Veteran journalist Clement Mesenas, who worked for 20 years in the Gulf in Kuwait Times and Dubai's Gulf News and covered three wars in the region, now manages
The Magazine Uplift Specialist (clemgab@gmail.com),
a magazine editorial and design company. He is also writing a book: Secrets on how to survive and prosper in the Gulf
WHEN Dubai plunged into its frenetic drive in the late 1990s to build the world’s biggest playground for the rich and famous, journalists began describing it as the Singapore of the Gulf.That was no fancy turn of phrase. The person who kickstarted this phenomenal development in just 10 years was a man called Mohammed Ali Alabbar, who served his “apprenticeship” in Singapore.
He was not a member of the ruling family. But he could be described as a “princeling”, the right-hand man of the Ruler, Sheikh Mohammed bin Rashid Al Maktoum.
The fiercely independent Ruler, knowing that Dubai had scant oil production to fuel his grand plans, decided to develop his strip of coastal desert into a hub for the Middle East, western Asia,
and Africa, attracting investment from his wealthier neighbours – both Arabs and Iranians – and
increasingly, from the West and Russia.
and Africa, attracting investment from his wealthier neighbours – both Arabs and Iranians – and
increasingly, from the West and Russia.
S'PORE STINT: Mohammed Ali Alabbar, the key adviser to Dubai's Ruler Sheikh Mohammed bin Rashid Al Maktoum, had a stint in Singapore. He's hoping the opening of Burj Dubai, The world's tallest building at 160 storeys, can restore some of Dubai's can-do spirit.
He is regarded as an astute leader, a hero to his people, his widely-reported participation in 120km Arabian horse endurance races underscoring his belief in the strength of the breed and the hardiness and resilience of the Arabs.
He also has gambling instincts, which have stood him well as he built up Godolphin, the world’s biggest racing stable with over 2,000 top thoroughbreds.
But it was Mr Alabbar who caught his eye in the late 1990s and helped give shape to his vision for Dubai. A personable young man in his 30s then, Mr Alabbar was convinced that Dubai could be built up like Singapore through human talent and endeavour – even if it did not have much wealth in natural resources.
His vision took root during a five-year stint in Singapore in the 1990s when he managed the emirate’s plush properties, including Wisma Atria in Orchard Road. His good friend was Mr J S Gill, the proprietor of Royal Sporting House and an anchor tenant in Wisma.
Mr Alabbar was given the powerful post of Director General of Dubai’s Department of Economic Development, when he returned home.
That, followed by his founding of Emaar Properties, the country’s largest real estate company, provided him the vehicle with which to drive his lofty commercial ideas to put Dubai on the world map and on everybody’s lips.
He dedicated his energies to high-profile projects in the emirate’s fledgling tourism and hotel industry, including building top-class amenities for entertainment and sporting events. An avid golfer, with a five-hole course in his backyard, he wooed Tiger Woods for years before the golfing legend agreed to take part in the Dubai Desert Classic.
Like Singapore, Dubai sought to be the best in everything it put its hand to. Emirates soon began to rival Singapore Airlines in quality inflight service. Dubai Airport offered air travellers a chance to win luxury cars – Ferraris, Rolls Royces – in a raffle at $100 a pop. Only 1,000 tickets were sold. A Singapore businessman won a top-of-the-range BMW. Bringing it back to Singapore would have entailed him having to shell out astronomical duties. He sold the car for a give-away price of $150,000.
Singapore had its Great Singapore Sale – so Mr Alabbar launched Dubai’s Shopping Festival. More cars were offered to lucky draws to shoppers.Then, there was the Dubai Jazz Festival, Dubai Music Festival, Dubai Food Festival, Dubai Rock Festival, Dubai Salsa Festival. The list grew at a dizzying rate.
Dubai created the world’s longest hotdog, the world’s biggest chair, the world’s first and probably only seven-star Burj Al Arab hotel, and lots of other firsts.
Mr Alabbar’s daring enterprise is matched by his outspoken views and his boundless energy. He uses the helicopter like we would use a taxi to get around for his daily wheeling and dealing. A sought-after speaker at international forums and on broadcast networks worldwide, Mr Alabbar, now 46, functioned as an articulate spokesman for the region’s economic renaissance. The Arabian Business Power List 2009 guide to the world’s 100 most influential Arabs has him second only to Saudi billionaire Prince Alwaleed bin Talal Al Saud.
What perhaps started as the need to create a haven in Dubai for rich Arabs in the event of regional conflict soon escalated into plans to build a playground for the wealthy.
A ski slope soon flowed. More golf courses, marinas, the much publicised man-made isles to house thousands of well-heeled foreigners, the world’s biggest man-made port, soon sprouted like mushrooms after a shower.
Even Sheikh Mohammed, a man who plays the odds in his decision-making, and who is referred to as The Boss by his awed aides, has been known to be astounded by Mr Alabbar’s daring business deals.
Mr Alabbar proudly asserted during a televised interview that the ruler had once called him “one daring son of a gun”.
But things began unravelling for Dubai over the last year as once-readily foreign investment dried up in the aftermath of the global financial meltdown. Property prices have plunged by 50 per cent, billions of dollars worth of projects have been cancelled and thousands have fled the emirate after losing their jobs.
Dubai’s fate, the financial analysts say, is hinged on whether Dubai World (Dubai’s government-owned investment company with interests in everything from ports to property and diamonds) has the ability to pay back US$100 billion in loans.
This would depend on how much of a helping hand it gets from big brother Abu Dhabi, whose coffers are bulging with untold wealth from its huge oil reserves. The crisis reached the proportions of a financial tsunami late last month when Dubai World asked creditors for a six-month moratorium.
Yet, speaking at the Dubai International Financial Centre (DIFC) Week just before the shock announcement, Mr Alabbar bravely said: “I can state categorically the government can and will meet all of its obligations going forward and I have no doubt about this country’s future.”
But he has been silent since he was removed by the Ruler from the all-powerful board of the Investment Corporation of Dubai (ICD), along with four other key movers and shakers, in what analysts say is a shake-up to introduce more conservative stewardship of the economy.
Will Dubai regain its lustre? It depends on how fast it is able to shake off the image of recklessness. Some analysts say it would take years before it gets its economy back on track. Mr Alabbar is counting on the January opening of Burj Dubai, the world’s tallest building at 160 stories, to restore some of Dubai’s can-do spirit.
Earlier, in the year when talk began circulating of a crisis in Duabi, Mr Alabbar said: “In this world, if you don’t take a little bit of calculated risk, you will never get anywhere.”
The question right now is: Will he able to get Dubai out of the financial cul-de-sac it is in now? More pertinently, will he be allowed to play the key wheeling and dealing role he is accustomed to? Only time can tell.
