Giant leap in diversification

DUBAI — Dubai has taken a giant leap towards diversification by putting into motion an ambitious plan to turn the emirate into the Islamic economy capital of the world. The plan is envisioned to grab a significant share of the Islamic finance market worth trillions of dollars.

 His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, on Wednesday announced a group of initiatives to set up a comprehensive platform of Islamic economy products and services aimed at integrating Islamic economy as part of the emirate’s overall economy.

Top government officials, senior bankers and Shariah specialists welcomed the initiatives and said it would further strengthen Dubai’s position as one of the top international financial hubs.

Shaikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, said: “I am optimistic about achieving the goal of Dubai becoming the world capital of Islamic economy. Dubai has sufficient experience, state-of-the-art infrastructure and possesses strategic geographical location in the heart of the Islamic world. It also has the will and determination, but has the most important of all: Mohammed bin Rashid Al Maktoum, who leads Dubai with all wisdom, confidence and resolve for the future.”

Shaikh Mohammed later issued a decree assigning Shaikh Hamdan to oversee the development of the Islamic economy sector. Shaikh Mohammed said that with Islamic economic principles playing a growing significance in today’s global business environment, with its size reaching $2.3 trillion and a growing community of 1.6 billion Muslims, the new initiatives are expected to further promote investments in Dubai, especially from economies spanning the Middle East, Africa, South Asia and South-east Asia.

Among other initiatives announced by Shaikh Mohammed include the development of commercial standards for Islamic industries and guidelines for Halal food manufacturing. Dubai also seeks to develop Islamic quality standards for Halal food approval. This will encourage the food industry and promote linkages with global and regional businesses, as well as different business sectors, including transport, storage and handling.

The planned platform includes Islamic finance instruments, Islamic insurance, Islamic contracts’ arbitration, Islamic food industry and trade standards (Halal food), and Islamic quality management standards.

“The new initiatives from His Highness will certainly lend tremendous support and confidence to the industry and encourage the stakeholders to comfortably rely on using Islamic banking, finance and insurance solutions to satiate their financing requirements to ensure the continuity in their growth and development,” Dr Hussain Hamed Hassan, chairman of the Shariah Board of Dubai Islamic Bank and managing director of Dar Al Shariah Legal and Financial Consultancy, told Khaleej Times.

Giyas Gokkent, group chief economist at National Bank of Abu Dhabi, said Dubai has in place basic ingredients to become the capital of Islamic finance. “Advisory, regulatory, legal structure and workforce are two pertinent ingredients, but there is a range of other factors which are also relevant to becoming a general financial centre — many of which Dubai already has,” Gokkent said. He said the Shariah–compliant banks roughly have a 15 per cent share in banking activity in the country as a whole.

Shaikh Mohammed said the new framework for promoting Islamic economy will further strengthen the open and integrated approach of Dubai in doing business. It is expected to lend further momentum to Dubai’s well-diversified economy, which is on an ambitious growth path fuelled by the robust performance of its core sectors including trade, retail, tourism, aviation, hospitality, financial services and logistics in 2012.

“Our cosmopolitan outlook to doing business continues to be our economy’s driving force. Adopting a modern and scientific framework for Islamic economies worldwide, here in Dubai, meets the demand from local, regional and international investors for a central hub to invest, grow and do business,” he added.

He said the government will not compromise on its principles of openness and commitment to a free market economy. “By strengthening Islamic economic principles as an integral part of our overall approach to growth and development, we are further supporting the entrepreneurial community, especially from the Arab world,” he added.

Shaikha Lubna Al Qasimi, Minister of Foreign Trade, praised the announcement and said the move would build on Dubai’s success based on a well-planned vision to push economic diversification drive forward and create new sectors that support the pace of developmental, economic and social progress.

Dubai Islamic Bank deputy chief executive officer Dr Adnan Chilwan said: “With an unrivalled level of expertise and experience, the UAE is uniquely positioned to service the ever-increasing worldwide demand for innovative, high-quality, Shariah-compliant products and services. Dubai Islamic Bank, which has been the pioneer of Islamic banking across the world, congratulates His Highness on this visionary initiative, and assures its commitment to help make Dubai into the global capital of Islamic economy.”

