Interview with H.H. Sheikh Mohammed Bin Maktoum Bin Juma Al Maktoum
Italian Hub, during the business mission in the UAE of Gruppo giovani imprenditori di Assolombarda Confindustria Monza e Brianza, has organized a workshop on economic and financial investment opportunities on site. Thanks to the network of relationships also in Government, the entrepreneurs welcomed enthusiastically the intervention of H.H. Sheikh Mohammed Bin Maktoum Bin Juma Al Maktoum member of the ruling family of Dubai and brother in law of the Ruler of Dubai His Highness Sheikh Mohammed bin Rashid Al Maktoum.
Below the exclusive interview with H.H. Sheikh Mohammed Bin Maktoum Bin Juma Al Maktoum Chairman of the Royal Family Office and Investment holding company MBM Group who has analyzed strategic issues for Italian business men. The interview includes key points as; the position of Dubai as the financial hub of the Arab countries, market stability and economic growth forecasts, opportunities for Expo2020, the importance of the Italian Hub as a platform that may connect local realities with the excellence of the Made in Italy and the activity of the MBM group as a strategic support of international companies.
Q1 – We know that the Islamic finance sector has a strategic importance for UAE. What strategy Dubai is adopting in order to compete with leading financial markets and to position Dubai as the major financial hub?
Finance is part of the project to build an after oil economy, and the UAE are building day by day more relations with the international financial market as well the world banking system in order to compete and be an important actor in the world scenario. That is way last year; the UAE together with Kuwait and Qatar joined FATCA (United States Foreign Account Tax Compliance Act) and in the 2019, VAT will be introduced. Every day new banking Rules together with compliance-rules in the banking system are issued by the Government.
The global Islamic economy continued to grow in 2014, and Dubai has made solid progress towards its ambitious target to be the hub of the estimated $6.7 trillion market by 2016.
In January 2013, Sheikh Mohammed bin Rashid Al Maktoum unveiled his initiative for Dubai to become the global capital of the Islamic economy, a multi-trillion-dollar industry. Dubai is no stranger to setting high goals and delivering results. It is a dazzling prize, but a daunting ambition. The global Islamic economy is potentially the fourth largest trading bloc in the world, after the United States, China and the European Union, with 1.4 billion Muslims across five continents and with a growing demographic profile, which makes it a boom market. For Dubai to become its leader would be a huge step forward for the emirate’s overall economic development.
In the all-important financial sector, Nasdaq Dubai, the emirate’s international capital market, pulled off some big sukuk listings to make up ground on Kuala Lumpur and London as a hub for trade in these Sharia-compliant corporate bonds. Two big issuances by Chinese institutions highlighted the growing appeal of Islamic finance, and underlined the success of Nasdaq Dubai’s strategy in seeking these listings, promoted by its Chief Executive Hamed Ali: in September, the government of Hong Kong brought a $1bn sovereign sukuk to Dubai. In the same month, Agricultural Bank of China listed a Dh600m sharia-compliant corporate bond on the market.
His Excellency Essa Kazim, the DIFC (Dubai International Financial Centre) governor, said Dubai’s “sophisticated financial infrastructure” would help to promote an offshore yuan market, and hinted that Chinese and other Asian corporates might want to use Nasdaq Dubai as their primary capital market next year.
Dubai is on the way to be the Islamic financial hub, as said by Abdulla Al Awar, Chief Executive of the Dubai Islamic Economy Development Centre (DIEDC). Seven “pillars” should be built up to support Dubai as the capital of the global Islamic economy: Islamic finance, the halal industry, tourism, digital infrastructure, arts, knowledge, and standardisation.
Q2 – Your Company, MBM Group is a Dubai based Royal family office and investment holding company with activities in investments, strategic advisory and social and community development. What services do you provide to your clients in order to facilitate investments? Which are the most promising sectors according to your vision?
MBM Group is the Private Office of His Highness Sheikh Mohammed bin Maktoum bin Juma Al Maktoum, the brother in law of the Ruler of Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum. The Group of Companies a side from partnering and sponsoring (as per UAE law) is fully involved in the business development of the international partner companies interested to penetrate the UAE. Once the NewCo (with partner MBM Group and the International partner) is established, in certain case even before that, we draft a detailed action plan to activate the business.
