At a reception earlier this year in the British Embassy in Dubai, the newly appointed ambassador, Dominic Jermey, referred to London as the "eighth emirate" due to the close relationship between both countries. Many people aren't aware of just how close this relationship is today.
For instance, the only country in the world in which Britain - or, for that matter, any other country - is represented by two embassies in the same country is the UAE. The dual embassies in Abu Dhabi and Dubai are probably due to the fact that both were fully functioning outposts prior to the UAE's union.
Soon after the UAE gained its independence from a government formed under the current British monarch, it set up one of its first embassies in London to oversee interests in the British Isles as well as the European mainland.
Today, there are approximately 240,000 British citizens living in the UAE, with another one million plus visiting the country every year and up to 40,000 Emiratis visiting Britain annually. In fact, just this month, Dubai beat other cities to become the second busiest destination at London Heathrow airport after New York.
The British Business Group in the UAE today represents over 1,600 businesses based in the country that are encouraged by an annual trade between both countries exceeding Dh45bn, with ambitious plans to increase it to Dh70bn by 2015.
Many of the UAE's leaders were educated in British academies, schools and universities, including the UAE's Prime Minister and Ruler of Dubai, Abu Dhabi's Crown Prince, as well as the ruler of Sharjah, who established a centre for Gulf studies in Exeter University, his alma mater. Recently, a number of leading British institutions such as the London Business School, Repton School and Cass Business School have set up permanent campuses in the UAE while the number of Emirati students in Britain today is estimated to be around 2,800.
British nationals have for decades contributed to setting up successful UAE ventures, including Emirates Airlines. This company in turn inked a historic deal to sponsor the Arsenal stadium for Dh662 million in 2004, making it the world's largest sponsorship agreement. The countries' sports relations were further elevated with Sheikh Mansour Bin Zayed's acquisition of Manchester City FC in August 2008.
Many successful Emiratis that I have written about are proud of their mixed Emirati-British heritage, including Ali Mostafa, the director of City of Life, as well as Sarah Shaw of Abu Dhabi's Executive Council.
The British media has also firmly established a presence in the UAE, with newspapers such as the Financial Times and The Times being printed in the country, while the Telegraph and Skynews maintain permanent correspondents here.
The UAE's investments in Britain have included a stake in Barclays Bank, Travelodge, the famous London Eye, and span various sectors of the economy. Dubai Ports World, meanwhile, is spearheading the development of the Dh5.4bn London Gateway project to create Britain's newest deep-sea container port.
On the cultural front, the British Council in the UAE has played a major role in deepening the special relationship between both countries.
Besides offering English language courses, it has been instrumental in bringing world class art exhibitions to the UAE, including the Lure of the East and the Jameel Prize, which started at the Tate Britain and the Victoria and Albert Museum, respectively, and made their way to the Sharjah Islamic Civilisation Museum. The British Museum also recently hosted Word into Art, an exhibition of modern Middle Eastern calligraphy sponsored by Dubai Holding that was later exhibited at the Dubai International Financial Centre.
I recall many years ago walking down the Dubai Creek and admiring the Dubai Municipality building that was inaugurated by Queen Elizabeth II on her first visit to the UAE in February 1979. The Queen has demonstrated throughout her life her dedication to her country. At London's Imperial War Museum, visitors can see images of the then princess visiting bombed sites and interacting with the crowd during the Second World War. This spirit of unrelenting dedication touches the hearts of every Emirati as it reminds them of Sheikh Zayed, the country's founding father who hosted the visiting monarch over three decades ago.
Both Britain and the UAE are progressive monarchical federations that have welcomed immigrants from around the world.
The relationship between the UAE and Britain is one that is manifested everyday and goes far beyond a single element; it is one that is rooted in mutual respect and one extends to issues of global security, culture and education.
Finally, it is a relationship between the global capitals of Abu Dhabi and London that will be reaffirmed during the historic visit of Queen Elizabeth II.
*This article first appeared in The National on Sunday 21st November 2010
Showing posts with label dubai. Show all posts
Showing posts with label dubai. Show all posts
Sunday, 21 November 2010
Sunday, 31 October 2010
A Monument of Tolerance in the Heart of Dubai
Nestled in one of Bur Dubai's older districts is one of the emirate's best kept architectural secrets: the Ismaili Centre of Dubai. It is a 13,000-square-metre structure designed by the Egyptian duo Rami El Dahan and Soheir Farid, who drew inspiration from Cairo's Fatimid mosques.
This prime plot of land was generously given to the Ismaili community by Sheikh Mohammed bin Rashid, in 1982 prior to becoming Ruler of Dubai to celebrate the Aga Khan's Silver Jubilee as the imam of the community. It is a testament to Sheikh Mohammed's long-term vision and respect for other cultures that such a generous donation was given when he was 33 years old. Today, because of this long-term vision, Dubai is a culturally and architecturally richer emirate.
The structure was inaugurated in 2008 by Prince Karim, the Aga Khan, in the presence of senior UAE officials. A 3,000-square-metre public neighbourhood park was also created on parts of the land based on Islamic garden themes.
With its magnificent domes and arches, the limestone-coloured structure transports visitors back to an era of craftsmanship: a large, white marble fountain greets visitors in a high-ceilinged lobby with an octagonal entrance and a brick-inlaid dome. This was the structure, I felt, that the master craftsmen of bygone eras would have produced if they had had today's technology. The masons were flown in from Cairo and learnt this rare skill from some of the greatest brick-dome builders in Egypt, including Hassan Fathy.
The architecture is an amalgamation of everything that is beautiful in Islam. From the outside, honeycombs of amber and limestone embrace the building. The sun's shadow creates ever-changing patterns that merge in and out of each other as the day proceeds. The tranquil sounds of the fountains soothe the soul as one wanders around, admiring the antique Islamic artifacts on display. The building is crowned by a magnificent Ibn Tulun Mosque-like dome, not too different from the one above the Museum of Islamic Arts in Doha. The Morning Prayer Hall courtyard features a salsabil, or paradise water fountain, as its centrepiece, while the main garden is inlaid with a network of small water canals connected to a central fountain.
The Ismaili sect of Islam dates back to the branching out of the Sunni and Shia schools of thought many centuries ago. While it is considered to be an offshoot of Shia Islam, it has maintained an independent religious authority.
