According to some sources, the Burj Dubai is now the world tallest building:

Burj Dubai is now officially the tallest, man-made structure in the world. The tower scaled 510 metres to beat the Taipei Towers that stands at 507.3 metres. Official sources engaged in the construction of the world's tallest tower told The Gulf Today that they have reached the goal in terms of the building's height. Although the height of the skyscraper has been kept under wraps, it is believed Burj Dubai will end up somewhere between 705 and 950 metres. When completed, it will have between 154 to 180 floors. Construction for what is set to be Dubai's landmark structure began on Feb 1, 2005 and is set to be completed in June 2009. Being constructed by Samsung Corporation, the tower is designed by Chicago-based Skidmore, Owings and Merril. The tower is the centrepiece of the Dh73 billion Downtown Burj Dubai Project of Emaar.

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The need to reduce US dependence on "foreign oil" is a popular refrain these days. Politicians like Alabama Senator Jeff Sessions (R) here makes the typical and I think inarguable case:

I was pleased that President Bush used his State of the Union address to point out that our current addiction to foreign oil is a matter of national security. I could not agree more. It is past time that we politicians drop the rhetoric and take decisive action. The fact that 60 percent of the oil we consume is imported represents a vast transfer of wealth away from the pocketbooks of Americans. Worse, more than 30 percent of our imported oil comes from countries that have been — or may soon be — hostile to the interests of the United States. ... While there is no simple solution to the problem, it is not rocket science either. There are three areas of critical importance where I believe great progress can be made. ... First, we must increase domestic production of oil and natural gas by allowing exploration in the Arctic National Wildlife Refuge and on Outer Continental Shelf lands where huge reserves exist. ... Second, we should take steps now to encourage the conservation and efficient use of oil, gas and other energy sources. ... Finally, as we transfer our transportation sector away from fossil fuels, we must support research and development of advanced technologies such as nuclear energy, clean coal and hydrogen power that will provide our long-term answers.

In the Middle East, particularly the oil-rich gulf sheikdoms, there is an equal and opposite recognition of the perils of oil sales to foreigners:

Continue reading "Do Buy or not Dubai" »

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Despite undeniable success in retail, financial services, tourism, and real estate and enviable geographical advantages, Dubai's attempts to establish itself as a center for business process outsourcing are failing. According to The Hindu, it's not for lack of talent. Rather, it's the cost of living in Dubai that is a major factor:

Dubai is seeking to attract Business Process Outsourcing (BPO) trade in the region in direct competition from India, but higher cost in setting up these centres is acting as a dampener. Although the World Economic Forum, which has adjudged UAE economy as the most competitive Arab economy praising the region's strong entrepreneurial skills, has also noted its lack of educational reforms and reliance on migrant workers. Of late higher costs from rising rents and spiraling inflation has proved to be a setback for businesses in the UAE, especially in Dubai. Analysts believe, India still has an edge over Dubai in attracting call centres, that require basic communication skills of individuals - available at a cheaper price. India's expertise in information technology and expertise in BPO business makes it a natural hub for call centres. Especially, when high inflation, soaring house rents are forcing employers to raise their operational budgets - the cheaper alternatives.

To my eyes, Dubai's development trajectory seems designed to attract high new wealth individuals into the Emirate and to move low income service workers to the outlying, northern Emirates. This is underscored by the fact that I have yet to see anything resemble "affordable housing" being built amidst all of the shiny residential skyscrapers and internationally-themed housing communities. If this trend continues, I see little hope likelihood that Dubai will be on the line when I call for customer service.