Afaq Khan, chief executive officer, Standard Chartered Saadiq, said: “The creation of the Islamic finance council will further strengthen Dubai’s position as an international financial hub. Islamic finance has grown significantly over the past few years and has played a key role in the development of the financial industry as a whole. As a leading international bank, Standard Chartered remains committed to Dubai and the UAE as we continue to provide world class Islamic Financial Services and expand our capabilities to leverage the growing needs of clients in the country and across the region.

Mohammed Wassim Khayata, group chief operating officer of Finance House, told Khaleej Times: “The addition of this sector, which is just a milestone in Dubai’s economy, emphasies the importance and durability of the economic infrastructure of the emirate.”

Dr Qaiser Anis, managing director of consultancy firm Alliott Management Consulting, added: “The move will be a success like the free zones.” Due to its ideal geographical location and pro-business environment, he said the Halal food industry can help boost Dubai’s GDP substantially.”

Shaikh Hamdan to oversee Islamic economy sector:

DUBAI — His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, has issued a decree assigning Shaikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai,  to oversee the development of the Islamic Economy sector in the emirate.

Shaikh Mohammed also approved the setting up of a high committee tasked with the development of the Islamic economy sector in Dubai. The committee will operate in accordance with an integrated system to develop the new sector.

The committee will be chaired by Mohammed Abdullah Al Gergawi, Chairman of Shaikh Mohammed’s Executive Office, with Sami Al Qamzi, Director-General of the Dubai Department of Economic Development, as Vice-Chairman. Other members of the committee include Abdul Aziz Al Ghurair, Vice-Chairman of the Higher Board of the Dubai International Financial Centre; Hussein Nasser Lootah, Director-General of Dubai Municipality; Dr Hamad bin Al Sheikh Ahmed Al Sheibani, Director-General of the Department of Islamic Affairs and Charity Work in Dubai; Abdul Rahman Saif Al Ghurair, Chairman of the Dubai Chamber of Commerce and Industry; and Hussein Al Qamzi, Chief Executive of Dubai’s Noor Islamic Bank, in addition to Essa Kazim, Chairman of the Dubai Financial Market, who will serve as the committee’s Secretary-General. —Wam

Hamdan to oversee Islamic economy sector

His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, has issued a decree assigning Shaikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, to oversee the development of the Islamic Economy sector in the emirate. Shaikh Mohammed also approved the setting up of a high committee tasked with the development of the Islamic economy sector in Dubai. The committee will operate in accordance with an integrated system to develop the new sector. The committee will be chaired by Mohammed Abdullah Al Gergawi, Chairman of Shaikh Mohammed’s Executive Office, with Sami Al Qamzi, Director-General of the Dubai Department of Economic Development, as Vice-Chairman. Other members of the committee include Abdul Aziz Al Ghurair, Vice-Chairman of the Higher Board of the Dubai International Financial Centre; Hussein Nasser Lootah, Director-General of Dubai Municipality; Dr Hamad bin Al Sheikh Ahmed Al Sheibani, Director-General of the Department of Islamic Affairs and Charity Work in Dubai; Abdul Rahman Saif Al Ghurair, Chairman of the Dubai Chamber of Commerce and Industry; and Hussein Al Qamzi, Chief Executive of Dubai’s Noor Islamic Bank, in addition to Essa Kazim, Chairman of the Dubai Financial Market, who will serve as the committee’s Secretary-General.

Mohammed launches platform for Islamic economic solutions

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, on Wednesday announced a set of initiatives to set up a comprehensive platform of Islamic economy products and services aimed at integrating Islamic economy as part of the overall Dubai economy.

The platform includes Islamic finance instruments, Islamic insurance, Islamic contracts’ arbitration, Islamic food industry and trade standards (halal food), and Islamic quality management standards.

With Islamic economic principles playing a growing significance in today’s global business environment, with Islamic economy size reaching $2.3 trillion and a growing community of 1.6 billion Muslims, the new initiatives are expected to further promote investments in Dubai, especially from economies spanning the Middle East, Africa, South Asia and Southeast Asia.

Sheikh Mohammed said that new framework for promoting Islamic economy will further strengthen the open and integrated approach of Dubai in doing business. It is expected to lend further momentum to Dubai’s well-diversified economy, which is an ambitious growth path fuelled by the robust performance of its core sectors including trade, retail, tourism, aviation, hospitality, financial services and logistics in 2012.