The most recognised member of the Emirati Ismaili community was the late Noor Ali Rashid, the pioneering photographer who passed away last August at the age of 80, a short time after the centre hosted an exhibition of his works.
As a result of the tireless efforts of the Aga Khan, the Ismailis are perhaps best known today for their respect for art and culture. The Aga Khan Award for Architecture, which dates back to 1977, was established by the current leader of the Ismailis "to identify and reward architectural concepts that successfully address the needs and aspirations of Islamic societies" in fields as varied as contemporary design, social housing and community development. Projects that lead to the improvement and restoration of historic structures are also highlighted and awarded.
However, it is far from being an award strictly for Muslims. In fact a number of non-Muslims have won the award, including Jean Nouvel, the French architect behind the Louvre Abu Dhabi, for his designs of the Institut du Monde Arabe in Paris. Many other projects that have been awarded the prize also serve multi-religious and multi-ethnic communities, such as those in Africa, India and parts of the Middle East.
For the first time next month, the awards will be held in the Gulf, when the state of Qatar plays host. Two Gulf-based projects are among the 19 finalists vying for the award: the Wadi Hanifa Wetlands in Saudi Arabia and Qatar's very own 164,000-square-metre century-old open-air market known as Souk Waqif, which went through a major three-year renovation project.
In addition to hosting classical music concerts, the Ismaili centre in Dubai recently inaugurated a modern school for children where instruction in English and Arabic are given equal emphasis, a rare phenomenon for non-Arab schools in the UAE.
Having just returned from a visit to southern Spain, it wasn't just the architecture of the Ismaili Centre of Dubai that seemed familiar. The spirit of tolerance and respect embodied by Sheikh Mohammed bin Rashid allowed Dubai the opportunity to flourish. That was the very spirit that existed in Andalusia for centuries under wise Islamic rule where Jews, Christians and Muslims lived, worked and created side by side in peace and harmony. When the history of modern Dubai's architecture and tolerant spirit is written, this building will occupy a very special place indeed.
*This article first appeared in The National on Sunday 31st October 2010
This prime plot of land was generously given to the Ismaili community by Sheikh Mohammed bin Rashid, in 1982 prior to becoming Ruler of Dubai to celebrate the Aga Khan's Silver Jubilee as the imam of the community. It is a testament to Sheikh Mohammed's long-term vision and respect for other cultures that such a generous donation was given when he was 33 years old. Today, because of this long-term vision, Dubai is a culturally and architecturally richer emirate.
The structure was inaugurated in 2008 by Prince Karim, the Aga Khan, in the presence of senior UAE officials. A 3,000-square-metre public neighbourhood park was also created on parts of the land based on Islamic garden themes.
With its magnificent domes and arches, the limestone-coloured structure transports visitors back to an era of craftsmanship: a large, white marble fountain greets visitors in a high-ceilinged lobby with an octagonal entrance and a brick-inlaid dome. This was the structure, I felt, that the master craftsmen of bygone eras would have produced if they had had today's technology. The masons were flown in from Cairo and learnt this rare skill from some of the greatest brick-dome builders in Egypt, including Hassan Fathy.
The architecture is an amalgamation of everything that is beautiful in Islam. From the outside, honeycombs of amber and limestone embrace the building. The sun's shadow creates ever-changing patterns that merge in and out of each other as the day proceeds. The tranquil sounds of the fountains soothe the soul as one wanders around, admiring the antique Islamic artifacts on display. The building is crowned by a magnificent Ibn Tulun Mosque-like dome, not too different from the one above the Museum of Islamic Arts in Doha. The Morning Prayer Hall courtyard features a salsabil, or paradise water fountain, as its centrepiece, while the main garden is inlaid with a network of small water canals connected to a central fountain.
The Ismaili sect of Islam dates back to the branching out of the Sunni and Shia schools of thought many centuries ago. While it is considered to be an offshoot of Shia Islam, it has maintained an independent religious authority.
The most recognised member of the Emirati Ismaili community was the late Noor Ali Rashid, the pioneering photographer who passed away last August at the age of 80, a short time after the centre hosted an exhibition of his works.
As a result of the tireless efforts of the Aga Khan, the Ismailis are perhaps best known today for their respect for art and culture. The Aga Khan Award for Architecture, which dates back to 1977, was established by the current leader of the Ismailis "to identify and reward architectural concepts that successfully address the needs and aspirations of Islamic societies" in fields as varied as contemporary design, social housing and community development. Projects that lead to the improvement and restoration of historic structures are also highlighted and awarded.
However, it is far from being an award strictly for Muslims. In fact a number of non-Muslims have won the award, including Jean Nouvel, the French architect behind the Louvre Abu Dhabi, for his designs of the Institut du Monde Arabe in Paris. Many other projects that have been awarded the prize also serve multi-religious and multi-ethnic communities, such as those in Africa, India and parts of the Middle East.
For the first time next month, the awards will be held in the Gulf, when the state of Qatar plays host. Two Gulf-based projects are among the 19 finalists vying for the award: the Wadi Hanifa Wetlands in Saudi Arabia and Qatar's very own 164,000-square-metre century-old open-air market known as Souk Waqif, which went through a major three-year renovation project.
In addition to hosting classical music concerts, the Ismaili centre in Dubai recently inaugurated a modern school for children where instruction in English and Arabic are given equal emphasis, a rare phenomenon for non-Arab schools in the UAE.
Having just returned from a visit to southern Spain, it wasn't just the architecture of the Ismaili Centre of Dubai that seemed familiar. The spirit of tolerance and respect embodied by Sheikh Mohammed bin Rashid allowed Dubai the opportunity to flourish. That was the very spirit that existed in Andalusia for centuries under wise Islamic rule where Jews, Christians and Muslims lived, worked and created side by side in peace and harmony. When the history of modern Dubai's architecture and tolerant spirit is written, this building will occupy a very special place indeed.
*This article first appeared in The National on Sunday 31st October 2010
Sunday, 7 March 2010
Breathing life into Bastakiya and the history of Dubai
Tucked away in the southern shore of Dubai Creek lies Bastakiya, one of the most fascinating districts in the Arabian Gulf. Not only is this area one of the most aesthetically pleasing in the region, it is also one of the most symbolic.
