Faisal Zaid i Thesis

8/14/2019 Faisal Zaid i Thesis

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Table of Contents Page #

List of Abbreviations iii

1. Introduction 11.1.City Marketing 21.2.United Arab Emirates. 5

2. Abu Dhabi & Dubai... 62.1.Dubai Background.. 62.2.Abu Dhabi Background.. 7

3. UAE Target groups 83.1.Tourists 83.2.Residents.. 103.3.Businesses 10

4. National marketing and promotional tools.. 114.1.Safety 114.2.Taxes. 134.3.Education.. 144.4.Health 15

5. City marketing and promotional tools. 165.1.Dubai 16

5.1.1. Dubai Airports... 165.1.1.1. Emirates Airlines. 175.1.1.2. Fly Dubai........ 18

5.1.2. Sponsorships.. 195.1.3. Tourism.. 195.1.4. Events..... 21

5.1.4.1. Sports...... 215.1.4.2. Festivals.. 225.1.4.3. Exhibitions.. 235.1.4.4. Global Conferences. 24

5.1.5. Free zones 245.1.6. Industries. 275.1.7. Unique projects 305.1.8. Infrastructure .. 32


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5.2.Abu Dhabi. 345.2.1. Abu Dhabi Airports Company 345.2.2. Sponsorships 355.2.3. Tourism... 365.2.4. Events.. 39

5.2.4.1. Sports... 395.2.4.2. Music... 405.2.4.3. Festivals... 415.2.4.4. Exhibitions... 415.2.4.5. Global Conferences.. 42

5.2.5. Free zones..... 435.2.6. Industries.. 445.2.7. Unique projects. 47

6. Analysis.. 516.1.Managing the city brand.. 51

6.1.1. Dubai. 516.1.2. Abu Dhabi. 55

6.2.Communicating the City brand 587. Conclusion.. 60

References 63


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List of Abbreviations

UAE United Arab Emirates

JAFZA Jebel Ali Free Zone Authority

TECOM Dubai Media and Technology Free Zones

ADTA Abu Dhabi Tourism Authority

OSAC Overseas Security Advisory Council

ADPC Abu Dhabi Ports Company

EMAL Emirates Aluminum

KIZAD Khalifa Industrial Free Zone

ADNOC Abu Dhabi National Oil Company

GIBTM Gulf Incentive, Business Travel and Meetings

ADNEC Abu Dhabi National Exhibition Center

IRENA International Renewable Energy Agency

TDIC Tourism development & Investment Company

OBAD Office of the Brand of Abu Dhabi


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1. Introduction

The subject of this paper is to look at How regional marketing is applied in the United

Arab Emirates?

The two cities that we look at in depth are Dubai and Abu Dhabi. Over the course of the

paper we look at how Dubai has marketed itself to all kinds of consumers, tourists and

industries to be a leading city in the world of today. Along with that we will look at Abu

Dhabi that has now finally stepped out of the shadow of Dubai and has started brandingitself in the world market, starting at a much larger scale.

The ways they have done it is completely different; Dubai took the more indirect

approach in branding itself worldwide doing it through its government companies

whereas Abu Dhabi has taken a more direct approach.

After looking at the brief history of the U.A.E we will look at the beginning of how this

started and how Dubai reached its peak while Abu Dhabi is creating sustainable

tourism.

Phillips, T, (2010) says that, During the past decade rapid rates of growth, adoption of

common law regulations, low taxes, a relatively liberal culture and infrastructure links

to elsewhere in the region made Dubai an attractive hub for international firms looking

for Middle East footholds (p. 23)

But for Abu Dhabi the author has a completely different view

Abu Dhabi cannot be ignored as the financial driver of the UAE. It's also a very

ambitious emirate and so can afford to develop and invest for its future. But you have to

show real commitment - there's no point in having a token presence there. (Phillips, T.

,2010 , p. 23)


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There are many factors that make the UAE an attractive destination for investors and

tourists.

These are:

1. A strategic geographic location

2. Highly developed infrastructure

3. Free zones and industrial cities

4. Low tax,

5. Energy sources and credit facilities are conveniently accessed (Statistical Yearbook

of Abu Dhabi for 2011, p.60).

Dubai had a head start but has over the period of the past 10 years managed to secure its

place amongst the top cities in the world. However Abu Dhabi has the backing of its oil

supplies, so what ever it does is bigger than anything Dubai has ever done. We look at

how each of their developments in the different fields is specified to attract the right

kind of tourists.

During the course of this paper we look at the different target groups that the UAE has

targeted and managed to bring to the country are sustained and how they continue with

their developments to further make sure that their tourism, business and commercial

ventures increase succeed and increase in size.

1.1 City Marketing

Cities and regions often find themselves squabbling over pots of cash, be it from

private funding or the annual influx of students, in a scramble for investment to get the

upper hand, more are turning to branding in the hope of becoming the place to be for

businesses, consumers and home buyers (Harwood, J. ,2005).

The object of city marketing is the citys image, which, in turn, is the starting point for

developing the citys brand (Gaggiotti, H., Low Kim Cheng, P., & Yunak, O. (2008) p


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. 116) they follow this by also saying that the reason they do this is to identify

themselves with the economic region and gain a certain position in the worlds market.

According to Kavaratzis, M. (2004) the suggested right way to implement and describe

city marketing is by doing city branding. He goes on by saying that city marketing

greatly relies on construction, communication and management of the citys image

which classifies that the purpose of city marketing is developing the citys brand. He

further tells us about the city branding which on one side provides the basis to develop

policies which lead to economic development but at the same time serves as a conduit

for city residents to identify with their city. (p .58)

In the introduction of his article the author states that places all over the globe are

moving their focus onto branding and are taking concept and techniques on a higher

level than before from product and corporate branding into their fields. He goes on to

saying that the most common application of this has been the creation of a logo, or the

addition of a new slogan and the most has been the development of an advertisement

campaign around these features. (Kavaratzis, 2009, p. 26-27).

Kavaratzis (2009) then states that branding cannot be limited to only promotional

activities but must also be taken as a complete and continuous process interlinked with

all marketing efforts. (p. 27)

For this we need to look at what a brand is, according to the oxforddictionaries.com the

promotion of a particular product or company by means of advertising and distinctive

design is the definition of a brand.

