Dubai’s agenda D33: Systematic Approach of Management is Key to Success of Dubai Economic Agenda D33Wed 11 Jan 2023
We will only grow as big as we dream, that is why we must dream big.
– Gabrielle Williams
Dubai: When the world was celebrating the arrival of the new year 2023, planners in Dubai were engrossed in diligent planning for the next decade. HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President of the UAE, and Ruler of Dubai unveiled the Dubai Economic Agenda (D33) for the next 10 years. The second largest emirate announces an AED 32 trillion economic plan to boost trade, bring investment, and establish it as a global hub for trade. In nutshell, it aims to double the size of its economy, consolidating the emirate’s position among the top three global cities and top four global financial centers. I have many reasons to believe that Dubai will be able to achieve it and surprise the detractors once again. The foremost reason behind this belief is the leadership itself, while the remainder of the article discusses this possibility using four points namely system approach, business ecosystem, trade & geopolitics, and promising sectors.
Dubai is a champion in integrating the various enablers so that the effect is more than the sum of parts. The city marshals its resources so that economic growth objectives can be realized as efficiently as possible. Their vision has never been myopic, and they decoupled their economy from fossil fuel way back and their economy is 95% on-oil based. Twenty percent of the contribution to GDP comes from tourism and it has a multiplier effect for other sectors such as retail, hospitality, and healthcare. These sectors have combined effects and boost the growth of each other.
If we follow the rule of seventy-two, doubling the economy of Dubai requires a 7.2% GDP growth for the next ten years. Dubai was able to achieve more than 6% growth in 2014 and became one of the fastest-growing economies. There is no reason to believe that Dubai cannot better that record in the new normal post-COVID-19. The D33 plans include one hundred “future transformational projects” which will boost the economy of Dubai in the coming decade. Experts opine that the plan is empowering entrepreneurs as well as business leaders and it will drive the future growth of the emirate and attract more foreign investment inflows into Dubai from the east as well as west.
Trade and Geopolitics
Dubai has excellent trade relations with many important economies of the world. Dubai’s largest trading partner is identified to be China, followed by India and the U.S. These economies are stable and expected to grow leap, and bound in the coming decade. Even the trade in the GCC region is growing and Trade between the UAE and Saudi Arabia totaled AED 65.7 billion in the first half of 2022, and a major part of this was with Dubai. The relationship between UAE and Israel has improved since after Abraham Accords and business between the two countries is rising since then. UAE reconciled with Qatar, and we will witness a rise in trade between these two GCC members in the future. UAE has recognized the immense potential in the emerging markets of Africa and is a leading exporter to the Continent.
Technology adoption is the key enabler in the achievement of the D33 plan. Dubai aims to boost private sector investments up from AED 790 billion in the last decade to one trillion in the coming decade. Dubai has pledged AED 100 billion in annual contributions to the economy from digital transformation projects. This will help in making the digital ecosystem of Dubai future ready. The emirate is gambling high on the potential of the metaverse. Technology has the potential to transform business areas such as retail, tourism, healthcare, banking, and education. Dubai needs to make a conscious effort in digital inclusion to realize the full potential of the metaverse. Hopefully, we will see an improvement in the speed and a fall in the cost of internet plans in the coming future.
Dubai is the second wealthiest emirate in the UAE and is the financial capital state of the UAE. It is an important trade and tourist destination, with Jebel Ali, which is the major port in the Middle East. With the introduction of the Dubai International Financial Centre (DIFC) in 2004, Dubai developed as a global hub for service industries such as IT and finance. Apart from this tourism contributes around twenty percent of the economy of Dubai. The emirate has big plans in the medical tourism and education sector. Best universities and hospitals have either started operations in Dubai or are planning in near future. Dubai will immensely benefit from upcoming sports events such as ILT20 League. The FIFA world cup has demonstrated that sporting events can help boost tourism in the city.
As discussed above, the D33 plan is a well-crafted strategy and has the potential to transform the economy of not only the UAE but also many associated nations. I am personally interested in the role of India in achieving this ambitious goal of Dubai. The country will not only be instrumental in providing the right talent to support the growth but also venture capital from India will find attractive business opportunities in Dubai. Better planning, improving international relations, strategic location, and government spending on infrastructure augurs well for Dubai Economic Agenda (D33). It is just the beginning for Dubai and the sky is the limit.
Prof Vinaytosh Mishra is working as an Associate Professor at the College of Healthcare Management and Economics at Gulf Medical University, Ajman, UAE. He is associated as a mentor with leading business incubators for healthcare and agriculture businesses.
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- Dubai’s agenda D33
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