The small Persian Gulf kingdom of Dubai is an oasis in a region aflame. Even NATO member Turkey has been inundated with protests.
The region’s best hope for the future is greater economic opportunity. It’s an issue that I recently discussed with businessman Waleed Moubarak of Alghanim Industries.
The Emirate of Dubai is one of seven kingdoms which make up the United Arab Emirates. The latter is a kingdom, not a democracy, which is reflected in its human rights record. However, the country is doing better on economics. Overall the UAE comes in at number 11 on the Economic Freedom of the World Index.
Dubai’s oil has run low, which may be the key to its recent success. Moubarak argued that Dubai was “forced to develop” because it “doesn’t have the oil resources that its neighbors do.”
As I explain in my latest Forbes online column:
One of Dubai’s most important steps has been to set up more than a score of free zones, covering financial, auto, internet, media, gold, and other services. Additional zones for auto parts, carpets, flowers, maritime, and textiles are planned. The areas offer tax exemptions, full foreign ownership, and free capital repatriation.
Among the most important innovations within the Dubai International Financial Center are independent commercial laws and common law courts. The DIFC attracts judges from common law jurisdictions elsewhere, such as Great Britain, Hong Kong, and Singapore. The system offers legal predictability and stability, essential to attract substantial foreign investment. Two years ago Dubai allowed businessmen outside of the zone to rely on DIFC courts. Apparently Abu Dhabi intends to create a competing financial free zone.
Moubarak and Alghanim also are involved in Injaz, an international charity which, Moubarak explained, seeks to train Arab youth to “give them a skill set to go out and succeed” so they don’t have to settle for “the traditional goal to get in government and get a sinecure.” It is a wonderful objective. He added: “Injaz, in a small way, tries to change that mindset and to give the Arab youth a sense of the possibilities that the private sector has to offer.”
The Middle East is filled with human potential that is being squandered. The region needs democracy and human rights. It also needs economic freedom and entrepreneurship. We all have a stake in the Mideast finding the way to peace and prosperity.