Dubai Inc.: A Blueprint for Global Investment Success

Dubai Inc. is not just a company – there it is, an icon of what Dubai has accomplished in little over two decades: taking a small desert town and turning it into the great global business melting pot of the future. Leaders have certainly had much to do with this vision, but the ascension of Dubai did not happen by accident. Rather, it was the result of bold decisions coupled with strategic investments in infrastructure and relentless pursuit of innovation. Dubai Inc., as it has come to be termed, is the generic name for a portfolio of companies, mainly state-controlled, that have spearheaded emirate-driven economic success. From Emirates Airlines to Dubai World, these firms embody the future of what Sheikh Mohammed bin Rashid Al Maktoum had in mind for his city and its people.

The origins of Dubai Inc date back to the early 2000s when predecessors of Sheikh Mohammed bin Rashid Al Maktoum laid a basis for what would eventually turn out to be one of the more spectacular success stories in the global business arena. His vision, alongside judiciously selected teams of leaders, would see that a city dependent not only on oil would diversify its economy into finance, tourism, real estate, and logistics, among others. That diversified economy would be the bedrock of the “Dubai Inc.” model of governance and corporate management that countless cities around the world would have wished to emulate.

Dubai Inc. is built on a solid foundation of state-owned firms that have spearheaded Dubai’s success story. One of the first success stories was Emirates Airlines. It started in 1985 with mere $10 million and a handful of planes. Today, it operates over 230 aircraft and flies to more than 140 destinations across the globe. Emirates has turned into one of the world’s most successful airlines and significantly contributes to the emirate’s tourism and trade industries. Its success story mirrors and is part of the larger vision that drives Dubai Inc.—translating bold ideas into tangible, world-class ventures.

Dubai Inc. however stretches much further than just Emirates Airlines. As a case in point, Dubai World makes an essential contribution to the emirate’s economic topography. This is a holding company with subsidiaries touching almost every major sector: transport, logistics, urban development and financial services. For example, one of its subsidiaries, Dubai Ports World is already one of the biggest port operators worldwide, providing their terminals on six continents. Its operations in Jebel Ali, one of the world’s premier ports, have made Dubai a critical and strategic transit point between East and West.

The second prong of the Dubai Inc. model is Dubai Holding, which was launched in 2004. A global investment holding company, it has business interests in virtually every sector, from real estate to telecommunication and hospitality. Dubai Holding has transformed the outlook of the skyline of Dubai and transformed its iconic properties, including Business Bay, DubaiLand, and luxury hotels and hospitality through the management of the Jumeirah Group – Burj Al Arab. Millions of tourists are attracted to the projects, hence blossoming the economy while reinforcing Dubai as a global destination for luxury and business.

Located at the heart of Dubai Inc. is the Investment Corporation of Dubai (ICD), established in 2006 as an investment agency responsible for managing and consolidating the emirate’s growing investment portfolio. ICD oversees a wide-ranging portfolio of investments in strategic sectors necessary for the long-term growth of the emirate. These include banking, transport, energy, real estate, and leisure. ICD ensures that the company’s investments are well aligned with the vision for the emirate and will also support the achievement of its goals for development.

But success has not come without its troubles. In 2008, the global financial crisis tested Dubai’s economy, with debt concerns associated with Dubai World becoming a media spectacle. Still, the emirate’s leaders moved fast, restructuring debt and refocusing on long-term goals. The crisis was, instead of diminishing Dubai Inc., a spurring catalyst for innovation and renewed growth. The city today is back on track, leading sectors ranging from renewable energy to advanced technology solutions and smart cities.