DUBAI BRIEFING May 2005

News this month

Nuts, bolts and humps

Met with widespread international criticism for their use of child camel jockeys, camel racers in the United Arab Emirates are considering a novel alternative: robots. Camel-racing is a lucrative sport in the UAE, and the search for ever-lighter jockeys has encouraged the use of boys as young as four, mainly from Pakistan and Bangladesh. As part of an initiative to stamp out exploitation, owners are now testing robot camel-jockey prototypes, with the apparent backing of the country’s president, Sheikh Khalifa bin Zayed al-Nahayan.

This move follows the government's March announcement of a new ban on camel jockeys under the age of 16. The law was a blow to many camel owners, who claim to need the younger, lighter jockeys to get an edge in the highly competitive sport. The government hopes the remote-controlled robot riders, which are slated to enter competition in August, will provide owners with a suitable replacement.

Payday

In a bid to offset the soaring cost of living in the Emirates, the UAE has issued a 25% pay rise to all UAE nationals working in the public sector. Expatriates on the state payroll get a still-generous 15% hike. In boom towns such as Dubai and Abu Dhabi, rents have risen by as much as 30% in a year. Their thriving economies lure thousands of new expatriate workers every week.

High oil prices mean the government will have little problem funding the pay rise. But while it is good news for employees, some analysts warn it may be bad for the economy. In a conservative estimate, Standard Chartered puts inflation at 8% in Dubai last year. Some fear that with more money now chasing a limited number of homes, prices will rise still further. The pay rise also has some food suppliers hiking prices, in defiance of a government directive.

Lynch mob invades Dubai

Merrill Lynch, one of Wall Street’s most high-profile investment banks, has joined Dubai’s swanky new financial centre. Merrill’s Swiss private-banking arm, which has a long-standing presence in the Gulf, will move into the tax-free Dubai International Financial Centre (DIFC), joining the likes of Credit Suisse and Standard Chartered. It is the first Wall Street powerhouse to join DIFC, a fact not lost on the centre’s ambitious management, who flew to New York for a joint announcement with Merrill Lynch officials. Nine international financial institutions have now joined DIFC, which is competing with neighbouring Bahrain to be the region's financial hub.

Signing Merrill is indeed a coup for Dubai, but critics worry that private bankers—not investment bankers—will be moving into the new offices. Since the first oil boom in the 1970s, Arab investors have typically funnelled money westward. Bucking this trend, DIFC is positioning itself as a financial intermediary that invests Gulf money in the Arab world. But Merrill seems to be joining a growing army of wealth managers who sell funds that invest almost everywhere apart from the Middle East.

Out of gas

Crippled by government price caps on petrol, ChevronTexaco, an American energy giant, sold its 40% stake in EPPCO, Dubai’s leading petrol retailer. The company has unloaded its share to its Dubai government-owned partner, ENOC. It did not disclose the price, but it is unlikely to have been high, given the dire straits petrol retailers in the UAE find themselves in.

The government caps the price of petrol in order to curry favour with the car-mad population, which has a penchant for gas-guzzling 4x4s and sports cars. Last year EPPCO, which like other UAE petrol retailers pays a market rate for its fuel, threatened to shut all of its petrol stations, claiming it was losing money on every gallon sold. The government intervened to ensure the pumps continued flowing, but ChevronTexaco apparently balked at operating under such a restrictive regime.

Catch if you can

May 2005

Spanish art at the Royal Mirage

May 10th-14th 2005

The Royal Mirage, whose grounds were designed to resemble the Alhambra palace, is to showcase works by three prolific Spanish artists: nature-inspired sculptures by Cristina Almodovar, photo-realistic paintings by Raquel de Prada and abstract canvases by Lorena Allas. The exhibition has been drawn together by Marjan Soleimani, a local art exhibitor, and will be on display in the hotel's spacious Al Montazah Suite.

While you are here, try to book a table at the hotel's superb fusion restaurant, Eau Zone.
Al Montazah Suite, Royal Mirage, Jumeirah Beach. Open: May 10th, 7.30pm-10.30pm; May 11th-14th, 4pm-9pm. Tel: +971 (0)4 3999999.

More from the Dubai cultural calendar