GLM 2015-2016 BUILDING VISIONS WITH GLASS & STEEL DUBAI STUDY TRIP REPORT

GLM 2015-2016

EDITORIAL NOTE

wo days into our trip to Dubai, we paid a visit to the Juma Al-Majid Center for Culture and Heritage. One of the center’s main purposes is to document TDubai’s humble beginnings as a coastal village in the early 1950s and 60s. The black and white photographs on display present a different versionof the city, seemingly incompatible with the vertigo of glass and steel skyscrapers we have been immersed in over the last two days. We see photographs of the city’s creek bespeckled with wooden barges, and its fish market, a collection of small wooden stalls with palm-leaf thatching.

It is now an integral part of Dubai’s mythology to present it as a city which has “emerged” from the desert practically overnight, flouting any clearsense of agency in its construction. But pragmatically, how does one plan and oversee the con- struction of such a large-scale project? What could have possibly guided Dubai’s builders other than that elusive sense of “vision”, which has now become an inte- gral part of the city’s discourse on its own development. It is no coincidence that the current Sheikh, Mohammed ben Rashid Al Maktoum’s 2012 memoir was titled “My Vision: Challenges in the Race for Excellence”.

The notion of vision is equally at the heart of the 1968 British documentary “Fare- welll to Arabia” which documents the early days of Abu Dhabi’s Sheikh Zayed in power. In addition to the rare footage on life in 1960s Abu Dhabi it provides, the documentary draws a powerfully introverted portrait of Sheikh Zayed as a man at the crossroads of history, whose task is to selectively welcome western inno- vations into his kingdom. Here, vision is strategy: where should Zayed invest the country’s recent wealth, the journalist asks. A new airport, or a new hospital? This sense of a strategic vision, both for Dubai and Abu Dhabi’s development, is what has guided the conception of the present report: can we discern an orderly strat- egy in the way the city of Dubai has developed?

Consisting in a collection of articles, essays and think-pieces, our report is the product of a week-long study trip in the cities of Dubai and Abu Dhabi, under- taken in January 2016 by the first year students of Scienceso UrbanP School’s master’s program “Governing the Large Metropolis”. As students in comparative urban governance and sociology, the aim of our trip was to understand the inner workings of both Emirati cities through their governance model and strategies for further development. Focusing specifically on Dubai, this collection of articles attempts ot outline the city’s continued strategy to distinguish itself in a world of competing cities. If Dubai’s development model today is more closely associated with the spectacular architectural frenzies of the Burj al-Arab and Burj Khalifa, adopting a historical per- spective is crucial to appreciate the city’s long-term strategic vision for develop- ment. Harnessing this strategy requires sustained attention to infrastructural de- velopment, migration patterns and the political system. We have throughout this report strived to illuminate the “Dubai phenomenon” through a plurality of angles, which is also reflected in the different styles and formats of the llowingfo articles. The plurality of voices and impressions expressed throughout this report seeks to translate the multifaceted nature of a city which concentrates radical extremes.

In a sense, the starting point of this “instant-book” began before our actual trip, through a series of lectures dispensed by Profs. Hélène Thiollet and Harvey Mo- lotch contextualizing Emirati growth. Once on the ground, we met with actors from a wide variety of sectors, from public officials, private contractorso public t benefactors, in order to collect a variety of perspectives on the growth and gover- nance of both cities. We are very grateful for the insight provided us by the various people and institutions we met, such as the public benefactor Juma Al-Majid, the Emirates Green Buildings Council, Smart Cities Dubai, the environmental agency of Abu Dhabi, as well as the different constructors of Dubai’s trams and metro sys- tems (Alstom & Thales), and the Suez group with manages Dubai’s waste. We also had the opportunity of visiting key sites in the development of both cities, such as the Jabal Ali Power and Desalination Plant in Dubai, the site for the development of Dubai’s second airport and the Expo 2020 in Dubai South. In Abu Dhabi, we visit- ed the spectacular site of Masdar City, candidate to be the first carbon-neutral city in the world and the Abu Dhabi campus of New York University. Actors with a more economic focus such as Dubai Chamber of Commerce, IBI Group, Chalhoub, MBK Foods, and the Italian Chamber of Commerce in Dubai were also gracious enough to receive us. Finally, we wish to thank the French Embassy in Abu Dhabi for their hospitality. We thank all the people who have kindly agreed to meet us both in preparation, and over the course of our study trip, for the invaluable insight they have provided to the present report.

The Editorial Team EDITORIAL TEAM TABLE OF CONTENTS

INTRODUCTION

EXCAVATING THE BLUEPRINT FOR A METROPOLIS

by Alice Dang, Raphaël Gernath who’ve flocked from across the globe & Filipe Mello Rose are drawn to the wares, souvenirs and goods advertised in the resort. Here, Emirati heritage and tradition serves as lthough the word “medina” techni- scaffolding, erected around a mosaic Acally means ‘city’ in Arabic, the term of stores and restaurants where cos- is meant to designate the old quarters mopolitanism reigns as British couples of a town, opposing them to the ‘mod- mingle with Chinese tourists while they ern’ or ‘new’ city. Even if it is labelled have Thai food for dinner. These juxta- as having a souk, wandering amongst positions merit reflexion, and prompt the idyllic waterways and gardens of one to wonder what kind of past the Dubai’s “Madinat Jumeirah”, nestled souk wants to recall. between luxury hotels, does not exactly fit this definition. Its architecture, much The British were first present in the more modest than that of neighbouring Emirates in the early 1820s through high-rises, is catered as a “luxurious the administration of a truce to control interpretation of authentic Arabia” , but piracy in the Persian Gulf, that endan- this development like so many others gered the Empire’s interests in the In- in Dubai has just recently risen from dian subcontinent. The Trucial treaties the sands. Yet its streets are teem- delegated colonial power to local elders ing with life, as tourists and shoppers and sheikhs in the region, and perpetu- ated power relations that had previous- Protectorate allowed for a continuity ly been unstable. For the first century in rulership. The withdrawal of British after the settlement of its creek, Dubai influence only occurred gradually and gained importance due to a secession kept the ruling dynasties in place. from Abu Dhabi in 1833, and mainly lived of trade and pearl diving. By the As the businessman and philanthro- early 20th century, when a consider- pist Juma Al-Majid recalls, the collec- able part of the world market for pearls tive trauma of Dubai’s economic crisis was supplied from Dubai, the port in following the invention of the cultivat- the Dubai creek began to attract mer- ed pearl made Dubai determined not chants from the greater region of the to fall into the trap of over-reliance on Gulf (Davidson 2009). This dramatical- a single resource. This desire to diver- ly changed in the 1920s, when pearls sify the economy was strongly reflect- began to be cheaply cultured in Japan, ed when oil started to be extracted in and Dubai’s prime export good could Dubai 1952. By 1970s the oil revenues not longer find international buyers. -Ac reached significant levels many of the cording to Davidson, British policy over concessions from the 1930s were al- the protectorate had restricted eco- ready expiring, opening the possibility nomic modernization and non-British to Sheikh Rashid bin Said Al-Maktum investment in the pearl industry, thus to create the Dubai Petroleum Com- amplifying the devastating effects of thepany. It was decided to use the cheap economic crisis (Kanna 2013). energy to open one aluminium and one cabling Company, while investing much In the context of rising tensions accom- of the profit abroad through the Dubai panying the surge of pan-Arabism, the Holding group in order to safeguard the British government announced in 1967 wealth. In 1972, Sheikh Rashid initiat- their complete withdrawal from the re- ed the works for the massive Jebel-Ali gion within four years. The recent inde- port about 30km south of Dubai that pendence of Egypt and Syria suggest- would soon turn into the new base of ed that prolonging colonial hegemony the economy. This is part of a strate- in Arab countries would jeopardize Brit- gy specific to Dubai that is founded ish commercial interests in the long run. on supply-generated demand. At the This meant that state structures had time, the creation of industries to gen- to be rapidly instituted in the Emirates. erate demand was used accelerate the Previously established Trucial institu- growth of the port, while today it entails tions were increasingly filled with- Emimegaprojects such as the Palm Islands rati representatives and were turned or the Dubai subway as examples of into federal institutions. In a last-minute service provision that are expected to agreement, six Emirates agreed to unite generate their own demand. It is the under the presidency of the ruler of government who generally initiates Abu Dhabi in December 1971 to form such risky investments and allocates an independent nation. The particular sufficient resources to ensure success- political arrangement provided by the ful results. Departing from the petroleum and en- in mind throughout our report. This ergy-intensive industries which fueled developmental path would not have trade flows, the rulers of Dubai been have, possible without on the one hand, thanks to its strategic position, man- turning the public sector into an in- aged to bypass industrialization in the come generating instance; on the oth- creation of a service economy: like er hand, the reinvestment of revenue Singapore, the city-state has benefit- into new income-generating projects ed from entrepôt growth, re-exporting abroad and in the regime’s patronage 12 imported goods without any additional networks. In order to keep Emirati elites processing or repackaging, allowing it satisfied, growth and the production to be catapulted to the position of - fi of wealth becomes imperative. It is a nancial center. Dubai thus jumped di- model where state intervention and co- rectly from a pearling and trading so- ordination is central to the developmen- ciety to one dominated by service. For tal agenda, fuelled by an ambition not example it has been fuelled by foreign only to catch up with, but to surpass, investments but also investments in the West in every way. the real estate sector following the be- ginning of freehold ownerships for for- Interestingly, much of the develop- eigners in 2002, which in turn spurred a ment appears to be grounded by not construction boom, still ongoing today. only diversifying the risk of one nat- ural resource but also by selling the Furthermore, branding has been in- city through branding and foreign in- strumental in strengthening its insertion vestment whenever possible. Despite within the world economy. The use of all their challenges, this type of urban architecture as a strategic tool has al- development appears to be successful lowed the city to position itself deliber- in importing capital, using foreign la- ately and exclusively at the high-quality bour and creating domestic wealth. But end of the market with iconic buildings where will this dependence lead? The like the sail-shaped Burj Al Arab or the fragilities of this developmental model tallest building in the world, Burj Khal- -- extreme reliance on foreign labour ifa. That is why they value and rely on and external resources -- might prove international partners for development: fatal in the future. Yet, it would not be by employing the world’s top workers, the first time, that Dubai, against all the rulers of Dubai also solve the prob- odds, stands and grows. lem of lack of skills within the local pop- ulation. Hence, the labor force behind This book seeks to discuss how Dubai’s its development is extremely flexible as model of governance and growth turn skills are an entirely tradable commodi- the city into an important actor in the ty to be purchased on the international world economy. How does its model market. of urban governance address the inter- national context and external factors? The importance of the leader’s clear vi- What are the strengths and weakness- sion for the city is a key element to bear es of the unique model of Dubai and in which ways is it fit for the future? Dubai through its own representations is for future developments, are themes In an attempt to answer these ques- examined in our second section. tions, this book is divided into six parts that represent our efforts to articulate We then explored the driving forces the different aspects of Dubai’s gover- behind Dubai’s growth model, monu- nance. By positioning itself as a cross- mental in scale but also impressive in roads of goods and people, Dubai has scope, specifically looking at the city’s undergone a profound urban metamor- insertion within the global econom- phosis shaped in part by the interests ic system though the development of of its rulers, but also by the demands unique business models. A high vol- of global forces. To understand how ume of investment in innovative sec- such a distinct city came to exist, it’s tors, as well as heavy reliance on im- necessary to look at the elements that migrant labor, has characterized the have fuelled Dubai’s growth, but also to Emirate’s often-relentless economic define the place it aims to carve out for expansion. However, the section also its future. evaluates the geopolitical stakes at play when it comes to Dubai’s extraordinary We first tried to trace out Dubai’s histor- energy sector, responsible for satisfy- ical legacies, considered in the light of ing the appetite of a resource-hungry their impact on current societal struc- city, as well as the liberal approach to tures. Questions of identity and com- investments and regulation that char- munity are examined in the context of acterizes its business strategy. the Emirate’s strong tribal society, to assess how a city rooted in the politics Moving from assets to innovations, the of the Arabian Peninsula negotiated its fourth section discusses the growing entrance onto the world stage. Indeed, importance of environmental sustain- the concepts of heritage and tradition, ability as an economic sector. Within in a place which became imbued with this burgeoning sector, Dubai and its capitalist logic at an accelerated pace, rival-partner Abu Dhabi compete to is essential to understanding how Dubai attract the latest technology through formulates its modernity. massive investments that allow them to thrive and bolster their legitima- Building a metropolis fit for the twen- cy as global hubs for environmentally ty-first century also meant crafting an conscious development. Beyond that, urban vision to project to the world. however, sustainability also possesses Iconic mega-projects like Dubai’s post- a political component, as the embod- er child, the Burj Khalifa, are synony- iment of an alternative strategy to dis- mous with the image-driven develop- tance the Emirates from dependency ment the city has become synonymous on external resources and diversify with. Whether or not the city has be- the economy. However, we’ll also dis- come a model of ‘governing through cuss how reconciling the attitudes of a attractivity’, and how tenable marketing growth-based society with objectives of conservation and protection has allowed the city to overcome and even proved to be a difficult terrain -of transformimple its fragilities into the key for mentation. its own success. If the six previous sec- tions tried to unravel some of the dis- Indeed, the notion of control in Dubai tinctive threads that characterize Dubai, is a slippery one. As a city-state com- the conclusion will examine how the ob- posed of economic free zones within a jectives previously described each cor- kingdom, these overlapping layers of respond to a unique form of attractivity 14 governance are reflected in the innermolded in the Emirate. Amidst constant workings of a socially stratified - soci skyward growth and perpetual expan- ety, and overlapping types of compet- sion, Dubai has managed to secure the ing regulations. Thus, in a fifth section, promise of a stable future for its inhab- we attempt to provide an understand- itants, a paradox that crystallizes many ing of the forms of political authority in of the aspirations and inspirations that the Emirates, the unique (and multiple) define the city’s governance. kinds of ‘citizenship’ that can be con- ceived of in the UAE, and the socio-po- litical implications of such hierarchies in Dubai.

It is by building on all these specific strengths, societal, spatial and political, that Dubai strives to project its own dy- namism and stand out amongst com- petitors. Reflecting on the city’s place in the flux of international relations, a sixth and final section analyzes Dubai’s geopolitical positioning at the regional and global scale. With the agenda to si- multaneously become a hub for global travel and an Islamic counter-model to Western global cities, the metropolises’ expansion seems to know no limits.

