Reimagining Dubai’s Future-Transformation from a Global Business Centre to the Leader in MICE and the Capital of Global Digital Economy
Dubai’s real GDP grew 2.8% year-on-year in the first quarter of the 2023 to reach AED 111.3 billion. The continued high growth is a testament to Dubai’s strong fundamentals, sustainability, resilience and its capacity to create new opportunities for innovation and enterprise. Wholesale and Retail trade continue to drive economy followed by Transportation, Food services, Real Estate, Financial and Insurance.
During the first half of 2023, the Dubai International Airport welcomed 41.6 million passengers on 201,800 flights. 257 destinations across 104 countries are connected by Dubai through 91 airlines. 120 smart gates are used by 36% of the passengers. Currently Dubai Airport handles 1100 flights per day, with 62 aircraft movements in an hour and 381,000 aircraft movements per year.
In the first 6 months of 2023, Dubai welcomed more than 8.5 million international visitors. Dubai was named the world’s top ranked destination in Tripadvisor’s Travellers Choice Awards 2023.
Dubai’s bourse Dubai Financial Market rose 14% with a record AED 71 billion gain in market value for listed companies reaching AED 652 billion. Real Estate grew with total transactions reaching AED 285 billion. Dubai also emerged as one of the world’s three most attractive cities for the wealthy. Also ranked as one of the cities that recovered the fastest from the pandemic. Dubai registered a growth of 44% in business event bids in the first 6 months of 2023 leading to 143 MICE which will bring in 94,000 experts and leaders to Dubai.
In Dubai and the UAE there is a unique opportunity to boost local manufacturing and also make it a hub for global trade. By investing in local manufacturing, the UAE is planning to create jobs, reduce its reliance on imports and increase its economic independence. D33, Dubai’s
economic agenda is an aspirational statement of intent by Dubai’s leadership towards the future. D33 is the future that will guide Dubai to achieve the goal of doubling the economy over the next 10 years and also become one of the top 3 economic cities in the world. It is interesting to see that the leadership focusing on innovation and future technologies to reinforce Dubai’s reputation and brand as a global tech hub. Sandbox Dubai aims to transform the city as a major hub for incubation for business innovation by enabling the testing and marketing of new products and technologies. This will attract global tech talents and entrepreneurs to Dubai and help create the target of 30 unicorns by 2033. Dubai’s ambition is to generate a new economic value of AED 100 billion from digital transformation annually.
The Dubai Government has worked to create an environment that fosters innovation, entrepreneurship and economic diversification with a world-class infrastructure and the latest technology to the new skilled workforce and the investors that are reaching Dubai. Social listening and creative bespoke solutions suiting the ever changing business requirements are in top priority for Dubai.
DubaiemergedastheWorld’smostpopulardestinationfor two years running ranked by Trip advisor, has 810 hotels and hotel apartments with 154,000 hotel rooms currently with the world’s highest occupancy rates at 78% in 2023. Dubai welcomed 8.6 million tourists in the first half of 2023. Internationally branded hotels constitute 67% of Dubai’s existing rooms list with Accor at the top spot with 71,820 rooms, Marriott at 63,790 rooms, IHG at 35,140 rooms and Hilton at 33,450 rooms.
Dubai has achieved top global ranking in attracting FDI in the cultural and creative industries by attracting 451 projects in the cultural and creative industries surpassing major cities like London, Singapore, Paris and Berlin.
Dubai’s total FDI capital flows in the cultural and creative industries reached AED 7.35 billion in 2022, ranking first in the MENA region and 12th globally.
100% ownership in Mainland for Foreign Direct Investments and long term visa for investors in the UAE are the new laws. Also the Government is planning to launch Dubai’s Unified License as a unique commercial identity for all companies all over Dubai. This will be a game changer in future. The Dubai Digital Cloud Project is a collaboration between the public and private sectors and it not only supports economic growth, but also seeks to raise the efficiency of government operations and the quality of life of people. It cements Dubai’s global status as a model city and an example of how digital transformation can be implemented to serve the community and the business sector.