According to Kavaratzis, (2009) after analyzing several frameworks, he has come to an

integrated approach to managing city brands. (p . 34)

The categories given by him are

Vision and Strategy (chosen vision for the citys future and development of aclear strategy to realize it)

Internal Culture (spreading a brand orientation through the city management andmarketing itself)


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Local Communities (prioritizing local needs; involving local residents,entrepreneurs and businesses in developing and delivering the brand)

Synergies (gaining agreement and support of all relevant stakeholders andproviding for balanced participation)

Infrastructure (providing for basic needs without which the city cannot attemptdelivering the expectations created by its brand)

Cityscape and Gateways (the ability of the built environment to represent itselfand reinforce or damage the city s brand)

Opportunities (opportunities available for targeted individuals (urban lifestyle,good services, education etc.) and companies (!nancial, labor etc.), whichsignify the potential of the place)

Communications (!ne-tuning all intentionally communicated messages).(Kavaratzis, 2009 p. 34-35)

After looking at the frameworks, which tells us how to manage or create a city brand,

we need to know how this is communicated to the world. In his paper Kavaratzis,

(2004), looks at the three types of communications which are very distinct. ( p. 67)

The first is primary communication which is how the actions of a city are related to

communicated to the world. In this type of communication the main goal of the actions

is not communication. (Kavaratzis, 2004, p. 67)

There are four broad categories listed below as given by Kavaratzis, (2009)

Landscape strategies (which include ways of making the city look better withmore urban design, public art and heritage management.)

Infrastructure projects (improvements or creation in the fields ofcommunication, tourism, culture etc.)

Organizational structure (this includes having a reliable governing structure,private and public partnerships, developments of communities and the

participation of citizens in making decisions)


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Citys behavior (is the vision the leaders of the city have for it the strategiesthey adopt, the quality of services, financial incentives and the amount of

different events that are organized)

(p .31)

The second type of communication is secondary communication that is the formal

communication that is done with the intent of communication. It most commonly takes

place through advertising public relations, logos etc. (Kavaratzis, 2004, p. 68)

The third kind is tertiary communication, which is not in the control of the people in

charge of marketing. It refers to word of mouth, reinforced by media and competitorscommunication. The goal of the other two kinds of communications is to make sure

that the tertiary communication is positively reinforced. (Kavaratzis, 2004, p. 68)

According to Kavaratzis (2004) the secondary communication is done by most cities

because it can be easily adopted. But this and primary communication has to enforce

positive tertiary communication because in the case of the citys own residents, they are

the most important target audience of city branding and the most important city

marketers. (p. 69)

1.2 United Arab EmiratesThe United Arab Emirates is a country made up of 7 states that got their independence

in 1971 on the 2ndof December after the British-trucial sheikhdoms treaty expired.

The names of the emirates are

Abu Dhabi (capital)

Dubai Sharjah Ajman Ras Al Khaimah Umm Al Quwain

Fujairah


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under British influence and when in 1971 they withdrew, it joined with 6 other emirates

to form the United Arab Emirates. It started growing after that as a trading hub and this

has now lead it to become the worlds third most re-export center in the world. (Bagaeen,

S. ,2007 , p. 177-178)


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Estimates taken from 2006 showed the local population as being 1.2 million out of

which more than 70% were expatriates. The original growth of the emirate was because

it had a good infrastructure, taxes on personal and corporate income are zero and the

import duties were always a constant 5%. But the major growth that has been seen since

2002 was because of the announcement by the ruler of the emirate that certain

properties in Dubai were available as freehold. Which meant that people of any

nationality could buy them and invest in them. (Bagaeen, S. ,2007 , p. 177-178)

By 2015 Dubai hopes to draw more than 40 million tourists as the tourism industry is

the fastest growing industry in it. Like the other emirates Dubai does not have a huge

reserve of oil but now it has made itself reliant on a future that is dominated by tourism.

(Webster, J. 2004)

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barrel of oil would have to drop considerable for a major period of time to have any

impact. (2010) We can also see that they are trying to counterbalance their dependency

on oil, which accounts for 59% of their GDP. The are trying to develop an aeronautical,

medical, biotech, media, industries among others to so that the dominance of oil and the

mining industry can be counterbalanced. . (Ponzini, D. 2011, p.253)

3 UAE Target GroupsThere are a lot of different target groups that the region has been catering to for the past

30 years. These include industries, tourists, residents etc. Below we look at facts and

figures for each segment.

3.1Tourists

Dubai:

3+.1#?'1 D&%.*() *%&*/ () .1& P(00+& 5*/. 1*E& @*D&0 * +#. #@ D1*++&)'&/ 0&E&+#F()'.1&(% tourism over the years. Dubai however has shown the ability to overcome these

challenges and establish itself as a relatively popular tourism destination with high

growth rates over the years. (Henderson, J. C. 2006 p.87).

Dubai had a total of 4,181,326 guests that stayed at its hotels in 2010, which was 9%

more than 2009 where the total number of guests was 3,852,742 (Dubai Total Hotel,

2010). Dubai in June 2010 had 67,369 rooms available in hotels and had 566 operating

hotels and hotel apartments (>?4*( "#.&+ 5/.*4+(/1,&).Q 8A7ARG

MacEacheran, M. (2011) states that there are plenty more hotels that are to open in

Dubai this year. He also says that the development of hotels has still continued to grow

and expand. (p.31)

Abu Dhabi:


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According to the author MacEacheran, M. (2011) the capital city has the ability to

attract visitors. The city had targeted 1.65 million guests at the hotels for 2010 and

4,145 rooms are going to be completed this year. The city of Abu Dhabi has a target of

having 2.5 million guests and 29,100 rooms available by 2012. Their future aims are to

have 74,000 rooms by 2020 and are looking forward to having 7.9 million visitors.

