Dubai will always be hub of commerce

The various cultural and econ-omic events that took place in Dubai in February and March have proved beyond doubt that the emirate will always be an international centre for such activities. Dubai, just like any other open city, interacts with the rest of the world in all aspects. And those who think they are sheltered from the repercussions of global events are wrong.

All countries, without exception, have been hit by the global financial crisis. But the crisis has affected developed parts of the world more than the less developed, and those who were slow and did not move forward.

The UAE - and Dubai, the trading hub, in particular - is naturally facing more challenges than other countries in this region. Actually, it would be surprising if Dubai had not been affected, just like any other active and expanding city.

Throughout its history, and since the days of the global financial crisis between the First and Second World Wars, Dubai faced many challenges, crises and disruptions, which could have paralysed the progress of any other city whose economy was based on international commerce.

For instance, when artificial and cultured pearls from Japan became more popular than natural pearls, the whole Gulf region suffered from stagnation. Yet the crisis affected Dubai less than other cities in the Gulf, as the emirate was involved in other commercial activities.

Back then Dubai Port emerged as a vital import and re-export hub because it was a free port where thousands of ships arrived without hindrance. This free trade policy is still paying off in Dubai, as trade is part of culture and development, and countries that ignore this fact cannot stand up to challenges.

It is true that mistakes were made, and this fact should not be ignored. But it must also not be exaggerated. Mistakes do happen and result in problems, but we have to be ready to rectify mistakes and prevent them from happening again. Even advanced countries, despite their strict government controls and civil society institutions, make mistakes. There are many such recent examples, which have, in fact, led to the current global economic crisis.

It is necessary to highlight these mistakes and discuss their reasons, to avoid more problems and find solutions. This is why we must discuss problems that could affect our society, such as corruption.

It is necessary to prevent corrupt people from taking charge, by creating the right control mechanisms and empowering the authorities concerned to question all officials. These authorities should be independent and have clean records.

They should also be made to realise that they will be held accountable for negligence or if they turn a blind eye to corruption.

We must acknowledge that boards of public and private stockholding companies are, in many cases, appointed and directed by their executive directors. We can clearly see negligence in the meetings of general bodies and the nominal elections of board members, which take place without any control from the ministries and authorities.

This is not meant as an accusation against any particular executive director, because the director may be more responsible and honest than control authorities and boards, and may act in good faith.

However, administration principles in developed communities stipulate that officials must be held accountable by the boards of their companies, and board members must also be answerable if they fail to carry out their duties.

It is true that the accountability process may slow down the implementation of projects and this is sometimes used as an excuse by executive directors. But I believe such officials are not fit for leadership, as they lack self-confidence.

In today's world, if the US and European economies are doing well, the rest of the world should be fine, as the US and Europe are the treasuries of the world's monies and assets.

The UAE is closely linked to what is going on in the US and Europe, and it is in the best interest of both parties that this strong link is preserved. The UAE is a rarity in this region, as it brings together people from all over the world to live together in peace and harmony. Dubai, with its infrastructure, seaports, airports, cash and asset reserves, is way ahead of any other city in the Middle East.

Furthermore, foreign traders not only find everything they want in Dubai, they also find a rare commodity: trust.

Investors can buy commodities from Dubai and pay for their purchases months later, after selling them in other countries.

All of this leads us to one conclusion: The UAE is able to face any crisis and even change the course of the crisis.

We must be optimistic, but must also work hard to remove any obstacles hindering reform, which starts with making directors realise that they will be held accountable by their boards.

Abdul Gaffar Hussain is a UAE writer and researcher.