A flamboyant urban imagination is in many ways the tinder of Dubai’s am- bitious governance schemes. To wrap up our reflections on the past, present, but also the future of this imposing yet chimeric metropolitan landscape, the concluding section of this report will therefore consider how Dubai has con- structed a well-oiled machine that has

SECTION 1

LEGACY AND HISTORY

by William Cox, Eleonora Dobbles & Rachel Souvré

racing out Dubai’s historical legacies, they are considered in the light of their impact on current societal structures. Ques- Ttions of identity and community are examined in the context of the Emirate’s strong tribal society, to assess how a city rooted in the politics of the Arabian Peninsula negotiated its entrance onto the world stage. Indeed, the concepts of heritage and tradition, in a place which became imbued with capitalist logic at an accelerated pace, is essential to understanding how Dubai formulates its moder- nity. television. Imagine you are on Main 1.1 Street in a tightly packed valley of false- front buildings that block your vision of the unfamiliar mountainous landscape HOW THE WILD WEST BE- beyond. This town you’re standing in CAME THE MIDDLE EAST? has become rich on natural resources, DEVELOPING FOR A probably gold, which at any moment could dry up. As Heath explains, the FUTURE ON THE URBAN future success of the town rests on FRONTIER its ability to establish a stable econo- my independent from the finite riches in the ground.[iii] The two-story com- by William Cox mercial facades that surround you are being built to create the perception of lmost 50% of Dubai’s commercial prosperity in order to attract new ser- Abuildings currently stand vacant. vice-sector businesses, East-Coast in- [i] False-Front Architecture, a popu- vestors and, most important, tangible lar architectural style for commercial prosperity in the future. buildings in the American Wild-West (see Example 1), employed ornament- Dubai has its Main Street (Sheikh Zayed ed, two-story facades attached to Road) and imposing facades to sur- rudimentary one-story structures. In round it (The Burj Kahlifa), which block relation of appearance (façade) to sub- inhabitant’s view of the mysterious des- stance (structure), 50% of Wild-West ert just beyond city limits. Dubai also commercial buildings were just mirag- knows first-hand, the fragility of being es in the wilderness. In his study of ar- economically dependent on natural re- chitecture in the American Wild-West, sources. Before it was bankrolled by oil, Kingston Wm. Heath explains that the Dubai had a stable economy based on purpose of false-front buildings were, pearl harvesting. Then in the 1930’s, through architectural expression, to with the innovation of artificially cultured ‘strive for legitimacy and permanence’ pearls in Asia, Dubai’s pearl trade was on the rugged and developing frontier. destroyed leaving the Emirate as one [ii] To better understand the path of ur- of the poorest countries in the region. ban development in Dubai, a path often [iv] After finding oil riches in the 1960’s described by the west as hubristic, cor- and 70’s, Dubai’s economy was tested rupt and rushed, we need look no fur- again in 1986, when a global oil-crisis ther than the romanticized cowboy-his- reduced barrel prices by almost 70%. tory of urban development in Wild-West [v] Dubai, and the greater UAE, un- America. derstands that to be successful as a modern ‘frontier’ city, it must create an Imagine, if you can, 1850’s California, environment conducive to service-sec- Arizona, Nevada or any other Wild- tor industries of the future: finance, West frontier glorified by movies andclean-energy and technology. Empty office buildings. In Dubai they has created areas governed by British loom over you and spawn an idea that Common-Law rather than Sharia Law the success Dubai’s government so in the heart of its financial districts,- fa openly boasts might really be a façade. vorable to the legal understanding of But Heath states: ‘the sooner the young foreign investors.[ix] Like law codes on mining camp grappled with the sudden the American frontier, Dubai’s youthful urban realities and provided the facili- legal history lacks precedent to define ties necessary to manage or exploit the how development should be governed. 18 moment, the better were its chances This allows new developers such as the for survival.’[vi] The modern economy is French transportation builder Alstom, defined by white-collar office jobs and to influence laws defining their projects’ an ability to grow quickly. Dubai has the legality in the city, resulting in more rap- vacant offices. As proved by its mas - id construction and more attractive in- sive growth in the last 20 years, Dubai vestment potential.[x] also has the ability to construct quickly the urban infrastructural demands of Dubai is often judged as being brash, foreign investors looking to migrate. exploitative, and over-confident in the way it has developed as an urban Return to our image of the Wild-West space. However if we contextualize main street. If you can, imagine that Dubai as a modern descendent of the on Main Street is a sheriff. This - sher‘frontier-town’, we can better under- iff’s law is one that must be dynamic;stand the city’s necessity to develop both reigning in the lawlessness inher- as it has. Dubai is building a façade of ent in frontier prospecting while also success in the present to better ensure forgiving enough to attract any and all actual success in the future. We have parties interested in settling the city. In no reason to question the beauty and the Wild-West, governance and law accomplishment of a false-front build- were defined by popular justice and theing so long as we approach it head on. writing of laws conducive to growth.[vii] Likewise, governance and law in Dubai is being shaped to support investment in the future. In Dubai popular justice takes the form of leniency towards in- ternational, non-Islamic lifestyles. The fundamentalism of other Gulf Coast Countries is often seen as a deterrent to Middle-East relocation. Dubai how- ever, has become known for governing with greater acceptance toward so- cial differences such as dress, - intoxi cants, and sexuality.[viii] Economically, Dubai law is fluid as well. Leveraging a concept called ‘free-zones’ Dubai a way of organising a society through 1.2 tight ties of kinship and large family net- works. One must bear in mind that the United Arab Emirates are constituted TRIBAL MODEL AND NEW by tribes, who share the control of the SOCIAL SYSTEMS country. Dubai is ruled by the Al Mak- toum family since the XIXth Century, a by Eleonora Dobbles & family belonging to the same tribe than Rachel Souvré the Al Nahyane, ruling family of Abu Dhabi. The Sheikh is not a King in the traditional sense, but a patriarch, the head of a tribe who negotiates with oth- n the museum of the Juma Al Ma- er tribes in the interest of his tribe. Ijid’s Center for Culture and Heritage, a small collection of pictures shows In Dubai, the line between the public Emiratis standing in front of their bara- and the private sectors is blurred and stri - traditional houses made of palm the two tend to merge. Politics and eco- fronds - and the old pearl diving har- nomics are thus strongly interconnect- bour. If it were not for these pictures ed. It rests on the image of a “big man”, we would have had a hard time to a governor whose role is, besides that believe that this was Dubai fifty yearsof a leader, also the one of an entre- ago. The mansions in the outskirt of preneur. Indeed, the importance of the the cities and Jebel Ali Port replaced it figure of the Sheikh has been decisive all. Skyscrapers and roads have left no in the development of Dubai: it was the tangible evidence of Dubai’s past but vision and the project of Sheikh Rashid these few photographs and the sparse Bin Said to reorient the economy of Dubai Museum in Al Fahidi Fort. But pearls towards a business model which if the tangible legacies left of the tribal would generate an impressive growth society that the Emirates were until 50 in the country. Yet, the business model years ago are very few and discrete, we itself, very inserted in the global econ- cannot say the same of the immaterial omy, carries deep marks of tribal heri- legacy, which is very present both in the tage. Indeed, the importance of making sociological structure and the political solid personal connections when doing functioning of Dubai. The central idea of business in the UAE is an element that the article is to explore how this mode was highlighted throughout our field trip of social organization translates into the by both the nationals and the foreigner capitalistic growth machine that Dubai entrepreneurs we met. Verbal agree- has embodied, which means asking ments are also a very common prac- these structures been adapted to fit thetice, even for projects of big magnitude. idea of a globalized modernity. Dubai is, in that sense, a very partic- The modern Emirati society is struc- ular hybridation between a very liberal, tured around tribalism, understood as growth-oriented economic model, also very open to immigration since in fact one of the main components to explain only 6% of the population holds the the Emirati society: tribalism effective- status of citizenship. What is interest- ly sidelines non-tribal and naturalized ing about this dual system is that trib- citizens, which can never truly become alism co-exists with capitalism in a very integrated. integrated manner. For instance, the environmental approach is also deep- Because of its recent history as a uni- ly linked to tribal tradition. The globally fied country and as an urban popula- 20 accepted priority of environmental sus- tion, the idea of an Emirati identity is still tainability - as a consequence of high fragile and in the process of being built. carbon emissions, excessive energy We are seeing the first fully urban gen- consumption or desalination - is coun- eration of Dubai citizens, who think of terbalanced in the UAE by a different themselves as Emirati nationals, as op- prioritization. The Environmental Agen- posed to the previous generations who cy in Abu Dhabi was primarily created defined their identities along tribal lines. to protect endangered fishes and wild Restaurants serving traditional Emirati falcons. Thus the ruling families have food have emerged in the gastronom- invested in the preservation of species ic landscape of Dubai, where most of and natural territories to preserve tra- the offer is a mix of Lebanese, Indian ditional tribal activities. This framing of and other Arabic food. There is an insti- the environmental question also seems tutionalized effort to build this national convenient for the purposes of imple- identity. For instance, writing contests menting ecological policies without tru- about the Emirati national identity are ly challenging consumption patterns. organized in primary schools. The army has also played an increasing role in the On another note, the effects of tribal- formation of Emiratis’ sense of national ism are also visible in the interesting belonging: in 2014, Sheikh Khalifa Bin phenomenon of the Majiliss, which are Zayed introduced a mandatory military an inherently tribal mode of governing, service for all Emirati men aged be- where the patriarch holds an audience tween 18 and 30, which is optional for to hear the citizen’s complaints and women. The war in Yemen and the loss requests. It is fundamentally differentof 45 servicemen in September of 2015 from a western conception of democ- plunged the whole country in a three- racy as it can only work as a form of day period of mourning, further awak- government in a society formed only by ening national consciousness. Emiratis which is highly integrated and which places a special emphasis on When speaking of Dubai, we can- inter-personal relationships, closeness not leave aside the decisive strategy and family networks. There is an idea based on the willingness to be mod- of a direct access of to the ruler, ac- ern. As Ortega pointed out (2009), knowledging that those who can ben- “Dubai’s neopatrimonial structure is efit of this citizenship belong to a very at once both strikingly modern, and exclusive club. Exclusiveness is indeed deeply imbedded in cultural and histor- ical norms”. This fusion of progressive and traditional politics is the product of nearly two centuries of kinship and loy- alty-based dynamics, coupled with the emergence of a neoliberal structure in the last 1990’s. There is a very partic- ular dualism, incarnated by the coexis- tence of the different and often thought of as contradicting sets of values that are tribalism on the one hand, with its integration, family links and trust, and on the other hand capitalism led by growth, surplus creation, accumulation and a willingness to outdo existing re- cords. Max Weber himself argued that states and tribes were fundamentally different and irreconcilable entities. Yet we see them coexisting in the UAE, and Dubai is especially interesting in the sense that it has demonstrated the possibility of having both coincide. In- deed, if Dubai is today this capitalist growth-led economy, it is largely due to a political project established by its trib- al leaders and the commitment of Emir- atis in this project. Paradoxically, it is its tribality that has made Dubai modern.

SECTION 2

“LA VILLE SPECTACLE” : ATTRACTIVITY, MIRAGE AND IMAGE-DRIVEN DEVELOPMENT

by Yunqing Bi, Jihye Choi, Adèle Dauxais, Anna Jönsson, Maria Myridinas, Candice Pigeard, Paula Querido Van Erven & Elizaveta Turgeneva

uilding a metropolis fit for the twenty-first century also means crafting an urban vision that is projected to the world. Iconic Bmega-projects like Dubai’s poster child, the Burj Khalifa, are emblematic of the image-driven development the city has become synonymous with. Whether or not the city has become a model of ‘governing through attractivity’, and how tenable marketing Dubai through its own representations is for future developments, are themes examined in our second section. DUBAI’S STRATEGY TO BE THE NEW 2.1 ENTERTAINMENT CAPITAL

