As our year gets into gear we see buoyant markets, higher property prices and increased business confidence in the UAE. Retail sales are up along with visitor numbers and hotel occupancy. By the end of last year, The Dubai Mall had attracted 75 million visitors. The bounce-back has been remarkable.
Only four years ago, property prices in the emirate fell nearly 60 per cent while debt of at least $100 billion looked certain to hobble any recovery for years to come. But Dubai is proving its resilience and the indicators are looking good.
Feedback from our clients is positive. Most are looking to achieve decent growth in 2014 and beyond.
Me? I’m also optimistic. We have a good client-base, great people and exceptional prospects; not only in Dubai but across the Mena region. We, too, are positioned for growth.
So, it looks like total optimism for 2014, right? Well, yes and no.
We must maximise the opportunities that are on the near- and mid-term horizon, but we would be unwise to forget the lessons learned in the tough years’ before Dubai’s apparent comeback.
Think back. Until the global financial crisis and the local meltdown, our business community was in the grip of boundless optimism. Growth that went back decades encouraged complacency. For some, business success was merely a matter of turning up.
They didn’t have to try too hard. Local businesses were shooting the lights out. No project was too big; no target too ambitious.
Confidence is good, but prudence is also necessary. To achieve sustainable success you plan for the long term. You stay disciplined. You ensure your product is competitive and your people remain hungry. You don’t get carried away after a success or two.
Unfortunately, people have short memories. Already, there are signs that exuberance is again taking over. Local advertising language is suddenly uber-optimistic. Happy days are here again and some assume they’re here to stay.
Well, we now know that global events can pull the rug from under any economy and no region has a guarantee of everlasting growth. Remember, growth in Japan averaged 10 per cent in the 1960s, 5 per cent in the ‘70s and 4 per cent in the 80s. After that, growth stalled and it has taken 20 years for Japan to turn the corner.
It’s OK to dream big, but wishing does not always make it so. Many Dubai businesses went through tough times as recently as a year ago. Many engaged in a restructure or realignment. Those companies are better for it.
Organisations that recently experienced a reality check will do their utmost to maximize the new upturn, but we should not expect them to throw money around without thinking. They will look for tangible results.
They will seek long-term gains. A quick upward blip on the sales chart won’t be enough.
This is an opportunity for our Group. We are positioned to become the strategic partners of our clients – the advertising and communication professionals who are capable of delivering growth that sticks.
We must communicate confidence, but without bluster. We are not in the boasting business, we’re in the delivery business. We are partners in success; not excess.
We can be brave in 2014, but that does not mean we can’t be smart, strategic and results focused at the same time.
Pride comes before a fall. We’re on the rise… and we’ll stay that way by staying humble.
— The writer is chief operating officer at TBWA/Raad.