“Our cosmopolitan outlook to doing business continues to be our economy’s driving force. Adopting a modern and scientific framework for Islamic economies world-wide, here in Dubai, meets the demand from local, regional and international investors for a central hub to invest, grow and do business,” said Sheikh Mohammed.

Sheikh Mohammed added that the new initiatives will further boost the economic diversification of Dubai and complement Dubai’s pioneering approach to Islamic economy, having established the world’s first Islamic bank in the 1970s as well as the world’s first Islamic financial market.

Among other initiatives announced by Sheikh Mohammed include the development of commercial standards for Islamic industries and guidelines for halal food manufacturing.

Dubai also seeks to develop Islamic quality standards for halal food approval. This will encourage the food industry and promote linkages with global and regional businesses, as well as different business sectors including transport, storage and handling.

Sheikh Mohammed said the government will not compromise on its principles of openness and commitment to a free market economy.

“By strengthening Islamic economic principles as an integral part of our overall approach to growth and development, we are further supporting the entrepreneurial community, especially from the Arab world,” he said.

Dubai has the robust infrastructure to serve as the centre of the Islamic economies across the Middle East and North Africa. Geographically too, the city has the advantage of serving as a vital link between the West and the East. Dubai International Airport – the world’s fourth busiest hub for international passengers – receives more than 55 million passengers yearly.

Dubai’s non-oil foreign trade reached over Dh1 trillion in the first ten months of 2012, about 13 per cent more than the same period in 2011.

Sheikh Hamdan commissioned to oversee Islamic economy sector

Sheikh Mohammed has issued a decree commissioning Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, CrownPrince of Dubai, to oversee the development of the Islamic economy sector in the emirate.

Sheikh Mohammed also approved the setting up of a high committee tasked with the development of the Islamic economy sector in Dubai. The committee will operate in accordance with an integrated system to develop the new sector.

The committee will be chaired by the Chairman of Sheikh Mohammed ‘s Executive Office, Mohammed Abdullah Al Gergawi, with the Director General of the Dubai Department of Economic Development, Sami Al Qamzi, as Vice Chairman. Other members of the committee include the Vice Chairman of the Higher Board of the Dubai International Financial Centre, Abdul Aziz Al Ghurair, the Director General of Dubai Municipality, Hussein Nasser Lootah, the Director General of the Department of Islamic Affairs and Charity Work in Dubai, Dr. Hamad bin Al Sheikh Ahmed Al Sheibani, the Chairman of the Dubai Chamber of Commerce and Industry, Abdul Rahman Saif Al Ghurair, and the Chief Executive of Dubai’s Noor Islamic Bank, Hussein Al Qamzi, in addition to the Chairman of the Dubai Financial Market, Essa Kazim, who will serve as the committee’s Secretary General.

The decree states that the committee may co-opt other members that it deems suitable to help it to achieve its objectives.

Dubai can become world capital of Islamic economy: Sheikh Hamdan

The secret behind Dubai’s success is the innovative vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, has said.

Tasked with the supervision of the development of Islamic economy to become one of the basic components of Dubai’s economy, Sheikh Hamdan said: “The innovative vision of Sheikh Mohammed compels us to think in different and innovative ways so as to achieve the goals put forward by Sheikh Mohammed. They oblige all institutions and departments operating in Dubai to work as a team.”

He added, “I am optimistic about achieving the goal of Dubai becoming the world capital of Islamic economy. Dubai has sufficient experience, state-of-the-art infrastructure and has a strategic geographical location in the heart of the Islamic world. It also has the will and determination, but has, the most important of all, Mohammed bin Rashid Al Maktoum, who leads Dubai with all wisdom, confidence and resolve for the future.”

‘Islamic economy initiative will take UAE to new heights’

The ‘’Dubai: Capital of Islamic Economy’ initiative constitutes an important qualitative addition that will take the national economy to new heights, according to Dr. Rashid Ahmed bin Fahad, Minister of Environment and Water.

The minister said the initiative reflects Sheikh Mohammed’s long-term strategic vision for boosting the prominent standing the UAE, in general, and Dubai, in particular, occupy as a regional and international financial hub, building on advanced corporate and legislative infrastructure maintained by Dubai due to accumulated wealth of expertise in Islamic economy.