Dubai, as promoting an image of MIRAGE IN THE DESERT progress and dynamism relies on me- ga-projects to be the new entertain- by Yunqing Bi, Adèle Dauxais & ment capital. It plays on the image of Elizaveta Turgeneva this utopic future where human inge- nuity can conquer all obstacles and where creativity can be expressed [i]. sk anyone what are Dubai’s most Dancing towers, twisting skyscrapers Arecognizable features, and watch or buildings in a shape of a golf tee or the litany of superlatives unfold: artifi- jumping dolphins are part of the Dubai cial islands, the world’s largest shop- landscape. The 7 stars hotel Bujr Al-Ar- ping mall, the first underwater hotel,ab became an iconic building of Dubai, the world’s first indoor skiing slope, andsymbolizing the luxury and the fancy. All of course, the Burj Khalifa, the world’s those megaprojects aim at increasing tallest building towering at 1km above city touristic attractiveness. The hospi- ground. However, you might be sur- tality market corresponded to 84,534 prised to know Dubai’s most innova- rooms across 611 properties last year tive recent development project is not [ii]. the construction of a new Burj Khalifa, but plans to build a 3km canal cutting As much as megaprojects nourish the through the city. Whilst the Dubai water vision of Dubai, Dubai is nourishing the canal seems to represent a clear shift megaprojects. Indeed, the real estate away from Dubai’s collection of extrav- developer Nakheel Properties in charge agant architectural mega-projects, in of the $12,3 Palm Jumeirah project reality we should see the project as a [iii], is actually a subsidiary of Dubai continuance of Dubai’s professed strat- World, an investments company look- egy for image-driven development. The ing at several businesses and projects canal is predicted to multiply the city’s for Dubai government. Its chairman is coastline by 5, creating high value re- none other than the Ruler of Dubai [iv]. al-estate development plots for a series Dubai World, in turn, is part of Dubai of luxury waterfront villas. This reflects Inc., a state control investment group, a logic of image-driven development, a owning Emirates group, Dubai holdings development which aims at promoting for example. a certain vision, being attractive, rather than meeting the needs of the inhabi- MARKETING AND PROMOTIONAL tants. This begs the question: to what TOOLS: SUPPLY-GENERATED DEMAND extent is the city built on image? To be seen, to be captured through film and Dubai seems to be conceived to be photographs, rather than to be expe- seen rather than to be lived in. Its mar- rienced? keting image is reminiscent to a park resort, to a Disnland for adults in the middle of the desert, offering luxury -res 2.2 idences, marvellous hotels, state of the art office blocks, huge shopping malls, and incredible entertainment. Those BETWEEN MARKETING mega-projects are built with the pur- AND PROPHESIZING: pose of attracting tourists rather than THE CITY’S VISION FOR ITS improving living spaces for residents. One can cite as evidence the almost in- FUTURE existent public space. Walking through the skyscrapers and showcase-streets, by Jihye Choi & Maria Myridinas there are few public spaces like pub- lic parks, bicycle lanes or squares. Therefore how these fancy buildings ubai’s urban image is distinctive- 26 designed world-famous architects are Dly different from other neighboring integrated into neighborhood grid of Emirates that still rely on oil and gas. the city remains unaddressed. As the urban space of Dubai rapidly developed in a demand-oriented ap- In addition to using images everywhere proach, the city’s image was thus cre- on skyscrapers and roads to promote ated. Dubai has engaged in building an tourism, Dubai also uses marketing image of a city successfully integrated strategies promoting its real estates. into the circuits of global capitalism In May 2002 Sheikh Mohammed an- through the use of media: the city fo- nounced a policy making freehold own- cused on promoting its rapid urban- ership of residential and other types of isation, modern architecture and in- real estates in Dubai available to inves- creased wealth, in an attempt to attract tors of all nationalities in some special- foreign investments to lessen oil depen- ly designated zones. Then the related dence. But Dubai continues to evolve. property rights and registration rules It is now shifting to achieve “Urban were elaborated further in Law No. 7 software” that takes into account per- of 2006. These series of policies attract sonal narratives and that displays what more and more foreigners investing in is life in Dubai beyond the “Hardware” buying house in Dubai, and in return of high-rise buildings and large-scale making the city build more and more infrastructure. Amid the rapid change, luxury housing. However does this in- we start here by asking ourselves, what tegrate with local housing thus provid- is Dubai’s strategy for promoting its im- ing better living conditions to residents, age in the future? and how does the government deal with the surplus of the luxury housing Castello (2008) defines urban image supply which remains vacant nowa- as quality of life forwarded by cities to days become a serious issue. their citizens. In line with this definition, Dubai now prepares to deliver a novel image based on the successful launch of capitalism and tourism – an exquisite “the happiest city in the world”. urban lifestyle that allows social, cultur- It is worth mentioning Dubai’s more al experience and establishes Dubai’s general attempts to recast itself as a identity. With this purpose, EXPO “Smart city” not only through urban in- 2020 has an ambitious motto “con- frastructure but also in terms of lifestyle nect minds, create the future.” It aims standards. The smartphone application to create a successful story in terms that the Smart City Initiative Dubai is of sustainability, mobility and oppor- seeking to develop seems to be link- tunity. The successful launch of green ing advanced urban services -- like businesses in the district and achieving paying fines or electricity bills directly higher connectivity with the rest of the online via the “Smart Dubai” app -- to world (through the construction of a citizens’ happiness,. Such applications new airport and multi-modal freighters) will, according to them, maximise the is expected to produce more business resident’s satisfaction and well-being, opportunities, which will attract people rendering Dubai the happiest city in from all over the world. In this sense, the near future. That is, Dubai wants to Dubai South along with the core spirit promote urban images that offer exact- of EXPO 2020, is a demonstration of ly what residents need in order to maxi- the image Dubai wishes to project of its mise their opportunities and happiness. future development as a city which puts its residents’ well-being at the heart of A city’s ability to attract such talent ca- its development strategy. pable of innovation, becomes an inte- gral factor in urban competitiveness. With these focal points that this me- To attract talented people, the city has ga-event will globally project in 2020, recognised the importance of an intan- Dubai South should be a showcase that gible urban experience and creating integrates greater sustainability into the a sense of connection amongst resi- Dubai lifestyle embodied in a newly built dents. Therefore, Dubai South is an- livable city. The Dubai South project is ticipated to successfully present how a master-planned neighborhood which Dubai residents take advantage of ur- is expected to accommodate almost ban sustainability, mobility and oppor- one million people and employ anoth- tunities for the happiness. er half million. The Dubai South project will also include the now operational Al However, this purpose may need a Maktoum International Airport which is selective approach because a city’s supposed to be one of the largest ones competitiveness is more sustained by in the region -- if not the world -- once competent people, rather than with completed, a key factor in increasing huge population or with ferroconcrete GDP and employment in Dubai. The buildings and asphalt-paved highways. Dubai South development project aims In this regard, Dubai South is more like- to build a socially sustainable residential ly to welcome those who can afford to neighborhood around the airport, which live in its newly-established city and can embodies Dubai’s ambition to become contribute to creating desirable lifestyle. Serving as a test-bed, it is also the first the flow of reality, and also recognize step towards a people-centered city. who we are in this reality. They perceive The degree of the quality and the hap- and display the dialectics of perma- piness that the whole city can pursue nence and change, action and power, would depend on Dubai South’s ability societal and cultural order, and of iden- to provide what their people need to tity and memory, which is why architec- maximize their happiness. That is, this ture also has an existential dimension. novel urban space will be an example Dubai flashes us with an image of fan- of how Dubai can accomplish its next tasy, of greatness, of a highly techno- goal. For this reason, how smoothly logical and modern world, but we feel the project will operate and the lessons a lack of mediation between the built learned from it will prove to be relevant and the human dimension, detaching for the rest of the city in the future. the subject from its environment. We could be in Dubai, or anywhere else in 28 2.3 the world. In Dubai, things happen fast. The land DUB-EYE: WHAT IS MADE that almost 40 years ago consisted of almost nothing is today a global city, VISIBLE AND INVISIBLE? ready to take on the world and com- pete among the greatest. This demon- by Anna Jönsson strates how time seems not to be of any importance when there is money to in- vest and a vision to create. In a “smart” ubai displays to us the ideal of a city of masterplans and modernist in- Dfantasy city, one which we would terventions, urban connections are never have had imagined to exist in planned to work quickly, smoothly, and the desert. In the reflexive surfacesefficiently, as if the importance of time of the tall skyscrapers, we mainly see and space disappears. This phenome- ourselves and the street, and the cars non has been articulated by David Har- passing by behind us on the wide bou- vey as the “time-space compression”, levards. If you have no right to enter the when discussing the consequences of building physically, you will not be able globalization for society. Dubai is in this to access it visually either. Mere specta- sense a showcase of Globalization. tor, you stay put on the outside. Alas, when visiting Dubai, we cannot Dubai makes us think of Juhani Pal- help but wonder: for whom does this lasmaa’s philosophical analysis of how showcase exist? As argued by Pallas- architecture applies to our “feeling” of a maa, constructing a city also requires city. Architecture reflects ideas of ideal an understanding of the human. For life, and in a way, the role of architecture Dubai, what is human in the urban is to structure our sense of being in the realm? Can cities developing at the world. Buildings make us understand speed of Dubai keep up with the hu- man dimension, and more importantly, es that are used is highly important in can the humans keep up with the city? order to understand how storytelling is We feel that there must be more to it a key element in Dubai’s development. than shopping malls, shiny cars and extravagant light shows. In the end, The tribal origins of Dubai easily seem this superficial display of a city needsincompatible with the reality that one also to integrate and create a more pro- sees and experiences in the city to- found, sincere reality for its inhabitants. day. In order to sustain itself beyond its On the other hand, we might just have brief reliance on oil revenues, that were to accept that cities can look differ- bound to deplete quickly, the city start- ent for each spectator, and that what ed diversifying its activities. It also de- is being constructed today is built for veloped a special interest in attractive a future we still have not gotten used megaprojects as a means of branding, to. Although we might see it as an in- so as to insert itself into the global cir- comprehensible mirage of the desert, cuit of city competitiveness. The quick perhaps we should try to keep up and emergence of a city that now performs adapt to this new, speedy and shiny re- economically at such a notable scale ality that is Dubai. has crafted an almost fantastical fiction. Betting on its ability to defy limits and overcome commonplace barriers in 2.4 development, this myth also succeeds in overcoming sceptic criticisms that question the validity of its long-term THE CAPITALIST SOLSTICE goals. Through a re-conception of its past, and a careful attention to im- by Candice Pigeard & Paula age-driven potentialities for the future, Dubai has identified the power in creat- ing a collective dream of the “modern” f Dubai is a mirage in the desert, how future. Idoes it succeed to be a sustainable one? Storytelling may be a mechanism A crucial part in Dubai’s development through which Dubai builds itself as a is not necessarily found on the ground, world-city with a unique identity. Dubai but rather in the discourses of its pol- does not just adopt codes developed icymakers. The rhetoric of storytelling elsewhere, but consistently excels by has long been a method of establish- exceeding them. So how can a city’s ing complacency in national-political features be understood by everyone? contexts. From the myth of the Tower More than just building itself, Dubai of Babel to Plato’s Republic, storytelling projects itself in the future, using story- has served crucial political purposes telling as a tool to both frame its urban in delineating values, clarifying targets, development and embody its identity. It and creating memories that can argu- uses what exists while also attempting ably defend policy choices more than to transcend it. Examining the discours- any other persuasive device. As the po- litical theorist Sheldon Wolin indicates, only ensures Dubai’s leading position, “audience is a metaphor for the polit- but it purports to objectively measure ical community whose nature is to be the city’s achievements and secure a community of remembrance” (Wolin international recognition. Dubai’s sto- 1977, p.97). Dubai’s seemingly ex-nihi- rytelling importantly gears towards re- lo foundation has had to accommodate sults that fit specific (ranking) goals, as this notion of memory into a common well as happiness assessments that are repertoire of future projections. Consid- based on clear, easy-to-use intelligent ering Dubai’s previous nomadic constit- interfaces. uency, a uniform and tangible nostalgia for the past was not an apparatus that The fabrication of an almost science-fic- such discourse could base itself on. tion-like, visionary future has raised the How does a city with such a recent and curious fact that it is assumedly im- immediate establishment consolidate possible to imagine things that have 30 a necessary common imaginary in or- never been experienced before. In- der to compete and thrive on an inter- deed, Dubai’s “Gulf-futurism” does not national scale? Actually, this common escape from the idea that the notions imaginary can be identified to lie else- of modernity that are guiding develop- where: on the collective dream of the ment can only come from a creative future, in a common desire for constant reassemblage of present understand- modern and technological transcen- ings. The criteria for excellence that are dence. being used to assess these futuristic dreams are appropriations of an already The collective projection of a pioneer- laid out capitalist lexicon, which estab- ing and unprecedented development lishes a homogenized interpretation of that keeps challenging its own limits is experience, and consequently builds a carefully moulded in the “Dubai dream.” nation on a perceived consensus. The language offered measures experi - ence according to an appropriation of By incessantly projecting itself towards Western capitalist standards. In turn, the future, Dubai seems to stand out these norms are expanded upon and among the cities of the 21st century reassembled in order to go beyond its incarnating an unprecedented and par- previous incarnations. For instance, adoxical growth model. Indeed, Dubai’s among its multiple goals, Dubai aims to easily approachable facade may allow become the world leader in the field of us to easily forget the fact that it still be- smart city technology. In order to en- longs to a distinct, rarely acknowledged sure its top position in world-rankings, environment with all of its particulari- the Dubai Smart City agency devel- ties. Therefore inventing itself through oped their own international bench- this futuristic storytelling leads Dubai to mark of smart cities in accordance to disharmonize with its former environ- the city’s own competitive advantages. mental uniqueness while simultaneous- The developmental framework is con- ly being over-connected with the rest structed in such a manner that it not of the world. Analyzing Dubai’s urban development model through a rather European prism appears inappropri- ate. Unlike European cities, that were built gradually in response to human needs as they wished to exist as a co- herent and geographically fixed society, Dubai’s built environment comes first, and in turn anticipates future human needs. Developing itself in a projec- tive manner demands that Dubai stays constantly attractive. This might be why such futuristic storytelling takes place, rising from a profound need for Dubai to survive. For that reason, drawing a threshold for development becomes in- conceivable, and the city becomes es- tablished on the notion of limitlessness, mirroring the vastness of its desert surroundings. This futuristic imaginary sustains the necessary mindset behind Dubai’s growth.

So if the power lies where people are constantly looking forward, we may wonder what exists at Dubai’s core, beyond the built environment: what are the forces powering Dubai? How does this narrative of success, easily export- able, shape Dubai’s place in a global- ized world? The embodiment of the city’s own narrative relies on several key resources: a booming real estate mar- ket, a ready influx of wealth-generating consumers, and energy reliability which we shall explore in subsequent sections of the book. 32

SECTION 3

POWERING DUBAI’S GROWTH

by Luc Berman, Pierre De Massé, Marie Francoz, Julia Ladret, Camille Tchounikine & Yue Wang

e then explored the driving forces behind Dubai’s growth model, monumental in scale but also impressive in scope, Wspecifically looking at the city’s insertion within the glob- al economic system though the development of unique business models. The need for foreign investments, as well as heavy reliance on immigrant labor, has characterized the Emirate’s often-relentless economic expansion. This section also evaluates the geopolitical stakes at play when it comes to Dubai’s extraordinary energy needs, as well as the liberal approach to investments and regulation that defines its business strategy. it can produce. Therefore it must rely 3.1 on gas imports (mainly from Kuwait). The UAE’s consumption in electricity has been growing constantly, placing GEOPOLITICS OF ENERGY the UAE amongst the highest electricity AND WATER IN DUBAI consumers per capita in the world[1]. According to a Emirates News Agen- by Luc Berman & cy report, the electricity demand in the UAE is anticipated to grow by 50% Pierre De Massé from January 2013 to 2020.

Dubai’s water entirely originates from o delve deeper into the mecha- seawater desalination as it lacks water Tnisms fuelling Dubai’s growth, or sources. Desalination plants are con- more specifically, understand how nected a to electricity plants so that they city could grow at such an exponential use the residual heat from electricity pace when being located in a desert, production. This poses two main is- one must inquire into how the city can sues: firstly, water desalination is almost sustain its need for energy through- fully dependent on gas; secondly, for out its growth. It has been estimated water to be desalinated, electricity must that Dubai’s demand in energy has be produced. This has led to an over- increased by 18% per year in the last production of energy during the winter ten years. Dubai relies partially on its season, when the demand for water re- own means of energy production, and mains stable; while, in the summer, the mainly on imports, whether it is from intense use of air conditioning requires the other emirates or countries. With more electricity, which leads to an ex- an ever increasing domestic demand, cess production of desalinated water. and a quasi-total reliance on gas to The energy constraints imposed by the produce its electricity and desalinate its process of desalinization has lead other water, the UAE is planning to increase emirates such as Abu Dhabi to invest gas consumption as well as develop in alternative technologies, such as wa- alternative resources – mainly nuclear ter-filtering membranes which would and renewable. lower energy-consumption.

Even though the UAE has the world’s The over-reliance on gas, the pro- 7th largest gas reserves, it only ranks duction interconnectedness between 16th in the world as a producer. This electricity and water, and the potential can partly be explained by the fact that consequences of energy shortages on oil prices are relatively higher than those the economy have led the UAE into of gas. As a result - and coupled with diversifying its energy supply. The two its need in gas for electricity produc- main alternatives considered so far are tion, oil extraction and liquefied gas- ex nuclear and renewable. Regarding nu- ports - the UAE needs more gas than clear, plants will only be located in the Abu Dhabi emirate and will be finalized by 2020 to produce a quarter of the 3.2 UAE’s consumption.