(p.31)

Khaleej Times reports on August 22, 2011 in an article titled Abu Dhabi among top

capitals in tourism services, that Abu Dhabi, is one of the top tourism destinations in

the world due to its huge tourism infrastructure and services. The article reports Elias

Sarkis, General Manager of Abu Dhabi Sands Hotel, saying that there was a boom in

the tourism sector in the emirate due to international conferences, entertainment, F1

races, cultural festivals, sport events and shopping ("Abu Dhabi among," 2011).

In 2006 tourism was responsible for 6.8% of Abu Dhabis GDP. Abu Dhabi earned $

2.5 Billion from tourism and related activities alone ("Abu Dhabi $2.5bn," 2007). The

emirate expected 1.9 Million visitors this year and tourism to account for 11% of non-

oil GDP. The Abu Dhabi Tourism Authority has even reported in 2009, that tourism in

Abu Dhabi remained unaffected by the credit crunch ("Abu Dhabi tourism," 2009).

Factors affecting and leading to high tourism levels are events, exhibitions, economic

stability, reduced room prices, increased attractions (Ferrari World; the worlds biggest

indoor theme park and Formula One) and developments, better infrastructure (local

transport, prospective local Metro service) and services and the business travel sector

("Abu Dhabi tourism," 2009).

According to Arabianbusiness.com, latest ADTA figures show that average room rates

in Abu Dhabis Hotels fell 15 percent between April 2010 and April 2011, making

stays in Abu Dhabi a more affordable high-end option than Sydney or Paris. People are

flocking in from Europe and the rest of the world to enjoy world-class luxury at

comparatively cheaper prices. (Sambidge, 2011)


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The key tourism performance indicators for Abu Dhabi increased by double digits

during February 2011. The United Kingdom, which is the key source market for Abu

Dhabi, showed an increase of 29% in hotel guests. Tourists from the US increased by

36%, France by 49% and Saudi Arabia by 90%. Russia also came in the top 20 with

having an 88% increase in tourists to Abu Dhabi. ("Abu Dhabi tourism," 2011)

3.2Residents

Dubai:

At the end of 2010 the number of resident people in Dubai were, 1,905,476 individuals.Out of this 22% was female and 78% was male. (Population by Sex, 2010)

The total number of housing units were 366,413 which includes single houses and

apartments.SThe Estimated Number, 2010)

Abu Dhabi:

According to Sell, C. (2009) the population of the capital was 1.46 million in 2006 and

will reach an estimated 3 million or more by 2030. The number of housing units was

70,000 and would reach to 120,000 by the end of 2012.

3.3Businesses

Dubai:

According to Dubai Statistic Centres Business Activities report of 2010, as of 2010,93,867 licenses were renewed (the number of continuing businesses) and 16,030 new

licenses were issued. Comparatively, according to the report there were 88,540

continuing and 13,321 new businesses in 2009. The growth in number of businesses

from 2009 to 2010 is an indicator of economic growth. The Business Activities report

of 2011, shows latest statistics that in the first half of 2011 in Dubai, 53,075 licenses

were renewed, with 7,256 new business licenses. If the trend is to continue for the last

half of 2011, we can see that number of businesses will eventually be more than 2010.

The most licenses issued are for commercial purposes, followed by professional,


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Abu Dhabi:

The total number of businesses registered by the Department of Economic Development

of Abu Dhabi reached 96,381 in 2010. 10.4% of this number is newly registered

businesses. In 2009 the total number of registered commercial businesses was 86,402,

while the percentage of new businesses was 14.7%. (Statistical Yearbook of Abu Dhabi

for 2011, p.60).

4 National marketing and promotional toolsEvery city has certain aspects and unique selling points that they use to market

themselves to residents. Below we look at how the U.A.E has done so by looking at

major points from both the cities.

4.1Safety

Ameinfo reporting on the 14th international police executive symposium which took

place in Dubai in April 2007, reported the Lieutenant General, Chief of Dubai Police

saying that the crime level in the country was relatively low compared to the

international average. He said that the happening of serious crime was 0.5 per 100,000

people whereas the international average was between 4-6. (Dubai is a, 2007)

Dubai has a comparatively low crime rate, because the government imposes severe

penalties on those found guilty of breaking the law. As per news reported by local new

Khaleej Times, in early 2011, because of Dubai Polices crime busting strategies, the

crime rate in 2010 has dropped 24% from 2009. There were 3,265 serious cases in 2009

and 2,485 such cases in 2010 (Amira, 2011).

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*%& '#()' .# 4& /F&).by the government on even more cameras so that security can be

increased. (UAE-Dubai security, 2010)

Looking at the investors that come to the region, the UAE is a safe haven for ME

property investors. UAE Defense and Security Report (2011) has mentioned that it is

because of the stability that the UAE has in its politics and economy. This has been the

reason that the country has been able to establish itself as a safe area for investors to

pool in their money over the past years.

Now looking at the international aspect the UAE has a lot of allies and some of them arevery high profile. Firstly it has its safety, which is guaranteed by the GCC security, and

second it has a lot of signed agreement with nations that range from India, Germany to

France. (Domestic Security Overview. 2011, p.54).

The number of cases of offenses in Abu Dhabi for the year 2010 is 63,005. According

to the Statistical Yearbook of Abu Dhabi 2011 (p.218), the number of lawsuits, which

were determined by courts in Abu Dhabi during 2010, was 410,384 cases. A largeamount of these cases are due to traffic violations, due to the very strict penalties

against violators of traffic regulations. As per Dr. Robert Winslows comparative

criminology study of the world, the crime rate in the U.A.E is lower as compared to

more industrialized nations like the USA. It is also important to note that UAE has a

federal court system introduced in 1971. All emirates other than Dubai and Ra's al

Khaymah have joined the federal system and secular and Islamic law (Sharia) for civil,

criminal, and high courts (Winslow, 2008).

The adjudication rate for all courts in Abu Dhabi (primary, appeal and cassation courts)

has reached record levels of 99%. Crime rate in Abu Dhabi dropped 28% in 2010 as

compared to 2009. Khaleej Time also reports that number of criminal communications

in 2009 was 6,490, and it decreased to 4618 in 2010 ("Capitals crime rate," 2011).

