The Dubai Chamber of Commerce and Industry (DCCI), which is undergoing an organisational restructuring, is in the process of launching a major initiative to improve business practices in the emirate, as part of its New Business Strategy, said a top official.
In an exclusive interview with Gulf News, Abdul Rahman G. Al Mutaiwee, Director-General of DCCI, said the Chamber will introduce certain guidelines and schemes to train corporate people and traders in order to improve business practices and corporate governance.
"We are in the process of integrating our economy with the GCC economies, as part of the globalisation. Our private sector has matured and become a competitive one in facing the challenges of globalisation. However, we need to improve the business environment and promote best practices, and set guidelines for corporate governance," he said.
"We have launched our New Business Strategy to maximise our services, to help the private sector become more efficient as well as competitive."
In a detailed conversation, Mutaiwee elaborated on the government's economic policies and growth strategies.
Excerpts:
Gulf News: Can you please update us on the developments regarding the New Business Strategy undertaken by the DCCI?Mutaiwee: We have restructured our internal organisation in the DCCI. We have set up 16 business groups and 17 business councils to establish a rapport with the private sector and interact more closely with them in order to be able to respond to their needs. The business council will help us reach out to different business communities and strengthen our bilateral economic ties with those countries.
We have also set up the Dubai International Arbitration Centre (DIAC) to establish a process to handle trade disputes. We have also set up an information and database section which will have detailed and up-to-date statistics on business and economy.
What about the internal restructuring of the DCCI?We have launched a new corporate identity, restructured the organisation and set organisational goals to improve our services to the private sector so that further growth can be achieved.
As part of the reorganisation, the DCCI's activities will be led by the director- general and the deputy director general. Both will have separate responsibilities.
Responsibility for human resources, accounts, information technology and general administration has been vested with the director general, while the deputy director-general will oversee business policy, business development, commercial services, research and development.
In the absence of international standard business practices, how do you wish to handle trade disputes within the DIAC?DIAC was set up earlier this year to establish an arbitration system. DIAC is fully operational and working on the implementation. We have recently received permission from the Ruler's Court to start the commercial arbitration system.
The UAE will soon become a signatory to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards, known as the New York Convention, as part of its preparation to enforce commercial arbitration in the country.
The UAE has studied the articles of the convention and approved it on principle. As a matter of policy, the government has decided to join the convention and we hope it takes place as soon as possible.
There are many issues affecting Dubai's business community such as dud cheques, commercial fraud, businessmen leaving the country with debts, all of which expose the lack of corporate governance in the commercial world. What steps are you taking to reduce these?Before full implementation of commercial arbitration procedures, we need to set up guidelines on best practice, corporate governance and other processes so that the business community is up to date on international business practices.
We are currently working on creating a set of guidelines on best practices and streamlining commercial contracts to ensure transparency. We also have plans to launch training courses for corporate people.
The economies of different parts of the world are integrating into the global economy in the process of globalisation. Many countries are facing problems as their economies are not fully ready to embrace globalisation. What will its impact be on Dubai's economy? Do you think that the private sector in the UAE is mature or competent enough to face the challenges?Tariffs have historically been lower in the region and we have established a GCC Customs Union this year to standardise the rate to five per cent. The regional economies are also in the process of establishing a common market and entering a single currency regime by 2010. So, we are already on the path of integration.
Besides, the private sector in the UAE is mature enough to handle such challenges. Dubai has always maintained an open-door policy. The private sector companies have withstood competition from one another as well as foreign players as everyone enjoys a level playing field.
We have not barred any foreigners from investing or setting up companies here. This means that when globalisation takes place and our economy is more integrated into the regional and global economy, our private sector will not be affected.
However, a number of steps also need to be taken at the federal government level in order to prepare the economy for globalisation. These are ratifying the agency law, insurance law, banking law, company law, among many others, to be able to fully implement the WTO resolutions.
What is the outlook for Dubai's economy?Dubai's economy has been witnessing a moderate growth rate between 8 and 9 per cent. The outlook is that it will grow further due to the government's visionary leadership and growth-oriented policies. The mega projects announced by Dubai government during the past few years as well as the recent ones will only accelerate the pace of development. It will also translate into growth.
Dubai's economy has remained a service-oriented one. Are there any plans to make it a manufacturing or industrial economy?Some of the key growth areas in the future will be service-oriented industries. However, when a particular sector grows, it also helps affiliated industries to grow.
For example, the growth in construction and real estate is prompting some businessmen to invest in manufacturing of building materials, such as marble and ceramic tiles, thermal insulation products, among many others.
In this process, a supplier becomes a manufacturer. So, even if Dubai's economy remains service-oriented, it will have a direct impact on industries and manufacturing.
What are the major growth areas in Dubai's economy in the coming future?Tourism, construction and real estate are some of the key growth areas that will contribute further to Dubai's economy in the coming years.
DCCI has initiated UAE trade exhibitions in many foreign markets such as Iran, India, Morocco and other markets. What are the new markets that you are targeting?We have undertaken the initiatives to organise UAE trade exhibitions in some key markets to create opportunities for our business communities. Response from these exhibitions has been very positive and we want to expand these shows in some more markets. Many UAE-based companies are participating in these exhibitions and promoting their businesses.
Currently we are looking at the Sub-Saharan African markets where there are lots of opportunities. We are getting many inquiries from those markets and trade delegations from that region are paying commercial visits to Dubai. So, we have decided to hold some exhibitions in those markets.
We are also looking at some other key markets for the same purpose, such as Europe and the Far East.
Iraq remains one of the key areas of concentration. You have already set up the Iraqi Business Council and established contacts with key Iraqi business organisations. How do you wish to move to support our businessmen in tapping the opportunities?The situation in Iraq is not yet stable and secure. We want the Iraqi people to recover from the present situation so that business activities can gain momentum.
One cannot do business unless the environment is safe and secure. Yes, we have set up an Iraqi Business Council and established contacts with Iraqi traders. Some of them come to Dubai regularly to do business.
Last week we met a business delegation from Iraq who had come to Dubai to set up operations. Many Dubai-based companies are already involved in supplying commodities to the Iraqi people on a regular basis.
However, unless the situation stabilises and people feel more secure, we cannot gear up trading activities. Once things settle down, we will send a trade delegation to Iraq to participate in its rebuilding activities.
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