As for renewable energy, two solar WHO BUILDS DUBAI? power plants have been built so far: one in Abu Dhabi (100MW) and one in by Marie Francoz & Yue Wang Dubai (13MW). However, the extreme- ly high summer temperatures of the region as well as the accumulation of he fast development of Dubai de- sand on the panels create several tech- Tpends on large human resources nological challenges for solar energy. in sectors such as construction, tour- Indeed, solar energy technology is to- ism, finance, trade. Because the United day more efficient in temperate regions Arab Emirates’ national population is such as in Germany than in arid deser- relatively small, counting only 900 000 tic ones such as in the UAE. As long Emiratis, the economic growth of Dubai as these problems are not solved, solar heavily relies on foreign manpower. The energy won’t be a serious alternative to national census of 2010 estimated the existing electricity production means. UAE population to be 8.2 million, with However, research is currently being approximately 88% of migrants. With undertaken in places such as Masdar more than half of the population com- 36 with the ambition to tackle existing is- ing from India and the Indian subconti- sues. nent, some people described Dubai as a city of Indian communities. Migrants Thus, the situation Dubai is facing is come not only for low skilled jobs but the following: to meet its energy and also positions which require high skills water-consumption demands, it relies and education, as local Emiratis’ edu- mainly on the energy and drinkable wa- cation level does not correspond to the ter production of Abu Dhabi which itself country’s economic goals. One the one originates from the use of gas and oil. hand, 2009 official records estimates that 17,5% of the national population (older than 10 years old) has not com- pleted primary education. On the oth- er hand, only 13.5 % of Emiratis have studied at university [i]. Thus, the UAE aims at developing education in both general and vocational areas in order to ‘emiratisatize’ the labour market. For a country which develops as a financial hub and a trade center, the first choice is to employ skillful expatriate workers.

TYPOLOGY OF WORKERS driven partly by oil business is redistrib- uted through wages relatively higher The labor force in UAE can be divided than the international average income. into three categories: the Emiratis, low skilled migrant workers and high skilled However, high wages are not for ev- migrant workers (also called “ Expats”) eryone: low-skilled workers live under who do not benefit from the same work- harsh conditions of labor camps, are ing and living conditions. Emiratis make lowly paid, and human rights orga- up most of the upper-class, with a high nizations regularly denouncing their percentage, working as civil servants. bad treatment. Why do they come to They work under good conditions and work in the UAE? In order to answer enjoy many privileges. Expats, referred this question, Ivan Szelenyi, the former to as high skilled workers, are com- Dean of Social Sciences at New York ing from all over the world, especially University of Abu Dhabi conducted a for wealthy western countries but not study on Pakistani construction work- exclusively, since more and more In- ers [iii] , based on fieldwork carried out dians of the upper-middle class have in Pakistan by the Institute of Social also migrated to Dubai. They are well Research (Lahore). They interviewed paid, work in a good environment and 250 intending migrants who planned are covered by company insurance. to go in the UAE and 260 return mi- As for low skilled workers referred to grants in 2013. Interviewees reported as the construction workers, most mixed experiences in UAE: 46% were of them came from Southeast Asia, satisfied with wages, 64% were satis- with long working hours, low payment fied with working conditions but, 67 % and poor living conditions. Depend- felt they were treated like slaves. Nev- ing on the city building projects, they ertheless, 57 % would return to UAE, are also divided into short-term and especially those who are less educat- long-term workers. More than half of ed. Firstly, two thirds of the migrants the expatriate workers are short-term. who have returned feel that their fam- They work for the public or private ily could not have survived without re- sectors and send money back home. mittances sent from UAE. Secondly, around 80% of the former migrants HOW DOES DUBAI ATTRACT PEOPLE ? feel an increase of social status com- pared to before they came to the UAE. Large scale city construction programs attract foreign low skilled workers as Outsourcing civil servants well as tourists. In the free environ- ment of commerce, companies with The public sectors of the UAE are af- ambitious goals come to do business fected by a strong dependency on and establish headquarters in the re- expatriate workers. The Economist gion. Compared to other regions of estimated that thousands of foreigners the Gulf, Dubai is perceived as the have middle or senior government jobs safe haven of the Middle East. Income despite a recent acceleration of the pol- icy of “Emiratisation”, launched three instance, the labor camps formed decades ago [ii] . One of the person- in the desert are far away from the alities that we had the chance to meet central area; extreme weather and worked in the public sector and re- low-condition of residence make ported that official delegations for- in the working environment worse. ternational summits and conferences For Ivan Szelenyi, the UAE guest were mainly composed of foreigners. worker system is only sustainable Thus, there was a paradoxical situa- as long as South Asia remains poor tion where Emirate national interests and UAE remains an absolute mon- were defended by migrants who did archy, as political liberalization can- not have any political rights in UAE. not accept such level of exploitation. However, this situation is chang- ing, for instance, the delegation was mainly composed of Emiratis in the last international summit (COP 21).

Marie Francoz & Yue Wang

A SUSTAINABLE MODEL? 38 High dynamics of population and new expatriate labour make the cities more flexible for facing the challenges of economic changes. Large diver- sification of labour market facilitates the high-speed growth observed in Dubai. Short-term workers contrib- ute to the city construction projects with few burden for the city’s social insurance and public education sys- tems. However, the highly segregat- ed labor market brings challenges to the sustainable development of the city. Dubai has no trade unions, no collective bargaining is allowed within the construction workers. The changes of wages are decided by the employers. Social problems, such as human rights abuses and hardships due to terrible working conditions, arise amongst the con- struction and industrial workers. For the city, an officially recognized, - delin 3.3 eated area, where trade would be ex- empt from taxes and would be subject to British Common Law. This invest- DUBAÏ’S BUSINESS MODEL ment-attraction strategy rapidly trans- formed the core of the growth system by Julia Ladret & Camille of Dubaï, which today counts dozens of Tchounikine similar places, all hosting hundreds of foreign companies. Freezones exist for each activity, from the “Dubai Health- hile driving on Dubaï’s’ highways, care City’ to the “Media City”, and the Wsurrounded by countless shining biggest, “Dubai Multi Commodities skyscrapers, one asks himself where Center”, which registers more than does all the luxury come from. How has 10,000 companies. Dubaï managed to transform from a lit- tle port of pearl traders in the desert to Formally, being in a freezone exempts a a global hub, where foreign investments company from the necessity to comply and business workers flow to feed their to Dubaï’s business law, which requires 5% per year growth-machine, in less a minimum ownership of 51% by a lo- than 30 years ? The answer lies in one cal Emirati citizen. This arrangement is word: business. In Dubaï, business is especially attractive for service com- everything, and everything is business. panies, such as Media or Consultan- Trade counts for 30% of the GDP, as cy firms, since free zones do not have much for tourism. Both are nourished storage capacity. Yet it also prevents by an hyperactive real estate sector these companies from entering directly fuelled by financial speculation [i]. Theonto the local market. To benefit from city’s thriving business sector, adver- the ever-growing local demand, for- tised as the heaven for expatriates eign companies have to abide by the entrepreneurs, is the real pillar of the sponsorship system, which is a great economy. Through more or less formal channel of wealth recuperation for the channels of wealth transmission, this government. Often, the company has allows the local 10% of the population, in fact a side contract with the spon- mostly employed by the government, sor, agreeing to leave the control to to live on a rent basis. What are the mo- the entrepreneur in exchange for regu- dalities of this win-win strategy? lar payment. Yet at the end of the day, the sponsor can legally act as a veto According to a young entrepreneur player in case of any important decision we met, “It all started with a freezone”: concerning the company in the region, the Jebel Ali harbour, which is today a from selling to hiring through employ- massive goods platform situated in the ment visas. The latter is a powerful tool entry of the Arabic Gulf, connecting for the Emiratis to control who has the the Middle East to the Indian Ocean. right to enter the territory to work for It was designed as the first freezone ofand benefit from the “growth-machine”. A working visa for two years costs in the manmade islands (The Palm) around 4,000 dirhams, (1,000 euros), and in the Dubai Marina were built to for a basic migrant worker. be sold to foreign investors and expatri- ates: it is estimated that in 2007, more The sponsorship (called “kafala” sys- than 15,000 expatriates had invested in tem) and the visa systems are the most housing at the Marina Bay [ii]. obvious tools of what we could consid- er as a complex set of “hidden taxes”. Dubai’s strategy is therefore also relies This is the flip side of the “no tax” motto on the attraction of foreign investment used for Dubaï’s - and especially its free to sustain the artificial boost fuelling zones - competitiveness. It also com- the real estate sector. Although this prises a system of licences renewal, relies heavily on speculation, risks are such as the registration license, which minimized by the revenues made by has to be renewed every year manag- the two most important construction ing a fee. companies, owned by Emiratis. Yet the World Islands project for instance is still This is the win-win strategy: a highly slowly recovering from the 2008 eco- advertised legal system of fiscal advan- nomic crisis that completely froze for- tages that facilitates the relocation of eign investments - and still 40% is not foreign businesses to Dubaï, and a side owned by private developers. system of rent that allows the govern- 40 ment to benefit from the implantation This is where we can perceive the lim- of foreign businesses in Dubai. While its of the growth machine: the loom- maintaining channels of control over ing eventuality of a crisis - or simply who can do business in the territory, it a slowing down of economic growth. also puts forward an attractive image As simple members of a “transit soci- of easy, successful and relatively free ety”, expatriates, like in 2008, leave the investments to be made for foreigners. country, abandoning potentially bank- As such, it also allows bidding practic- rupt businesses and breaking down the es to attract foreign investment in order major channel of wealth recuperation to finance grand projects. As the prom- for the locals. The 2008 crisis, when ise of high returns does attract interna- Dubaï had to be bailed out to survive, tional investors, infrastructures develop is still present in collective memory, al- with all costs exteriorized for the city. though “new regulations” have been The close links between real estate put in practice, especially in the real es- and the financial sector have indeedtate sector, in order to stick more close- been feeding the country’s growth for ly to the demand. Yet one can notice 15 years. As opposed to the national that demand for housing is very much legislation restricting foreign owner- estimated on speculations of extreme ship, Dubai introduced in 2002 by royal growth from the tourism sector. Be- decree a freehold ownership for expa- sides, as future growth depends mostly triates, in selected zones of the city. on international investments, there is Among them, the residences situated not much leverage for the government to negotiate a contract with real estate . When the crisis hit Dubai, its specu- or construction companies. Increasing lation-based system broke down, re- numbers of infrastructure and develop- sulting in the stooping of developments ment mega-projects are to be drawn and other projects. Abu Dhabi’s finan- up and pushed forward in order to cial system being exposed to Dubai’s keep the machine working. These ar- economy, contagion was taken very rangements could lead to a speculative seriously by Abu Dhabi. It resulted, bubble, but as it relies on the logic of among other things, in the bailing out every-expanding, incessant growth, the of Dubai by Abu Dhabi. What made win-win strategy does not include the the agreement possible between the scenario of a potential slowing down of two kingdoms is not fully known to real estate developments. the public except for a few symbolic changes such as the renaming of the Another limit to Dubai’s win-win strat- Burj Dubai into the the Burj Khalifa. egy for growth lies in the eventual im- plementation of corporate and val- Recently, in a promising post-cri- ue-added taxes (VAT) by the federal sis recovery period, Dubai’s housing government, which would allow the market has experienced a revival - or UAE to compensate the continued low another “Go-Go Era”- which has re- oil prices. Recent official announce- introduced or given birth to various ment on this possibility provoked worry speculative behaviours. From Janu- in expatriate and business circles, for ary 2012 to end-2014, Dubai’s prop- whom the tax-free system was one the erty prices went over 20% annually. main reason to locate their business in The looming possibility of a new crash the Emirates. If Dubaï’s growth is reli- caused by excessive speculative be- ant on a business strategy that seeks haviour was one of our concerns to balance national wealth recuperation when looking at growth in Dubai. with a “paradise” of non-intervention for foreign companies, would introducing For instance, flipping frenzy - the- mech tax challenge the balance of the win- anism along which an investor buys and win strategy? sells in a short amount of time a proper- ty before it is even constructed – is still Case study: Real estate and specu- widely used. It works on the assump- lation strategy tion that speculators are constantly about to enter the market, consequent- Dubai’s housing market - powered by ly pushing prices up. In return, equally high oil revenues, domestic invest- speculative practices lay the shaky bas- ments, and an increasing recognition es that, for some, were the very caus- as a safe investment location in the es of the former fall of Dubai’s housing region - has experienced episodes of market. However, measures have been high growth from 2002 until the global implemented to regulate real-estate financial crisis in 2008. During that peri- speculation and to foster more respon- od, property prices almost quadrupled sive behaviour. Either by asking sales agents to not resell off-plan properties until the unit is completed and handed over (in order to reduce flipping) ; or, by increasing sales transaction fees.

Pierre De Massé

Map. Powering Dubai Credit: Tatiana Samsonova

42

SECTION 4

SUSTAINABILITY AS A NEW BUSINESS STRATEGY

by Kémilia Bensassi, Célia Darrisse, Anna Jönsson, Lily Munson, Benjamin Rapp, Ambre Souada & Anna Tehlova

oving from assets to innovations, the fourth section discusses the growing importance of environmental sustainability as an Meconomic sector. Within this burgeoning sector, Dubai and its rival-partner Abu Dhabi compete to attract the latest technology through massive investments that allow them to thrive and bolster their legitima- cy as global hubs for environmentally conscious development. Beyond that, however, sustainability also possesses a political component, as the embodiment of an alternative strategy to distance the Emirates from dependency on external resources and diversify the economy. SUSTAINABILITY AS AN ANSWER TO 4.1 NEW CHALLENGES FOR THE UAE

