It has been suggested time and time again that the property market in Dubai is a huge bubble destined to burst. In my opinion, this is a long way from the truth. The reality is that Dubai has cleverly positioned itself as the gateway to the world for countries such as India and Pakistan.
Similarly, multinational firms wanting to expand operations to those countries are looking to Dubai as the place to base themselves. When looking for a base, the factors that play a key role in the decision making process are: political stability, security, legal structure, infrastructure and lifestyle. For a multinational company, when considering all of these factors together, there is no other city in the region as well equipped as Dubai.
Further, its geographic position and the fact that Dubai has in place and continues to develop its technological infrastructure and the global marketing platform required by firms, has helped attract many global businesses.
Secure environment
While many cities across the region will continue to grow and other GCC cities will build their infrastructure, in terms of headquarters, people will look for a secure environment. And to that extent, Dubai is already way ahead. Significantly, the emirate is in the enviable position of having the political infrastructure to deliver its goals and objectives.
Don't get me wrong, there will be better cities for specific industries and more specialist areas will arise. But overall, for a multinational firm wanting a base in this region, Dubai is the best option.
Its size dictates that Dubai will never have the largest consumer market, which makes its strategic links with India invaluable. In fact, Dubai is already one of India's top trading and tourism partners and the UAE alone represents 70 per cent of India's exports to the GCC.
As India's disposable income increases it will become one of the largest consumer markets in the world. However, it lacks the logistical infrastructure to cater for such a mammoth consumer population. Products and services from all over the world will need to reach India and in the same way, as India reaches out globally, it will need a logistical hub for the region.
From the point of view of investors, Dubai is a much easier and more secure place to have a base and with the relaxation of Dubai's foreign investment laws, it is likely to become "India's supermarket".
Dubai Logistic City (DLC) will play a huge role in all of this. DLC will become a one-stop logistics shop that facilitates the import and export of products across the globe. It will become the business location of choice for firms that require, or offer, logistics and transport services to the GCC, wider Middle East, India, Africa and the southern CIS.
So, as you can see, there is a lot more to Dubai than meets the eye. In attracting such a large number and wide range of corporations, it has already become an international commercial and economic hub and a leading tourist destination. With the plans that are in place, things will only get better.
Multinationals are here to stay and with more and more firms being set up all the time there is a greater need for warehouses, offices, homes, schools, hospitals, shops, leisure and entertainment facilities. The list is endless. All of which will help to sustain the economy and justify the incredible growth that has been witnessed.
Dubai's Strategic Plan 2015 has one clear objective, which is: "To become the commercial, financial and recreational hub of the region." I have no doubt this objective will be realised. Source
Similarly, multinational firms wanting to expand operations to those countries are looking to Dubai as the place to base themselves. When looking for a base, the factors that play a key role in the decision making process are: political stability, security, legal structure, infrastructure and lifestyle. For a multinational company, when considering all of these factors together, there is no other city in the region as well equipped as Dubai.
Further, its geographic position and the fact that Dubai has in place and continues to develop its technological infrastructure and the global marketing platform required by firms, has helped attract many global businesses.
Secure environment
While many cities across the region will continue to grow and other GCC cities will build their infrastructure, in terms of headquarters, people will look for a secure environment. And to that extent, Dubai is already way ahead. Significantly, the emirate is in the enviable position of having the political infrastructure to deliver its goals and objectives.
Don't get me wrong, there will be better cities for specific industries and more specialist areas will arise. But overall, for a multinational firm wanting a base in this region, Dubai is the best option.
Its size dictates that Dubai will never have the largest consumer market, which makes its strategic links with India invaluable. In fact, Dubai is already one of India's top trading and tourism partners and the UAE alone represents 70 per cent of India's exports to the GCC.
As India's disposable income increases it will become one of the largest consumer markets in the world. However, it lacks the logistical infrastructure to cater for such a mammoth consumer population. Products and services from all over the world will need to reach India and in the same way, as India reaches out globally, it will need a logistical hub for the region.
From the point of view of investors, Dubai is a much easier and more secure place to have a base and with the relaxation of Dubai's foreign investment laws, it is likely to become "India's supermarket".
Dubai Logistic City (DLC) will play a huge role in all of this. DLC will become a one-stop logistics shop that facilitates the import and export of products across the globe. It will become the business location of choice for firms that require, or offer, logistics and transport services to the GCC, wider Middle East, India, Africa and the southern CIS.
So, as you can see, there is a lot more to Dubai than meets the eye. In attracting such a large number and wide range of corporations, it has already become an international commercial and economic hub and a leading tourist destination. With the plans that are in place, things will only get better.
Multinationals are here to stay and with more and more firms being set up all the time there is a greater need for warehouses, offices, homes, schools, hospitals, shops, leisure and entertainment facilities. The list is endless. All of which will help to sustain the economy and justify the incredible growth that has been witnessed.
Dubai's Strategic Plan 2015 has one clear objective, which is: "To become the commercial, financial and recreational hub of the region." I have no doubt this objective will be realised. Source
No comments:
Post a Comment