Page 124 - Aamir Rehman - Dubai & Co Global Strategies for Doing Business in the Gulf States-McGraw-Hill (2007)

108 Dubai & Co.

and the West who set up shop in the UAE to benefit from its oppor-
tunities and quality of life. In 1999, for example, the Dubai Airport
Free Zone (DAFZ) reported that 82 percent of companies operating
11
there were European or American. Media City attracts a large
number of Arab journalists and aspiring media moguls, and
Internet City attracts a substantial pool of South Asian IT
entrepreneurs and companies. Free zones are playing a crucial role
in fostering a culture of entrepreneurship in the UAE, in addition to
their role in attracting multinational firms and the economic boost
they bring.
Foreign ownership of “freehold” residential properties both
attracts international real estate investors and makes expatriates
more comfortable living in the UAE. Foreign freehold is restricted
to certain development areas and projects, but includes high-profile
ventures such as the Palm Island complex. A series of man-made
islands that form a palm-tree shape, the project is the self-declared
Eighth Wonder of the World. Dubai has also announced another
residential project, known as the World Islands, which will include
300 small, private islands in the shape of various nations and states,
with prices beginning at around $7 million each. Among the first
purchasers of World Island properties is Sir Richard Branson of
Virgin, who bought the island representing Great Britain.

Fast-Track Government Services

The economies of the GCC countries are all highly regulated, and
regulation inevitably brings with it bureaucracy. Bureaucracy espe-
cially affects expatriates, who, in addition to the universally
required documents such as driver’s licenses and birth certificates,
need to obtain further documentation permitting them to remain in
the country, to work, to maintain a bank account, and to engage in
a host of other activities that would be routine in their home coun-
tries. To cancel a resident visa and return home, for example, for-
eigners need to dispose of local property, close out their leases, and
even close bank accounts linked to resident status.
Within this environment of bureaucracy, the UAE has signifi-
cantly differentiated itself from its neighbors by creating a network
of remarkably efficient government services. These services,
especially in Dubai, generally operate on a “fast track”—or at least