Dubai reinforced its status as a global leader in sustainable infrastructure by unveiling the world’s largest and most efficient waste-to-energy facility in Warsan, with an investment of AED 4 billion. The plant has a capacity to generate 220 megawatt-hours of renewable energy, powering approximately 135,000 residential units and is designed to process two million tonnes of waste per year without any adverse environmental impact. The UAE’s Energy Strategy will create 50,000 green jobs by 2030. UAE will invest between AED 150-200 billion by 2030 to ensure energy demand is met while sustaining economic growth resulting in financial savings of AED 100 billion. This will pave the way for UAE’s climate and net-zero commitments by 2050. UAE recognises the importance of youth as agents of change, entrepreneurs and innovators
who can contribute to the green transition and foster environmentally sustainable decisions in work and life. Hosting the COP 28 will be a game changer and is a platform to showcase the UAE’s strides in climate sustainability and commitment to halve carbo emissions by 2030. The UAE calls for a global cooperation to protect the environment and preserve our planet for future generations. The UAE is a leader in innovation and sustainability in the region with a target of increasing the share of clean energy to 50 percent by 2050. Thus UAE aims to becoming a global hub for green economy and clean energy.
UAE became the fifth country in the World to reach Mars. However UAE’s ambitions transcend Martian exploration with ambitious plans to investigate the asteroid belt within our solar system. That shows the unwavering commitment and innovation of UAE in the field of space science. Mohammed Bin Rashid Space Centre, Dubai founded in 2006 is home to the UAE National Space Program.
UAE’sambitionsofthe‘MakeitintheEmirates’programme under the ‘Operation 300 billion’ industrial strategy is to raise the industrial sector’s contribution of GDP to AED 300 billion by 2031 from AED 133 billion in 2021. If you look at trade, investment, financial markets, logistics, infrastructure, shipping, tourism, aviation etc. UAE is the country where investors are attracted and they find capital, talent and ideas come together, grow and flourish. Omnichannel digital payments, training and upskilling staff, digitizing business operations, data analytics and insights are considered by the entrepreneurs as key changes for business growth in UAE.
Dubai government services reach 99.5% digitisation rate with over 120 government smartphone applications being developed. It’s paperless objective has been achieved. Digital transaction account for 87% of total government service transactions. Dubai is ready to usher in an advanced digital future and raise its status as a global exemplar for digital governance in line with the ambitious objectives of the ‘Dubai Economic Agenda 33’ and the aims of the ‘We The UAE 2031’. Dubai Centre for Artificial Intelligence will help Government entities deploy future technologies across key sectors. The Centre aims to train 1000 government employees from over 30 government entities on the uses of generative AI and also support 20 local and global advanced technology start-ups.
The GCC has the World’s eighth largest economy with a GDP of US$ 2.4 trillion and has an annual growth rate of 6%, which is targeted to be raised to US$ 6 trillion by 2050. The six countries that make up the GCC conduct US$ 107 billion worth of international trade while GCC sovereign funds manage investments worth US$ 3.25 trillion. The MENA region with 25 countries is home to 7% of the World’s population which approximately 500 million people. Dubai has 47.4% Emiratis in private sector out of the total 79,000 Emiratis working in the UAE private sector. UAE collaborates with the region and World by signing Common Economic Partnership Agreements (CEPA). India, Indonesia, Turkey and others have signed the CEPA.
Huge collaborations are happening at Kreston Middle East. We are 16 Firms from 12 countries in the Middle East. And we are projecting as one brand Kreston in the region. Recently we bagged a major deal on Audit from a major
regional player who moved Audit to Kreston now, after more than 30 years of Audit with Big 4’s. This Audit deal is for Kreston in UAE, Saudi Arabia and Egypt. And they will sign with other regions also. Recently the ME conglomerate of a global engineering firm knowing Kreston Menon and Middle East collaboration shifted their UK audit from the Big 4 to Kreston Partner in the UK. Kreston Menon initiated this. Kreston Menon helps Kreston firms globally by activating them with the UAE and Middle East business enablers and trade bodies. That can be connecting with their Diplomatic Missions, Trade Offices and Major Companies. Also connect Kreston Partners in all countries with the UAE Diplomatic and Trade Missions in their country. Thus collaboration and connectivity increases and together we shall create an outstanding experience for our clients and prosperity for all. Kreston Middle East collaborates with Kreston Africa and also jointly participates in Conferences and meetings. Other Kreston Regions are in the anvil and Kreston Middle East are in talks with them.
Kreston World & EMEA Conference 2023, organized by Kreston Global and hosted by Kreston Menon is happening in Dubai from Dec 4-7 at the JW Marriott Marquis, Business Bay. 300 plus delegates from 120 plus countries are attending the Conference.
Yes, the story of Dubai continues to be written and it’s an achievement for all that call Dubai home-past, present and future. As His Highness Sheikh Mohammed Bin Rashid Al Maktoum-Vice President and Prime Minister of the UAE and the Ruler of Dubai says-‘We know our economic position during the next decade-the world makes way for those who know what they want’.
sudhir, Sudhir Kumar, Senior Partner & Head of Corporate Communications - Kreston Menon and Director - Kreston Global Board
