Dubai: a connected, pro-business city doing things differently
Dubai: a connected,
pro-business city
doing things differently
From wealth managers to crypto mavens, Dubai is a magnet for business leaders — here’s why.
During an illustrious career as an airline chief executive and a professional marathon runner, Stefan Pichler called many places home. Europe, North America, Asia, Africa, Australasia — there are few corners of the globe the 65-year-old hasn’t lived in. But now, having retired in 2020, there’s only one place he wants to be: Dubai.
“I have kids and grandkids scattered around the world, so being somewhere that is connected, that is easily accessible from just about anywhere, is very important,” Pichler says.
Today, Dubai offers unrivaled global connectivity, lofty living standards, commerce-friendly policies and sustainable R&D opportunities. But rewind 50 years, and the emirate was a very different place. A modest fishing village perched on the Persian Gulf, it wasn’t until the discovery of oil that sweeping urban development began. In the decades that followed, Dubai’s economic profile changed dramatically, shifting focus away from fossil fuels and toward tourism, technology, commerce and financial services. Dubai is now the world leader in foreign direct investment, the world’s third-ranked city for future readiness, and an ever-expanding metropolis home to more than 3 million people — four-fifths of them expatriates.
“I love the energy of the city, the active lifestyle it affords, and I value living in a place where I can watch and help interesting new businesses grow.”
Stefan Pichler, former CEO, Royal Jordanian Airlines
Connecting
east and west
Glance at a map of the world, and it’s easy to see why the city attracts such interest from overseas. Its location, nestled between Asia, Africa and Europe, means a third of the global population is within a four-hour flight. This is good for tourism — Dubai International Airport is the planet’s busiest — and, in Pichler’s case, for connecting with loved ones. But it’s also good for business.
East-west and west-east supply chains flow through Dubai, a place long defined by its access to the ocean. Waters that once teemed with the diminutive wooden boats of the region’s pearl divers now host a steady stream of container ships headed for Jebel Ali port, the world’s largest man-made harbor. From there, supported by the city’s Silk Road initiative, goods travel between integrated free-trade zones by highway and, in the not too distant future perhaps, even hyperloop — a superfast cargo transport technology slated for mid-decade launch.
Dubai’s central position has commercial advantages beyond freight, however. “The time zone here is ideal,” says Eric Robertsen, global head of research and chief strategist at Standard Chartered, a multinational bank. Coupled with zero income tax and the appeal of a 10-year “golden visa,” this ability to follow multiple markets within a single day attracts much of the city’s foreign talent.
“I have a global role, so I need to be able to devote my energy to what’s happening globally — starting early with Asia and then remaining at my desk for when Europe comes online, and then when the U.S. wakes up a few hours later.”
Eric Roberton, global head of research and chief strategist, Standard Chartered
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Friendly residence
and regulations
Lifestyle is also a big part of Dubai’s appeal. Its hospitality and entertainment offerings are renowned, as is the friendliness of local residents and the high level of safety. The latter — safety and a low crime rate — is a key consideration for another of the city’s growing demographics: high-net-worth individuals (HNWI).
“I once left my phone in a taxi, and I thought, ‘I’m never going to see that again,’ but then it was returned the next day,” says Philippe Amarante, managing partner at Henley & Partners, a private client practice.
In the first half of 2022, the city’s millionaire population increased by almost 20%. Driving this trend, aside from lifestyle considerations, Amarante says, is the desire to hold equity in a stable and neutral location amid mounting geopolitical uncertainty.
While HNWI assets are still mostly booked in traditional global financial centers, more and more of the world’s mega-rich are buying real estate, opening bank accounts and starting businesses in Dubai.
“Companies can be 100% foreign-owned here, which helps a lot,” says Amarante. “Also, Dubai International Financial Center is regulated under common law principles, which inspires a lot of confidence.”
The city’s tech-forward approach to finance is another important factor. At a time of international crackdown on crypto companies, Dubai has introduced a liberal virtual licensing program to make it easier for digital asset firms to operate. Changpeng Zhao, chief executive of Binance — the world’s biggest cryptocurrency exchange — has recently relocated to Dubai, praising the city’s “open mindset and a business friendly attitude.” With its new operating base in the emirate, Binance will help build a cutting-edge blockchain ecosystem at the Dubai World Trade Center free zone — a move that city leaders hope will anchor Dubai as a global crypto capital.
“We work with a lot of clients from the U.S., Europe, India, China, and they definitely like the peace and security of Dubai as well as the high standard of living.”
Philippe Amarante, managing partner, Henley & Partners
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A high bar
for sustainability
A similar spirit of innovation is driving something the city hasn’t always been known for: sustainability. From energy consumption to air pollution, Dubai, like all rapidly expanding metropolises, faces serious environmental challenges. The emirate isn’t shirking its green responsibilities, however — by 2050, it hopes to be the world’s most sustainable city, propelled by a wave of green-focused research and development.
Thirty miles south of Dubai, the Mohammed bin Rashid Al Maktoum Solar Park, one of the world’s largest single-site solar panel installations, absorbs clean energy from the searing desert sun. In 2020, the facility covered a modest 7% of the city’s electricity needs, but by 2050, three-quarters of Dubai’s energy is predicted to be green.
A sharper focus on sustainability can also be detected in the city’s business community. Earlier this year, Emirates Crop One, which its developers call the planet’s biggest vertical farm, started production, consuming 95% less water than conventional agricultural practices. And then there is the emirate’s rich seam of startup enterprises.
“Dubai has become a bit of a hotbed for impact startups,” explains Sian Rowlands, founder of Retold, a sustainable fashion boutique. “In the early days, there wasn’t much support or understanding for sustainability minded business ideas, but that’s really starting to change.”
Determined to address the city’s focus on consumerism, Rowlands started Retold in 2010 as a place to buy and sell pre-owned clothing. Despite some early challenges, the business grew fast, catering primarily to local residents, but also the occasional tourist.
The speed at which things can be achieved in Dubai has been a factor in her success, Rowlands says, as has the city’s habit of bringing diverse people with different ideas together.
“The government and the city seem genuinely to be embracing sustainability, which is really promising going forward.”
Sian Rowlands, founder, Retold
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An eye on
the future
This sense of excitement for the future is something Pichler shares. As a retiree, leisure and family time are at the forefront of his mind, but when he has the opportunity to share his expertise with the next generation of business leaders, he’s happy to lend a hand.
“Dubai is full of exciting companies doing exciting things,” he says, “so when I can help them with my life experience, well, that’s very rewarding indeed.”