Editor’s comment
A stroll through downtown Dubai tells you eloquently what
the Middle East has become. One look at magnificent buildings
such as the Fairmont or the Burg al Arab speaks volumes. No
surprise, then that Dubai – and the region in general
- has long been a favourite destination for expats. Its geographical
situation, its rapid entry into the modern, technologically
intensive world, and its plentiful opportunities have helped
to draw talented individuals from all over the world. It continues
to draw such people.
Take a look at Dubai’s economic performance, for instance.
With a slight dip in 1998, there has been almost 15 years
of constant economic growth. This despite the fact that just
six per cent of the Kingdom’s economic output comes
from oil and gas. It could, in fact, be argued that this relatively
low level of natural resources has been a major stimulus and
has prompted the development of Dubai as a business and tourism
hub virtually unrivalled in the Gulf.
In infrastructure terms, Dubai is developing apace as well.
A new airport; the Dubai Marina; the International Finance
Centre; the Dubailand theme park – just a selection
of what has bloomed in the desert in recent years. Overall,
there are some $30-50 billion-worth of construction projects
on the go at the moment.
Crucially, this performance has been achieved without any
of the potential downsides that can afflict developing economies.
There has been no excessive credit bubble (remember the 1997
Asian currency crash?) no excessive property price inflation;
no double – or triple – digit inflation for that
matter. The 2,600 companies in the tax free zone are eloquent
testimony to economic stability and smooth development.
Dubai is just one destination in the region, although a significant
one for expats. Might that change? Apart from geo-political
threats beyond our control, the only conceivable cloud would
be if direct investment and the expatriate workers who have
helped develop the region decide to leave. There is no reason
for this to happen. But that doesn’t mean that everything
is perfectly in place to cater for them.
For instance, financial advice can sometimes seem a long way
away. Of course, many respected financial companies have a
presence in the region. Dubai’s own Finance Centre is
hardly an invisible resource. But there remains a need for
good, ground-up financial advice for the many workers with
salaries to bank and to invest.
In this special guide to expat finance in the MidEast, Investment
International has invited selected companies to write short
articles giving advice on most of the aspects of offshore
finance and investment of interest to expats in the region.
We have pieces on buying property, banking offshore, investing
in mutual funds and private medical insurance. I’m sure
the companies writing here will be delighted to help you further
if you contact them. Enjoy your stay.
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