ARTICLES
Dubai unveils new strategic plan. Achieves previous ten-year plan in half the time
18th February 2007
Most of those who have visited Dubai more than once in recent years must have been impressed not only by its rapid growth, guaranteeing a high quality of life for its citizens and the ever-increasing community of expatriates, but also by the amazing things that are constantly being achieved by that Gulf country in the normally unimaginable shortest time-frames.
If Emirates airline offered the opportunity for thousands of Maltese to experience Dubai for themselves, either for leisure or business, the arrival of SmartCity Malta - a project by TECOM Investments - will make Dubai's bold developments and clever ideas much more relevant to Malta. What is not well known in Malta is that some of these major ideas and developments are spurned by TECOM Investments itself.
The latest groundbreaking announcement is the Dubai Strategic Plan 2015 (DSP), which, for many who are not familiar with the history of Dubai in the past 25 years, may sound like an impossible dream. But when it is said by Sheikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and ruler of Dubai, then it's a totally different story.
For it is well worth remembering, as Sheikh Mohammad once poignantly said, "the impossible does not exist in the (UAE's) dictionary". It's already been done for the past seven years, when Vision 2010 was spelt out in 2000 by His Highness, as he is affectionately known in Dubai.
What was planned to be achieved by 2010, Dubai had already nearly achieved by 2005. Such was the phenomenal growth of the emirate that the targets, set seven years ago for ten years, were achieved in half the time.
But, as Sheikh Mohammad pointed out when he was launching Vision 2015: "With these achievements come new hurdles, responsibilities and challenges". Vision 2010 was very much orientated towards developing the economy and all that is related to it to entice investment from abroad and encourage local industry to receive the benefits of the burgeoning financial infrastructure.
"In 2000 the plan was to increase GNP to US$30 billion by 2010. In 2005 that figure was exceeded, with GNP reaching $37 billion. The plan also included an increase in income per capita to $23,000 by 2010.
"In 2005 the average income per capita reached $31,000. In other words, we realised, in five years, economic achievements beyond those which were planned for a 10-year period."
Sheikh Mohammed said: "Over the last few years another very important achievement has been economic restructuring. In 2005, the non-oil sector played a major role, contributing 95% to GDP, as compared to 90% in 2000, and approximately 46% in 1975.
"The services sector was the driving force behind Dubai's economic growth, contributing 74% of GNP, mirroring the economies of the developed world. Our success in diversifying our sources of income has compensated for low oil reserves, and economic growth now depends on an infrastructure not directly affected by the oil sector.
"This is a historic achievement, one which can benefit neighbouring and friendly oil-producing countries in their efforts to restructure their economies and diversify their sources of income."
Now, Dubai Strategic Plan 2015, set to maintain double-digit economic growth, achieve a GDP of $108 billion and increase real per capita GDP to $44,000 by 2015, embraces a far wider dimension, reaching into the livelihood and social condition of all residents, be they Emiratis or expatriates.
The new plan demonstrates a high level of caring by Sheikh Mohammad and the Dubai government. For it was not hurriedly produced in an effort to take advantage of any particular present circumstance, as finance ministers in other countries may tend to do.
On the contrary, in consultation with over 300 officials, businessmen and academics, an elaborate and considered plan was produced. The most significant aspect of DSP, launched under the theme 'Dubai... where the future begins', is that five areas have been identified where change is inevitable and ultimately will be made to comform with the times and targets for the future.
These are: economic development; social development; infrastructure, land and environment; safety, security and justice; and public sector excellence. The advantage of sectionising these departments means that while each is working under a master plan towards a specific target, the departments can also work autonomously and, to some extent, in competition with each other to attain their established objectives while maintaining the high standards expected of them.
The plan sets out a strategic approach that focuses on developing the emirate's most dynamic economic sectors that have been the key contributors to Dubai's annual real GDP growth rate of 13% since 2000.
"The plan encompasses many new attributes, with a foundation firmly built on quantitative achievements which form a solid base for sustained growth in the era of the knowledge economy," Sheikh Mohammed said.