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On March 17th the Wall Street Journal published a glowing, yet balanced, commentary about Dubai entitled "City of Dreams." (Hat tip to reader Jamie). The article was authored by one Zachary Karabell who, the article says "...is executive vice president of Fred Alger Management and its Spectra Funds and the author of "Peace Be upon You: The Story of Muslim, Christian, and Jewish Coexistence." Here are literally and figuratively the article's money paragraphs, paragraphs whose ideas both resonate with and reaffirm my observations from nearly two years of living and teaching business in the UAE:

Christian-Palestinian businessmen do deals with Indian Muslims, who team up to build condos that are then sold to Malaysian millionaires or Kuwaiti sheikhs. Global investment banks facilitate contracts between the royal Maktoum family and the very American Boston Properties (led by Mortimer Zuckerman) to buy and sell prime real estate in Manhattan. And not only does Donald Trump get his name into the action, but the government of Dubai is also a major holder of Kerzner International, one of the world's premier gambling and resort companies that happens to be majority-controlled by a South African Jewish family.

That said, however, Dubai is very much an Arab city-state. It prides itself on becoming -- along with neighboring Abu Dhabi -- a Muslim model for tolerance, affluence and global success. That it manages to do so should belie prejudices in the West that the Arab world is incapable of participating in the global system until it unburdens itself of the doctrinal rigidity of some forms of Islam.

Seeing Dubai as an economic model for other parts of the Arab world is admittedly a challenge: Like Singapore, it has the virtues of a small ruling class, a tiny population and not much territory, and that is not something Egypt or Syria could emulate. But as a cultural model, or an attitude, it does offer an alternate vision of the future, one with its own excesses and vices for sure, but still free of the divisiveness and religious conflict that has become the assumed status quo in other parts of the Middle East.

Dubai should not be written off as little more than an Arab Las Vegas. It deeply challenges the assumption that Muslims, Christians and Jews cannot find common ground and work together to construct a shared future. Dubai is proof, not perfect, but real, that they can.

Continue reading "Glowing and Glowering: Two Views on Dubai" »

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Given all the talk of about the lack of adequate drainage for rainstorms, persistent traffic jams, the rising cost of living, lack of rights for foreign workers, and real-estate bubbles, one might get the impression that Dubai is house built on sand. But you'd only be half right. There is something here built on sand and it is doing plenty of things as they should be done:

Dubai Silicon Oasis (DSO) officials announced today that Europe’s Optical Disc Group and Solar Technologies Group will invest Dh112 million ($31 million) in the technology free zone. The activities include research & development, optical media training and support centre as well as manufacturing of the next generation optical media products, solar cells, solar panels and tempered glass used in photovoltaic and the building industry. This will be the first facility of its kind in the Middle East and will generate skilled jobs for over 200 people, said a statement. The facility is expected to open end-2007.

The plans for solar energy products are particularly ambitious:

Solar Technologies Group will set up a processing centre for production of photovoltaic components, solar cells and panels. Solar energy can be converted directly or indirectly into other forms of energy, such as heat and electricity through the photovoltaic process. “Solar energy is the future of creating clean and environmentally-friendly energy. Many countries around the world have adopted this technology for numerous commercial, industrial, government, and domestic applications. Our agreement with Solar Technologies Group will oversee the development of this important industry in the Middle East,” added Razak.

How interesting that companies in a region brimming with sun and sand and oil set themselves to figuring out how to use the first two to one day substitute for the third.

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According to the BBC, Tiger Woods has found a place to start earning his stripes in the golf course development business: he has chosen Dubai, a city affectionately called "One Big Construction Site" by expat blogger Samurai Sam:

World number one Tiger Woods announced on Sunday that the site for his first golf course design will be in Dubai. The Tiger Woods Dubai development will feature a par-72 course, a golf academy, 300 luxury villas, 20 mansions and an 80-room VIP hotel. "I am excited about the challenge of transforming a desert terrain into a world-class golf course," said Woods. "I have a vision of creating something that is uniquely mine and I want to realise this vision in Dubai."

I'm no duffer, but I'm guessing designing the sand traps should be the least of Tiger's worries. If there is one thing we can be sure of, it's that Tiger won't name the course "One Big Sand Trap."

