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Dubai Moves Towards Knowledge-based, Innovative Economy

The Dubai Competitiveness Council, or DCC, recently organised an executive roundtable of “Clusters and Dubai’s Competitiveness” to discuss finance, tourism, logistics, construction and real estate and made suggestions to develop these key sectors.

DCC, the operational arm of Dubai Economic Council (DEC), will finalise the policy after considering the recommendations and inputs from business and government executives at the roundtable.

The purpose of the roundtable was to create platforms for collaboration between the private and public sector leaders and among the players of the clusters.

Hani Al Hamli, Secretary-General of Dubai Economic Council, said in his opening speech: “It is not accidental that Dubai Competitiveness Council’s Cluster Assessment Study has taken place in the midst of the global downturn. It is the time for an opportunity to make course corrections, if necessary and to envision much farther into the future of what Dubai can do and must be.” He said that Cluster Assessment Study is one of steps that “we undertake to not only assess the economic situation and make recommendations but also create forums for debates and discussions on what Dubai should do next in order to capitalise on its success and move into a more innovation driven, higher value added economy, to be specialised, diversified and yet unique in today’s global knowledge based economy.”

Roadmap for construction sector

Marwan bin Ghlaita, CEO of RERA, argued that there is no clear categorisation of construction companies. Additionally, he proposed there should be a clear roadmap for what the cluster is heading and take inconsideration the factor of social development.

“There is also a need to enhance the legal framework to secure the rights of all parties in these clusters,” he stressed. Graham McCaig, GM of Dutco Balfour Beatty, said: “after a construction boom, construction cluster now needs to get back to its basics and think of doing business more ethically and professionally.”

Tariq Khansaheb, a member of DEC, stressed on the ethics of construction companies and real estate developers. He also proposed to provide continuous solutions to support the 
contractors.

Dr Naji Almahdi, Executive Director of National Institute for Vocational Education at Knowledge & Human Development Authority, stressed there should be a vision of linking the outcome of education with the labour market requirements, in order to utilise the education for development process.

Elaine Jones, CEO of Asteco, said: “Long-term vision for the cluster needs to be developed where the social aspect of cluster will be considered too. We need to identify the main consumers in order to bridge the gap between the demand the supply.”

Three-dimension strategy

The second session of the roundtable discussion was dedicated to financial clusters. The clusters study recommended that there is a need to a three-dimension strategy. First, to manage the impacts of the global financial crisis on key local sectors. Second, new growth by enhancing the transparency and regulatory entities, including Islamic finance framework. And third, local roots by education and training, in addition to a framework of collaboration between financial institutions.

Arif Alharmi, CEO of Amlak Finance, said that it is necessary to check the credit worthiness of investors in real estate sector who don’t get mortgage from local banks.

Abdul Wahid Al Fahim, General Manager Wholesale Banking Department, Emirates NBD, confirmed that enhancing the local liquidity is a decisive condition to enhance the competitiveness advantage of financial sector 
in Dubai.

Dr Nasser Al Saiedi, Chief Economist of DIFC showed the importance of accurate and complete data of financial sector in order to take sound policies. He also stressed on the data disclosure, and legal infrastructure enhancement. Al Saiedi also highlighted the role of decisions made by the Government including Dubai’s bond to confront the impacts of financial crunch. The same viewpoint raised by Dr Armen Papazian, Head of Islamic finance of UBS Investment Bank, who stressed the importance of data to strengthen the financial clusters.

Logistics clusters

The DCC researchers’ team presented the main indicators of logistics clusters in Dubai, including the record numbers that Dubai got especially in cargo and containers ports.

Mohammad Almarri, Executive Director of the Custom Operations from Dubai Customs, discussed the active role that Dubai customs is playing to strengthen the logistics. He also highlighted the importance of focus on client to improve the competitiveness.

Mahmood Al Bastaki, Director of Dubai Trade of Dubai World, said: “effective communication is lagging between the different components of this cluster and for that we need to create a common platform for a smooth and timely exchange of information and be able to streamline the whole trade process. An umbrella organisation that will oversee all entities related to the logistics cluster can improve this communication.”

Action plan for tourism

Lastly, the participants discussed tourism cluster and made recommendations to further promote the sector.

Hilal Almarri, Executive Director of Dubai World Trade Center, emphasised that there should be a clear strategy for where the cluster is heading which should be followed by an action plan. Easing the visa process as well as electronic visa system was also recommended in the meeting. More promotions in new markets especially in China along with a unified package for the festivals, was also suggested.

Jumera Group chairman mentioned the need for apprenticeship and vocational training institutions for 
this cluster. Hamad bin Mejren, executive director, Business Tourism, Department of Tourism and Commerce Marketing said: “we will be working closely together with DCC as a continuation of these efforts.”

· muzaffarrizvi@khaleejtimes.com