"The plan will not be affected by oil price fluctuations. Dubai has succeeded in diversifying its sources of income, and reducing its dependence on oil, so that, today, oil's contribution to GNP is a mere 3%.
"We have come a long way towards achieving the objectives of an economy independent of oil. Indeed, we have exceeded all expectations and predictions."
Economic development
The Economic Development Plan (EDP) aims to sustain the level of growth of the emirate's economy - which has been growing faster than the emerging economies of China and India over the past six years - with a growth of 13%.
The EDP will focus on those sectors that have historically made the most significant contribution to GDP, and the continued exploitation of Dubai's 'first-mover' advantage, as well as the influx of significant levels of foreign direct investment (FDI).
It identifies supporting supply-side factors that have significantly contributed to economic growth, including the presence of an efficient government; a solid institutional framework and effective mechanisms in the delivery of services; strong laws and regulations; an excellent logistics' infrastructure; strategic location, coinciding with the rapid rise in global trade, especially in China and India over the past five years, and an openness to foreign cultures that has resulted in a large influx of people and the belief that Dubai is a safe and comfortable place to live and do business.
The EDP will optimise the trade sector, which saw the highest increase in GDP share of all components of the service sector (comprising trade, construction, transport, storage and communication, real estate and business services, and tourism).
An underlying pillar of the EDP is that, within Dubai's current GPD mix, the strongest sectors are those forecast to experience the strongest growth globally. Specifically, the EDP aims to sustain real GDP growth of 11% per annum for the next ten years, increase real per capita GDP from $31,000 to $44,000 by 2015, increase productivity by 4% per annum and create new sectors of growth with sustainable competitive advantage.
The future strategic growth of Dubai is based on six key 'building blocks', which include tourism, trade, transportation and finance. The development of these 'building blocks' will be strategically supported by seven horizontal growth enablers, which will be addressed in parallel.
These are human capital, productivity, innovation, cost of living and doing business, quality of life, economic policy and institutional framework, and laws and regulations. The EDP will be integrated with federal government plans for the development of the UAE as a whole.
Social development
Having an effective social infrastructure is the key to reaching higher levels of sustained economic growth. Social development has always been at the heart of the Dubai Government's policies and it is a key component of the Dubai Strategic Plan. "At the end of the day, social development is aimed at nationals, and we want nationals to be the major instruments of its implementation," Sheikh Mohammed said.
"It is common knowledge that it is far easier to build financial capital than it is to build intellectual, psychological and moral capital. Building a road, or a bridge, may take a year or two, but building a person takes a lifetime.
"We live, today, in the ever changing era of knowledge, requiring continuous learning, which does not end at a certain level, or by attaining a certificate, or certain expertise. Social development, in all its aspects, requires distinct programmes, outstanding performance, patience and internationally-accepted criteria for measurement and evaluation."
Sheikh Mohammed said the DSP crucially acknowledges the key role of social development. He noted that only those countries with an infrastructure supporting effective social development are able to sustain high levels of continuous economic growth.
The DSP, he said, commits to improving performance in key areas, including education, health, culture, social assistance and the work place, as the only way to secure sustainable economic prosperity for Dubai. Specific strategic focus will be given to increasing the sense of belonging and awareness of the local culture by updating the content of curricula and improving Arabic language proficiency.
Sheikh Mohammed said the DSP would support all fields related to cultural development, including theatres, cinema and the arts, as well as supporting Dubai's participation in regional and international cultural events. He added that the strategy recognises the importance of the private sector's role in developing culture in Dubai.
Under the DSP, initiatives will be launched to ensure nationals are the preferred employees in strategic sectors. These initiatives will be aimed at improving education and skills development. Nationals will also be equipped with the necessary life skills to cope with a rapidly changing world.
All nationals will have access to quality education that will include the upgrading of teachers' qualifications and the curricula to international standards. At the same time the requirements of students with special needs will be met.
In the area of health, the DSP will ensure that health insurance is improved and international accreditation for hospitals is introduced. In addition, a more rigorous medical licensing process will be implemented, with specific clinical guidelines developed.