Not long after the Al Maktoum family laid the foundation of modern Dubai in 1833, a significant process of evolution began in the region. Commerce flourished as a result of the tax-free trading and as well as a new culture of tolerance. This new culture was manifested in the migrants from Persia and across the region who were allowed to reside and build homes in Bastakiya, within a few score metres of the Al Fahidi Fort, which then served as the home of the Rulers of Dubai.
Legend has it that the area was slated for massive redevelopment and that it was Prince Charles of Britain, known for his appreciation of Islamic architecture, who during an official visit advised that the then-dilapidated old structures were too important to be demolished. Not too long after, Dubai Municipality launched a massive conservation programme under the supervision of the capable and qualified Emirati architect Rashad Bukhash. In 2001, he was appointed as the head of the Historical Buildings Section in the municipality and oversaw the restoration of more than 50 buildings as well as designed several museums within a short space of time. In fact, it was a very personal endeavour for the architect whose own ancestral home fell victim to the rapid redevelopment that the UAE was witnessing.
Nowhere else in the Gulf is there such a diversity of architecture inspired by Arab Hijazi masharbiyas, Levantine decorations, North African courtyards and interior Arabian Peninsula windows as well as Islamic calligraphy, Persian Barjeels, and East African and Indian motifs – all within a short walking distance of each other.
Because of this diversity, this unique area, which encompasses the Dubai Museum at Al Fahidi Fort, Bastakiya and Shindagha, should be redesignated as the Dubai Museum District. There one can take a journey through several centuries and be inspired by the numerous cultures that have shaped this great city.
On a recent visit to the kingdom of Bahrain, I was given a special tour of the historic area of Muharraq island and the Souq district. The narrow alleyways and mud and coral houses reminded me very much of home and of how the cultures and peoples of the Gulf are connected.
What sets Muharraq’s historic quarter apart is something altogether different – the actual permanent residents. It isn’t only tourists and short-term visitors who can be seen on the streets, but the urban life found in any traditional Arabian town. While I was there, a group of children were playing, while others had just returned from the children’s library; old women in abayas walked to and fro, visiting their neighbours. A cultural centre houses a theatre for 330 people. An emporium of traditional textiles and an art cafe add to the splendour. A water garden has been built into the landscape where a small house once stood.
The roads aren’t perfectly kept and the flowers aren’t perfectly trimmed, but they are authentic. What made another substantial difference was the smell of Gulf Arab food emanating from the kitchens of the houses that were attached to the small converted museums.
Then it hit me: because families inhabit this area side by side with the cultural centres, it has become a living, breathing testimony to the country. This is what is missing in Bastakiya to make the magic complete.
One idea that could be studied is allocating housing to low-income Emiratis from the surrounding area, where so many consulates are being built. There could be certain criteria, such as giving preference to families that have children who will register in after school educational centres that could be established in the district.
There are many houses that have been magnificently restored to their former glory that are now standing empty, so I also propose that one or two dozen of these houses be converted into museums to display the private art collections of Dubai and UAE-based patrons of the arts. In that spirit, one building could be selected to house a permanent display of Arabic and Islamic calligraphy, another could be designated for photography, a third for modern design concepts, etc.
And because Bastakiya is so culturally diverse, we could invite non-Emirati art patrons to display long-term loan collections of Persian, African, Asian and western art in converted houses as long as the integrity of the structures was maintained. It need not be too many pieces – keep in mind, these houses are no more than 200 square metres, but it would be a case of quality superseding quantity.
By itself, one such converted house might not be enough of an attraction for people to brave the Bur Dubai traffic. But with a dozen or more permanent art displays, a few local families living nearby and the opening of the adjacent Metro stations in Burjuman and Musalla, Bastakiya could be transformed into an art destination unrivalled in the region. And it could continue to serve, as it always has, as a testimony to the ambition, diversity and culture of Dubai.
*This article first appeared in The National on Sunday 7 March 2010
Not long after the Al Maktoum family laid the foundation of modern Dubai in 1833, a significant process of evolution began in the region. Commerce flourished as a result of the tax-free trading and as well as a new culture of tolerance. This new culture was manifested in the migrants from Persia and across the region who were allowed to reside and build homes in Bastakiya, within a few score metres of the Al Fahidi Fort, which then served as the home of the Rulers of Dubai.
Legend has it that the area was slated for massive redevelopment and that it was Prince Charles of Britain, known for his appreciation of Islamic architecture, who during an official visit advised that the then-dilapidated old structures were too important to be demolished. Not too long after, Dubai Municipality launched a massive conservation programme under the supervision of the capable and qualified Emirati architect Rashad Bukhash. In 2001, he was appointed as the head of the Historical Buildings Section in the municipality and oversaw the restoration of more than 50 buildings as well as designed several museums within a short space of time. In fact, it was a very personal endeavour for the architect whose own ancestral home fell victim to the rapid redevelopment that the UAE was witnessing.
Nowhere else in the Gulf is there such a diversity of architecture inspired by Arab Hijazi masharbiyas, Levantine decorations, North African courtyards and interior Arabian Peninsula windows as well as Islamic calligraphy, Persian Barjeels, and East African and Indian motifs – all within a short walking distance of each other.
Because of this diversity, this unique area, which encompasses the Dubai Museum at Al Fahidi Fort, Bastakiya and Shindagha, should be redesignated as the Dubai Museum District. There one can take a journey through several centuries and be inspired by the numerous cultures that have shaped this great city.
On a recent visit to the kingdom of Bahrain, I was given a special tour of the historic area of Muharraq island and the Souq district. The narrow alleyways and mud and coral houses reminded me very much of home and of how the cultures and peoples of the Gulf are connected.
What sets Muharraq’s historic quarter apart is something altogether different – the actual permanent residents. It isn’t only tourists and short-term visitors who can be seen on the streets, but the urban life found in any traditional Arabian town. While I was there, a group of children were playing, while others had just returned from the children’s library; old women in abayas walked to and fro, visiting their neighbours. A cultural centre houses a theatre for 330 people. An emporium of traditional textiles and an art cafe add to the splendour. A water garden has been built into the landscape where a small house once stood.
