Emirate's rulers lay groundwork for profitable China-UAE ties

Since 1894, when Dubai launched its first tax-free port to attract regional business, the reigning Al Maktoum family has supported commercialism and mercantilism, and that legacy has helped shape Dubai's present-day economy, said an executive of the emirate's promotional advisory firm.

Cong Hongbin, managing director of Invest Dubai, said he was impressed by the remarks of the late Sheikh Saeed bin Maktoum bin Hasher Al Maktoum, who pioneered the business-centric path for Dubai and said that "anything that is good for merchants is good for Dubai."

Cong explained the concept with a Chinese paradigm: "I build the stage, and you perform." It refers, he said, to how authorities explore the best resources to establish a commercial environment and facility that will allow businesses to succeed.

He compared Dubai's small and medium-sized enterprises to cells that generate, citing the fact that more than 40 percent of the United Arab Emirates' GDP comes from them.

"The delicately interwoven business cells are the engine of Dubai's success, a living example of how a resource-scarce place can still flourish," Cong said. He also noted the importance of learning the city's history for people who want to live and work in the city.

"The vision of the Al Maktoum family, its determination and perseverance are what has built the incredible Dubai business model," he said.

Standing at the top of the Burj Khalifa, currently the world's tallest building, visitors can use high-tech binoculars to see Dubai's landmarks alongside photos of the same location few years ago, a decade ago and many decades ago with the help of satellite imaging and computing technology.

People marvel at seeing that where the phenomenal buildings and gardens of Dubai, the so-called "Miracle in the Desert", now stand was barren sand not that long ago, Cong said.

Being part of the seventh-most resource-rich nation in the world does not necessarily mean Dubai is as lucky as Abu Dhabi, which has 94.5 percent of the UAE's total oil reserves.

In order to diversify its economy, Dubai authorities turned their attention to the trade, services, logistics and financial industries. Even after 1967, when oil was discovered, the eighth Dubai ruler from the Al Maktoum family, the late Sheikh Rashid bin Saeed Al Maktoum, decided to use oil revenue to transform Dubai into an important commercial and cultural hub.

Existing ports were dredged and expanded, while new ports were constructed with loans from a variety of creditors. The Jebel Ali Free Zone soon became one of the busiest free economic zones in the world and now is the third-busiest transit trade port in the world after Hong Kong and Singapore.

Connecting European, African and Asian markets, Dubai aims at becoming an integral part of the global trade system. Its economic policies include low customs duties, 100 percent repatriation of capital and profits, no direct taxes on corporate profits or income and no foreign exchange controls, trade quotas or other barriers.

Dubai uses its proximity to the world's dynamic economic regions to compete with rivals such as Shanghai, Hong Kong and London to serve the markets of Africa, Europe and the Middle East.

The efforts paid off as the World Bank's Ease of Doing Business report for 2014 listed the UAE as No 1 in the region and 23rd globally.

Cong is not the only Chinese observer to note that the emirate's vision and ambition has created a great opportunity for China's business community.

Tang Weibin, China's consul-general in Dubai, told business representatives early this month that the current world economic and geopolitical situation means better prospects for Dubai.

He said that Chinese enterprises in Dubai should seize this opportunity for future growth as well as contribute to the sound development of the China-UAE strategic partnership. This year marks the 30th anniversary of the diplomatic relationship.

Currently there are more than 200,000 Chinese people living and doing business in Dubai. The two countries also are closely linked by burgeoning commercial activities.

leixiaoxun@chinadaily.com.cn

(China Daily USA 09/18/2014 page15)