < http://hbsp.harvard.edu/product/cases> (accessed October, 2009).
139
Berbic.
140
Norwood.
141
“HH Sheikh Mohammed Bin Rashid unveils the UAE Federal Government Strategy.”
142
Chris Wright, “Letter From Dubai: The glitzy, puffed-up peacock of the Middle East is imploding. Don’t
gloat,” Boston Sunday Globe ( December 6, 2009): K1.
143
“Beyond the Bubble,” The Gulf, May 10, 2009, available from Factiva, <http://www.factiva.com> (accessed
October, 2009).
144
Sheikh Mohammed bin Rashid Al Maktoum, interview by Steve Croft.
145
Ibid.
146
Berbic.
147
“Dubai emir in US 'child slaves' row,” Al Jazeera, July 16, 2007, available from Factiva,
<http://www.factiva.com> (accessed December, 2009).
148
149
Davidson, p. 151.
150
Michael Slackman, “Emirates See Fiscal Crisis As Chance to Save Culture,” The New York Times,
Nnovember 12, 2008, available from Factiva, <http://www.factiva.com> (accessed October, 2009).
151
Davidson, pp. 193-194
152
HH Sheikh Mohammed bin Rashid Al Maktoum, “Mohammed reviews study on national identity,” News
link, News page, April 14, 2008, <http://www.sheikhmohammed.co.ae/vgn-ext-templating/v/index.jsp?
29
410-063
vgnextoid=e55dd340feb49110VgnVCM1000007064a8c0RCRD&vgnextchannel=063e4c8631cb4110VgnVCM10000
0b0140a0aRCRD&date=1208199178047&type=sheikh> (accessed April 2009).
153
HH Sheikh Mohammed bin Rashid Al Maktoum, “Sheikh Mohammed Announces Dubai Strategic Plan,”
Events link, News page, February 3, 2007, <http://www.sheikhmohammed.co.ae/vgn-ext-templating/v/index.
jsp?vgnextoid=321b4b7922e44110VgnVCM1000003f140a0aRCRD&vgnextchannel=b0b24c8631cb4110VgnVCM10
0000b0140a0aRCRD&vgnextfmt=default&date=1170516690423&mediatype=EVENT> (accessed September
2009).
154
Davidson, pp. 174-175.
155
HH Sheikh Mohammed bin Rashid Al Maktoum, “Sheikh Mohammed Announces Dubai Strategic Plan.”
156
HH Sheikh Mohammed bin Rashid Al Maktoum, “Sheikh Mohammed Announces Dubai Strategic Plan.”
157
Slackman.
158
“Beyond the Bubble.”
159
Vietor and Forrest, p. 3.
160
Hirofumi Matsuo, “Credit crunch crashes Dubai’s extravagant development party,” Nikkeri Weekly,
December 15, 2008, available from LexisNexis, <http://www.lexisnexis.com> (accessed November, 2009).
161
Landon Thomas, Jr., “A Dubai Investment Arm Struggles with Debt Load,” The New York Times,
September 15, 2009, available from Factiva, <http://www.factiva.com> (accessed October, 2009).
162
Jason Benham, “Dubai contractors face bankruptcy as cash dries up,” Reuters, February 3, 2009, available
from Factiva, <http://www.factiva.com> (accessed October, 2009).
163
Landon Thomas, Jr., “Dubai Officials Try to Calm Wary Investors,” The New York Times (December 2,
2009): 17.
164
Chip Cummins and Andrew Critchlow, “Dubai Debt Follows String of Troubles for Its Ruler,” The Wall
Street Journal (November 30, 2009): A12.
165
Thomas, Jr., “Dubai Officials Try to Calm Wary Investors.”
166
Ibid.
167
Barbara Surk, “Dubai’s Request for Debt ‘Standstill’ Stirs Fear, Questions,” The Boston Globe (November 27,
2009): B5.
168
Aries Poon and Patricial Kowsmann, “StanChart Dismisses Dubai Hit,” The Wall Street Journal (December
10, 2009): C2.
169
“Dubai World Organisational Restructuring,” Al Bawaba News (October 18, 2009). Available from Acquire
Media Corporation, published by OneSource Information Services, Inc., <http://www.onesource.com>
(accessed October, 2009).
170
“Beyond the Bubble.”
171
“UAE: Dubai World Shaken,” Business Middle East (October 15, 2009). Available from Acquire Media
Corporation, published by OneSource Information Services, Inc., <http://www.onesource.com> (accessed
October, 2009).
172
Robert Worth, “Dubai corruption crackdown imperils economic recovery,” The International Herald Tribune,
September 12, 2009, available from LexisNexis, <http://www.lexisnexis.com> (accessed November, 2009).
173
Rod Liddle, “Sleazy Come, Sleazy Go,” The Sunday Times, July 19,2009, available from LexisNexis,
<http://www.lexisnexis.com> (accessed March, 2010).
30
174
Slackman.
175
Ibid.
410-063
176
Mirna Sleiman, “U.A.E Tightens Press Rules Amid Financial Downturn,” The Wall Street Journal, January
22, 2009, available from Factiva, <http://www.factiva.com> (accessed October, 2009).
177
Davidson, pp. 209-218.
178
Stanley Reed, “Why Dubai Matters,” Business Week (December 14, 2009): 36-38.
179
Ibid.
180
Ibid.
181
Manal Alafrangi, “Ruler who has clear vision for Dubai,” Gulf News on the Web, January 5, 2006,
<http://archive.gulfnews.com/profile/shaikhmaktoum/more_stories/10009479.html> (accessed April 2009).
182
31

Sheikh Mohammed and the Making of “Dubai, Inc.”

Transcription

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