The roads aren’t perfectly kept and the flowers aren’t perfectly trimmed, but they are authentic. What made another substantial difference was the smell of Gulf Arab food emanating from the kitchens of the houses that were attached to the small converted museums.
Then it hit me: because families inhabit this area side by side with the cultural centres, it has become a living, breathing testimony to the country. This is what is missing in Bastakiya to make the magic complete.
One idea that could be studied is allocating housing to low-income Emiratis from the surrounding area, where so many consulates are being built. There could be certain criteria, such as giving preference to families that have children who will register in after school educational centres that could be established in the district.
There are many houses that have been magnificently restored to their former glory that are now standing empty, so I also propose that one or two dozen of these houses be converted into museums to display the private art collections of Dubai and UAE-based patrons of the arts. In that spirit, one building could be selected to house a permanent display of Arabic and Islamic calligraphy, another could be designated for photography, a third for modern design concepts, etc.
And because Bastakiya is so culturally diverse, we could invite non-Emirati art patrons to display long-term loan collections of Persian, African, Asian and western art in converted houses as long as the integrity of the structures was maintained. It need not be too many pieces – keep in mind, these houses are no more than 200 square metres, but it would be a case of quality superseding quantity.
By itself, one such converted house might not be enough of an attraction for people to brave the Bur Dubai traffic. But with a dozen or more permanent art displays, a few local families living nearby and the opening of the adjacent Metro stations in Burjuman and Musalla, Bastakiya could be transformed into an art destination unrivalled in the region. And it could continue to serve, as it always has, as a testimony to the ambition, diversity and culture of Dubai.
*This article first appeared in The National on Sunday 7 March 2010
Sunday, 24 January 2010
To safeguard our future, learn from mistakes of the past
The financial loan package provided by Abu Dhabi to Dubai last month has allowed us all to breathe a sigh of relief, for the time being at least. But while the Dubai government is working diligently to raise the capital needed to meet its creditors’ demands for 2010 and beyond, it must also look into the causes of this crisis.
It’s time for Dubai to graduate from developing-economy status and proceed like other ambitious emerging economies into the big league. The biggest measure of responsibility and good governance at this time would be to look inwards and investigate exactly what led to Dubai’s accumulation of $80 billion in foreign debt, equivalent to its annual Gross Domestic Product.
This inquiry must be carried out by independent, practical and professional individuals. It should be chaired by someone who is not involved in the government related entities (GREs) under investigation nor should it be a figurehead who comes from an unrelated industry. Also, it would be ideal if the committee were federal, since the Dubai debt issue is not a localised event but a nationwide concern.
The United States dealt with the current financial crisis by initiating steps to remedy its effects, as well as by launching an 18-month inquiry into its causes by establishing the Financial Crisis Inquiry Commission. The 10-member bipartisan committee started work in the summer of 2009, with the task of examining what led America into the financial debacle, and is due to present its findings on December 15 this year. This commission has been armed with wide ranging authority, including adequate staff and subpoena powers. It has also been assigned $8 million to ensure that it is able to conduct its work independently.
In fact, this is not the first such financial inquiry in the US. In 1932, the US Senate set up an inquiry to establish the causes of the 1929 Wall Street Crash. The inquiry, which became known as the Pecora Commission when Ferdinand Pecora was appointed its chief counsel in 1933, lasted for two years and interviewed powerful bankers and stockbrokers. Its findings paved the way for the establishment of the Glass-Steagall Banking Act of 1933 to separate commercial and investment banking, the Securities Act of 1933 to set penalties for falsifying financial information, and the Securities Exchange Act of 1934, which set up the Securities and Exchange Commission to regulate stock exchanges.
In the wake of the recent global meltdown, Australia and the European Parliament have launched similar inquiries. And the Republic of Ireland, another state that has gone through the same cycle as Dubai, has launched a comprehensive investigation into what went wrong with the Irish banking system.
Such an inquiry would ensure that the mistakes made by some of the GREs will not be repeated. It would also ensure that how GREs use the funding provided to them by the Dubai government would be adequately monitored in the future. For instance, heads of GREs need not use private jets to travel to meetings overseas when Dubai has one of the world’s leading airlines that flies to more than 100 destinations.
The findings of this inquiry will also enable the government to understand how paper-based gains were passed on as realised gains, thereby allowing some individuals to claim premature bonuses. The Dubai inquiry would also learn why the debt of $80 billion was accumulated using short-term loans to finance long-term projects, meaning that payment was due much in advance of the projects’ completion.
Some of the money that Dubai has earned through decades of hard work was also spent on trophy assets abroad that had more to do with media headline-grabbing than sound investment strategies. My proposed Dubai financial crisis inquiry commission will be able to investigate the reasons why so many GREs disregarded basic sound investment rules.
We have already seen how in some cases the left hand of some Dubai GREs did not know what the right hand was doing. One example of this was in 2007, when Dubai World raised a $2.7bn sukuk, or Islamic bond, while its subsidiary DP World was also negotiating a large loan.
One thing is for certain: the role of this inquiry commission, should my suggestion ever be taken seriously, will not be easy. There may also be resistance to the questioning of executives and related parties. Ultimately, human beings are prone to making mistakes, but there must be a clear, transparent and systematic process put in place that needs to be followed to the letter for Dubai to emerge as a stronger city, as we all hope it will.
Finally, the findings of this commission should be a warning to any GRE that is embarking on a major spending spree, thereby strengthening the financial foundations of the country.
*This article first appeared in The National on Sunday, 24th January 2010
It’s time for Dubai to graduate from developing-economy status and proceed like other ambitious emerging economies into the big league. The biggest measure of responsibility and good governance at this time would be to look inwards and investigate exactly what led to Dubai’s accumulation of $80 billion in foreign debt, equivalent to its annual Gross Domestic Product.
This inquiry must be carried out by independent, practical and professional individuals. It should be chaired by someone who is not involved in the government related entities (GREs) under investigation nor should it be a figurehead who comes from an unrelated industry. Also, it would be ideal if the committee were federal, since the Dubai debt issue is not a localised event but a nationwide concern.
