UPENDING THE STATUS QUO

Once focused on diversification, the next decade in Dubai will be focused on disruption.

HAVING STARTED its economic diversification process much earlier than its oil-rich neighbors, including Abu Dhabi, Dubai has built a relatively well-rounded Emirate. With top-quality health and education laying the foundation, Dubai has attracted workers from across sectors and visitors from across the globe. FDI into Dubai is on the rise, and growth is picking up in anticipation of Expo 2020, with forecasts for 2020 and 2021 that surpass average global estimates. As Dubai has become many things to many different people, we are witnessing a regrouping and a re-centering of Dubai’s image most notably as a disruptor, as a city of the future.

2020—the turn of decade, the intended year of Expo, and the eve of the UAE’s 50th anniversary—is indeed an opportune time. Even as shockwaves from a truly unexpected disruption, known colloquially as coronavirus and officially COVID-19, resonate around the world, Dubai’s diversification as well as its orientation toward innovation will undoubtedly help the Emirate lead the way through a challenging time. Where the US is taking an isolationist approach with regard to medical supplies, flydubai is operating several flights and utilizing cargo space on passenger planes to send relief across the region and even as far as Europe. And it the UAE’s leading example that many countries will toward regarding digital transformation in the public sector.

Through several programs and strategies, including the Dubai Future Foundation’s 10X initiative, Dubai Autonomous Transportation Strategy, UAE National Program for Artificial Intelligence,

Mars 2117 program, e-commerce-dedicated free zones, support for high-tech industries such as advanced pharmaceuticals, and Virtual Commercial Licenses, Dubai is looking not only to increase ease of doing business, but also shift the entire doing business paradigm. In some cases, the private sector has to catch up to the public sector’s ambitious digitalization and innovation efforts.

An already well-established trade hub, many of these programs and initiatives coalesce around making Dubai the undisputed global leader of trade. From transport and logistics infrastructure, such as DP World’s Hyperloop One, to digital customs solutions, Dubai is making the movement of people and goods a top priority when movement surely restarts.

EXPO’S RIPPLE EFFECTS

Showcasing its strides in disruptive innovation, Dubai will host the region’s first World Expo event, albeit a year later than expected. The six-month event, now starting in October 2021, is expected to have long-lasting impacts across the economy, from tourism and real estate to start-ups and trade. Expo visitors will be treated to the Dubai lifestyle, which includes the retail experience as well as a burgeoning art scene. Moreover, 2019’s upturn in economic performance, particularly the rebound of the construction and real estate sector, was largely attributed to Expo preparations and anticipation. Such signs are highly encouraging as Dubai continues on the journey to Expo. It is a not cure all for every challenge, but

Expo will complement and amplify the catalytic power of innovation.

One major challenge will be resource and waste management, especially as the Emirate is set to the host the most inclusive Expo event to date. Not only a major buzzword or subtheme of Expo, sustainability is on everyone’s mind today and as we look past 2020. The design and planning of Expo 2020 was intentionally curated to consider the legacy of the site and its use after the event. And this concern regarding sustainability echoes in general construction and across industries. Solar power continues to play a significant role in the Dubai Electricity and Water Authority’s plans as they continue to increase efficiencies and diversify the energy matrix.

ENTREPRENEURIAL ABC’s

We also see an increasing emphasis on entrepreneurships and start-ups. From Dubai Chamber’s Global Business Forum on Africa 2019 to Dubai International Financial Centre dedicating a significant portion of it expansion to innovation and start-ups, there is a heightened support for SMEs, which make up 99.2% of registered businesses and employ 52.4% of the workforce. The ongoing shift toward a knowledge-based economy has placed a palpable emphasis on generating top talent with an entrepreneurial mindset. Schools, from primary to tertiary levels, are looking to transform education models and better prepare the future workforce for the economy of the future. With the recognition that education has not significantly changed for centuries, this is yet another area where Dubai-driven disruption could change the game.

HALAL HAPPENINGS

To top it off, the Islamic economy is playing an increasing role in its contribution. With the Islamic economy contributing 10% to GDP and the highest value of sukuk listings, Dubai is well-positioned to become the capital of the Islamic economy. Already a pioneer in halal certifications and standardizations, Dubai is looking to use this advantage to attract more Halal industry players, boosting industry and trade. In the Islamic finance sphere, new products and the profusion of blockchain will see a virtuous cycle of growth between fintech and Islamic finance. ✖