Dubai’s future is in the hands of two very different princes
DUBAI: Guests jostle to snap selfies with the beaming ruler-in-waiting, with dozens of local officials in attendance.
The royal works the room with the ease of an Instagram celebrity who’s used to mixing with superstars like footballer Cristiano Ronaldo.
A few meters behind him, blending into the crowd at an event in the Dubai Expo earlier this year, stood another man who may be less conspicuous in the city’s social scene, yet whose impact is winning praise from foreign investors while keeping executives at government-run companies on their toes.
As their 73-year-old father, the ruler of Dubai, hands them more responsibility, Sheikh Hamdan bin Mohammed Al Maktoum, 39, and brother Sheikh Maktoum, 38, have each carved out a niche.
Regional rivals
They face the task of safeguarding Dubai’s status as the Middle East’s pre-eminent business hub amid competition from regional rivals and international scrutiny following Russia’s war on Ukraine.
“Think of it as a company,” said Nasser Al-shaikh, Dubai’s former finance chief, who helped steer the emirate through the 2009 debt crisis.
“Hamdan is the chairman and Maktoum is the chief executive officer.
“Hamdan is the face of Dubai and the crown prince, but decisions on all issues are made after consultation between the two brothers.”
Sheikh Hamdan, the charismatic crown prince and heir, is marketer-in-chief in a city built on glitz and its ability to attract capital and millions of tourists.
Sheikh Maktoum is proving key to Dubai as a financial market this year as he calls the shots across the emirate’s state-run enterprises.
He’s part of a push to sell stakes to investors, most recently, road toll operator Salik, and has occasionally summoned corporate chiefs to talk through their numbers.
Beyond financial markets, Dubai is under pressure to clamp down on illegal money flows, while the energy crisis may have provided a boost to oil revenue in the United Arab Emirates (UAE) but in the longer term will accelerate the global move away from fossil fuels.
The brothers, who were born a year apart to the same mother, also need to maintain the delicate balance of power within the UAE.
That comes after Dubai’s leadership persuaded Abu Dhabi to refocus on business and the economy and less on foreign policy that led to military engagements in conflicts stretching from Yemen to Libya and Turkey.
Saudi Arabia, meanwhile, poses another challenge with its desire to emulate Dubai as a magnet for foreign talent and investment. The two men rarely speak to the media.
The Dubai Media Office said it was not possible to arrange interviews within the time frame given and declined further comment.
Approachable leader
Sheikh Hamdan is nicknamed Fazza, Arabic for one who rushes to the aid of others. He was appointed crown prince in 2008, bypassing an older brother Sheikh Rashid, who passed away in 2015 at the age of 33.
While his social media accounts are peppered with more formal pictures of government business, Sheikh Hamdan has also been featured skydiving, mountain climbing, horse riding or standing on top of the world’s tallest tower.
He has 14.6 million Instagram followers, equivalent to more than the population of the UAE, and mingles with people in Dubai’s malls and restaurants, continuing the image of the approachable leader his father cultivated as he prepares for his future role.
Dynamic personality
Hamdan accompanies his father to most meetings with other rulers in the UAE’S sheikhdoms and chairs Dubai’s 22-member executive council, which includes his brother.
The council’s website says Hamdan “is characterised by his young and dynamic personality” that has helped him build connections with the Dubai population.
He’s also chairman of the emirate’s sovereign wealth fund, the Investment Corporation of Dubai.
Maktoum, meanwhile, is described by the council as having “the traits of an ambitious young leader.”
He shot into the spotlight when he was appointed finance minister for the UAE in September 2021 after the death of his uncle.
Spearheading share sales of long prized state-owned firms brought him to the attention of investors.
For years they had called for the listing of state-run companies to boost Dubai’s stock market.
“Sheikh Maktoum is currently playing the role that’s set out for him, which is defined and technical,” said Sheikha Najla Al Qassimi, a senior researcher at Dubai Public Policy Research Centre, B’huth, who has also served as a UAE ambassador.
“Sheikh Hamdan’s role as the crown prince is more political. He’s well liked by locals and tribes, while also able to connect and appeal to Dubai’s large expatriate community.”
This year’s public listings are the start of a flurry that’s set to see a total of 10 stateowned firms offer shares to investors.
Sheikh Maktoum has helped push through the sale of stakes in the main utility, Dubai Electricity and Water Authority, along with business park operator Tecom Group, raising more than Us$6bil (Rm27.2bil) in total.
Investors in September snapped up all the shares on offer in road toll operator Salik, and Dubai increased the sale’s size.
The transaction, coordinated by Goldman Sachs Group Inc and Merrill Lynch among others, is designed to raise Us$1bil (Rm4.53bil).
“As the financial hub of the region, Dubai’s markets are not fully reflecting that status,” said Mohamed Abu Basha, head of macroeconomic research at Egyptian investment bank EFG Hermes.
“Sheikh Maktoum is currently playing the role that’s set out for him, which is defined and technical.”
Sheikha Najla Al Qassimi
Corporate governance
“If you want to further boost the Dubai story, you need to continue this initial public offering push which I think is long overdue.” Sheikh Maktoum has also zeroed in on corporate governance.
As the head of the government’s auditing department, he keeps an eye on the finances of Dubai’s state-controlled entities, some of which were at the root of Dubai’s financial troubles over a decade ago.