The UAE, he noted, was among the leading countries which provided world class Shariah-compliant financial services and products that cater to demands of millions of customers.

The initiative, he said, would consolidate the UAE’s position in the trade and production of Halal products and services amid the rapid growing of the market to more than $8 billion by 2020 from less than $4 billion in 2010.

He affirmed the ministry would play an effective role along with other partners and stakeholders in implementing the initiative.

He cited the UAE’s leading role and efforts – through its presidency of the technical committee for Halal food standards of the Organisation of Islamic Cooperation (OIC) – in crafting international Halal foods standards.

As chairman of the Standards and Metrology Institute for Islamic Countries (SMIIC), the UAE, guided and inspired by Sheikh Mohammed’s vision, will strive to develop international legislations, regulations and standards for Halal foods.

Sheikha Lubna lauds Islamic economy vision as ‘promising’

Sheikha Lubna bint Khalid Al Qasimi, Minister of Foreign Trade, on Wednesday praised the announcement of Sheikh Mohammed for integrating Islamic economy as a key sector of Dubai economy as a ‘promising step forward’ to boost assets and gains made by Dubai over the recent years.

Sheikha Lubna the move would build on Dubai’s success based on a well-planned vision to push economic diversification drive forward and create new sectors that support the accelerating pace of developmental, economic and social progress.

The UAE with its successful economic diversification policies, the minister affirmed, had become a premier investment melting pot buoyed by a vibrant diversified base for Islamic economy and other Shariah-compliant activities like Sukuk.

Moreover, she added the UAE serves as a global hub for Islamic banking with increasing number of banks playing major roles in funding and developing projects in the region and beyond.

”Sheikh Mohammed’s initiative carries the inclusive perspective for contemporary development and economic growth both Dubai and the UAE are currently witnessing,” Sheikh Lubna added, calling on investors wishing to establish projects and strike deals in consistence with Shariah principles to take advantage of support and sponsorship provided by the wise leadership in the framework of its quest to leverage the Islamic economy as tributary of UAE national economy.

Sheikha Lubna noted that her ministry delegations had been approached during foreign tours by investors who wanted to launch Shariah-compliant investment in the UAE in general and Dubai in particular given the diverse options and instruments on offer.

Clarity on new laws benefits everyone

Mobile phone owners were warned yesterday by the Telecommunications Regulatory Authority that the deadline for the first tranche of Sim-card re-registrations is January 17. The original deadline was October 16, but that was extended because too many people were unaware of the law, or did not understand their obligations under it.

The Sim re-registration case is one example of a confusion that sometimes exists after a law or regulation is introduced. And it's an issue that has been taken up by the Federal National Council, the consultative body that is designed, in part, to provide channels of communication between people and the government.

Last month, Salim Al Ameri, an FNC member from Abu Dhabi, sent a letter to Mohammed Al Gergawi, the Minister of Cabinet Affairs, in which he noted that people were being penalised for breaking laws they simply did not know existed. As The National reported yesterday, Mr Al Gerawi's reply noted that new laws were published in the official government gazette, and said that it was not necessary for everybody to know about every law because some legislation applied only to specific segments of society.

In the case of laws that applied to everyone, there were often press conferences followed by media campaigns and advertisements, he said. Mr Al Gerawi pointed to the example of Wadeema's Law, a crucial law on child protection that has received widespread publicity.

Still, the message sometimes fails to get through on other important initiatives, such as the Sim re-registration. Adding to the confusion is the fact that there are sometimes delays of years before laws are enacted, or the relevant regulations are even drawn up, creating problems for those with the task of enforcement.

As we saw with the Emirates ID, sometimes it is just a matter of time for a regulation to be implemented. The FNC plays an important role here, identifying shortfalls, speeding up the machinery of government and clarifying decisions. The lines of communication are open, but sometimes the message gets garbled.

While ignorance of the law is not an excuse, it is in everybody's interests for laws and regulations to be well understood from the beginning.

Al Gergawi stresses success of Global Entrepreneurship Summit

Mohammed Abdullah Al Gergawi, Minister of Cabinet Affairs and Chairman of the Organising Committee for the third Global Entrepreneurship Summit, has announced the conclusion of the current summit, which successfully exceeded expectations.