Labour regulations will be updated and enforcement mechanisms will be improved. The awareness of employers and employees of their legal rights and responsibilities will be enhanced. The DSP also aims to ensure that the right environment is achieved to attract and retain the skills required to sustain economic and social growth.
Overall, the plan will improve the governance of the services sector and transform service delivery from welfare-based to a social development model.
Infrastructure, land and environment
In terms of infrastructure, land and the environment, the DSP covers four main areas: urban planning; energy, electricity and water; roads and transportation; and the environment. It will target sustainable development and seek to provide a balanced infrastructure, which includes all aspects of development, while protecting the environment.
An integrated roads and transportation system will be introduced to facilitate movement and improve safety. This will include greater use of public transport; reduced use of private cars; increased road network and transportation system capacity; the use of modern technology to make the transport system more efficient; demand management and more effective management of accidents and emergencies.
The DSP also highlights the efforts already being made to improve road safety by enforcing safety audits; developing and implementing safety standards; and influencing driver behaviour through awareness, stricter regulations and effective enforcement.
Under the DSP, environmental standards will be updated and aligned to international standards and the emirate will adopt a sustainable development approach through the integration of environment best practices in development policies.
Security, justice and safety
Under the DSP, Dubai plans to enhance its reputation as one of the world's safest places to live. It pledges to protect human rights proactively, and guarantee equality and a dignified life for all individuals in the community.
Specifically, seven objectives will be targeted: preservation of security and order; protection of rights and freedoms; crisis and disaster management; access to justice, equality; neutrality; accuracy and clarity of investigations and judgments; the speedy hearing of cases; and safety and public health.
Legislation will be developed accordingly, supported by effective legal processes and automation where appropriate.
Public sector excellence
The DSP acknowledges that as Dubai evolves and the global environment is characterised by increasing competition and change, the emirate will need to continuously modernise its government's performance.
"A world class government is essential to face global competitive pressures and expectations for greater transparency, accountability, efficiency, equity and responsiveness to the public in terms of customer service excellence," Sheikh Mohammed said.
The DSP highlights five specific areas that will support the drive to public sector excellence. These are strengthening the strategic focus; enhancing organisational structures and accountability; increasing efficiency; improving customer service; and empowering and motivating public sector employees.
The directors of Dubai government departments will be responsible to the Dubai executive council for executing this strategy.
The plan also envisages an improvement in the management of the Dubai government's financial systems through performance-based budgeting; more efficient accounting policies; and the automation of procedures. Public sector employees will be empowered and trained.
Sheikh Mohammed said: "The (DSP) does not constitute a collection of mute words and static texts. It represents a way of thinking, a tool by which to measure and evaluate. It is a map that outlines our path to the future, helping us to make the right choices and reach accurate conclusions.
"This is our guide and our reference while we work to consolidate Dubai as a pioneering global city, bursting with vibrancy and creativity, and attracting the best minds and the most successful businesses to an environment where living and working is a pleasure."
People should not be worried by Dubai's emergence as a global city, he added. "Some people are afraid of the word 'global', believing it to be the opposite to everything local, and to national and cultural identity.
"The concept of the word 'global' is based on a set of criteria accepted by the world community and is the by-product of successful practices based on a broad spectrum of human experiences.
"The principles set forth by international laws, concerning human rights and international relations, are the universal standards which should apply to all countries of the world."
He concluded: "As we have succeeded in the past, we will succeed in the future. We will write new pages in our nation's epic of glory, pride and achievement. We will inspire our nation, and we will set the example.
"We will present to our world proof that we are capable of action, of imposing our presence, of communicating, interacting, co-existing, and co-operating with all other cultures and civilizations."
While Malta and TECOM Investments are endeavouring to make SmartCity Malta a reality, many lessons can be learnt here for Malta. And if our positive record of being fast learners is anything to go by, then the bright prospects and economic vibrancy such a project is expected to generate may be even greater than those carefully studied and anticipated.
