Dubai: New York of GCC?

With the volatility of the global economy, some economies are thriving due to strong GDP growth but others are going through trying times due to dismal performance, observes Shan Saeed, Chief Economist, IQI Global, Malaysia.

In the past 10 years, tourism and travel has become an important sector to bolster government revenue and generate momentum in the domestic economy. If you analyse the overall GDP equation, you have four major variables, namely, consumption, investment, government and net off exports. The major variable that contributes significantly to the overall GDP growth is consumption. Wherever consumption patterns are strong and solid, GDP is on the upsurge and healthy. Wherever consumption is dismal, GDP remains low and weak. Investors would like to park funds and invest in those countries where governments are tourist-friendly, entertainment and recreational facilities are plenty, government’s focus is towards attracting global tourists and is committed to local investors.

GCC has attracted lot of global tourists in the last 30 years. In particular, I would like to mention Dubai, Emirates, wealth management hub and the UAE in general. I still remember how Emirates started its operation by taking two planes on lease from Pakistan International Airlines in 1985 and how it transformed into one of the top airlines in the world after 33 years. One of the factors why tourists preferred to visit Dubai is because Emirates extended its wings and reached many destinations of the world. Today, Dubai has become a major tourist spot and destination of the world just like London, New York, Tokyo, Singapore, Paris or Kuala Lumpur. In my opinion, Dubai is the New York of GCC, full of attractions and entertainment that caters to all segment of the tourism market. Brand Dubai has become a powerful symbol of rich and famous as well as for its healthy lifestyle and entertainment.

If I were to analyse the branding strategy that Dubai pursued, it was based on the following: ™ Global aviation hub ™ Convenience for travellers ™ Mall as tourist spot ™ Wealth management for rich and famous

™ Lifestyle

™ Modern infrastructure.

The nutshell of Dubai’s success can be epitomised in one word — lifestyle. Wealthy people from Pakistan, India, Russia and the United Kingdom prefer to stay in the city due to its super luxurious lifestyle combined with strong financial market for wealth protection.

The rich and wealthy are looking for comfort, lifestyle and global arena. Dubai continues to remain on the global investor’s radar and major tourist hub globally providing lifestyle and comfort. With Expo 2020 arriving next year, Dubai will draw an investment of over $50 billion for the event.

Wealthy people from Pakistan, India, Russia and the United Kingdom prefer to stay in the city due to its super luxurious lifestyle combined with strong financial market for wealth protection