According to the United States Bureau of Diplomatic Safetys United Arab Emirates

2011 Crime and Safety Report for Abu Dhabi, Abu Dhabis general crime level is


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rated at medium. But the actual crime rate is not recorded in this report because Abu

Dhabis government is reluctant to release specific crime statistics. According to the

report, travelers and tourists are not impacted by crime in the Emirate. Compared to

similarly sized cities worldwide, Abu Dhabis crime rate appears to be considerably

lower. Most crimes occur within the Asian expatriate population, and a majority of

these crimes occur in labor camps. There are no instances of political violence in the

U.A.E linked to the instability in the surrounding countries. The citizens have been

satisfied with the ruling monarchy and political unrest is very unlikely in the future

(United Arab Emirates 2011", 2011).

The low crime rate is evidence of a strong law enforcing system in the country and that

crime prevention is priority with the Government. Low crime rate is a major factor

when dealing with foreign investments in terms of high rates of tourism or business

investments. If the crime rate were relatively higher, tourists from all over the world

would be wary of coming to visit the UAE. The crime rate does not only apply to street

crime, like robberies, it also applies to commonly occurring problem in the third world

of business fraud etc. The UAE government takes fraud very seriously, making it a very

safe place to do business in. The Government monitors all sections of society to ensure

a safe city. Marketing the UAE as a safe city is responsible for the growing international

interest in country.

An economy with high standard of living eventually equals to a countrys whose

citizens are satisfied with the way the monarchy is running the government. Despite not

having a democracy the nationals in UAE are content with the ruling families and there

are no chances of any political unrest. This factor increases international confidence in

the UAE, because in light of the recent Arab Spring and unrest in Bahrain, the

international community needs to be ensured that the UAE is safe from political

upheaval. UAE is a safe and secure for everyone, making it an incredibly marketable

country slowly surging into the limelight as it races into the regions social and

economic fast lane.


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4.2TaxesEach of the seven emirates has a different set of regulations on taxation. The taxes in

each of these states are different depending on the amount it produces. Any organization

in the UAE is subject to taxation, but only in theory. But the firms that usually pay taxes

are petroleum companies and foreign banks that have opened branches in the country.

Others include insurance companies that have to pay a tax on their turnover and hotels

and properties are subject to taxes from the local municipalities. There is no income tax

in the UAE. (Taxation, 2010)

For goods coming into the country the UAE has a 10% tax on luxury goods and 4% on

all other goods imported, but certain items like tobacco and alcohol are exempt from

such levitations. (legal landscape , 2008)

The UAE has a lot of free zones and an example of one of these is the Dubai Media

City. As it is a free zone it is separate from the rest of the country. The benefits for these

free zones is that a company in it has the ability to have a 100% expatriate ownership

and a guarantee by the free zone that it is exempt from corporate of income taxes for the

next 50 years. (Hill, M, 2006)

4.3Education

Wilkins (2010) has stated that the UAE at the end of 2009 was the country with the

highest number of universities that had set up branch campuses in the world. At the end

of 2009 there were 40 and it has been increasing ever since. Looking at its population

the country has more than 60 universities and colleges and because of this the supply of

education already exceeds demand. He goes on further to compare the UAE with

Boston, which has over a 100 institutions and is considered an education hub not only

for the United States but also for the world. He says that the UAE is aiming for the

same but on a regional basis. (p. 389)

Going further into his article Wilkins (2010) says that the students are taken from theUAE as well as from surrounding regions. As for the universities, they provide


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programs that are similar to the ones that they provide back at their home institutions

and on completion of the degree the students are provided a degree from the home

university. (p.390)

Looking at an example of foreign presence in the UAE educational sector, THOMAS K.

(2010), says that there are 86 British schools in the UAE as well as 32 education bodies

that have affiliations with the UK. Other than that there are 4 UK universities that have

a campus in the UAE. He also says that the UAE has made education one of its

priorities and has invested heavily in it. In 2010 22.5% of the government budget was

allocated to education ($2.7bn).

This does not only go to the national universities, foreign universities are also

sometimes funded by the government as Wilkins (2010) says giving an example of the

New York University in Abu Dhabi (p. 393)

Education forms the backbone of UAEs aim to form a knowledge-based economy.

Educated workers will be readily available for companies hoping to establish in theUAE, making education and important and wise choice for present and future

investment. Branding Dubai and Abu Dhabi as cities with educated workforce is

important for its image in the world as cities that value education.

4.4Health

The United Arab Emirates is a major client for medical services world-wide. People

from the UAE spend more than $2 Billion on healthcare outside the country. The

amount they pay on average per patient is close to one hundred thousand dollars. (PR,

N. 2011)

It is because of this reason that Dubai is currently in the process of developing the

Dubai Healthcare City. It will have two sectors in it, the first will provide sports

medicine along with nutritional advice whereas the second will provide advanced

international standards of medical services. This model has already attracted several of

the worlds leading healthcare providers. Examples of these would include the Harvard


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.1&/& /(WQ .1%&& *%& ,*)*'&0 4B X#1) "#F-()/ J).&%)*.(#)*+ $1(D1 1*0 4&&) ()

8AAK *DD#%0()' .# .1& 2YNews and World report the best American hospital for the

past 19 years running. (Bains, E, 2009)

Another example for their development in the healthcare sector is the Cleveland Clinic

which is a $2.5 billion project that is being built on a man-made island. (Cleveland

Clinic Abu Dhabi, United Arab Emirates, 2009)

5 Individual City developmentIn this section we look at developments that the city has done over time to attract the

individual international target groups, which include, residents, tourists and businesses.

5.1Dubai

5.1.1 Dubai Airports

Dubai has 2 airports that are in service right now, the first is Dubai international airport

and the second is Dubai World Central-Al Maktoum. Dubai World Central airport is

currently only handling freight.

According to the article Dubai invites firms for airport expansion, (2011) Dubai

i t ti l i t h dl d 12 2 illi l i th fi t t f 2011


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Looking back the airport handled 47.2 million passengers in 2010 and will expect

around 50.9 million passengers by the end of 2011(Dubai Airports considers fourth

concourse, 2011).