SUSTAINABILITY AS A “It’s a challenge and not a crisis.” This is what Sheik Saif, the United Arab Emir- MARKETING STRATEGY ? ates’ Prime minister declared when asked about the drop of oil prices. The by Célia Darrisse, Benjamin Rapp 1970s were the golden age of the black & Ambre Souada gold for the UAE. Their economy devel- oped at a greater speed than any West- ern country’s. After Dubai discovered onsidering the high ambitions of oil in 1966, it had, for a brief moment, Cthe sheikdom, the quote “second based their economy on this resource. place is the first loser” could be Dubai’sBut they were aware that they could motto. Sustainability and environmen- not rely on oil as much or as long as tal protection is no exception to this other Middle Eastern countries. In the rule. Nevertheless, in today’s western 1990’s oil revenue represented 25% of countries, sustainability goes hand in the Dubai’s GDP, today it is a share of hand with concepts such as degrowth about 4% of it. Following the global -fi or rescaling. In Dubai, this cannot be nancial crisis in 2008, when Dubai went less true. Dubai announces clear am- close to bankruptcy, the Emirate had to bitions for its future and the future of be supported by its neighbor Abu Dha- its dwellers; it will be number one in bi. Dubai came to the realization that every conceivable domain and wants a diversification of economic activities people to know it. In order to achieve was essential for the sustainability of their goals, Dubai’s officials have set up their well being. They turned their econ- a massive marketing strategy to show- omy towards new technologies, tour- case their determination. To win a race, ism, finance and trade. Today over 100 one needs first to create the race and international financial firms are operat- set the rules of the game. Over the 30 ing in the Emirates, with most of them previous years, Dubai has grown from settled between Dubai and Abu Dhabi. a fishing port to a prolific world city. So, if the focus on growth is what has built Sustainability in the Emirates and in and shaped Dubai in many ways from Dubai is not only thought of in terms the beginning, it seems that now, the of economy. The protection of the en- focus lays on making growth sustain- vironment has slowly appeared on their able. To answer their many contempo- political agenda and is getting increas- rary challenges, sustainability has be- ing attention. In 2006, the UAE had the come a priority on the Emirati political greatest carbon footprint in the world agenda and a large eco-strategy has with more than 11.5 hectares per per- been put in place both in Dubai and its son for a population of 4.8 million. It was neighbor Abu Dhabi. also the year when the Green Building Council was created. GBC is an NGO that is working on the construction of the city. The largest city in the UAE will energy efficient buildings. Despite its host, in 2020, the World Exposition. total independence from the govern- For this special occasion, the city plan- ment, they still work closely together to ners have decided to create a new city achieve environmental goals. The Sheik around it and around a soon-to-be air- of Dubai issued a decree obliging every port three times bigger than Heathrow. building to abide to strict building codes As in each of their projects, the new which respect international sustainabil- city located in the south of Dubai will ity norms. Although the intentions are be ‘seamlessly’ smart and fully sus- good, actions are missing. The Green tainable. However, environmental sus- Building Council lacks financial resourc- tainability cannot be considered as the es to follow up on the Sheik’s desire of sole purpose of the project. Dubai bets making every construction in Dubai en- a lot on the economic attractiveness of vironmentally sustainable. the site, which should turn into a major trading location for goods in the Middle Dubai has understood that sustainabili- East. The dual dimension of the very ty is on the agenda of most global cities concept of sustainability is even more in the world and uses it as a marketing manifest when considering the current strategy to become a world city itself. strategies for the development of both GBC’s initiative to encourage the city Dubai and Abu Dhabi. Indeed, Emira- to have retrofitting buildings goes alongti authorities have put in place an effi- with this idea. After using the American cient eco-strategy - often developed environmental certification LEED for a within partnerships with international long time, GBC created its own label actors and developers - through the Estidama (the arabic word for sustain- regeneration of existing areas that are ability). Even if the label is more aspi- redesigned with clean technologies, as rational than constraining, it still shows well as the development of new mas- 46 that Dubai is signalling its commitment ter-planned settlements to facilitate to issues surrounding environmental large-scale technological installation. sustainability. Masdar City is a prime example of those ambitions. It is a US$20 billions A DUAL STRATEGY: ECONOMIC state funded project that has been AND ECOLOGICAL DIMENSIONS OF thought to become the “world’s most ECO-SUSTAINABILITY sustainable eco-city” (The Masdar Ini- tiative, 2015). Constructions started in One of the three pillars of the Dubai 2008 and the city will be spreading over Expo 2020 is sustainability. As we were 6 km2 for a population of 50 000 peo- told by a representative of the project, ple. Masdar is a very innovative proj- an entire part of the exhibition’s site ect that aims to become an influential will be dedicated to sustainability. This clean-tech hubs where emerging com- clearly highlights that sustainability has panies as well as research centres and become one of the main Emirati prior- big corporations would converge and ities. 2020 will be a milestone year for launch new-technological products. As it will become a large laboratory to test a lack of environmental awareness new devices, Masdar is really funded amongst the wider public. on innovation, financial and intellectu- al attractiveness as well as exportation CONFLICTS OF INTEREST of the newly developed technologies. Important governmental funds have The UAE is a young country and so are been invested in Masdar City with the its institutions which are progressive- undeniable expectation of return on ly improving their efficiency but which, such investments. To this extent, when however, still face some challenges. we consider the meaning of sustain- The government of Dubai includes an ability in every discourse and officialExecutive Council of Dubai (created in document that targets it, it seems that 2003), chaired by H.H. Sheikh Hamdan sustainability is always and necessarily Bin Mohammed Bin Rashid Al Mak- understood in an economic dimension. toum, the Crown Prince of Dubaï since In the Emirates, the development of a 2008; the Ruler’s Court has a super- project that promotes ecological mod- visory role. However, despite the exis- ernisation never seems to lack an eco- tence of these councils, fifteen depart- nomical perspective and a concern for ments (e.g. Dubai Municipality, Dubai profitability. Civil Defense, Department of Finance etc.), eight public authorities (e.g. Dubai Electricity and Water Authority, Roads 4.2 and Transport Authority etc.) and other institutions, it is not always clear who is ENVIRONMENTAL POLICY responsible for which sector. IN DUBAI: BETWEEN Legislation is split between the Execu- DISCOURSE AND tive Council and the Ruler’s Court and executive power is spread over differ- IMPLEMENTATION ent entities, although it is increasingly institutionalized - the Executive Council by Kémilia Bensassi, has had a growing influence. One enti- Lily Munson & Anna Tehlova ty might be both a regulatory authority and the service-provider as it is case for the Waste Management Department hile sustainability appears as a and the Electricity and Water Authority. Wpriority in the discourse of Dubai’s These overlapping responsibilities may government, it faces difficulties in trans - eventually lead to conflicts of interest, lating into concrete policies that can be which, together with strong lobbies implemented. We suggest the following within Dubai government, impede the aspects to be behind this challenge: implementation of a strategy for envi- conflicts of interest within the govern- ronmental sustainability. ment, absence of precise long-term strategies, resource dependence and SHORT-TERM STRATEGIES AND imported resources such as gas from DEPENDENCY Qatar and oil from Abu Dhabi. Further- more, desalination has negative effects Furthermore, sustainable policy is dif- on the environment through an increase ficult to implement due to Dubai’sof CO2 causing the acidification of the growth-driven economy and the imme- sea and subsequently an increase of diate environmental constraints posed the ocean’s temperature. Together with by the desert. Despite the discourse a higher concentration of salt in the sea of providing for “Generations to come” water (caused by the salt drained back [i], a long-term strategy seems to be to the sea after the desalination pro- missing. Short-term policies create a cess), it negatively affects the marine non-resilient environment, highly de- life such as the Abu Dhabi coral reef. pendent on external inputs and flows.Furthermore, Dubai is dependent also in terms of food: because of its dry cli- For instance, it appears that waste mate which is not favorable to agricul- management lacks a long-term ap- ture, most of the food products have to proach. So far, waste is collected by be imported. private or public companies depending of the neighborhood and is most of the It seems that the lack of natural resourc- time dealt with through public-private es implied by a desert environment and partnerships with companies such as the connectivity and dependence of a Suez. The entire waste of the metrop- global hub such as Dubai actually trig- olis is then transported to a landfill in ger many challenges for a fast growing the desert. This approach ensures metropolis. The question remains: how cleanliness of the city, but is not en- can independence and sustainability be vironmentally sustainable. However, ensured in the desert? specific projects such as Masdar or 48 Dubai South are attempting to include CHANGING PEOPLE’S BEHAVIOR: recycling in their master planned cities. MISSING ENVIRONMENTAL Data on the quantity of waste produced AWARENESS are missing which makes establishing a long-term waste-management strategy Implementation of environmental poli- difficult. cies depends to a large extent on the behavior of society. However, the en- Dubai relies on Abu Dhabi for the pro- vironment of Dubai is not propitious vision of part of its water and energy to raise awareness about sustainabil- consumption: Jebel Ali plant ensures ity issues and to promote environ- reserves for only 96 hours in case of ment-friendly behavior of people for a crisis. Furthermore, in Dubai, pro- several reasons. First, the economy duction of water and energy is interde- of the country has been based on pendent since the Jebel Ali plant uses non-renewable resources which have fuel for the desalinization process. This been ample in the neighboring Emirate process for producing water requires of Abu Dhabi. Second, a very hot cli- mate (50°C in summer) makes the life How to create a liveable city in without air-conditioned buildings and the desert? movement without air-conditioned cars unimaginable for Dubai’s residents. Apart from stimulating the experience Indeed, researchers, such as Harvey of the built environment for urban Molotch, assume that the Emirati suc- dwellers, urban and environmental cess-story is based on the spread of scholars argue that access to green air-conditioning. Third, a transit society, space is a matter of environmental with most of people staying for only few justice, as they have a positive im- years, is a strong disincentive to invest pact on health and quality of life. [i] in environmental education of civil soci- Green landscapes also serve as mi- ety. Fourth, the absence of any compa- croclimate control, reducing the ur- ny or individual taxation makes it hard ban heating in densely built areas. [ii] for the government to start asking peo- However, although the word “green” ple to pay for expensive treatments for in cities is normally associated with water, energy and waste management. sustainability, this is not always the case in the desert, where maintaining Awareness-raising initiatives run by green spaces requires an excessive the government and other institutions water use for irrigation such as Green Building Council are still mostly focused on industries and busi- The Abu Dhabi Urban Planning nesses and programmes targeting indi- Council recognizes the need for viduals remain weak. green spaces as part of its vision to create world class public spaces for However, Dubai has witnessed a pro- the emirates, with the lead motives gressive change in people’s behavior: to promote liveability, identity and number of users of public transport accessibility to the city. On the other (metro, tramway) increases every year hand, Abu Dhabi currently uses 21.4 after the city invested in public infra- billion cubic meters of ground wa- structure. Despite its relatively high ter per year to irrigate the emirate’s cost, especially compared to the taxi green forestry areas. [iii] With a 100 fare [ii], the metro connects main cen- percent dependence on desalinated ters and can appear as an incentive for water and groundwater resources, the inhabitants to get around the city in combined with a rapid urban expan- a more sustainable way. sion, the role of urban planners and policy-makers is crucial to plan for a water-resilient landscape vegetation. [iv] [v] The Urban Planning Agency of Abu Dhabi is now taking action to introduce a more sustainable plan and design of the public realm. By requiring measures such as water budgeting, using recycled water for irrigation and the use of at least 80 irrigation. This also makes it “green”. percent of local flora for plantation, the council aims to reduce water Anna Jönsson wastage. The question is whether green spaces necessarily have to be green? Perhaps the problem lies in the definition, and the general idea of what urban landscapes should look like. Urban landscaping is shaped by socio-economic values, the needs of society, and technology. Before air-conditioning, urban landscaping in desert cities would function to make cities more habitable in high temperatures. Air-conditioned build- ings and modern technologies have changed the need for functional and strategic planning of the city green spaces, as well as the habits of city residents, reducing the function of green spaces to merely decorative. However, in desert cities such as Abu Dhabi, the well-maintained green lawns and lush trees will hardly make the city ‘liveable’ in the long term.

It should be possible to find alterna- 50 tives to urban landscapes contribut- ing to an improved quality of life for inhabitants, without requiring over- consumption of natural resources. Alternative public recreational spaces such as art parks are now suggest- ed by the Abu Dhabi Environmental agency. [vii] Studies conducted in the United States show that public art, just like green spaces, ranks higher than education, safety and the lo- cal economy to improve the feeling of “welcomeness”, “openness” and a attachment among citizens. [viii] Public art in cities makes it liveable and accessible, but does not require

SECTION 5

GOVERNANCE SYSTEM BASED ON EXCLUSIVITY AND SELECTIVITY

by Marine Chevallereau, Marie Francoz, Agathe Lacombe, Jonathan Pichot, Sophia Torres & Yue Wang

