Driven by the local and international maritime industry's need for a full-fledged dedicated hub, work on the Dubai Maritime City (DMC), a Dubai World Company, is already ahead of schedule by a year. Work on the project began in 2004. Being developed on a 227-hectare area, DMC will offer a world-class infrastructure and environment for the industry capitalising on Dubai's strengths as a regional and international hub for trade and commerce. The maritime industry is a very niche market, affecting the life of all humans on the planet as nearly 80 per cent of commodities are traded through ports. Being predominantly oil-exporting, the region is very important for the global economy as nearly 60 per cent of crude is transported by sea.
Although the shipping business has existed for centuries, it remains fragmented between various components of the industry. Ownership, brokerage, financiers are all located at different centres across the world.
While Greece has a preponderance of ship owners, most of traders and operators are concentrated in the UK and Europe. No single city in the world offers the industry all that it requires. As old established centres fade out, the emergence of Dubai's new maritime city is a welcome sign, not only for the region but also for the whole world and its maritime activities.
The Business Weekly's Vinod Kumar PK met with Nawfal Al Jourani, chief marketing officer, DMC, to catch up on the current status of the project, the setting up of the Maritime Authority and Dubai's role in promoting the shipping industry through excellent infrastructure, rules and regulations, and a venue ideal for networking. Before joining Dubai World, Al Jourani was head of marketing and communications at the Al Futtaim Group, a leading UAE business conglomerate. Prior to that he headed marketing operations for Dubai World's online marketplace, Tejari.com.
What type of companies are you looking at?
The DMC is an ideal place for any company in the shipping business. A brokerage firm, an insurance firm or freight forwarder will find it a place from where they can grow their business. We already have a large number of ship owners and marine companies from the US, Europe, Asia and the Middle East seeking a place to start their operations here. It makes sense for them to be located in DMC because it offers them the best infrastructure, systems and regulations that reflect industry needs and an ideal place for networking. Nowhere in the world will you find all these services offered in one place. This coupled with Dubai's strategic location, business-friendly environment and successful business model are all ideal for the maritime industry's growth.
What are the various components of the City?
The DMC will serve as a strategic location for the entire gamut of maritime business activity, from management, services, retail and recreation to education and research, ship and yacht repair and maintenance. It will have six distinct districts: Harbour Offices, Harbour Residences, Maritime Centre, Marina District, Dubai Maritime City Campus and the Industrial Quarter. Besides world-class facilities and services, DMC offers investors and businesses incentives such as free zone benefits, responsive government support, a tax-free business environment and an efficient and state-of-the-art port structure. Once completed, DMC will be a vibrant mixed-use development for the maritime industry comprising industrial, commercial and residential and leisure facilities.
As a peninsula development, the City harnesses the benefits of open sea access for the industrial community and creates an ideal living and working environment with breathtaking sea views in a vibrant commercial hub. By offering world-class infrastructure, services and regulations, we will create a unique specialised environment that promotes networking and integration of leading maritime companies in one destination.
What is the overall value proposition for the industry at the City?
The overall value proposition is to create a maritime city, a hub, a centre not only for the local community but also for the global maritime industry. The industry is very fragmented between various components of the sector with ownership, brokerage, financiers and suppliers situated in different places across the global. After spending a lot of time, effort and money in research, Dubai has come up with a business model that suits all industry players. Also at the authority level, we are talking to all globally recognised bodies and experts to frame legislation that will give boat-owners a licence with local and international validity. We are not promising the world from the start, but are beginning with practical, achievable measures. The first step in this regard is issuing licences for the leisure boat sector.
Earlier this month, Dubai Maritime City Authority (DMCA) met officials of the Dubai Police Department for Preventive Security and discussed plans to develop new strategies and regulations for security and maritime safety, training and registration of maritime boats and marine driving licences, which are critical functions as Dubai transitions into an international maritime hub.
We also discussed Dubai Police's possible participation in preparing maritime laws and registrations processes in Dubai, which is the DMCA's direct responsibility. Through its newly launched entity 'Raseina', DMCA has announced that new measures and regulations will be announced in September. All these initiatives and services are in line with DMCA's objective of expediting and streamlining the registration and licensing processes for the UAE's maritime sector.
Is DMCA offering registration and licensing activities within Dubai?
We have signed an agreement with Dubai Department of Tourism and Commerce Marketing (DTCM). This enables us to handle registration and licensing of all maritime tourism activities within Dubai. The move is part of a series of initiatives aimed at consolidating the emirate's maritime industry by providing a centralised point of access for all maritime-related activities. Under the terms of the agreement, DMCA will regulate maritime tourism businesses including floating hotels, tour operators, floating restaurants, yacht rentals and leisure boat tours. This is an important step towards the goal of transforming Dubai into a world-class maritime hub, making it a premier model of maritime excellence and a vital link in the global maritime network.