Links: Carnival of Sports #2

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Two recent articles in the Dubai press stress the importance of job training at both ends of the labor pool. Regarding the shallow end we have this Gulf News story, "Dubai Central Jail inmates learn how to repair vehicles"

Inmates at Dubai Central jail learn how to repair vehicles as part of the jail's rehabilitation programme, a senior police official said. Brigadier Khamis Saeed Al Suwaidi, Acting Director of Dubai Police's Punitive and Correctional Establishments, said the department is keen on rehabilitation programmes that will help inmates after they are freed. He said the education and training department at the jail organised the vocational course in cooperation with the Al Futtaim training centre. The course targeted 14 UAE national inmates. All passed the course and six were released from jail. The inmates have secured jobs as helpers at Al Futtaim as soon as they had taken the course and received the certificates. Lieutenant Colonel Tariq Kalentar, Director of Dubai Central Jail, said many inmates showed interest in taking the course. However, the 14 were selected based on interviews, their behaviour and their English language proficiency.

And in the deep end of the talent pool we have AMEInfo reporting on the launch of Standard Charter's Graduate Career Development Program:

Standard Chartered, one of the leading international banks in the UAE, has launched two new development programmes to attract high-level graduates to careers within the Bank. 'The Al Tahadi Educational Support Programme provides a monthly financial support to selected UAE national students until they graduate,' explains Aida Hamza, Standard Chartered Head of Emiratisation, UAE. The International Graduate Programme is a two-year development programme that has been active globally and only set to launch in this region at the end of October, specifically designed to develop a robust pipeline of diverse, potential future leaders for the Bank. ... (the IGP) provides graduates of all nationalities with an opportunity to train in a specific function department (wholesale banking or consumer banking) at the Bank after graduation, fast-tracking them for success on an international career path.'

Commentary

Though the education and skills, the nature of the work, and the height of the career of these two groups couldn't be more different, there are a few common themes.

Continue reading "On the Job Training" »

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Here's how economists describe the term pent-up demand:

When demand for a product is exceptionally strong, perhaps because the demand built up during a recession when people could not afford to buy the product or because the product was temporarily not available to be sold.

Here's a more general, non-economic definition based upon the one above:

When demand for something is exceptionally strong, perhaps because the demand is built up because of repression or because the demanded something is otherwise unavailable:

And here's an example, courtesy of the New York Times, of pent-up demand in Dubai:

Continue reading "Pent-up demand" »

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As anyone who lives in the UAE knows, Dubai is well on its way to becoming a retail and shopping mecca. As MENA Report noted last month:

By 2009, Dubai is expected to have the highest retail spend in the GCC, higher than Saudi Arabia and despite having a population one-twentieth the size. Most of this spend will be generated from the expected 15 million tourists. ... At the helm of its long list of projects that incorporate malls of various sizes, shapes and themes is the Dubai Mall, which will be constructed close to the Burj Dubai Tower, and will be the largest mall in the world. The mall is being pegged to be larger than the gigantic West Edmonton Mall in Canada and the Mall of America in Minneapolis, USA.

Fifteen million tourists may seem like a lot of people until you realize that there is both a great deal of wealth and great number of people within a two-hour flight of here, particularly in oil rich central and southwest Asia:

Dubai has been targeting a market of 1.5 billion people with a GDP of US$1.1 trillion from the Middle East, South Asia and the entire Caspian region. "While for 300 million people in the US, there are a number of hubs, for 300 million people in the Middle East, there is only one hub ~ Dubai," he said. "Moreover, Dubai caters to over 1.5 billion people who are less than two hours flying time away. So, as a hub, as we gear up to serve a wider number of consumers in and beyond the region, we will need more malls." ... Analysing some of its surveys, Retail International's principal Simon Thomson says: "Dubai is on course to become possibly the most densely shopped city on the planet.

The numbers sound so good that it is easy to understand why reports like this one from AME-Info are now so commonplace, expected in fact:

Dunhill, the maker of luxury goods for men, is opening two new boutiques in the UAE before the end of March 2007, and will then expand into other GCC countries, the company said. It has four stores in the UAE at present.

On the other hand, if everything is so rosy, why in the same week would we see news articles like this about Harrod's, the upscale British retailer owned by Saudi financier Mohammad al-Fayed:

Continue reading "Dubai, the Retail Mecca" »

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