he notion of control in Dubai is a slippery one. As a city-state composed of economic free zones within a kingdom, these Toverlapping layers of governance are reflected in the inner workings of a socially stratified society, and overlappinges typ of competing regulations. Thus, in a fifth section, we attempt toovide pr an understanding of the forms of political authority in the Emirates, the unique and multiple kinds of ‘citizenship’ that can be conceived of in the UAE, and the socio-political implications of such hierarchies in Dubai. relationship though city-states’ history, 5.1 that between autonomy and depen- dence. The combination of the limited space of the city and the large auton- BETWEEN LOCAL AND omy it has over its own affairs allow for GLOBAL: the uniqueness of city-states. However, it’s exactly the size and lack of resourc- DUBAI AS A CITY-STATE es that undermines their autonomy, im- plying dependence. Bearing witness to by Sophia Torres this is the fact that, through history, city- states have been both places of trade and regional cooperation. f it is undeniable that the last centu- Iries have born witness to the consol- Dubai is a perfect illustration. As a fed- idation of the nation state as preferred erate Emirate, it enjoys a great inde- form state formation worldwide, the last pendence from its neighbors, exerting decades have pointed to the re-emer- complete sovereignty over its internal gence of another form of state: the city affairs. However, as a member of the states. Usually associated to the an- federation (however a quite loose one) cient Greek Polis or to the Italian cities it is subject to the authority of the Fed- of the Renaissance, such political form eral Supreme Council, composed by has made a comeback with contem- the leader of each Emirate, with the porary heirs such as Hong Kong, Sin- mission to supervise the general strat- gapore and the Emirates of the UAE. egy of the federation in terms of foreign The fact that those have enjoyed high policy, defense, immigration, education levels of fast growth during the last de- and monetary policy, amongst others. cades has raised the attention towards If central control is indeed loose, the the economic potentials of such politi- membership in the federation intensi- cal model and its compatibility with the fies a double relationship of coopera- current globalized economy. tion and competition between Dubai and the other emirates, especially Abu But first of all, what is a city-state any- Dhabi. Such scenario is also present way? According to the Oxford Dictio- through city-state history and can be nary, it can be defined as “a self-gov- synthesized in the relationship between erning or sovereign state consisting of Greek city-states, alternating compe- a city and its surrounding territory; the tition and alliance for securing political community of people living in, or the dominance and trade. body politic of, this state”. Such defi- nition touches the two most important As mentioned before, trade has been and defining characteristics of the city crucial for both ancient and contempo- state: the city space (its limited territo- rary city-states. In Dubai, trade plays a ry) and its sovereignty. Those two ele- central role not only economically, but ments are the foundations of a defining also culturally, with trade playing a sig- nificative role in the Emirate’s history. and cosmopolitan life of cities based Thus, has been key to Dubai’s devel- on trade. In Dubai, the small commu- opment, especially in what concerns nity of citizens have access to the local securing alternatives to oil rents. The government through the “Majlis”, con- solution found saw the emirate invest- sultative assemblies in which the local ing intensively in infrastructure that tied rulers engage in exchanges with the lo- it to the neighboring region. This de- cals. An historic political element of the fined the shape of the city, which devel- Emirates, those meetings can some- oped along the coast and inland along times include foreign guests, serving as the Dubai Creek. Later, the construc- a bridge between the local community tion of the airport and the foundation of and the high number of “expats” that Emirates airlines saw Dubai consolidate compose Dubai’s population. In this ex- itself as a strategic hub not only for the tent, the emirate also takes the lead (if region, but also for the entire world. compared both to its direct and region- al neighbors) in creating spaces and However, this decision to invest on the structure of flexibility for the adaptation potential of trade and logistics wouldn’t of foreigners. have been as successful without the key ingredient of Dubai’s indepen- Moreover, this multiculturalism and the dence. One of the key drivers of attrac- fast growth observed both in Dubai and tivity of investments, the “easiness in other city states, leads us to ask the doing business”, relies in great part to question of whether this form of state is the independence of Dubai’s govern- better equipped to act in our globalized ment in crafting its own economic and and connected world. Through its small fiscal strategy. Moreover, this reliance size and autonomy, Dubai has been on autonomy and independence has able to reach fast growth and consol- proven a key strategy for the emirate, idate its autonomy. However, it is pre- with the creation of free zones, each cisely two of the most iconic projects of one with its particular rules and strat- the city who bear witness to the limits egy regulated by different state entities. of its independence: the Burj Al Khalifa This zones, such as the Jebel Ali Free (finalized with help from Abu Dhabi) and Zone, function as city within the city, re- the artificial archipelago of “The World”, producing the relationship of autonomy which had is construction work halted 54 and dependency in the city scale. after the 2008 financial crisis, in a- re minder of the delicate equilibrium of an Beyond trade and the economy, city- interconnected world. Today, construc- states also allow for unique practices tion work has picked up again, signaling and institutions regarding its inhabi- a new chapter for Dubai’s growth after tants. If the definition quoted abovethe international crisis. It’s up to Dubai alluded to the role of population, it is to find the right balance and keep on because historically city-states have growing, the sky is the limit. combined the strong communities of small territories to the multiculturalism The Kafala System sion of anyone that does not accept the country’s social structure very easy. In the kafala system, migrant workers need an Emirati-citizen sponsor (a firm Marie Francoz & Yue Wang or a citizen) in order to get a visa. Upon termination of a contract, workers must leave the country immediately and stay abroad for two to three years in gener- 5.2 al, before being allowed to return under a new sponsor. National sponsors are THE DUBAI SOCIAL allowed to extract significant rents from the foreign firm or worker with the mini- CONTRACT? POLITICAL mal or no investment. SUBCONTRACTING To resign, the employees need a no-ob- jection certificate from their sponsors. by Marine Chevallereau This system creates a relationship in which the worker is immobile within the labor market. The migrant worker can- ubai is a city-state with a modern not transfer between firms in search of Deconomy built on top of a tribal better pay so there is low level of com- society. Its particular mix of 21st cen- petition among the firms who demand tury globalized business alongside tra- labor. ditions and social structures that date back to a time of nomadic tribes make As for the sponsor, he has some re- it a particularly interesting case study to sponsibilities. For example, he is under understand how a pre-modern society the obligation to assume full legal and confronts and incorporates contempo- economic responsibility of the worker rary capitalism. once in the United Arab Emirates. The sponsor also provides housing to the To understand the social contract in migrant workers in the most of time. a place like this, one must first -under stand the structure of the indigenous With this system, the social stability of population. The Emiratis, making up the country is assured since people around 10 to 20 percent of the total who come in the country have a job and population of the country, are part of economic incentives that prevent them tightly knit tribal families. These families from taking part in any kind of protests. gain their power through their connec- There is a clear social contract (ex- tions to the sheikh, the central patriarch. plored in Chapter 5) in which migrants Citizenship is thus less a legal under- accept not to be full citizens in favor of standing between state and individual, gaining wealth. In the case of failure to and more a relationship based on kin- fulfil the conditions of this contract, the ship and family. As such, citizenship is kafala system would make the expul- not offered to anyone that is not part of the extended Emirati bloodline. This The social contract offered to non-Emi- particular definition of citizenship is the ratis can be thought of as a country foundation of the Dubai social contract. to be purchased like a product. The power of a non-Emirati is the power of The Sheikh, then, is the legitimate and the market. The Dubai government is de facto leader of his clan through lin- selling is a product: material comfort, eage. But what then of his legitimacy ease of business, stability, and securi- towards the other 80 percent of the ty. Foreigners may not be given much population? The guiding philosophy decision-making power, but because of governance that was underlined in Dubai needs their money, and they can many conversations we had in Dubai– always move it elsewhere, the govern- with business people, government of- ment provides them as best a product ficials, Emirati citizens–was happiness. as possible. The power of foreigners is If we understand the Sheikh as the that of a consumer. patriarch overseeing a country whose citizens are his extended family, this What the Emirates gets in return for impulse is easy to understand. What is this social contract is expertise and particularly noteworthy, then, is that this manpower. This global expertise builds governing philosophy also applies to businesses, undertakes large and com- foreigners that move to Dubai–at least plex infrastructure projects, it even runs those that can take part in the money their government. This is their business making activities of the city. model. In essence, the government of Dubai is a privately-held company. Its Happiness, in this context, is defined as stockholders are Emiratis and its prod- material well-being. The quantity and uct is its country. And like any company, size of advertisements along Dubai’s its raison d’être is profit and return on main thoroughfare, Sheikh Zayed investment. In this way, having foreign Road, was the most obvious example bureaucrats work in high-level govern- of this. In a meeting with a group of ment positions is not contradictory. The Emirati officials working on ‘smart city’many expat government workers we tools for Dubai, the guiding purpose of met–in Dubai’s executive council, in their work was providing ‘happiness’ Abu Dhabi’s environment ministry–are to citizens. In this context, ‘happiness’ essentially employees of a multinational 56 was defined more as ‘satisfaction.’ The corporation that happens to be a coun- tools they presented allowed citizens try. And like any multinational, the com- to pay their bills quickly using their cell petence and professionalism of their phone, access immunization records employees is the most important, not for their children, and schedule doctor their nationality. visits quickly. They referred to citizens as ‘customers’ several times through- In this way, the concept of public-pri- out the presentation. Thus, their pri- vate partnerships (PPP) in Dubai is mary goal in developing these kinds of moot. Since the public sector functions tools was to make life easier. like the private sector, there is very little distinction. Contrary to some countries where PPP governance is criticized 5.3 because of the lack of rules and the introduction of neoliberal policies into the State, in Dubai, commodification,THE MIDDLE CLASS AND namely the marketization of services SOCIAL STRATIFICATION and talent, is how the government has always functioned. IN DUBAI

This global capitalist ideology natu- by Agathe Lacombe rally extends to the private sector. An employee from Chalhoub–an Egyptian company selling luxury products in the ocial and spatial stratification are Gulf region–described her role in the Slinked in Dubai. Even though more ‘happiness’ machine of Dubai. She than 200 nationalities are currently rep- explained that though her job is to sell resented in the city, social stratifica- luxury products, the actual content of tion is quite clear: the local Emiratis on what she sells does not matter. Rather, one hand and the expats on the other it is the fact that she is creating jobs and hand. Among the expats themselves, wealth that contributes to the ‘happi- there is some separation, especially ness’ of Dubai. She understands clearly when it comes to housing location, life- her responsibility under the Dubai so- style and leisure activities. Indeed there cial contract. is no deep social mixing, starting by the neighborhoods expats live in: the In the end, then, the legitimacy of the “Western” expats (Europeans, Austra- Sheikh is based on his vision and suc- lians, Americans) would tend to live in cess in making Dubai the ‘happiest’ city places such as the Umm Suqeim-Ju- in the world. The social contract he ex- meirah areas (a large area of penthous- tends to his citizens is one of wealth, es by the beach, on one of the side of stability, and material comfort. To ac- the nerve Sheik Zayed Road), whereas complish this, he welcomes workers the Asian, Pakistani, Indian workforce is from around the world to build, invest, generally located on the other side of and consume what Dubai has to offer. Sheik Zayed Road (desert side) where Run like a business, the growth of Dubai prices are cheaper and buildings older is material and financial. A quintessen - and less fancy fancy, or in the popular tial ‘charismatic authority’ as defined neighborhood of Deira. International by Max Weber, the Sheikh’s leadership schools are focused on the educational gains its legitimacy from the significant system of one or another country (there accomplishment of transforming a so- is French “lycée”, an American college ciety of pearl-fishing nomads into - citi etc.) which does not participate to bet- zens of a global, growing, and modern ter social mixing. metropolis. The only public spaces where the res- aries higher, their employer generally idents of Dubai are actually gathering for schooling, housing, oil consumption are the ones affiliated to leisure, suchetc.) which makes them able to enjoy as the Malls (such as Mall of the Emir- the hospitality and leisure offered by the ates, Dubai Mall or Marina Mall) as well city. It is also the social category within as the seaside and the beach. More- which there is the most social mixing over, the city is arranged in such a way (American, French, English youth at- that this type of public space (consist- tend the same events for instance). ing in small enclaves within the city) are the only urban area where the “Dubai lifetstyle” is being expressed, where the residents of the city can actually meet and where social mixing and gathering is possible: people, during their leisure time, either go to the different malls or to the beach, or to some “pedestrian neighborhoods” such as the Marina. The city of Dubai consists mainly in a network of roads linking these types of urban public spaces to more residential neighborhoods.

Can we talk about a “middle class” when it comes to Dubai residents? In a very simplified scheme, we could consider the local Emiratis as the “priv- ileged” category of population. They are encountering specific challenges in preserving a sense of community iden- tity being only 10% of the total popula- tion of the city. They are also the only group to be officially recognised as UAE citizens. Another category would be the 58 one of construction workers with low salaries (especially coming from Paki- stan and India, living in workers camps or as taxi drivers, possibly exclud- ed from the famous “Dubai lifestyle”). The middle class would comprise the “Western” expats and entrepreneurs whom, in most cases, are wealthier than most of their peers back in their home-countries (not only are their sal-

SECTION 6

LEGACY AND HISTORY

by?

t is by building on all these specific strengths, societal, spatial and political, that Dubai strives to project its own dynamism and stand Iout amongst competitors. Reflecting on the city’s place in the flux of international relations, as this final section analyzes Dubai’s geo- political positioning at the regional and global scale. With the agen- da to simultaneously become a hub for global travel and an Islamic counter-model to Western global cities, the metropolises’ expansion seems to know no limits. master plans are likely to also come 6.1 ______into conflict. Sustainability is set to be a key contention point as a connected urban corridor emerges. Abu Dhabi’s ABU-DUBAI: A GLOBAL long-term investment in sustainability URBAN CORRIDOR may be contradicted by Dubai’s instant gratification development model. by? However due to close geographi- Dubai’s influence beyond its urban cal proximity and rapid urbanization boundaries is already poignant within through projects like Dubai South, the the United Arab Emirates. Dubai’s rival physical gap between the two cities is relationship with the powerful emirate rapidly disappearing. Commuting be- of Abu Dhabi has an influential role tweenin the two cities is increasing re- shaping urban development within sulting in traffic levels reaching a critical each city and continues to influencelevel. Dubai and Abu Dhabi will soon power within the region today. Before be seen as Abu-Dubai, acting as one the 2007 crisis, both cities competed entity with the world while growing in for economic investment, a competi- influence. tive alliance so fierce that the small- na tion-state now boasts two independent However true cooperation between airlines. However when the future of the two cities will require a much more Dubai was threatened by the econom- cohesive strategy. Within the UAE’s en- ic downturn and collapse of the prop- compassing ‘Vision 2021’, the UAE’s erty market, Abu Dhabi stepped in to strategy to be to one of the world’s top guarantee the future of the city. This countries, there are clear shared ob- has created a strong relationship of jectives such as “united in destiny” and co-opertition (cooperative competition) “united responsibility”. However, the between the two emirates. unification of two separate cities into a fully functioning urban corridor will Each city has clearly defined and diver- require substantial adaptation and in- sified development growth paths, Dubai vestment beyond forward looking rhet- focuses on commerce and tourism oric. Transport systems will need to be while Abu Dhabi pursues politics and seamlessly connected and smart gov- sustainability. Each city exhibits impres- ernance schemes will need to fuse to- sive expertise in attracting and promul- gether into a single efficient system for gating investment and commitment in urban residents. It will be at this point their individual cities. This diversification that the true rivalry of the emirates will enables both cities to grow into global be tested and the UAE’s overall vision leaders without immediate competition of the urban future will either merge or over resources and global attention. It diverge. also allows them to develop comple- mentary sectors. However different Turning the middle of the desert into the centre of the world using the airplane 6.2 ______- Dubai as a model is perhaps the first true aerotropolis of the world. The glob- ally connected city already has one of IN THE EYE OF THE STORM: the world’s largest airports, whose annu- GEOPOLITICS AND THE al passenger traffic rose from 13th to 3rd place in under five years. Yet in an era and SAFE CITY environment where cities are continually competing to maintain global influence, Dubai is once again undertaking an un- by? beatable expansion into global trade with Dubai South as part of its ‘Vision 2021’. “I LIKE IT BECAUSE IT’S SAFE”: THE ROLE OF FEAR AND SECURITY IN As the global hub of the MENASA region DUBAI’S URBAN ATTRACTIVENESS and a gateway to Africa, Asia and the Middle East, Al Maktoum Internation- A beach is usually a place where peo- al Airport will not only be able to access ple go to relax, get away from the hus- over two third’s of the world population tle, and forget about their worries. You within an eight hour flight but will also create a hyper-connected transport cor- wouldn’t expect it to be a site of secu- ridor linking with Dubai’s Jebel Ali Port. rity, and yet inscribed onto the public This will see trade move seamlessly - be restroom of an Abu Dhabi beach is an tween sea and air in under four hours. inconspicuous logo for Serco. The Brit- ish company is probably also respon- But transport is transient and what will sible for the security cameras that line really cement urban development and the underpasses leading to that same economic growth is long term roots in the beach, and is one of numerous private Dubai South area. But will world-class residential districts and commercial cen- multinationals present in the UAE who oversee public utilities but whose busi- tres have any staying power whilst being located next to the future biggest glob- ness arms dabble in surveillance tech- al airport or will Dubai South always be nologies, security equipment (notably considered as a pitstop to elsewhere? the construction of for-profit prisons), and supplying military services [i]. Ser- co is also responsible for the operation of the Dubai metro, alongside Thales, a French company operating in both the civil and military spheres. From our meeting with their representatives, it was apparent that this overlap between public service and defense industry was not trivial; a major contribution of 62 Thales in the building of Dubai’s metro, the longest driverless one in the world, was their ability to ensure a seamless and controlled security dimension to the network’s operation. escorted through the Jebel Ali power plant and desalination station during Indeed, Thales has engineered Dubai’s our first days in the city. The many- se metro around the Emirate’s conception curity checkpoints and heavily guarded of a ‘Smart City’, with their systems and sites of the plant were a testament to services interconnected through an ‘In- the knowledge that threats to this pre- telligent City’ platform. Beyond the aim cious infrastructure lay not far away. of providing more efficient and integrat- If a major selling point of the Smart ed services by interconnecting govern- Dubai business team in illustrating the ment agencies, these digitized urban efficiency of their technology was to innovations also take the lived experi- point out that not a single casualty was ences of citizens as their prime focus registered during the massive hotel fire and place a heavy emphasis on secu- on New Year’s Eve, incidents such as rity and safety. Peppered throughout these are proof that keeping violence at our meetings and daily encounters, a bay for the city-state is much akin to recurrent point that kept surfacing was playing with fire. the evocation of Dubai’s ‘protected’ and sheltered nature, where the gov- OPERATION DESERT STORM: ernment’s ability to ensure protection PROTECTING AND PROJECTING THE was key in guaranteeing future urban CITADEL FROM ITS OUTSIDE WALLS attractiveness. Many migrants to Dubai are attracted to it precisely because it A tried-and true formula for statesmen offers a safe haven from political and is echoed in Tilly’s words; “States make economic turmoil of neighboring re- war, and war makes states”. Thus, the gions such as Pakistan, and speakers internal infrastructure of Dubai, largely from all walks of life waxed poetic about delegated to military-industrial manu- the ability to leave a car unlocked, or a facturers to become highly securitized purse unattended, with no risk whatso- and panoptic in the process, allows ever. glimpses into the geopolitical climate shaping, and being shaped by Dubai. Yet behind these calls for greater se- curity through user-friendliness lay the Dubai’s prodigious ability to magnetize latent threat of a terrorist attack that international investment of human and cast a looming shadow over many of economic capital has relied not only on Dubai’s entrepreneurs and agencies. In the internal provision of a secure envi- the Thales meeting, it was clear that a ronment fueled by a ‘smart’ vision of the potential attack would deal a crippling city. It has also been dependent on the blow to Dubai’s operational systems, watchwords of stability and neutrality and its image as a secure investment that define its exogenous relationship destination, making the protection of with turbulences pervading the greater infrastructure essential to the city’s MENASA region. Such exigency has functioning. This pervasive unease was traditionally implied a cautious position- perhaps best illustrated as we were ing vis-a-vis international affairs. Enter- prising exhibition of military power and As one embarks on the Thales metro active participation to geopolitical con- or deciphers a recruitment advertise- flicts have thus remained rather scarce. ment for the army, one easily perceives that the rather pro-active stance of The city-state’s strict commitment to the UAE regarding regional affairs has its historically pacific tactic are - how affected Dubai’s urban space. A less ever very well being revised. Although patent, yet particularly telling example never stated explicitly, it became clear thereof was revealed at our meeting throughout our meetings that the UAE at the Dubai South headquarters. The was, indeed, at war. In fact, the exac- planning of the futuristic south-west- erbated contextual sediment of the last ern sector – branded as Dubai 2.0 – is 10 years – comprising, notably, the imbued with strategic considerations, amplification of time-honored tensionsmost discernible in the UN-encouraged between Sunni and Shiite factions in establishment of a district that will be proximate Iran and the wave of Sunni entirely dedicated to the provision of Arab revolutions in 2011 – has urged out-flying humanitarian assistance to the UAE’s national army to adopt a the surrounding war, tension and ter- firmer, more outwardly military -strate rorism ridden turmoil. These latest de- gy. As reminded by two actors we met, velopments inspire a daring question: Dubai’s security tactic can no longer can we imagine a future where the UAE remain strictly confined to the endog- would be acting as a potent and inter- enous protection of a safe haven. The vening stabilizer of the region? If so, to renewed and more robust geopolitical what degree would such a path alter trajectory of the UAE has transpired the branding, planning and governance most revealingly when Dubai, under of Dubai? The seemingly paradoxical the auspices of the Federal Army, sent imbrication between a securitized ur- boots on unstable ground within the ban space, advertised as a safe haven 2015 Saudi-led coalition’s interven- for capital, and an increasingly active tion in Yemen. Prior to our arrival but geopolitical presence in the broader still fresh in people’s minds, a nation- region, raises questions concerning the al day of mourning had been declared long-term sustainability of this strategy, by Dubai’s prince as an homage to the and the potential risk such aggressivity Emirati soldiers that had been killed could breed. during a particularly violent day of the conflict. Patriotic advertisements for army recruitment flooding national tele- vision complemented officials’ remarks that the UAE had for a long time been actively engaged in an air campaign in Syria, while noting that one of France’s 64 prime economic interests in the Emir- ates was in the sector of arms trading. sectors and compares similarities and 6.3 ______differences between Singapore and Dubai.