The United States dealt with the current financial crisis by initiating steps to remedy its effects, as well as by launching an 18-month inquiry into its causes by establishing the Financial Crisis Inquiry Commission. The 10-member bipartisan committee started work in the summer of 2009, with the task of examining what led America into the financial debacle, and is due to present its findings on December 15 this year. This commission has been armed with wide ranging authority, including adequate staff and subpoena powers. It has also been assigned $8 million to ensure that it is able to conduct its work independently.
In fact, this is not the first such financial inquiry in the US. In 1932, the US Senate set up an inquiry to establish the causes of the 1929 Wall Street Crash. The inquiry, which became known as the Pecora Commission when Ferdinand Pecora was appointed its chief counsel in 1933, lasted for two years and interviewed powerful bankers and stockbrokers. Its findings paved the way for the establishment of the Glass-Steagall Banking Act of 1933 to separate commercial and investment banking, the Securities Act of 1933 to set penalties for falsifying financial information, and the Securities Exchange Act of 1934, which set up the Securities and Exchange Commission to regulate stock exchanges.
In the wake of the recent global meltdown, Australia and the European Parliament have launched similar inquiries. And the Republic of Ireland, another state that has gone through the same cycle as Dubai, has launched a comprehensive investigation into what went wrong with the Irish banking system.
Such an inquiry would ensure that the mistakes made by some of the GREs will not be repeated. It would also ensure that how GREs use the funding provided to them by the Dubai government would be adequately monitored in the future. For instance, heads of GREs need not use private jets to travel to meetings overseas when Dubai has one of the world’s leading airlines that flies to more than 100 destinations.
The findings of this inquiry will also enable the government to understand how paper-based gains were passed on as realised gains, thereby allowing some individuals to claim premature bonuses. The Dubai inquiry would also learn why the debt of $80 billion was accumulated using short-term loans to finance long-term projects, meaning that payment was due much in advance of the projects’ completion.
Some of the money that Dubai has earned through decades of hard work was also spent on trophy assets abroad that had more to do with media headline-grabbing than sound investment strategies. My proposed Dubai financial crisis inquiry commission will be able to investigate the reasons why so many GREs disregarded basic sound investment rules.
We have already seen how in some cases the left hand of some Dubai GREs did not know what the right hand was doing. One example of this was in 2007, when Dubai World raised a $2.7bn sukuk, or Islamic bond, while its subsidiary DP World was also negotiating a large loan.
One thing is for certain: the role of this inquiry commission, should my suggestion ever be taken seriously, will not be easy. There may also be resistance to the questioning of executives and related parties. Ultimately, human beings are prone to making mistakes, but there must be a clear, transparent and systematic process put in place that needs to be followed to the letter for Dubai to emerge as a stronger city, as we all hope it will.
Finally, the findings of this commission should be a warning to any GRE that is embarking on a major spending spree, thereby strengthening the financial foundations of the country.
*This article first appeared in The National on Sunday, 24th January 2010
Sunday, 6 December 2009
Dubai’s history has always been one of resilience
Exactly half a century ago a man known to UAE citizens as the father of modern Dubai headed to Kuwait, a commercial exporter of crude oil since 1946, to take a bold step forward. Sheikh Rashid managed to secure 400,000 Kuwaiti dinars (£500,000) from the highly respected Sheikh Abdullah Al Salim of Kuwait to realise his ambitious plan of turning Dubai into a service hub for the region. Needless to say, borrowing such a considerable amount was a risky step on the part of the 47-year-old ruler of Dubai.
Sheikh Rashid used this money to dredge what was until then a natural creek, which split historic Dubai into a northern and southern shore allowing boats from the Arab Gulf states, Iran, the Indian subcontinent, and East Africa to dock and offload their goods. Two decades later Sheikh Rashid realised that the Creek was too small to allow newer, larger shipping vessels being introduced in the region to dock and be serviced easily. His attention turned to a little known area called Jebel Ali 35km south of Dubai and about a quarter of the way towards Abu Dhabi to build the largest man-made container terminal in the world.
Two decades later, his son Sheikh Mohammed the current ruler of Dubai also dreamt big. His city would no longer compete regionally; the world was Dubai’s new challenge. Today this young city is the third largest re-export hub in the world after Hong Kong and Singapore; its financial centre is considered among the global top 20; its airport is the fifth busiest in the world in terms of international traffic, and houses one of the world’s most successful airlines, which has reported an increase in profits even during this downturn; its duty free is the world’s largest airport retail operator; its container port, Sheikh Rashid’s enduring legacy, is the fourth largest port operator in the world, managing close to 50 ports in every single continent; its inhabitants’ literacy rate increased from 20 per cent in the 1950s to more than 90 per cent.
Going back half a century, perhaps the most powerful achievement Dubai recorded is to break taboos that the region could not possibly be more than an oil-exporting centre. So powerful a force was this taboo-breaking mentality that “mini Dubais” have sprung up across the region. When Dubai hosted the World Bank and IMF meetings in September 2003 it was not known as a financial hub, but construction was already underway to build the Dubai International Financial Centre. The international press reported then that Bahrain, the traditional financial centre of the region, had launched a financial harbour “in response to the challenge posed” by the DIFC. Soon afterwards, Qatar and Saudi Arabia followed Dubai’s pioneering steps launching their own dedicated financial districts.
Further afield, Jordan and Egypt realised the success of Dubai’s media and internet cities and launched their very own creative hubs. Emiratis continue to be proud that this ambitious model is being replicated in a region that was short on hope and that inspired others to dream big.
In fact, Dubai went a step further. Armed with knowledge, the most powerful tool known to humanity, it shared its expertise with the rest of the region. Today, DP World manages ports in various regional countries. The UAE is considered among the top emerging states: a list that includes Saudi Arabia, Algeria and Egypt. Dubai assisted Syria in launching state-of-the-art television studios and Yemen in the imminent launch of its stock market. The Dubai School of Government is training scores of Arab government employees in the essentials of public administration using the very best faculty from across the world.
In recent times, heads of commercial entities owned by the Dubai government made gross errors in judgment, such as highly leveraged investments. But these individuals can easily be replaced and a more competent team introduced. With his emphasis on high quality service, Dubai’s current ruler has pulled the city out of crises before; over the past two decades trade with neighbouring countries was heavily affected due to the numerous wars launched in the region and yet Dubai’s logistics status has not only survived but grown exponentially. The emphasis on quality work by the ruler will certainly pull it through this crisis once the tough but necessary decisions are taken.
