Economist.com Cities Guide: Dubai Briefing - October 2005

News this month

Freedom of the press?

Sheikh Mohammed, Dubai’s Crown Prince, has called for a new era of press freedom in the United Arab Emirates. In mid-October, he waxed poetic before 500 journalists at his palace, saying, “The UAE will continue to be an oasis of freedom, democracy and co-existence. It will also remain a podium for true words.” But while local reports heralded the speech, they failed to mention that the UAE ranks a lowly 137th (out of 167 countries) in the 2004 Index of Press Freedom, compiled by Reporters Without Borders, a media watchdog in France. “Links between the media, the governments and powerful businessmen are so close that self-censorship is often the only way possible for journalists,” wrote the organisation in its annual report on the region.

Still, many journalists working in Dubai and the UAE claim conditions are improving.
International correspondents are largely free to report what they wish, and even local media organisations, which usually face more pressure, can now criticise government policy and state-run businesses—commentary that would have been impossible even five years ago.

A match made in heaven

Donald Trump, a New York real-estate mogul, may have found his soulmate: Dubai’s booming property market. In a deal signed in October, Nakheel, a state-run developer in Dubai, will brand 17 hotels (including one shaped like a tulip), apartment blocks and other ventures as “Trump” developments. Mr Trump may invest in the projects, but he is not obliged to do so; under the contract, his company will simply take a cut of the proceeds from the Trump-branded developments.

Nakheel, which is building three islands in the shape of palms off the Dubai coast, said it hoped the deal would boost its exposure in European and American markets, where Mr Trump is riding a wave of publicity from his television series, “The Apprentice”. No value was given for the contract, but Nakheel claimed that the Trump-branded properties would be worth billions of dollars.

Bridging the Gulf

A latent and seemingly trivial dispute between Iran and the UAE came to a boil in October, when Iran banned imports of UAE goods bearing a tag boasting “Made in the Arabian Gulf”. At issue is the name of the body of water off the Arabian Sea, which borders Iran, Iraq, Saudi Arabia and the UAE. Iran insists on calling it the Persian Gulf (the name used by many international atlases). But Gulf Arab states, such as the UAE and Saudi Arabia, prefer to call it the Arabian Gulf.

Iranians object to the name “Arabian Gulf” because Iran is predominately Persian, unlike the UAE, which speaks Arabic. By and large the neighbours get along fine—Dubai in particular is home to a large Iranian expatriate community and its ports do a thriving trade with Iran. But underlying rivalry remains. The Gulf Co-operation Council, an EU-style group of six Gulf Arab states, is negotiating a solution with Iran over the name spat.

An affair to remember

A camel has been condemned to death after a worker was caught having sex with it in the remote emirate of Ras Al Khaimah. The man, a Bangladeshi driver, was sentenced to three months in jail for his dangerous liaisons. His employer reported him to the authorities after spotting him making regular visits to the camel barn, Gulf News reported.

Ras Al Khaimah is one of the poorer and more traditional sheikhdoms that make up the seven United Arab Emirates, and its judiciary tends to be more conservative than its neighbours' (Dubai is about an hour’s drive away). Reports said authorities ordered the camel to be killed in accordance with Islamic or sharia law, because its meat was considered tainted by the man’s performances.

But a long way to go

A new Dubai stock exchange promising strict regulation was hit by a corporate governance scandal on the eve of its launch. A leaked memo from William Miller, a board member of the Dubai International Financial Exchange (DIFX), accused Lynton Jones, the chairman, and Steffen Schubert, the chief executive, of hiring a consultant from a European firm, Bourse Consult, without properly disclosing their ties to the organisation. DIFX officials swiftly denied any conflict of interest, arguing that the issue had been settled in July. Mr Jones, who works for Bourse Consult, insisted that his relationship with the firm was known to the board, while Mr Schubert said he cut his ties before joining DIFX in late 2003.

Their explanations appear plausible, but the incident is embarrassing, as the DIFX has used a mantra of tough regulation to distinguish itself from other markets in the region. In spite of the scandal, the exchange was launched as planned on September 26th, with Mr Jones praising DIFX as having “all the qualities present in the most mature markets.” DIFX opened with four member banks, including Deutsche Bank and HSBC, and officials predict that about 15 companies will list on the exchange by the end of next year.

Catch if you can

October 2005

Gilded letters

October 5th–November 6th 2005

With foreign buyers growing more interested in Islamic art, three Turkish calligraphers have organised a show of works for the month of Ramadan. Muammer Semih Irtes, Mamure Oz and Recep Cengiz display a range of pieces, with prices ranging from $1,500 to $50,000.

Dubai Heritage and Diving Village, Shindaga, Bur Dubai (by the mouth of the Creek). Tel: +971 (0)4 223 0000. Entry: free. Open: daily, 5–10.30pm.

More from the Dubai cultural calendar