DUBAI AND SINGAPORE: OUTLINING SINGAPORE AND DUBAI’S GOVERNING THROUGH AT- RESPECTIVE STRATEGIES BY SECTOR: TRACTIVENESS Policies. Both Dubai and Singapore have different foreign direct investment by? (FDI) policies. For Singapore, attracting FDI has always been a priority due to the lack of natural resources. The Eco- Both Singapore and Dubai harbored nomic Development Board (EDB) is a ports as their main source of econom- dedicated institution that formulates ic growth during their nascent years and implements economic strategies of development. The city of Singapore for the city, and is also tasked with at- flourished as a trading post and during tracting foreign investments. The main the British empire, Singapore was incentive provided by the State to at- a port of call for the British merchant tract foreign investments is the low tax fleet and quickly grew as an entrepotrates in Singapore. There are gener- trade hub. While once reliant on their ous tax allowances for foreign firms if ports for economic growth, both Sin- they relocate their international head- gapore and Dubai are now fully insert- quarters to Singapore, as well as tax ed into the global economy and have allowances on land intensification for developed other sectors as the basis of qualifying buildings . This encourages their economic growth model. By the FDIs which Singapore has been able 1960s, the life cycle of the Singapore to attract successfully, being home to river for its port-related commercial ac- large, diverse global firms. In Dubai, tivities was over and today, Singapore’s there exists a strong legal framework to strengths lie in knowledge and innova- reassure foreign businesses. Howev- tion-intensive activities, while research er, ownership rules are stricter, where and development continues to act as a only a maximum of 49% of a business cornerstone for economic development can be foreign-owned, except in the 22 (EDB, 2016). On the other hand, Dubai free zones in Dubai, where 100% for- found economic strength in oil reve- eign-ownership is allowed. Dubai has nues when oil was discovered in 1966 been exemplary in attracting FDI as it and from the 1980s onwards, Dubai was the first Emirate to pioneer the free focused on developing the city into a zone model, where zones are devel- major international tourism destination oped for specific sectors such as- me (Government of Dubai, 2016). In study- dia, finance and healthcare. In the Jebel ing the economic models of both cities, Ali Free Zone, there is full corporate tax and how both cities became attractive and customs duty exemption on im- places for growth and development, ported raw material and equipment. this article focuses on 3 prominent Housing. One of the most remarkable lagging behind. Singapore’s economic differences between Dubai and - Sin success can be attributed to its high gapore is the question of land. On the levels of human capital, and the country one hand, in Dubai, real estate is used has a long history of emphasizing high to attract foreign investment. Since levels of education. With high levels of 2002, in order to increase foreign in- subsidies by the government, Singa- vestment, the crown prince of Dubai pore’s universities are among the best issued the Freehold Decree, a formal in the world. The National University of legislation that allows foreigners to buy Singapore (NUS) for example, has col- and sell property in Dubai freely. There- laborations with Duke University and fore, there is a massive construction Yale university. Dubai started to devel- of luxurious properties that stay empty op education much more recently, es- during most of the year in Dubai. Sin- pecially with the establishment of well- gapore, on the other hand, is limited by known international universities like the its own territory but faces the problem American University in order to ensure of a growing population. The govern- a high level of education for its citizens. ment of Singapore implements a differ- The importance of education is high- ent housing strategy, one that aims to lighted in both cities as crucial to de- house the local population through the velopment and growth, and Singapore construction of public housing which appears as a clear model for Dubai as foreigners are not allowed to own. In Dubai tries to increase the general level 2015, 80,1% of all housing units in Sin- of education of its population to boost gapore were managed by the Housing its competitiveness on the global stage. Development Bureau. Consequently, it is more difficult for foreigners to acquire conclusion. Both Singapore and Dubai real estate in Singapore since they are are aware of the importance of remain- only allowed to buy private property, ing attractive to foreign investments for which often comes with a heftier price the continuous development of each tag. Whereas in Dubai, growth the real individual city. However, their different estate sector is driven by foreign invest- situations results in different policies ment, in Singapore public authorities and strategies. In attracting FDIs, Sin- such as the Housing Development Bu- gapore remains a more open society reau retain much more control over the where foreign ownership is not con- housing market. trolled as strictly as in Dubai. In terms of land, Singapore is land-scarce where- education. Education is one sector as Dubai has vast expanses of unde- where it seems Dubai is closely trying veloped land and can thus continue to to emulate Singapore’s model by seek- construct luxurious homes to attract ing to attract globally-renowned univer- foreign investors. In the land-scarce sities to boost competitiveness. Whilst Asian city-state, attractive policies that 66 primary education in both countries are include low tax rates and high tax allow- free for the local residents, in terms of ances are more crucial to ensuring the tertiary education Dubai seems to be flow of FDIs into the city. Both nations are very young, with Singapore having man and founder of the Juma Al Majid just celebrated her Golden Jubilee last Center for Culture and Heritage: “Dubai year and Dubai will be celebrating hers is a shopping center for the wealthy of during the launch of Expo 2020. While the Middle East”. But Dubai is not in the the future of both cities cannot be pre- United States, not even on the same dicted, it is highly likely Dubai will con- continent, and was simply a desert 50 tinue to look to Singapore for inspira- years ago. To better understand the tion in the near future (as mentioned in city-state it’s important to examine its many of our meetings during the trip), success, not to draw similarities with and both cities will indeed continue to the United States but to understand rely on FDIs for growth and develop- where it differs from, and sometimes ment, thus the importance of remaining surpasses, the United States. attractive and open to the world will still hold true. Dubai is an island for economic and po- litical stability in the middle of a troubled region that goes from West Africa to 6.4 ______the Indian subcontinent, through North and East Africa, the Middle East and Iran. For this reason only, Dubai can be DUBAI : THE AMERICAN understood as a dream city for many DREAM OF THE GLOBAL people. Despite the security situation of the region, its credo has always been SOUTH to welcome everyone whatever his or her origin and his or her religion. It does by ? have migrant policies, basically revolv- ing around the principle that you can Dubai is an urban model, whose at- come and stay in Dubai as long as you tractiveness is surely as high as its Burj work. However, it is noticeable that it Khalifa. It has succeeded in embodying represents a much easier path for eco- the dream held by many people from nomic migration than the USA for many the West as well as from others part nationalities or religious communities, of the world, especially Asia and Afri- given than there are fewer barriers to ca. Dubai’s brand invokes the idea of get in. Dubai remains more accessi- success. It represents an Eldorado for ble for migrants from Africa, the Indian businessmen, and we can easily see subcontinent, the Middle East and Asia the city as an equivalent of the United Minor both financially and legally. It is States in terms of lifestyle. Dubai is a important to bear in mind the impor- shopping paradise and its highways tance of the geographic position of the are a perpetual catwalk for luxury cars: city that is at the crossroad of Asia and it has something of the consumer- Africa – a strategic position highlighted ist dream found in the United States by different actors many times during during the fifties. As stated by Juma ourAl meetings throughout the trip. But Majid, a distinguished Emirati business- in addition to this favorable geographic asset, there are long-term commercial the Western World. Dubai seems to be ties with some countries of the region, willing to embody the “Muslim success especially Iran, India and Pakistan on story”, or the “Arab success story”, or which Dubai based its transformation maybe more broadly a “non western into one of the most important com- success story” that echoes the aspi- mercial hubs on earth. Thus, there is rations of many people throughout the an enduring presence of old elites and world. Juma Al Majid stressed through- merchants originating from these coun- out the talk he gave us, this idea that tries who have settled their businesses the people of Dubai created their own in Dubai. This explains the abundance wealth, and that they can compete with of Iranian companies such as the Ira- the United States and other big coun- nian Bank company, and also the ex- tries. He ended his speech with the istence of Iranian communities in the words “Americans better watch out”, North of the UAE despite a claimed and Dubai’s leitmotiv could be “the opposition to Shi’ism. Dubai has a real world better watch out”. Dubai em- ambition to be a cosmopolitan world- bodies success, wealth and a luxury city, open to all, in stark contrast to the lifestyle, all whilst claiming its belonging Western world where more and more to a non-Western culture. The direction borders are being closed to people with taken by Dubai seems to be part of a specific backgrounds. The simple idea wider trend amongst Gulf countries, of Dubai is that you can come, work, specifically Qatar whose presence is make money, and come back to your exemplified through heavy investments country being better off, whoever you in Europe and the widespread develop- are and wherever you are from. In fact, ment of the news channel Al Jazeera. ethnic communities are very diverse in Efforts like these on the part of these Dubai and more than one hundred na- countries are participating in a branding tionalities are cohabiting there. Every- strategy that aims to show the world one works together, sharing the same that the Gulf is prosperous and has goal of assuring the city’s economic opportunities to offer. This particularly growth and development. This created speaks to racial minorities in the West, a city where different people, cultures, and we noticed during our trip an im- religions coexist in peace. This has be- portant share of people of North Afri- come an important element in the city’s can descent among the French expats. branding: it is where Dubai surpasses Dubai’s strategy, branding itself as an many others. Arab-Muslim alternative to the West, is also attracting elites from Europe, It is also important to highlight here the where this rhetoric still speaks to cer- importance of Islamic culture in Dubai’s tain groups. success. Indeed Dubai shares this Is- lamic culture with many countries of In short, Dubai succeeded in less than 68 the region – or at least a “non-west- a semi-century to embody a new - dare ern culture” – and has claimed it in a we say, even better - dream in opposi- way that could sound like revenge on tion to the classic and tarnished “west- ern dream” that seems more exclusive, cation and its cultural integration within more constraining to certain cultures, the Muslim world, Dubai and the UAE and above all, slowly declining. are primed to play a major role in this parallel economy. As a commercial hub, Dubai exports 70% of what it im- 6.5 ______ports. Part of this is explained by the Halal Food market in which it has in- vested: for instance, halal (legally edible ISLAMIC ECONOMY food according to Islamic law) certifica- IN DUBAI tions are issued by a Dubai-based body in places where animals are raised and meat is produced - such as New Zea- by ? land. The halal food (especially meat) is then imported to Dubai before being From the Islamic Bank’s ATM and ad- sold in other countries. vertising, to the clothing stores special- ized in “modest clothing” or ‘abbaya’, Food represents a major part of Dubai’s the Islamic Business Market is notice- current investments in the Islamic Econ- able in every sphere of Dubai and the omy, but it is not the only sector they UAE. In 2015 a Global Islamic Econo- have invested in. Clothing and fashion my Summit was organized, dispensing – especially women’s fashion - are a for the third year the Islamic Economy field in which Dubai also performs well. Award to reward innovative projects Islamic Tourism could represent the considered to have “contributed to next challenge for Dubai to invest in: the social and economic welfare of the while other countries such as Malaysia Muslim population” while “enhanc[ing] have already established themselves as bilateral trade and investment relations leaders in this field, boasting varied nat - between Islamic nations, and forg[ing] ural landscapes and distinctive cultural closer economic ties with the rest of the and historical heritage, Dubai still has to world” [i]. The award categories gath- build its cultural image. Initiatives such er fields such as Money and Finance,as the Cultural and Heritage Center Food and Health, Media, Hospitality may be the beginning of this, but the and Tourism, Waqf and Endowments, sector will require more attention and SME Development, Islamic Economy investment to be competitive at a glob- Knowledge Infrastructure and Islamic al level. Arts.