No other leader in the region starts his day by visiting government departments to make sure that the highest quality standards are met for customer service. As long as he, like his father before him, makes sure that Dubai’s young crown prince carries on with this tradition, Dubai’s ruler can rest assured that his city’s premier position as the region’s service and logistics hub is secure for a long time to come.
*This article was first published in The National on Sunday December 6th, 2009.
Sheikh Rashid used this money to dredge what was until then a natural creek, which split historic Dubai into a northern and southern shore allowing boats from the Arab Gulf states, Iran, the Indian subcontinent, and East Africa to dock and offload their goods. Two decades later Sheikh Rashid realised that the Creek was too small to allow newer, larger shipping vessels being introduced in the region to dock and be serviced easily. His attention turned to a little known area called Jebel Ali 35km south of Dubai and about a quarter of the way towards Abu Dhabi to build the largest man-made container terminal in the world.
Two decades later, his son Sheikh Mohammed the current ruler of Dubai also dreamt big. His city would no longer compete regionally; the world was Dubai’s new challenge. Today this young city is the third largest re-export hub in the world after Hong Kong and Singapore; its financial centre is considered among the global top 20; its airport is the fifth busiest in the world in terms of international traffic, and houses one of the world’s most successful airlines, which has reported an increase in profits even during this downturn; its duty free is the world’s largest airport retail operator; its container port, Sheikh Rashid’s enduring legacy, is the fourth largest port operator in the world, managing close to 50 ports in every single continent; its inhabitants’ literacy rate increased from 20 per cent in the 1950s to more than 90 per cent.
Going back half a century, perhaps the most powerful achievement Dubai recorded is to break taboos that the region could not possibly be more than an oil-exporting centre. So powerful a force was this taboo-breaking mentality that “mini Dubais” have sprung up across the region. When Dubai hosted the World Bank and IMF meetings in September 2003 it was not known as a financial hub, but construction was already underway to build the Dubai International Financial Centre. The international press reported then that Bahrain, the traditional financial centre of the region, had launched a financial harbour “in response to the challenge posed” by the DIFC. Soon afterwards, Qatar and Saudi Arabia followed Dubai’s pioneering steps launching their own dedicated financial districts.
Further afield, Jordan and Egypt realised the success of Dubai’s media and internet cities and launched their very own creative hubs. Emiratis continue to be proud that this ambitious model is being replicated in a region that was short on hope and that inspired others to dream big.
In fact, Dubai went a step further. Armed with knowledge, the most powerful tool known to humanity, it shared its expertise with the rest of the region. Today, DP World manages ports in various regional countries. The UAE is considered among the top emerging states: a list that includes Saudi Arabia, Algeria and Egypt. Dubai assisted Syria in launching state-of-the-art television studios and Yemen in the imminent launch of its stock market. The Dubai School of Government is training scores of Arab government employees in the essentials of public administration using the very best faculty from across the world.
In recent times, heads of commercial entities owned by the Dubai government made gross errors in judgment, such as highly leveraged investments. But these individuals can easily be replaced and a more competent team introduced. With his emphasis on high quality service, Dubai’s current ruler has pulled the city out of crises before; over the past two decades trade with neighbouring countries was heavily affected due to the numerous wars launched in the region and yet Dubai’s logistics status has not only survived but grown exponentially. The emphasis on quality work by the ruler will certainly pull it through this crisis once the tough but necessary decisions are taken.
No other leader in the region starts his day by visiting government departments to make sure that the highest quality standards are met for customer service. As long as he, like his father before him, makes sure that Dubai’s young crown prince carries on with this tradition, Dubai’s ruler can rest assured that his city’s premier position as the region’s service and logistics hub is secure for a long time to come.
*This article was first published in The National on Sunday December 6th, 2009.
Tuesday, 22 September 2009
Challenges for Private Equity in the GCC
Entrepreneurs in the oil-rich Gulf have many challenges to overcome that begin with raising the required capital for their businesses. In this wealthy region, one may wonder why Gulf investors shy away from private equity, where all of the angel investors are.
It is, in fact, not possible to say that Gulf investors or even expatriates based in the region shy away from risky investments. Over the past few years, we have all seen real estate buyers purchase property that cannot be registered in their names from developers who have no established history delivering projects. We have also seen these same buyers borrow money from banks and place a down payment on a unit in order to flip it in the not-too-distant future. All of the elements show that investors have been ready to go into risky territory.
A similar pattern has been noticed in the stock market, where investors purchase stocks of companies that are overpriced without conducting any due diligence on the company’s background, including its management and the PE ratio of the stock itself. So why aren’t we witnessing the same pattern with the private equity industry in the region?
The first issue that must be noted is the lack of avenues for investors to find such potential projects and for entrepreneurs to locate such investors. In fact, most entrepreneurs that I have come across who have not raised money from immediate family and friends have done so by a complete serendipitous coincidence. Freej, a very popular UAE-based animated cartoon series, was funded because a colleague of the show’s creator saw the creator’s sketches on his workstation while fetching a document and shared the drawings with their boss. The creator tells me that when he was called into to the boss’s office, he thought he was in trouble for drawing. His boss, however, encouraged him and introduced him to potential investors. Freej turned out to be the most successful programme in the country.
In Dubai, the Sheikh Mohammed Bin Rashid Establishment for Young Business Leaders has been very successful in funding projects by young Emiratis. The centre, however, does not fund projects by non-nationals, even though there is a majority expatriate population. This circumstance leaves a large gap in the private equity niche that should be filled as soon as possible. Many expats have the proper education and commitment to see small business grow into large corporations. We saw such incidences happen across the Gulf in the 1970s and 1980s through joint ownerships with Gulf nationals. Other institutions in the UAE that offer private equity include Mubadala, National Bank of Abu Dhabi and the Sheikh Khalifa Fund. Gulf Finance House and Al Baraka in Bahrain also have units dedicated to PE, as does Kuwait Finance House.
Proper legislation must be introduced to protect the rights of both parties. ‘Intellectual property rights’ is a notion that is still developing in the Gulf, although it has been recognised recently as an essential part of an entrepreneur sharing his or her ideas with an investor.