Kelly, E. (2011) says that by 2020 both the airports combined are looking to have

around 98.5 million passengers and more than 4 million tons of freight. A commitment

has been made for 7.8 billion dollars by Dubai airports for an expansion plan that will

allow them to serve the estimated 100 million by 2020. The reason for this amazing

forecast is that both the airports are expected to increase on an average of 7.2% (Dubai

International Airport) and 6.7% (Dubai World Central Airport) annually. It out

performs the global average, which is 5% for increase in international passenger. This

reveals that more and more holidaymakers are choosing Dubai as their destination. (PR,

N. 2011)

The article by Kelly, E. (2011) says that because of its close proximity to India and

China, Dubai has become a trading Hub. Just because of its ability to rally tourism it

will further increase the city as a center for global aviation.

5.1.1.1 Emirates Airlines

A reason for the success of Emirates Airlines and Etihad Airlines(Abu Dhabi) is that, a

few years ago there were no flights from the Gulf that went to the USA directly. But

now as Emirates and its regional counterparts provide these services more people prefer

them over having to go through Paris, London or Amsterdam. The gulf does not haveenough passengers to be able to support this increase in traffic, this is provided from

airports that are from Africa, Asia and mostly from the Indian subcontinent. This is a

ripe market for Emirates because for example, Chinese and Indian airlines do not

service these regions at all. The region is perfectly placed and a traveller from China

wanting to go from China to Africa does not have to take a connection from Europe but

can do so from Dubai. (McWhirter, A, 2010, p. 27)


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The article, Emirates Airlines (2010), states that Emirates had 139 aircraft in 2010

and planned on growing its fleet with orders for more than 168 more aircrafts.

McWhirter, A (2010) also gives number on the order of the planes by giving us number

of the A380s that have been ordered from Airbus, amounting to 90. Out of these only

15 have been delivered.( p.28)

Another reason why it is preferred from other airlines at Dubai Airport, which has over

125 airlines serving it, is its customer service. On the 10 thof February 2011, Emirates

Airlines won the Airline of the year award from Air Transport World. This is one of the

achievements out of 400, which the airline has received in recognition of its innovations

in almost every category. A few of the Airlines pioneering innovations were introducing

seats with individual video screens, allowing passengers to make authorized calls via

mobile phones on aircrafts. It was also the first to have shower spas onboard its plane

for passengers from first class. This is also a major reason why it flies to 110 cities and

keeps on increasing with a consistent growth of 20% yearly. (Emirates named airline,

2011

5.1.1.2 Fly Dubai

Flydubai is Dubais first low budget carrier and has become a well-known name

because of its affordable rates and high quality. It started up two years ago and as of

29th June 2011, they had 36 destinations that were operational and had 16 aircrafts.

This has made them the fastest growing airline ever. (PR, N, 2011)

It has routes that cover the GCC, Northern Africa, Southern Asia and parts of Europe.

The low rates that FlyDubais offers are much lower than the competition and because

of this they are stimulating demand for Tourism in the region as well as tapping into

new markets that would want to develop business in Dubai. Fly Dubai has had a 78%

increase in flights, doubled its aircrafts and has had its passenger numbers doubling

over the past year only. (PR, N, 2011)


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The above airlines show that how with two different airlines Dubai has managed to

target passengers from all income groups. For first class service there is Emirates and

for cheap-budget flights there is Flydubai.

5.1.2 Sponsorships

Emirates Airlines is completely owned by the UAE government and all its actions can

be directly seen as that of the city. With reference to the introduction this is a clear

example of secondary communication.

Gorman M. (2007), says in his article that Emirates is on its way to becoming a major

player in the aviation world and they have not spent such huge amount on advertising

like its rivals. They have chosen an alternate route, which is sponsorship. They are on

their way to become the sponsors of the Epsom Derby, which they will be after

replacing Vodaphone. They have also been the official airline of the 2011 Rugby World

cup held in New Zealand this year. But their biggest sponsorship deal is that with

Arsenal where they have a 100 million GBP deal with the football club for giving themthe stadium naming rights for fifteen years and a shirt sponsorship for 8 years. He also

states that until Emirates signed a deal with Arsenal very few people had ever heard of

it in the region.

5.1.3 Tourism

Business Tourism

Douglas W.N. (2011) states that Dubai over time has become the center for all

conferences and exhibitions ranging from kitchen appliances to finance and banking. He

goes on to give details of the New International Conference center that has almost

600,000 sq. feet of space for exhibitors. The way this ties in with tourism is that

travellers on account of business are finding Dubai to be an excellent place to take a

vacation at as well. He goes on in article by giving details of how companies will host

golf tournaments in Dubai which has three championship golf courses among others


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The main point he focuses on with regards to Dubai is that even though there is a war in

Iraq Dubai is the safe zone, where war does not exist and crime is virtually

nonexistent.

Cultural and Natural Tourism

Douglas W.N. (2011) in his article states that one of the reasons Dubai has become a

global spot for tourism is the famed gold souk, or marketplace. He then gives details

about how at any given time there is more than 25 tons of gold jewelry on display

through out the 600 or more shops that are in the New Gold Souk which is aroundalmost a century old. With respect to natural tourism he goes on to describe how there

are companies that take people out on safaris in the desert and other excursion into other

emirates. These would include driving four-wheel-drive sport utility vehicles over

sand dunes or driving through dried up rivers in Fujairah, which is one of the seven

emirates. There are also dinners on the Arabic boats called dhows as well as

encampments in the desert.

Commercial Tourism

A survey done by Yahoo! Maktoob Research revealed that 32 per cent of Arab

shoppers rank Dubai as the best in a list that included global cities eg. London, Paris

and New York. His article goes on to state that the Dubai Department of Tourism and

Commerce Marketing with proactive marketing have made it one of the most popular

destinations for shopping among people from the Arab world as well as in other

countries of the world. Festivals like the Dubai Shopping festival and the Dubai

Summer Surprises are festivals that are shopping orientated and have helped them

achieve this. (Dubai world's is ,2011)

Dubai has an exciting mix of amenities that give customers a truly unique and

pleasurable shopping experience. Moreover, Dubai's impressive collection of

international brands and retail outlets rival those of any other shopping city in the

world - a key attribute that gives the Emirate a distinctive edge as the best shopping

destination in the Arab World. Dubai Department of Tourism and Commerce

Marketing will build on this distinction to develop more innovative campaigns and


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promotional activities that will further reinforce the reputation of Dubai as the

world's shopping capital, said Eyad Ali Abdul Rahman, Executive Director Media

Relation Division '&' Business Development, DTCM. (Dubai world's is

,2011)

5.1.4 Events

Given below are the high profile events that take place in Dubai and what the

government has done to promote them, in terms of better facilities etc.