He commended the presence of the UAE Vice President, Prime Minister and Ruler of Dubai His Highness Sheikh Mohammed bin Rashid Al Maktoum and his sponsorship of the two-day event.

"The summit has strengthen the status of the UAE as a staunch supporter of the entrepreneurship in the region. It issued the resolutions and initiatives that will support entrepreneurs locally and regionally and help them establish their projects and develop them", Al Gergawi said.

He noted that the event has highlighted the UAE's model regarding the creation of attractive environment for entrepreneurship and small and medium enterprises on the regional and global levels.

The UAE minister lauded the pioneer initiatives of Sheikh Mohammed at the sidelines of the summit to empower the local businesspersons.

Dubai to host Global entrepreneurship summit

Dubai: Hosting the Global Entrepreneurship Summit- Entrepreneurial Ventures of Arabia (GES-EVA) in Dubai will foster new opportunities, new projects and new jobs as well as enable young talent to enter the labour market, said Mohammad Al Gergawi, UAE Minister of Cabinet Affairs and Chairman of the organizing committee for GES.

The summit will be held under the patronage of His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai, from December 11 to 12 at the Dubai World Trade Centre (DWTC).

The event will host the AllWorld Network’s Arabia500 Awards, an international body that identifies fast-growing private companies, with a focus on creating jobs and opportunities for entrepreneurs worldwide.

“The event is an excellent platform to introduce global participants to successful Emirati entrepreneurs, while showcasing the UAE’s achievements in creating an ideal business environment that facilitates creation of projects, and supports their growth regionally and internationally,” said Al Gergawi.

Jitendra Gianchandani, chairman & managing partner of Jitendra Consulting Group, told Gulf News that the summit will encourage leadership skills

“Such events are excellent platform for SMEs in UAE and US and it will encourage entrepreneurs and SMEs to be innovative in their respective field and it will give them opportunity to interact with international,regional and local entrepreneurs which will further improve their business skills, knowledge and groom them as an strong leader as in today’s challenging time it is important that leader should be bold and have confidence to create opportunities for the nationals and citizens.”

Moreover, Helal Saeed Al Merri, CEO of Dubai World Trade Centre, said: “GES-EVA is a clear demonstration of the global thought leadership of UAE, especially in powering the growth of entrepreneurs and small and medium enterprises. The potential of the SME sector in ushering in overall socio-economic prosperity across the Arab world is tremendous, and with the addition of AllWorld we are further expanding the engagement of leading private sector companies in the event.”

MIDEAST MONEY-High-flying Dubai managers back in charge as crash fades

Executives who managed Dubai's boom knocked back by bust

* Dubai ruler turned to small group to lead recovery

* Economy now strong, property prices rebounding

* Chiefs of Emaar, Dubai Holding head huge new project

* But next boom likely to be managed more cautiously

By Mirna Sleiman

DUBAI, Nov 28 (Reuters) - When Dubai's ruler unveiled plans last week to build a complex housing 100 hotels and the world's biggest shopping mall, the scale of his ambitions recalled the emirate's boom half a decade ago. So did his choice of executives to lead the project.

Mohammed Alabbar, builder of the world's tallest tower, signed documents related to the project in his role as chairman of Emaar Properties, Dubai's top real estate firm.

Sitting next to him was Mohammed al-Gergawi, chairman of Dubai Holding, a conglomerate owned by the ruler. Gergawi played a central role in setting up districts housing Dubai's financial, media and information technology industries.

The businesses of both men suffered when Dubai's corporate debt crisis erupted in 2009, and they adopted lower profiles over the next three years as the government relied on a different set of managers to handle the financial disaster.

But last week's announcement of the multi-billion dollar mall project, which is to include a park larger than London's Hyde Park and an entertainment centre developed with Hollywood's Universal Studios, suggests Alabbar, Gergawi and other high-flying managers who built Dubai are again shaping the agenda.

"Emaar and Dubai Holding are leading the charge. That signals a rehabilitation of two of the Dubai ruler's three former lieutenants who were discredited in the crash," said Jim Krane, author of the book "City of Gold: Dubai and the Dream of Capitalism".

