Dubai's economic growth rests on good governance

Dubai: Highlighting the expansion and diversification of Dubai's economy over the past several years, Mohammad Ebrahim Al Shaibani, board member and chief executive of the Investment Corporation of Dubai (ICD), the investment arm of the Government of Dubai, said that ensuring the highest levels of corporate governance and transparency will prove key to the emirate's continuing growth and future prosperity.

Al Shaibani, who is also director-general of the Ruler's Court, supported the statement on corruption released by the Dubai Public Prosecutor.

"As one of the world's most dynamic economies, whose GDP surged to $53.9 billion last year and with an annual average growth rate of some eight per cent, Dubai continues to serve as a model for development and diversification," Shaibani said.

"Reducing our dependence on hydrocarbons, which now account for less than five per cent of GDP, while simultaneously encouraging new public-private partnerships and creating vast numbers of new employment opportunities, the emirate is an inspiration to the region — and, indeed, the wider global community.

"As outlined in the Dubai Strategic Plan 2015, the emirate aims to increase productivity by four per cent annually, while raising its GDP to $108 billion and per capita GDP to $44,000 by 2015.

The goals are ambitious, but can be realised, especially as the emirate increasingly invests in education and training, building a knowledge economy for the new millennium.

Al Shaibani said: "During this period of sustained economic growth, development and diversification, the Government of Dubai continues to recognise the importance of demonstrating to the regional and international community the emirate's ongoing commitment to good governance and its upholding of the highest regulatory standards.

"Embracing global best practices will continue to benefit the emirate as a whole and publicly listed companies in particular.

"There is a clear correlation between good governance, investor confidence and corporate profitability. Indeed, studies have shown that, worldwide, investors are willing to pay a premium for companies exhibiting high standards of corporate governance.

"The Investment Corporation of Dubai fully supports the drive to ensure the highest levels of corporate governance and transparency," said Al Shaibani.

"Focused on both local and international opportunities, ICD manages its own portfolio of assets in line with global standards, and we encourage all entities in the emirate — both public and private — to share our commitment," he said.