5.1.4.1 Sports

Dubai has always been big on sports and examples of these are increasing yearly. The

European Golf tour is now called Race to Dubai as the highest stakes are in Dubai.

Players play all year round to have a chance of being highest in the rankings so that they

have a chance of making it to the tournament in Dubai. (PB 5?%#F&*) Z#?%Q 8A77R

Some of the examples of the high profile sports events that take place in the city are,

The Louis Vuitton Sailing Trophy Dubai World Golf Championship (European tour) Omega Dubai Desert Classic (European tour) WTA Dubai Tennis Championships ATP Dubai Duty Free Tennis Championship Dubai World Cup (Horse Racing) World Swimming Championship(Sports Calendar, 2011)

Named above are only some of the ones with the highest worldwide profiles.

What Dubai has done for to promote this is to have major developments in the

construction of stadiums and racecourses etc. is that they have created the Meydan

racecourse, which is a $1.25billion project. (Meydan appoints fresh, 2009)


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The Dubai World Cup for horse racing is the richest race in the world. The development

of the Meydan Racecourse was done by the Dubai Racing Club and they redeveloped it

from their already existing Nad al Sheba Racecourse. They developed a new racecourse,

grandstand and a hotel, along with which they made an 8 lane road to the facility with 3

bridges connecting it. (Meydan Development, Dubai, 2010).

Along with this they created the Dubai Sports city, which was made by reclaiming

desert land. The size of the facility is 4.65km2 and has stadiums for everything

including cricket, hockey, football, gymnasiums, pools and even a sports rehabilitation

center. They also have a 18 hole golf course that with the stadiums is on one side of the

city approximately 2km from the city center. Other than the sports facilities it is also

home to an indoor sports mall and has a lot of resident sports academies that operate

from there, one o their biggest being the Manchester united sports academy. (Smith, A,

2010).

Dubais interest in sports, along with Emirates Arsenal sponsorship, shows that they

have not left any stone unturned to attract the foreign market.

5.1.4.2 Festivals

There a number of festivals that are happening through out the year in Dubai. Because

of the variety of religions that exist in it, the festivals spread out during the whole year.

From Eid to Christmas to New Year, all these see shops and outlets reducing their costs

and putting up sales. But other than these reasons Dubai has created festivals to draw alarger crowd worldwide and to keep the festivities going on all year round.

It is because of this that there is an urban life that can be seen all year round and

enjoyed. For the summer they have then Dubai Summer Surprises which for 10-weeks

during the summer have themed events, competition and other opportunities for family

entertainment. This is followed by the Dubai shopping festival which starts another

season of discounts and sales at shopping malls and outlets. (City slicker, 2006).


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One of the other major festivals they have is the Dubai International film festival that is

now a world-renowned event. It is one of the only film markets in the world that covers

the Arab world and gives the opportunity to people to see content that is unique to Asia,

Africa and the Middle East. The event in 2010 had 2000+ delegates coming in from

over 50 countries for it. (Why DIFF, 2011)

Dubai also has a large amount of music festivals, one of the largest and most well

known is the Dubai international jazz festival. Where musicians from all over the world

gather for three days. These festivals have a huge appeal and help the city draw in a

huge crowd. ("City slicker, 2006).

5.1.4.3 Exhibitions

All the exhibitions and congresses are held by the Dubai World Trade center and they

have two locations that have been developed specifically for these purposes. The first is

the Dubai International Convention and Exhibition center while the second is the

Airport expo. They have a space of a million square feet and 34,000 square metersrespectively.

They have over 90 exhibitions that take place yearly, some of the most well known ones

are

Gitex Technology Week- This is an exhibition that shows the latest trend in theInternet, computer and technology sector.

Gitex Shoppers Is the biggest consumer electronic exhibition of its kind andhas all the retailers and brands from all over the world present.

The Big 5 Show - Is the largest building and construction show that takes placeevery year and draws companies related to the industry from all over the globe.

(Events Calendar, 2011)


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5.1.4.4 Global Conferences

The reason that a lot of the conferences in the region are hosted in Dubai is that it has a

strategically located in the center. As said before for exhibition, the Dubai World Trade

Center authorities in halls that are located on similar venues also hold all the

conferences. Some of the biggest global conferences that have been help by the Dubai

world Trade Center are given below:

Annual congress of the International Monetary Fund and the annual meeting ofthe Governors of the World bank. 14,000+ attendees

FDI World Dental congress 15,000+ attendees

The 7thglobal symposium for regulators(Event Types, 2011)

Information that can be seen on www.conferencealerts.com/dubai.htm shows that there

are more than 25 international conferences that are scheduled for November and

December alone this year. (Dubai conferences, 2011)

5.1.5 Free-zonesBelow is a list free zones in Dubai that is readily available from multiple sources on the

internet and is common knowledge.

Dubai Airport Free Zone Dubai Car and Automotive City Free Zone Dubai Flower Center Free Zone - at Dubai International Airport. Dubai Gold and Diamond Park Dubai Health Care City Dubai Industrial City Dubai International Financial Centre - stock exchange, insurance center and

money market.

Dubai Internet City


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Dubai Knowledge Village Dubai Media City Dubai Multi Commodities Centre Dubai Gold and Commodities Exchange Dubai Silicon Oasis Dubai Technology and Media Free Zone (TECOM) - includes Internet City,

Media City and Knowledge Village.

Jebel Ali Free Zone Authority (JAFZA) Economic Zones World - includes Techno Park, Dubai Auto Zone, JAFZA Dubai Maritime City

The first free zone in Dubai was set up in 1985 and is called the Jebel Ali Free Zone.