As the Dubai Chamber of Commerce explained to us during our meeting, the Global Islamic Economy Summit, like Dubai’s investments in Islamic Busi- nesses more generally, reflects Dubai’s commitment to a promising market for the city State. Indeed, both from its lo-

CONCLUSION

by Raphaël Gernath & against the objectives it has set for it- Filipe Mello Rose self. Seen in this light, Dubai South can be a metaphor for the two aspects of itnessing the future site of Dubai Dubai’s growth we’ve tried to explore South will convince visitors that in this report: the fragility and depen- W dence that have shaped so many of ambition is definitely in no short supply its policies, as well as the unique urban there. The scale of the project is - diffi cult to wrap one’s head around: a mas- trajectory it has built for itself to over- ter-planned city designed in the con- come these vulnerabilities. Looking text of the upcoming World Exposition back to the various points discussed, in 2020, springing up from the desert we’ll try to make light of the manner and whose airport alone will welcome in which Dubai’s model of governance 220 million visitors. Anywhere else than and growth has turned the city into an Dubai, such a project would seem important actor in the world econo- absurd and unfeasible, but alongside my through the unique ways in which the Burj Khalifa it feels almost reason- weaknesses have been overcome and able. Yet, the creation of Dubai South transformed into strengths. can also look like a gamble in a con- text where the lack of necessary nat- In this volume the main points of fragili- ural resources or human capital and a ty of Dubai’s model are examined. Four troubled geopolitical setting can work main challenges are faced by Dubai: first, it is situated in a difficult physical exposed to the dangers linked to its environment. For instance, having no unstable neighbors. This means that natural water resources, all drinkable the wars in Yemen, Iraq and Syria, as water is produced in an energy-in- well as the instabilities in Egypt, Libya tensive and expensive desalination and Tunisia underline the importance process (Berman and de Massé, this of security and stability. These risks are volume). Dubai’s location in a desert stressed in explanations of how Dubai environment naturally attracts little in- “is dependent on the watchwords of vestment and tourism. Only through the stability and neutrality that define its- ex creation of a globally projected image is ogenous relationship with turbulences this physical problem overcome. pervading the greater MENASA region.” (Gernath and Bekka, this volume). Second, Dubai continuously needs more labor and capital to continue to On paper then, Dubai would not seem grow and to produce wealth. Both are like a prime investment destination; a attracted through the image driven-de- hostile geography in a turbulent region, velopment and need to be controlled with neither the initial labor force nor by the Emirati minority. A special social political legroom to fuel its growth. Yet, contract (Pichot and Chevallereau, this as the past hundred pages can attest, volume), enforced by the Kafala system the reality of Dubai is much more allur- thus guarantees stability for a very het- ing than these factors, and the metrop- erogeneous population. olis has managed to evolve through the construction of a unique identity that Third, being a form of city-state Dubai is overcomes its fragilities. One of the exposed to risks resulting from its rela- most striking manners in which Dubai tionship with other countries. As noted has sought to broaden the appeal of earlier in this volume, the “combination a geographically harsh surrounding is of the limited space of the city and the the image-driven development the city large autonomy it has over its own af- has become synonymous with. Con- fairs allow for the uniqueness of city- stantly referencing its own metropolitan states. However, it’s exactly the size vision as a marker of success, “Dubai and lack of resources that undermines flashes us with an image of fantasy, of their autonomy, implying dependence” greatness, of a highly technological and (Torres, this volume). On the other modern world” (Jönsson, this volume). hand, this also allows Dubai to turn The city is marketed through the attrac- itself into an attractive urban business tivity of its brand, but also through the model, without having to consider inter- grandeur of its vision, where the energy ests of rural areas. Dubai is thus able required to keep Dubai running serves to custom-fit their economic outlook to as a testament to its own success. international trade and not the develop- ment of the interior. The daunting task of building a metrop- olis in the span of a few decades, which Fourth, as part of the UAE, Dubai is Dubai has largely managed to over- come, was made possible through a system of governance based on exclu- The increasingly outward-looking gaze sivity. By articulating a social contract that the myriad of businesses and gov- that rests not on democratic participa- erning bodies of Dubai have adopted is tion, but on the tacit understanding of complemented by the promises of a sta- every migrant and expatriate that the ble future that many can find there. The “power of foreigners is that of a con- absence of widespread crime makes sumer” (Pichot and Chevallereau, this the city a relative oasis of tranquility in volume), the city has compensated its a region marked by strife and turmoil, initial lack of workers. We’ve thus seen where “the government’s ability to en- how policies such as the kafala system sure protection is key in guaranteeing ensure a form of social stratification that future urban attractiveness” (Bekka and helps Dubai fuel its consumerist needs. Gernath, this volume). A focus on the security and stability of the city, is seen Indeed, the demands of market forces as key in maintaining the wellbeing of and global economies are essential in the population. This mindset is also helping Dubai to craft a model that lures evident in the desire to preserve Dubai investments and capital from the four from the potentially crippling effects of corners of the world. Throughout the an environmentally unsustainable pat- volume, we’ve tried to see how Dubai tern of ecological policy. The articula- has attempted to exploit its status as tion of an ambitious agenda for greater a city-state to transform into a cross- sustainability has allowed Dubai to po- roads of goods and people, all drawn sition itself as an actor in an emerging to the ease and efficiency of the Dubaisustainable revolution, merging green (‘Do-buy’) business model. By creating growth and business (see Těhlová, an alluring system for economic invest- Bensassi and Munson, this volume). ment and business implantations this Dubai’s endless projection into the fu- “win-win model” (Ladret and Tchouni- ture is also fuelled by the social imagi- kine, this volume) has drawn the eye nary of the migrants the city attracts. If of actors from all over the world and the United States is in many ways the goes in hand with a focus on the finan- model for Emirati success, it is not an cial promise of the Islamic economic, ideal to be reached; in its own style, “a promising market for the city state” Dubai has conjured up an ‘American (Khaldi, this volume). These sectors of Dream of the Global South’, creating “ investment allow Dubai to carve out a a dream city for many people” (Catteau, unique position for itself along the flux Khaldi and Leleu Amaral, this volume) of people and goods that defines trade that draws on pluralism and economic in the region, and the world, allowing stability to project itself across and into the city to position itself as a “global neighboring regions. growth corridor” (Rothschild, this vol- ume) where hubs of transport become All of these elements come togeth- gateways to various regions in the er in Dubai to form an intriguing and globe. wildly visionary mosaic, one where the

74 dreams of its leaders, once thought to be impossible, have materialized into a success-story to be emulated. To wrap up the reflections that we’ve present- ed in the previous pages, which have sought to dissect and detail the multi- faceted nature of Dubai, its fragilities, its triumphs, and the Emirati approach to the urban form, we can ponder the ex- portability of the Dubai model as well as its implications for the development of the metropolis and the network of cities it now finds itself to be a part of. Be - coming more global every minute, the iconic skyscrapers and flow of trade in Dubai are now being reproduced in various localities all over the world from Vancouver to Khartoum. Yet amidst this internationalization, Dubai has al- ways sought to remain grounded in a well-defined Islamic modernity, a - bea con and a lighthouse for the region that has defined so much of its evolution up to now. How the city will choose to rec- oncile, or embrace, these aspects of its identity will be crucial as its vision con- tinue to grow larger, and bolder. 76 REFERENCES 1.1

[i] Fattah, Zainab. “Dubai Sees Need for Tallest Office Tower Amid 45% Vacancy.” Bloomberg. com. Accessed January 27, 2016. [ii] Heath, Kingston Wm. “False-Front Architecture on Montana’s Urban Frontier.” Perspectives in Vernacular Architecture 3 (1989): 199–213. doi:10.2307/3514305. [iii] ibid. [iv] Rizvi, S. N. Asad. “From Tents to High Rise: Economic Development of the United Arab Emir- ates.” Middle Eastern Studies 29, no. 4 (1993): 664–78. [v] Hvidt, Martin. “The Dubai Model: An Outline of Key Development-Process Elements in Dubai.” International Journal of Middle East Studies 41, no. 3 (2009): 397–418. [vi] Heath, Kingston Wm. “False-Front Architecture on Montana’s Urban Frontier.” Perspectives in Vernacular Architecture 3 (1989): 199–213. doi:10.2307/3514305. [vii] Kenyon, Carleton W. “Legal Lore of the Wild West: A Bibliographical Essay.” California Law Review 56, no. 3 (1968): 681–700. doi:10.2307/3479266. [viii] Hvidt, Martin. “The Dubai Model: An Outline of Key Development-Process Elements in Dubai.” International Journal of Middle East Studies 41, no. 3 (2009): 397–418. [x] Alstom guy (NO NAMES) http://www.bloomberg.com/news/articles/2013-08-19/dubai-sees-need-for-tallest-office-tower- amid-45-vacancy. Heath, Kingston Wm. “False-Front Architecture on Montana’s Urban Frontier.” Perspectives in Vernacular Architecture 3 (1989): 199–213. doi:10.2307/3514305. Hvidt, Martin. “The Dubai Model: An Outline of Key Development-Process Elements in Dubai.” International Journal of Middle East Studies 41, no. 3 (2009): 397–418. Kenyon, Carleton W. “Legal Lore of the Wild West: A Bibliographical Essay.” California Law Re- view 56, no. 3 (1968): 681–700. doi:10.2307/3479266. Rizvi, S. N. Asad. “From Tents to High Rise: Economic Development of the United Arab Emir- ates.” Middle Eastern Studies 29, no. 4 (1993): 664–78.

REFERENCES 2.1

[i] Hashim, Irazábal & Byrum, 2010 [ii] Hotelier Middle East, 2015 [iii] MEED, 2015 [iv] Dubai World, 2015 REFERENCES 2.3 Juhani Pallasmaa: The Eyes of the Skin, in Architecture and the Senses, Wiley, 1996 REFERENCES 2.4

Wolin, S., 1977, “Hannah Arendt and the Ordinance of Time,”Social Research, 44(1): 91–105. REFERENCES 3.1 [1] UAE National Bureau of Statistics.

REFERENCES 3.2

[i] http://www.fcsa.gov.ae/EnglishHome/ReportDetailsEnglish/tabid/121/Default.aspx- ?ItemId=1850&PTID=187&MenuId=1 [ii] http://www.economist.com/news/middle-east-and-africa/21581783-sacking-foreign-civil-ser- vants-may-become-regional-trend-sending [iii] Ivan Szelenyi Exclusion and Inclusion in Immigration Policies: the Exclusionary Immigration policies of the Gulf Monarchies Paper presented at the conference „Globális Migrációs Folyama- tok és Magyarország – Kihívások és Válaszok”, November 16, 2015. REFERENCES 3.3 [i] New rules since 2008 [ii] Hvidt, Martin (2009) “The Dubai Model: An Outline of Key Development-Process Elements in Dubai.” International Journal of Middle East Studies 41 (3)

REFERENCES 4.1

About Masdar City. Available at: http://www.masdar.ae/en/masdar- city/detail/one-of-the-worlds- most-sustainable- communities-masdar-city-is-an-emerging-g (accessed 03 March 2015). 78 Cugurullo, F. (2015). Urban eco-modernisation and the policy context of new eco-city projects: Where Masdar City fails and why. Urban Studies, 0042098015588727 REFERENCES 4.2

[i] Motto of Jebel Ali plant [ii] Cost of public transport is equal to cost for taxi if shared with four people REFERENCES 4.3

[i] Wolch et. al 2014 [ii] Martin 2008 [iii] EAD [iv] Martin 2008 [v] Winter 2015 [vi] UPC [vii] EAD [viii] http://dirt.asla.org/2012/10/15/why-public-art-is-important/

Wolch, Jennifer R., Byrne, Jason, Newell, Joshua P.: Urban green space, public health, and envi- ronmental justice: The challenge of making cities ‘just green enough’, Urban Landscape Planning 125 (2014) pp 234-244 Martin, Chris A.: Landscape Sustainability in a Sonoran Desert City, Cities and the Environment, Vol 1, Issue 2 (2008) Winter, Tim: Urban sustainability in the Arabian Gulf: Air Conditioning and its alternatives, Urban Studies Journal (2015) Abu Dhabi Urban Planning Council (UPC): Public Realm Design Manual

REFERENCES 5.1

“Dubai in the ‘Middle’” - ACUTO, Michele; International Journal of Urban and Regional Research, Volume 38.5 September 2014 1732–48

City-State - Oxford English Dictionary http://www.oed.com/view/Entry/385604?redirectedFrom=city-state#eid

“A New Era for Ciy-States?” - Forbes - 23/12/2010 http://www.forbes.com/sites/joelkotkin/2010/12/23/a-new-era-for-the-city-state/2/#19b3d- 23d57a7

Dubai’s wildly ambitious ‘The World’ islands could finally be coming to life - Tech Insider - 04/03/2016 http://www.techinsider.io/dubai-the-world-islands-are-slowly-coming-back-to-life-2016-2 REFERENCES 6.1 http://www.vision2021.ae/en REFERENCES 6.2

[i] http://www.theguardian.com/business/2013/jul/29/serco-biggest-company-never-heard-of REFERENCES 6.3

[i] More incentives and allowances for businesses can be found here: https://www.edb.gov.sg/ content/edb/en/why-singapore/ready-to-invest/incentives-for-businesses.html [ii] http://www.singstat.gov.sg/statistics/latest-data#22

Department of Singapore Statistics (2015) Latest Data. Retrieved from: http://www.singstat.gov.sg/statistics/latest-data#22 [Last Accessed: 13 May 2016]

EDB (2016) About Singapore, The Millennium. Retrieved from: https://www.edb.gov.sg/content/ edb/en/why-singapore/about-singapore/our-history/2000s.html [Last Accessed: 30 April 2016]

Government of Dubai (2016) Dubai History. Retrieved from: http://www.dubai.ae/en/aboutdubai/ Pages/DubaiHistory.aspx [Last Accessed: 30 April 2016]

Green House Real Estate (2015) How to Buy Property in Dubai. Retrieved from: http://greenhouse.ae/how-to-buy-property-in-dubai/ [Last Accessed: 30 April 2016]

REFERENCES 6.5 http://giesummit.com/en/gie-summit/highlights/ff8080814d8b6c5a014d8ba2a7dc0006/ 80