Often, an entrepreneur will share an idea with someone who has a network of potential investors that can be approached for funding.
Non-governmental developments in the past few years have also assisted in the emergence of this nascent but essential industry, such as the creation of the Gulf Venture Capital Association, a non-profit trade and industry association that promotes a risk-taking investment culture and provides information on the VC/PE industry by organising conferences and training workshops.
Clearly, funding isn’t a challenge in the GCC. A report published recently by Merrill Lynch Global Wealth Management stated that in 2008, the number of dollar millionaires in Saudi Arabia stood at 91,600. In the UAE, the number was 67,100. The report also stated that financial wealth in the Middle East stood at US$1.4 trillion last year and is expected to rise to US$1.9 trillion in 2013. The challenge remains in finding a way to channel the money to budding entrepreneurs.
With the recently released Arab Human Development report estimating that the Arab world needs to create 50 million new jobs by 2020, access to private equity funding will need to be streamlined and institutionalised. The regional governments cannot possibly create that many jobs on their own, so a large part of this challenge will rest on the shoulders of young entrepreneurs who will need to find the right investors at the right time.
There is a need for early-stage funding of projects in the Gulf. Whether they are started by national or expatriate elements, or a combination of both, is a secondary issue at this stage. In the end, it is the Gulf that will benefit from a boom in this industry.
*This article first appeared in Moneyworks magazine in the September issue.
It is, in fact, not possible to say that Gulf investors or even expatriates based in the region shy away from risky investments. Over the past few years, we have all seen real estate buyers purchase property that cannot be registered in their names from developers who have no established history delivering projects. We have also seen these same buyers borrow money from banks and place a down payment on a unit in order to flip it in the not-too-distant future. All of the elements show that investors have been ready to go into risky territory.
A similar pattern has been noticed in the stock market, where investors purchase stocks of companies that are overpriced without conducting any due diligence on the company’s background, including its management and the PE ratio of the stock itself. So why aren’t we witnessing the same pattern with the private equity industry in the region?
The first issue that must be noted is the lack of avenues for investors to find such potential projects and for entrepreneurs to locate such investors. In fact, most entrepreneurs that I have come across who have not raised money from immediate family and friends have done so by a complete serendipitous coincidence. Freej, a very popular UAE-based animated cartoon series, was funded because a colleague of the show’s creator saw the creator’s sketches on his workstation while fetching a document and shared the drawings with their boss. The creator tells me that when he was called into to the boss’s office, he thought he was in trouble for drawing. His boss, however, encouraged him and introduced him to potential investors. Freej turned out to be the most successful programme in the country.
In Dubai, the Sheikh Mohammed Bin Rashid Establishment for Young Business Leaders has been very successful in funding projects by young Emiratis. The centre, however, does not fund projects by non-nationals, even though there is a majority expatriate population. This circumstance leaves a large gap in the private equity niche that should be filled as soon as possible. Many expats have the proper education and commitment to see small business grow into large corporations. We saw such incidences happen across the Gulf in the 1970s and 1980s through joint ownerships with Gulf nationals. Other institutions in the UAE that offer private equity include Mubadala, National Bank of Abu Dhabi and the Sheikh Khalifa Fund. Gulf Finance House and Al Baraka in Bahrain also have units dedicated to PE, as does Kuwait Finance House.
Proper legislation must be introduced to protect the rights of both parties. ‘Intellectual property rights’ is a notion that is still developing in the Gulf, although it has been recognised recently as an essential part of an entrepreneur sharing his or her ideas with an investor.
Often, an entrepreneur will share an idea with someone who has a network of potential investors that can be approached for funding.
Non-governmental developments in the past few years have also assisted in the emergence of this nascent but essential industry, such as the creation of the Gulf Venture Capital Association, a non-profit trade and industry association that promotes a risk-taking investment culture and provides information on the VC/PE industry by organising conferences and training workshops.
Clearly, funding isn’t a challenge in the GCC. A report published recently by Merrill Lynch Global Wealth Management stated that in 2008, the number of dollar millionaires in Saudi Arabia stood at 91,600. In the UAE, the number was 67,100. The report also stated that financial wealth in the Middle East stood at US$1.4 trillion last year and is expected to rise to US$1.9 trillion in 2013. The challenge remains in finding a way to channel the money to budding entrepreneurs.
With the recently released Arab Human Development report estimating that the Arab world needs to create 50 million new jobs by 2020, access to private equity funding will need to be streamlined and institutionalised. The regional governments cannot possibly create that many jobs on their own, so a large part of this challenge will rest on the shoulders of young entrepreneurs who will need to find the right investors at the right time.
There is a need for early-stage funding of projects in the Gulf. Whether they are started by national or expatriate elements, or a combination of both, is a secondary issue at this stage. In the end, it is the Gulf that will benefit from a boom in this industry.
*This article first appeared in Moneyworks magazine in the September issue.
Sunday, 20 September 2009
More than idle chatter: How Yamli saved Arabic online
A recent study conducted by the American University in Cairo found that 78 per cent of Arab internet users have never typed in Arabic. I have to admit that I used to be one of them.
Just a few months ago one of my entrepreneurship students at Dubai Men’s College sent me an e-mail inquiring about his future career path. The e-mail was sent in Arabic and I thought it was only appropriate for me to reply in the same language.
Simple? Not so. Although I have come to view the keyboard as an extension of my hands, I started typing my five-line reply at about 11pm and didn’t finish until 1am.
The reason for the slow pace was that, after years typing with the M and N letter keys in the bottom righthand corner of the keyboard, I could not with a click of the mouse switch to Arabic and adjust to the fact that both keys move up and to the right. Or the fact that there are three keys for the letter A in Arabic.
Frankly, for many people, most of the time spent “typing” in Arabic isn’t typing at all. It’s hovering over the keyboard pecking around for the correct keys. And, as if getting used to one Arabic keyboard adopted by the personal computing industry was not enough, in comes Apple with its own version; the English keyboard’s Latin B turns into an Arabic L on a PC, but transforms into “th” on the Mac. You get the point.