MBM Group will "open the door" to the best level starting from Government authorities to Semi government and Private sector. Thanks to Our Chairman (a member of the Ruling Family of Dubai) and to our network in the region, we introduce to the highest-level partners following up and lobbying their services solutions and products. Essential is the presence "in town" of an executive, or more, of the partner company with full knowledge about services solutions and products that they are selling internationally. I can say that all sectors are promising even if the market is very competitive and sometime saturated in certain sectors. All the sectors related to construction (from engineering to fit-out) can give satisfaction to an international company; also, the healthcare sector is very open to new technologies, products and devices. Fashion is a sector with a high level of growth, especially for companies that start to produce their products in the region. The industrial (from automotive to metallurgic) sector is the future because the Government would like to diversify and increase the interest of the Region from the oil&gas to a new economy.
Q3 – With the current positive situation of UAE economy, many foreign investors (i.e. the Gruppo giovani imprenditori of Assolombarda Monza e Brianza Italian delegation) are looking for new and profitable ways to invest. What would you suggest to foreign entrepreneurs willing to invest in the UAE market?
The economy is slowing also in UAE, due to the well-known factors, (oil slump and world crises) but still is a growing, an interesting growing. Competition of actors that are playing here since a long while suggests that before taking any action the entrepreneur study the market and all the possibilities it may offer, trying to understand how to interface with a reality quite different from the Italian Market. Construction, the Food Industry and even the Media industry are growing but the international contest in UAE requires a different attitude, most of the time difficult to find in the new Generation of Italian Entrepreneurs.
Q4 – Today Dubai is considered as a strategic economic hub in the Gulf Area. Business relationship between Italy and UAE are good. In 2015, Italy-UAE exchange confirmed a very positive performance. In fact, the exchange between the two countries reached over 7 billion €. Referring to the Made in Italy production, in your opinion, which are the most suitable sectors for the Dubai market?
The city is doubling with an impressive speed. Made in Italy is an attractive brand for interiors, fashion, food products and luxury cars. As far is just a product. However, despite that, seems that the economy ignore an active Italian participation. Where it could be a dental clinic rather than an aesthetic surgery clinic or car workshop. My suggestion is that, to start something successful you need to bring something valid, something that makes the difference. We know that in Italy, we have, but it is difficult to find an entrepreneur who is able to bring here in the proper way.
Q5 - We have recently invested in UAE opening the Italian Hub: the first platform for the promotion of the best Italian products, design, culture and lifestyle in target with the expectations of the local market. Do you think that this kind of initiative could help to enhance the cooperation between Italian and UAE companies?
Definitely yes! Italian Hub can be or even better must be the perfect connection between the main Italian entrepreneurs that want to diversify geographically their business activities and the sole establishments related to the Ruling families of the UAE. Professional businessmen like you knows very well how to approach the opportunities in the UAE and the holdings that are managing the Country. All the Ruling families look for strong human relation before any kind of business relation because they consider long-term relation the foundations of a profitable and secure business. Your day-to-day presence in region looking at the market needs will be the perfect answer to both parties ensuring loyalty and trust.
Q6 – In 2020, Dubai will host the next World Expo bringing together more than 180 nations, an international audience of 25 million visitors and creating more than 17.000 job positions. What do you expect from this great exhibition for Dubai in terms of foreign investments?
2020 is now: the projects are already lunched and running at full speed. The real opportunity on my opinion is in the new shape of the city. The new metro section, new areas, new attraction for tourists like Dubai Park and Resorts. Lagoon and Habtoor City would be there also without Expo. The ambitious commitment for the renewable energies, for education, affordable houses as well luxury solutions. The fast growing population boost any kind of consumes will give stability for an after 2020 market trend. Of course, the Expo will give Dubai a huge media exposition, which will help the tourism. However, it is under the eyes of everybody that Dubai is Master in marketing and communication.
For more info: www.mbmgroups.com