Strategic Plan: Dubai is doing the right things

Dubai: It's been done for the past seven years, but can Dubai maintain it's booming economy until 2015?

"I wouldn't want to bet against this government," said Steve Brice, region head of research for Standard Chartered Bank. "They've done amazing things."

The government's plan, called the Dubai Strategic Plan 2015, is to increase the annual gross domestic product (GDP) of the UAE to $108 billion, which means growth figures of 11.2 per cent annually.

The plan also aims at increasing per capital GDP to $44,000. The plan was announced yesterday by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.

But despite past performance, Brice points out that it's hard to predict economic conditions more than a few years into the future.

"When you come with a economic plan that goes 6 to 8 years, most people would treat that with scepticism," he said. "This is more creditable because of the previous growth. It appears at face value to be achievable."

Mohammad Al Asoomi, a Dubai-based economist, also thinks maintaining 11 per cent GDP growth is feasible.

"There's a basis for saying the GDP will increase by 11 per cent," he said, pointing to the UAE's top ranking among Arab countries in foreign direct investment (FDI). "Dubai in particular will encourage most of the foreign investment. It's the connection between East and West"

Al Asoomi said the plan was well received by people he spoke with.

"I talked to some businessmen yesterday, both local and foreign, and they were happy with the plans," he said. "It will encourage companies to invest in Dubai and the UAE. Dubai is doing the right things." But previous performance doesn't guarantee future results.

""In China, there is hunger, physical hunger, but also hunger for success," he said. "Dubai is much wealthier. It's hard to get into the drive. People can get into a comfort zone."

Simon Williams, an economist for HSBC Middle East, points out that Dubai's goals could also be affected by regional economies.

"We remain very bullish on the outlook for Dubai, which continues to be the region's most vibrant and exciting economic story," Williams said. "But you have to remember that Dubai's economic fortunes aren't entirely under it's own control. The government can lay the ground work for sustainable growth - and I think they're doing that - but Dubai is a service hub and it needs a robust regional economy and strong international demand if it's to continue to prosper."

I think proper infrastructure is needed to sustain the expansion. It is not difficult to channel the liquidity from high oil prices and expand the economy but the government must now seriously think about improving the quality of life in Dubai, which is not as good as it used to be some four years ago.
Shaji
Dubai,UAE

To sustain a growing economy and to aim to increase its GDP, one has to support these plans with proper town planning and infrastructure. Dubai is already facing a serious problem in those aspects and the pace of growth is much faster than that it can sustain. The road system is the backbone of any growing city and looking at Dubai's road system today, I fail to see how it will not affect the economy or any plans of growing the economy in the future.
Rami
Dubai,UAE

I strongly believe that the success story of Dubai will continue, despite some people's scepticism for this vision.
Sajid
Dubai,UAE

The new strategy will certainly work. We have seen the emirate's growth in the past. This new concept will click.
Ragavan
Ajman,UAE

It is good to know that Dubai is booming with progress. I left Dubai two years ago and this makes me want to come back.
Yousaf
Melbourne,Australia