According to Google, Arab internet users constitute 5 per cent of internet traffic but only contribute one per cent of internet content. Also, much of the content generated by Arabic speakers is in other languages such as English or French, or relies on an innovative numerical system. In the past decade young Arabs created their own reality in cyberspace by adopting Arabic numerals that look similar to Latin letters to denote specific consonants for proper Arabic pronunciation. For instance, Ahmad could also be spelt A7mad and Abeer becomes 3abeer.
A senior official at a global IT search engine firm based in Dubai told me that much of the content being created in Arabic was in the form of social chatter. Arab boys and girls use this numerical system to flirt with each other. While that is not a surprise, traffic should now be directed at creating more appropriate content in Arabic.
This is where Yamli comes in. According to its website, the idea of Yamli was born in the summer of 2006 during the Israeli war in Lebanon, when much of the up-to-date information was available in the Arabic news portals and blogs. Imad Jureidini and Habib Haddad, the founders of Yamli, decided to bridge the language gap that was staring us all in the face by creating software that interprets Ahmad or A7mad and transforms it into Arabic script.
Yamli, which means to dictate, has an inspirational story to tell. It is a local brand that was created by Arabs in the context of conflicts that are so often endured. This made me wonder how much the potential of the region’s youth is hidden by the realities on the ground.
The Arabian Gulf states, led by the UAE, are the best at adapting technology in the region, according to a study by the Arab Advisors Group. It is safe to assume that a large number of internet users have learnt to use standard Qwerty keyboards.
Yamli has opened the eyes of this section of the Arab world to a new-found ability to type in classical or local dialects of Arabic, which will catapult the amount of Arabic words and pages available on the internet. The website, which features an Arabic 2search engine, also opens the Arabic cyber-world to millions of Arabs living in the diaspora in Europe, North America and Australia where access to Arabic keyboards is very limited. In fact, a friend of mine commented about how much he is looking forward to a BlackBerry version of Yamli so he can chat with his friends in Arabic script.
There is no doubt that internet giants like Microsoft, Google, Wikipedia and Yahoo have played a large part in the spread of Arabic online but, no matter how many services these firms offer, a large number of educated and opinionated Arabs would not be able to share their thoughts in the Arabic language – in reporting, blogging or other contributions – if it weren’t for Yamli. This simple website’s effect to preserve Arabic in the cyber-world cannot be measured. Yamli has been so successful that Microsoft recently launched a clone programme called Maren that works with Windows applications.
Now that Yamli has tackled the quantity of Arabic content on cyberspace, one can only hope that Arab governments finally reform their educational systems so that the quality of Arabic content on cyberspace can also improve.
*This article first appeared in The National on Sunday 20 September 2009
Just a few months ago one of my entrepreneurship students at Dubai Men’s College sent me an e-mail inquiring about his future career path. The e-mail was sent in Arabic and I thought it was only appropriate for me to reply in the same language.
Simple? Not so. Although I have come to view the keyboard as an extension of my hands, I started typing my five-line reply at about 11pm and didn’t finish until 1am.
The reason for the slow pace was that, after years typing with the M and N letter keys in the bottom righthand corner of the keyboard, I could not with a click of the mouse switch to Arabic and adjust to the fact that both keys move up and to the right. Or the fact that there are three keys for the letter A in Arabic.
Frankly, for many people, most of the time spent “typing” in Arabic isn’t typing at all. It’s hovering over the keyboard pecking around for the correct keys. And, as if getting used to one Arabic keyboard adopted by the personal computing industry was not enough, in comes Apple with its own version; the English keyboard’s Latin B turns into an Arabic L on a PC, but transforms into “th” on the Mac. You get the point.
According to Google, Arab internet users constitute 5 per cent of internet traffic but only contribute one per cent of internet content. Also, much of the content generated by Arabic speakers is in other languages such as English or French, or relies on an innovative numerical system. In the past decade young Arabs created their own reality in cyberspace by adopting Arabic numerals that look similar to Latin letters to denote specific consonants for proper Arabic pronunciation. For instance, Ahmad could also be spelt A7mad and Abeer becomes 3abeer.
A senior official at a global IT search engine firm based in Dubai told me that much of the content being created in Arabic was in the form of social chatter. Arab boys and girls use this numerical system to flirt with each other. While that is not a surprise, traffic should now be directed at creating more appropriate content in Arabic.
This is where Yamli comes in. According to its website, the idea of Yamli was born in the summer of 2006 during the Israeli war in Lebanon, when much of the up-to-date information was available in the Arabic news portals and blogs. Imad Jureidini and Habib Haddad, the founders of Yamli, decided to bridge the language gap that was staring us all in the face by creating software that interprets Ahmad or A7mad and transforms it into Arabic script.
Yamli, which means to dictate, has an inspirational story to tell. It is a local brand that was created by Arabs in the context of conflicts that are so often endured. This made me wonder how much the potential of the region’s youth is hidden by the realities on the ground.
The Arabian Gulf states, led by the UAE, are the best at adapting technology in the region, according to a study by the Arab Advisors Group. It is safe to assume that a large number of internet users have learnt to use standard Qwerty keyboards.
Yamli has opened the eyes of this section of the Arab world to a new-found ability to type in classical or local dialects of Arabic, which will catapult the amount of Arabic words and pages available on the internet. The website, which features an Arabic 2search engine, also opens the Arabic cyber-world to millions of Arabs living in the diaspora in Europe, North America and Australia where access to Arabic keyboards is very limited. In fact, a friend of mine commented about how much he is looking forward to a BlackBerry version of Yamli so he can chat with his friends in Arabic script.
There is no doubt that internet giants like Microsoft, Google, Wikipedia and Yahoo have played a large part in the spread of Arabic online but, no matter how many services these firms offer, a large number of educated and opinionated Arabs would not be able to share their thoughts in the Arabic language – in reporting, blogging or other contributions – if it weren’t for Yamli. This simple website’s effect to preserve Arabic in the cyber-world cannot be measured. Yamli has been so successful that Microsoft recently launched a clone programme called Maren that works with Windows applications.
Now that Yamli has tackled the quantity of Arabic content on cyberspace, one can only hope that Arab governments finally reform their educational systems so that the quality of Arabic content on cyberspace can also improve.
*This article first appeared in The National on Sunday 20 September 2009
Subscribe to:
Posts (Atom)