Halliburton boosts Dubai's ambitions
US oil services giant Halliburton's surprise decision to relocate from Texas to Dubai has boosted the country's ambitions to be a major player on the international financial scene.
"It's very positive for the UAE and Dubai especially," said Monica Malik, chief economist at Standard Chartered Bank.
"It's just the sort of thing that Dubai wants. It's a place that companies can use as a hub for the wider region," she said.
"The move (by Halliburton) cements its position," said Mustafa Alani, senior advisor at strategic think tank Gulf Research Centre.
"Whether it's financial, the service industry or connectivity, Dubai is now a major player." He said there were "political as well as practical motives" for the decision by the company that was headed by Dick Cheney from 1995 to 2000 before he became US vice president. "Halliburton has been linked heavily with US foreign policy and military activities in Iraq and may have faced difficulties from public opinion elsewhere in the region," Alani said.
"In Dubai, trade comes first, while politics is further down the list," he said.
"It is yet another company taking advantage of the infrastructure built up in the country," said Zahed Chowdhury, head of Middle East company research at Deutsche Bank. "Be it transportation, IT or storage, Dubai has it all." Dubai airport is connected to around 200 destinations.
The deal also highlights the growing synergy between Dubai and the UAE capital Abu Dhabi, which is undergoing a $260 billion economic diversification programme, while building on its comparative advantage in the oil-related sector.
"This move is as much about Abu Dhabi as Dubai," said Standard Chartered's Malik.
Halliburton's decision comes at a time when Dubai is facing widespread criticism over escalating costs. There have even been rumours that some international companies were considering scaling down operations in the emirate.
A prominent US businessman advised caution, urging American investors to be vigilant before heading to Dubai.
"The delays in signing a free trade agreement (FTA) between the US and the UAE must still be a concern," said W Jonathan Wride, managing director of private equity firm Capital Partners, which is investing $1bn in the Riverwalk mixed use development in Dubai.
Wride, whose project is one of the single largest foreign direct investments in the emirate, said he hoped Halliburton's relocation would help accelerate FTA talks.
"It's very positive for the UAE and Dubai especially," said Monica Malik, chief economist at Standard Chartered Bank.
"It's just the sort of thing that Dubai wants. It's a place that companies can use as a hub for the wider region," she said.
"The move (by Halliburton) cements its position," said Mustafa Alani, senior advisor at strategic think tank Gulf Research Centre.
"Whether it's financial, the service industry or connectivity, Dubai is now a major player." He said there were "political as well as practical motives" for the decision by the company that was headed by Dick Cheney from 1995 to 2000 before he became US vice president. "Halliburton has been linked heavily with US foreign policy and military activities in Iraq and may have faced difficulties from public opinion elsewhere in the region," Alani said.
"In Dubai, trade comes first, while politics is further down the list," he said.
"It is yet another company taking advantage of the infrastructure built up in the country," said Zahed Chowdhury, head of Middle East company research at Deutsche Bank. "Be it transportation, IT or storage, Dubai has it all." Dubai airport is connected to around 200 destinations.
The deal also highlights the growing synergy between Dubai and the UAE capital Abu Dhabi, which is undergoing a $260 billion economic diversification programme, while building on its comparative advantage in the oil-related sector.
"This move is as much about Abu Dhabi as Dubai," said Standard Chartered's Malik.
Halliburton's decision comes at a time when Dubai is facing widespread criticism over escalating costs. There have even been rumours that some international companies were considering scaling down operations in the emirate.
A prominent US businessman advised caution, urging American investors to be vigilant before heading to Dubai.
"The delays in signing a free trade agreement (FTA) between the US and the UAE must still be a concern," said W Jonathan Wride, managing director of private equity firm Capital Partners, which is investing $1bn in the Riverwalk mixed use development in Dubai.
Wride, whose project is one of the single largest foreign direct investments in the emirate, said he hoped Halliburton's relocation would help accelerate FTA talks.
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