Dubai's global shopping spree

Dubai evolved from a tiny port established a century ago to avoid taxes at the Persian port of Lingah to a languishing British colony 50 years ago, before finally striking it rich with the discovery of oil in the 1960s. In 1971 it joined six neighbouring emirates to form the United Arab Emirates and quickly became the new grouping's commercial centre. Under the rule of Sheikh Mohammed bin Rashid Al Maktoum, Dubai is spending tens of billions of dollars building a tourism and finance mecca in preparation for the day that the oil reserves run out - expected by about 2020. Already built is the now world-famous, sail-shaped US$1 billion Burj Al Arab "seven star" hotel that juts out over the Persian Gulf. It has been joined by two huge reclaimed palm-tree-shaped islands, and a similarly reclaimed grouping of 270 islands in the shape of the world depicting most countries, including New Zealand. A US$5 billion Dubailand - Disneyland on steroids - is under construction, featuring indoor snow skiing, an animal safari and amusement park. Sheikh Mohammed is known for keeping a close eye on his investments and for making instant decisions - reportedly ordering the addition of dozens of customs and immigration agents at Dubai's airport after visiting and finding its arrivals hall overcrowded at 1am a few years ago. One of three brothers, Sheikh Ahmed Bin Saeed Al Maktoum is chairman of Dubai Aerospace Enterprises, which made a $2.6 billion bid for Auckland International Airport this week. The airport bid has been met with a strong negative reaction, especially at political level, based on concern that New Zealand is selling off yet another vital piece of itself. Ironically, foreigners are prevented by law from owning land in Dubai, though Sheikh Mohammed has found a way around the problem by allowing 99-year leases through a state-run property company. Sheikh Ahmed also runs the national airline Emirates Airline, launched in 1985 with two aircraft to funnel European and American tourists through Dubai on their way to Asia. Today it is one of the fastest growing and biggest airlines in the world and is the third-biggest competitor on the Tasman route. About six million visitors annually pass through Dubai and that is expected to more than double to 15 million by 2010. Tourism already contributes more than twice as much as oil to the economy. Gross domestic product has grown from US$8 billion to more than US$20 billion since the early 1990s. About two-thirds comes from trade, tourism, real estate, construction and financial services. It is estimated that Sheikh Mohammed earns about US$2 billion a year from the assets of his late father Sheikh Maktoum bin Rashid Al Maktoum and reportedly receives US$2.5 billion in subsidies from the United Arab Emirates. And then there are the luxury hotels, banks, beachfront palaces and a stable of 1200 Arabian racehorses. The family's investments were restructured into Dubai Holdings in 2004, with interests including property, media, finance, tourism, energy, communications and manufacturing. The group has spent billions of dollars buying high-profile investments, including Tussauds Group, of wax museum fame. By ROELAND van den BERGH - The Dominion Post | Saturday, 28 July 2007