The Airport free zones were set up in the mid 1990s. The above mentioned free

zones are tax free havens that have attracted all major multi national brands whether

FMCG manufacturers, media companies or Fortune 500 companies.

The free zones in the UAE are an amazing mechanism to increase economic

development (Santosh, H, p.5). The government attracts investors to these free zones

through the following set up incentives:

Complete business ownership by foreigners No taxes, customs or commercial fees Lease on facilities that goes up to 50 years No restrictions on any kind of capital with no trade barriers or quotas on

import.

One stop point for all approvals to minimize red tape and time wasted.(Santosh, H, p.5).

Which means free zone can easily get company registration, company laws

and legal framework is hassle free, there is also no need for local sponsor.

Firms get flexible labor laws for recruiting during projects with 24-hour visa

service and easy access to knowledge workers (Santosh, H, p.20)


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3ccording to the article, Etihad Plans Fleet Expansion (2010), the airline has been

having events in major cities like London and New York so that they can attract

financers for the 106 aircrafts that they need during the duration of the next 10 years.

In 2010 they began a partnership with Virgin Blue airlines and with each other the 2

airlines in collaboration offer more than a 100 destinations through their joint network.

James Hogan the CEO of Etihad Airways is reported to have said that because of the

opening of a major theme park and a lot of world leading attractions coming into

existence in the region, the future for Etihad is unprecedented. (Etihad expands network

and forecasts net profit in 2012, 2011).

The CCO (chief commercial officer) Peter Baumgartner is reported to have said in an

interview with the Travel and Trade Gazette from the UK and Ireland that the fleet of

the airways would more than double its aircrafts to 150 before the decade is over. He

also says that the workforce would increase to 17,000 from the already 8,000, and the

airline would be flying to a total of 120 destinations by then. Comparing the growth of

the airline to that of the city he said that this growth is part of a steady 7% increase in

non-oil GDP that will establish Abu Dhabi as a $230 billion economy by 2020.

(Etihad growth 'analogous 2011).

5.2.2 Sponsorships

Like Emirates sponsored Arsenal football club, Etihad Airways took to Manchester city.

Taylor (2011) reported for The Guardian about the $640 million sponsorship that was

just signed between the Manchester City football club and Etihad airways. This makes

the deal the largest that has ever happened in football history and gives the club an

unlimited supply of finance. The agreement is over a period of 10 years and gives the

national carrier of the United Arab Emirates the naming rights to the Manchester City

football stadium. Now naming it Etihad stadium. Along with the naming rights to the

stadium the airline also procured the extension to the rights of the shirts for another 10

years. The author finally mentions in the end of his article, the details of the sponsors,

he says that the Abu Dhabi government owns the airline.


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5.2.4 Events

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5.2.4.1 Sports

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The Abu Dhabi Championship: Is Abu Dhabis only championship course butothers are being built helping the city realize its plans for tourism. Ellegard, P.

(2010).


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The Domestic English cricket season: Started in Abu Dhabi 2010 because ofbetter conditions and to have an early start to the season. (2009, December 11).

MCC switch to Abu Dhabi

Abu Dhabi Grand Prix: is the second of its kind in the Middle East and is had itsfirst race in November 2009. It is the last race on the Formula1 One calendar. It

is the first event to begin in the daytime and end at night under floodlights.

(Dylan, C. R, 2011).

Other sports events according to the official Abu Dhabi events calendar are

UAE Jet Ski Championship

Chevrolet Drag Racing Experience Yas Super sports SST driving experience(Sports events, 2011)

5.2.4.2 Music

Flash entertainment is an events organizer that is owned by the Abu Dhabi government

and they have used the annual Formula one Grand Prix to stage events that take place

through out the city. Starting in 2009 the music concerts were set around the F1 race

and the concerts were scheduled for a fortnight. International artists from all around the

world were brought in and top names like Aerosmith, Beyonc and Kings of Leon were

amongst 40 other artists that performed then. For 2010 again, artists like Linkin Park

and Prince were amongst many that performed across the city 0?%()' *)0 *%#?)0 .1&

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5.2.4.3 Festivals

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(Young, D, 2009)

Summer in Abu Dhabi: This is a festival thats run over the period of a monthand includes entertainment as well as activities centered around families.

(Family events, 2011)

Other Festivals like Yasalaam, Creamfeilds and Womad are mentioned in the Music

events as they concentrate more on music. They are some of the biggest festivals that

happen through the year in Abu Dhabi but are not mentioned here, as they are solely

music related.

5.2.4.4 Exhibitions

The Abu Dhabi national Exhibitions Company is a government owned and controls the

Abu Dhabi National Exhibition center (ADNEC), which was opened in 2007. On an

average it has a footfall of one million and has over a 100 exhibitions yearly. The

facility has 12 connected halls and is built over a total area of 73,000 square metersmaking it one of the largest venues in the Middle East. (ADNEC, 2011a)


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Major exhibitions that take place yearly at the exhibition center include:

Middle East Manufacturing Exhibition Gulf a la Carte Sial Middle East Home-Style 2011 Airport Exchange 2011 World Green Tourism 2011 Abu Dhabi International Book Fair

(ADNEC, 2011b)

5.2.4.5 Global conferences

Similarly like Dubai all major world conferences and important summits are also

conducted at the Abu Dhabi National Exhibition Center. A few of them given on the

webpage of the Abu Dhabi National Exhibitions Company are mentioned below.

World Health Care Congress Middle East: The first one was held in 2010 andthis year in December this congress will be the most recognized healthcare event

in the entire region. Their goal at this congress is to promote global health care

by looking at innovative best practices on a global scale. It has over 600

delegates coming in from over 25 countries. (Whats on, 2011a)

World Future Energy Summit: It was started in 2008 and since then it hasbecome the worlds top annual meeting for companies and people in industries

related to the environment or renewable energy. The summit in 2010 had over

24,760 people from 148 countries that attended it. The attendees included world

leaders, experts, industry leaders, journalists and academic intellectuals. (Whats

on, 2011b)

World Ophthalmology Congress: is the bi-annual international meeting of theinternational congress of ophthalmology. (Whats on, 2011c),


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5.2.5 Free Zone

Abu Dhabi has three free zones currently: Khalifa Industrial Zone Abu Dhabi (Kizad),

Abu Dhabi Airport Business Part, and Twofour54.

