Page 105 - Aamir Rehman - Dubai & Co Global Strategies for Doing Business in the Gulf States-McGraw-Hill (2007)

Here to Stay: GCC Market Attractiveness and Risks 89

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in Dubai as primary or secondary residences since 2002. British
retailers have quickly realized that a presence in Dubai is crucial for
tapping the expatriate market and providing them with familiar
products in their second home. British Commonwealth nations
such as South Africa, Australia, and New Zealand are also deeply
connected to the UAE, through tourism, trade, and expatriate
workers. Some 45,000 South Africans now reside in the UAE,
attracted largely by the country’s quality of life. 55
Dubai has also become an appealing playground for wealthy
Russians and other Eastern Europeans. There are an estimated
56
30,000 Russians living in Dubai, and significant property holdings
are believed to be controlled by Russian investors. About half a mil-
57
lion Russians stayed in Dubai hotels in 2005 alone. Dubai offers
wealthy Russians a secure environment, loads of sun, and a degree
of anonymity that is often welcome. The oil industry provides
another set of reasons for linkages between Russia and the GCC
countries, including their being ideal places in which to hold
conferences and the opportunities for finding deals and establish-
ing advisory relationships there.

China: Fast Friends

Trade between the Middle East and Asia more than doubled
between 2000 and 2005, when it reached $240 billion. Trade between
the GCC and China constitutes a large chunk of this activity, and
investment flows between the two are growing at unprecedented
levels. Leading global bankers estimate that GCC buyers may in
2007 alone make up to $30 billion in Asian investments, a large por-
tion of which will head to China. Prince Alwaleed Bin Talal of Saudi
Arabia has become one of the largest GCC investors in newly listed
Chinese companies, particularly in its massive banks. 58
China’s voracious thirst for petroleum makes it a natural part-
ner for the GCC states, and its need for investments complements
the Gulf’s excess capital. There are also political overtones to the
relationship: China is widely seen as the greatest hope for restoring
a balance of power between the United States and the rest of the
world. As ties with the United States become awkward due to the
war in Iraq and the global War on Terror, building bridges with
China is a way to strengthen the Gulf region’s geopolitical standing.