"The return to the fold of these two men, who were iced out during the long recession, could portend a shift away from the conservative minds called in in 2009 to stabilise the city."

CORE GROUP

Alabbar and Gergawi belong to a group of executives, roughly a dozen men, chosen by Dubai ruler Sheikh Mohammed bin Rashid al-Maktoum about a decade ago to develop the emirate.

Most were born in the United Arab Emirates; many were educated at top universities in the United States or Europe. Some are members of old merchant families which have traded around the Gulf for decades, but others are first-generation entrants to the world of big business.

Placed in charge of Dubai's strategic state-linked companies in areas including real estate, ports and banking, they favoured projects which burnished Dubai's reputation as an international business and travel hub: the world's tallest skyscraper, an archipelago of man-made islands in the shape of a palm, an indoor ski slope at a shopping mall.

"I'm frustrated with bureaucracy, I'm frustrated with negative minds and negative thinking because I'm a go-getter; I'm going places all my life," Abbar, in his mid-50s, told Arabian Business magazine in a rare interview last year.

He compared Emaar to a phoenix and said the company was on the brink of a resurgence from the crisis.

Gergawi, 49, got his big break when he launched an office district on the outskirts of Dubai, persuading a foreign bank to lend him $55 million, according to a person close to him. That project brought him closer to Sheikh Mohammed.

Until the global credit crisis burst Dubai's property bubble in 2008, Alabbar, Gergawi and their fellow executives succeeded handsomely; the territory with a population of about 2 million built one of the world's busiest airports, the biggest seaport in the Middle East, and the Gulf's main financial centre.

But Dubai's fall from grace was almost as spectacular as its rise. Real estate prices tumbled over 60 percent in the three years from 2008, obliging Dubai Holding, Dubai World and other state-linked firms to restructure billions of dollars of debt.

Dubai also got a last-minute $10 billion bailout from neighbouring Abu Dhabi to avoid a bond default by palm islands developer Nakheel, and the emirate still faces a wall of debt repayments with an estimated $50 billion in liabilities due between 2014 and 2016.

The crash clipped the wings of many top executives; Sultan Ahmed bin Sulayem, the third business lieutenant identified by Krane, was removed from the helm of Dubai World in 2010 and now chairs port operator DP World.

Sheikh Mohammed turned to two people in particular to repair the damage. One was his uncle, Sheikh Ahmed bin Saeed al-Maktoum, head of the committee overseeing Dubai's financial support fund and chairman of Emirates airline and the Emirates NBD bank.

The other was Mohammed al-Shaibani, who is chief executive at Investment Corp of Dubai, which owns some of the emirate's top corporate assets, and director-general of the Ruler's Court, which supervises and coordinates government departments.

Shaibani helped to orchestrate debt refinancing negotiations with international creditors and also commanded a war on corruption in state-linked entities, which resulted in a wave of management reshuffles and mergers at state-linked firms.

RECOVERY

Now Dubai seems to have repaired most of the damage. While state-linked firms still have plenty of debt, most have succeeded in pushing maturities into the future; property prices have begun recovering and the economy is again growing strongly.

That is an environment in which executives such as Alabbar and Gergawi can pursue their ambitions, as Sheikh Mohammed made clear in a speech announcing the mall project.

"The current facilities available in Dubai need to be scaled up in line with the future ambitions for the city," he said.

There are signs, however, that Dubai's next boom may be managed a little more cautiously than the last.

"The ambition is back but this time I'm confident it's going to be more pragmatic and better managed," said a person familiar with Dubai's inner circles, who declined to be identified due to the sensitivity of the issue. "Everyone's learned the lessons."

Projects announced by Sheikh Mohammed this month will rely on the retail and entertainment spending of tourists from around the Gulf, India and elsewhere, rather than Dubai's fickle real estate market, which was the focus of the last boom.

Khalaf Ahmad al-Habtoor, founder and chairman of the Al Habtoor Group and one of the band of top Dubai executives, said the emirate had learned from its experience and was now able to handle its debt better than many Western countries.

"Nobody in the world succeeds or becomes a pioneer unless he makes mistakes. It's a price that we sometimes have to pay," Habtoor told Reuters. "Yes, Dubai has debt...but who doesn't?"