According to Abu Dhabi Governments official website, Khalifa Industrial Zone is

being established by Abu Dhabi Ports Company (ADPC) a master developer and

regulator of ports. Kizad will be located in Al Taweela that already houses the worlds

biggest aluminum smelter EMAL and is an area between and Abu Dhabi and Dubai.

KIZAD is near to both Dubai and Abu Dhabi international airports, giving convenient

access to the worlds markets to around 2 billion customers. With 100 percent foreign

ownership being allowed in certain sectors, along with the world-class infrastructure,

this free zone has a long-term competitive advantage. The total value of investments in

the first phase of Kizad, which is expected to complete in the very last quarter of 2012,

is almost AED 26.5 billion (US$ 7.2 billion). Targeted business sectors include

petrochemicals, steel, pharmaceuticals, life sciences, chemicals, biotechnology, metals,

food and beverages, logistics and transportation. (International Trade, 2011a)

ArabianBusiness.com (2011) reports that KIZAD has been luring Asian investors, and

has recently had roadshows in India, China, South Korea and Germany. Khaled

Sameen, executive vice president, industrial zones at Abu Dhabi Ports Company says

that the response was positive and that this free zone is also about attracting foreign

direct investment. He also says that KIZAD will contribute to 15% of Abu Dhabis

non-oil GDP, giving Abu Dhabis economy a huge boost. 30 companies excluding

anchor tenant EMAL have already signed agreements with 100 more in the pipeline.

The 421 square kilometers mammoth free zone will help Abu Dhabi in its aim to

diversify its economy away from oil. (Abu Dhabi $7.2bn, 2011)

Abu Dhabi Airport Business ParkIs built on an area of 7 million square meters within Abu Dhabi International Airport, it

is a business park as well as a logistics park. With benefits that are common to the

regions free zones like tax exemption and 100 percent foreign ownership, this free zonewill help diversify Abu Dhabis economy. This free zone will include services for a


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broad range of industries like Aerospace, aviation, oil and gas, cargo freight, logistics,

semiconductors, engineering, FMCG, media, pharmaceutical, luxury goods, travel and

tourism. (International Trade, 2011b)

Twofour54Twofour54 or the Media Zone Authority is a media free zone intended for Arabic

content media. The point of the free zone is to make Abu Dhabi a regional center for all

media platforms whether print media or films. (International Trade, 2011c).

5.2.6 Industries

Where all the above ventures done by the state to attract tourists and residents, we now

look at the backbone of the city which has been developed by foreign companies and

keeps on increasing thus increasing the flow of money and people into the country. This

is the main reason that before any of the projects and high scale living Abu Dhabi was

so attractive to the world.

Oil and Gas

While the tourism industry is the backbone of Dubais economy, Abu Dhabis major

industry is still oil and gas. Interest grew in the oil industry in the 1930s, as the pearl

industry was in a rapid decline. Abu Dhabi granted its first oil concession, covering its

entire territory, in 1939 to the Trucial Coast Development Oil Company (Persian Gulf

States, 1993). Abu Dhabi has been a major world exporter for oil and gas and is the

emirate that is the richest in oil and gas among all 7 of the Emirates. Moreover Abu

Dhabi accounts for 94% of the UAEs crude output (Abu Dhabi pushes, 2008). Abu

Dhabi has developed both onshore and offshore oil fields and most of these oil and gas

reserves are under the control of the Abu Dhabi National Oil Company (ADNOC),

which is owned by the Government of Abu Dhabi and is one of the top 10 largest oil

companies in the world. ADNOC is also the worlds largest crude oil producer. It is

important to note that the oil and gas industry contributed to 49.7% of the Emirates

GDP and 7% of the worlds oil reserves are found in Abu Dhabi (Statistical Yearbook

of Abu Dhabi for 2011, p.70).


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According to the Statistical Yearbook of Abu Dhabi for 2011, one of the most important

indicators in the field of oil and gas are the oil reserves, which stood at 92.2 billion

barrels in 2009, while the Emirates total natural gas reserves for 2009 came up to 212

trillion cubic feet. Abu Dhabis current (for 2011) proven oil reserves are 98.2 billion

barrel of oil or nine per cent of the worlds total and 5.8 trillion cubic meters of gas or

five per cent of the worlds total (Haider, 2011). In 2010, average production of crude

oil was 2.3 million barrels per day, 4,847 million cubic feet per day of natural gas was

produced (Statistical Yearbook of Abu Dhabi for 2011, p.92). Abu Dhabi already has 2

refineries and is planning to build a third refinery in the northern Emirate of Fujairah

(Statistical Yearbook of Abu Dhabi for 2011, p.70).

The above statistics show Abu Dhabis strength as a world player in the field of oil and

gas. Abu Dhabis oil and gas output not only makes it immensely important to its

economy but also overall affects oil and gas prices worldwide, considering a sizeable

7% of the worlds oil reserves are to be found in Abu Dhabi. Despite being self-

dependent on energy sources that are not going to near depletion anytime soon, Abu

Dhabis focus on renewable energy sources with Masdar City is very commendable.

Abu Dhabis oil fields will last longer than oil fields of neighboring emirates, namely

Dubai and Sharjah because they are re-injecting liquefied natural gas back into the

reservoirs to increase oil and condensate production. The reservoirs in Sharjah are close

to being dried out, comparatively because of this enhanced oil recovery technique

employed by Abu Dhabi the reservoirs in Abu Dhabi might last 150 years, if the current

rate of recovery of around 2-2.6 million barrels per day remains steady. (Kapur, 2010).

A UAE Government Report named Oil and Gas (1999) states that Dubai, oil and gas

reserves will dry out in the next 20 years, which means around 9-10 years from now.

Considering 94% of the UAE oil reserves are in Abu Dhabi and as stated above equal to

98.2 billion barrels of oil, it is no surprise that Abu Dhabi can benefit from the oil trade

much longer than the other emirates, which will barely have any oil in the future to

support the economy.


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Faisal Zaid i Thesis