Will this be the world's first maritime city?
Yes. DMC will be the world's first purpose-built maritime city. You will not find a single place in the world offering what DMC has to offer. We did not simply come and reclaim land. We have spent years in research and development. We looked at the global industry and at the rich maritime history of Dubai itself as a port city.
How is Dubai able to attract global companies?
This is because Dubai has successfully launched an economy that is not oil-driven. It has launched knowledge clusters that are vital for the economy. Look around and you will see successful business models in the Internet City, Media City, Knowledge Village, Healthcare City, Financial Centre, free zones, the Industrial City and now the Maritime City. All these are knowledge-based models that make the economy vibrant.
What about maritime laws in the UAE?
Maritime laws are already in place in the UAE and we are working locally, federally and globally to bring in laws in conformity to international standards. That is why DMCA has been assigned the role of bringing international standards and best practices to the industry. To succeed as a centre of maritime business, maritime laws and regulations have to be standardised with a high degree of sophistication. Although each country has adopted maritime laws, the degree by which these rules match global industry standards is very important. I strongly believe that what we are doing here will eventually meet the international level. We are working on this with all authorities concerned.
Are you trying to compete with any existing maritime hubs?
Many people have asked us whether we are trying to take over from earlier maritime hubs. No. We are not here to compete with others but are complementing the industry with new offerings. Dubai has been successfully pioneering business concepts and sharing these models with the world. Industry players are in fact anxiously waiting for the DMC to become fully operational.
When did work start?
We began reclamation work in 2004 and completed it in 2006. Construction work is a year ahead of schedule and we are putting final touches to almost 80 per cent of the reclaimed land. Even the sites for commercial, residential, academic and research facility and the main maritime centre, are well ahead of schedule. The offerings at DMC are not retail oriented. What we are focussed on is catering to the maritime industry by providing them global, world-class solutions of an international standard.
Has land been allocated to all parties concerned?
Land for commercial and residential areas has been allocated to private developers because our policy as a maritime authority is to focus on the industry. Private developers will retail it to the market. However, we have strict rules and regulations that commercial space will be allocated to maritime and related companies so that a maritime environment is created.
When do you expect the project to be ready?
The DMC is a long-term project that is being developed in a controlled manner. We are adhering to a detailed programme. It should be ready within the next four to five years. Most of the mega developments are proceeding as envisaged in the Dubai Strategic Plan 2015 (DSP), which serves as a constitution for excellence in everything that Dubai does. On our part, we will persevere and bring in excellence for the maritime industry.
What is the current status?
We are following a very detailed plan for all components of DMC, with each component following a plan of development that complements the development of the other components. All operations are going on in a concerted effort. We also want to emphasise that DMC will be the first green building city. Every single element here will follow green regulations and no contractor or developer will be allowed to build an inch of land that does not adhere to green norms. We are conscious of the need to protect the environment and are doing so by building a beautiful place for the public to visit and spend some time in. We will have one of the Middle East's first dedicated maritime museums. Once completed, DMC will be a global attraction.
When do you expect the first ship to come in for repairs?
We will not handle day-to-day operations here. For this, we have signed a long-term agreement with our sister company, Dubai Drydocks World who will run the operations. A visit to the site under construction will show that nearly 80 per cent of it is complete. A lot of ships are already docked there. That is why I said the project is a year ahead of schedule.
What are the City's unique offerings?
DMC's various components will cater to industrial requirements, business needs, host a maritime centre in addition to offering a network of shipping services catering to the crew, safety, health and insurance. Human resources in the maritime industry are very scarce. There is huge demand for skilled labour, which is why we have set up the Emirates International Maritime Academy (EIMA).
What role have you envisioned for the EIMA?
The EIMA will help the growing regional maritime sector to augment its pool of experienced and skilled professionals. Based within DMC, it will serve as the gateway for citizens and residents in the region to venture into the maritime sector. It will offer various marine-oriented academic programmes to individuals keen to work on trade ships, providing them certificates in engineering and maritime navigation. Study programmes will be conducted according to International Maritime Organisation (IMO) standards in both theoretical and practical training. Additionally, short-term marine courses will also be held. New programmes will be announced at a later stage. One of the initial courses will be on steering of different sized yachts and boats that are in big demand in Dubai and the region. Other specialised courses in safety, rescue and maritime environment, short technical courses, and related courses in law and maritime legislation too are being formulated and will be offered during the current year.
© The Business Weekly 2008
