It seems 2007 will be Abu Dhabi's year in the limelight. In less than two months it has secured the rights to host the planet's most glamorous motor racing event and the franchise to bring the world's most visited museum to the capital. The announcements outlined Abu Dhabi's intent to become a global destination as it bids to double tourism numbers to 3.4 million by 2015. It has also brought it directly into competition with neighbouring Dubai.

"We will work together with everything that is happening in Dubai," says Shaikh Abdullah bin Zayed al-Nahyan, UAE Foreign Minister. "We have always managed to deal with each other in a professional way. I'm not saying there is no competition, of course there is, but it's healthy."

It was no secret that Dubai's Autodrome had long been geared up towards securing Formula 1. At one stage, it was even expected to displace Bahrain as the region's sole desert track. However, Bahrain is now a firm fixture in the racing calendar having secured a long-term contract beyond 2010.

Meanwhile, Dubai Inc was unable to convince F1's head honchos that the emirate would be the natural home for the region's second race. Abu Dhabi offered that little bit more. While money is undoubtedly the main driver, the glitzy new city track on Yas Island was felt to bring greater global marketing appeal. With Abu Dhabi investment vehicle Mubadala Development Company owning a 5% stake in Ferrari, it merely cemented the capital's position.

The Louvre Abu Dhabi deal is also a setback for Dubai. The complex 30-year cultural accord is valued at $1.3 billion. It is part of a wider cultural district on the $29 billion Saadiyat island tourism resort. The area also includes the world's largest Guggenheim arts centre estimated at $450 million. Two other museums, a biennial park and a performing arts facility complete the district.

"These sort of deals just enhance the brand around the world and there are billions more to be spent in the years to come," says Adam Booth, managing director of Omnia, the branding agency for Abu Dhabi's Tourism Development & Investment Company (TDIC)Tourism Development & Investment Company (TDIC), which is behind the Saadiyat scheme.

As part of the Louvre deal, Abu Dhabi will be renovating a gallery at the Paris museum to be named after the founding father of the UAE, Shaikh Zayed bin Sultan al-Nahyan. Two other locations in France will carry the names of prominent Emiratis. While the Mona Lisa will not be heading to Gulf, the accord will see Abu Dhabi exhibit not only from the Louvre, but other French museums such as the Musee du Quai Branley, Centre Georges Pompidou, Musee d'Orsay, Versailles, Guimet, Rodin and the Reunion des Musees Nationaux.

"It took seven years to build the Guggenheim museum, but we will do a whole district in about five," says Mubarak al-Muhairy, director general of the Abu Dhabi Tourism Authority (ADTA). "But during the construction period we will build the brands. There will be exhibits, events and we will encourage cultural activity."

The brands will go a long way to paying off the investment.

According to Felix Reinberg, director of special projects at TDICTDIC, the museums are projected to attract 1.4 million visitors a year. In comparison, Guggenheim Bilbao has welcomed 9.2 million visitors since it opened in 1998. It contributed just over $2 billion to Spain's GDP and brought ROI of about 13%.

Dubai's Culture Village (CV) pales into significance compared to the Cultural District. As Dubai Properties' (DP)Dubai Properties' (DP) ad campaigns state, it is just 'another project.' DP naturally defends its product. "The real estate aspect of CV is developing around and with the cultural content," says Marwan bin Beyat, CV's director of business development. "That is the point of differentiation from any other development."

So where does this leave Dubai? The emirate prides itself on marketing and has succeeded in putting the name on the global map. The offshore islands, the Disney-esque Dubailand theme park and the world's tallest building have helped achieve this. But the cracks are starting to appear. Dubai simply does not have the financial weighting of Abu Dhabi and the capital is learning from its neighbours mistakes. Now that it has loosened its purse strings, the impact is being felt.

Dubai still has advantages. Emirates Airlines has been a key to driving the Dubai brand. It still has a substantial march on Abu Dhabi rival Etihad Airways.

But for how long? Etihad is already proving aggressive and is set to pip Emirates to a number of destinations in Australiasia and North America.

Officials from both emirates are always quick to say that the federation's elements complement each other. Perhaps it is time for one united authority to market the federation as a whole rather than the various bodies that are creating a competitive environment.

© Gulf Marketing Review 2007

 

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