In partnership with CGD, Jafza and DSC
The Secretary-General of Dubai Economic Council (DEC) has initiated a research partnership with the Center for Global Development (CGD-Washington based), Jafza, and the Dubai Statistics Center (DSC) for the implementation of a scientifically based comprehensive study on the productivity performance and investment climate of firms operating in Dubai based on Enterprise Level Survey (ELS).
HE Hani Al Hamli, DEC Secretary-General emphasized the initiative as a first study of its kind in the UAE for two key reasons; it is the first time that a survey will collect scientifically based information on the relative performance of all industrial sectors in Dubai and secondly, the design of the study follows a methodology standardized by the World Bank that allows for a comparative benchmarking study of Dubai against other leading economies in the region. Al Hamli has also emphasized the importance of the second aspect as it shall provide economic agents, firms and policy makers with policy relevant information to enhance the productive performance of companies operating in all of Dubai's economic regions, i.e., Dubai Main, Dubai's Free Zones and Dubai's financial sector.
Al Hamli: The study aims to provide guidance to the economic-making circles in Dubai to promote the economic growth
Al Hamli stated that the study aims at providing scientifically based information based on which economic agents - firms and producers, government agencies and policy makers - can promote the appropriate policies and interventions that should help promote the competitive advantage of Dubai as a key player in the region. Ultimately, the outcome of the study is to inform economic agents in Dubai on the optimal use of existing resources thus enhancing Dubai's potential for higher levels of sustainable economic growth.
Al Hamli pointed out that the information collected in the survey aims at identifying the operational characteristics and productivity outcome of different industrial sectors in Main (non-free zone) Dubai, Dubai's Free Zones and the financial sector. Thus, the survey will target the light and heavy manufacturing industrial sector, the construction sector, the sales sector and the service-provision sector. In doing so, the survey will elicit information on production practices and strategies, key aspects that either enhance or preclude the productivity levels, information on what are the key enhancers of exporters in the economy and the effect of current policy practices on the operation of firms in all of Dubai's industrial areas
The aim of this study is to provide guidance to economic agents in the private sector as well as key policy makers and government agencies at implementing sound economic policies and investment choices. Ultimately, sound economic decisions shall enhance the strategic planning in a direction that helps promote sustainable economic development and growth for the economy of Dubai thus leading to higher levels of welfare and wellbeing for all in the population" Al Hamli stressed.
As part of the ongoing study, Al Hamli underlined that the DEC Secretariat will organize a seminar before the end of 2010 where the outcomes from the Dubai Enterprise Level Survey (ELS) will be presented to both the private and the public sector. The seminar will present indebt analysis about Dubai's standing relative to regional partners with regards to within and between industrial productivity, the effect of current industrial policy on the competitive advantage of Dubai's firm relative to competing partners and the implication of today's industrial setting for Dubai's growth in the future. Al Hamli emphasizes that the results from this initial survey - conducted in Dubai - are insightful not only with regards to the Emirate in question but can also be extrapolated to the rest of the UAE thus gaining insight on the competitive advantage of the Federation in today's global markets.
Al Hamli thanked the efforts devoted by Jafza, DSC and CGD recognizing that the joint effort between DEC and these institutions allows for a unique opportunity to induce policy changes to Dubai that should allow for Dubai's expansion as a leading export lead economy.
The representatives of Dubai Statistics Centre clarified the role the center will play in this research. The center will develop the survey instrument in a level such that the survey input has in fact significantly improved and innovated on the work previously done by the World Bank, and improvement that has been thoroughly acknowledge by the Center for Global Development.
DSC will provide full statistical design of the selected sample and high quality training to the survey collectors to ensure the highest quality of the data and representativeness of the population under consideration.
In this context, HE Al Hamli has emphasized that the cooperation between DEC and the DSC provides an excellent example on the optimal outcomes that arise when government agencies cooperate to enhance Dubai's potential as a leading economy in the region.
Worth mentioning, as recent as February 10th Jafza hosted a seminar where, together with the DEC, the DSC, and the CGD discussed the importance of the survey to Dubai's industrial organization. The seminar was intended to present the main stages of Enterprise Level Survey, its main objectives, past experiences at collecting the data, the requirement to obtain high quality data , the methodology implied in the process of designing and sample selection methodology and time framework expected to complete the full study.
The objectives of ELS for Dubai:
- Collect representative data that provide rigorous information on the performance of industries in Dubai.
- Allow the private sector to provide feedback to policy makers and government agencies on how the policies in Dubai are affecting their productive performance and the key issues that should change in order to enhance their chances to improve their competitive advantage
- To compare and contrast the investment climate in Dubai so that potential investors have better understanding on the relative performance between different industrial sectors in the economy (manufacturing, sales, services and construction) and between the different operational sectors in Dubai (main non-free zone Dubai, Free Zone Dubai and the Financial Sector)
- Help firms in Dubai learn on the operational practices of firms in related industries and enhance their competitive advantage between sectors in Dubai and in relation to industrial sectors in different operational sectors in Dubai
- Learn about the productivity advantage of Dubai relative to competing regional economies and, based on this, enhance those key productivity areas that require policy changes so that Dubai stands out as key trader and exporter in the region.
- Enhance the productivity partnership that should exist between the private sector and the public sector so that the cooperation brings Dubai to its optimal productivity frontier thus enhancing the chances of optimal welfare outcomes for all agents in the population.
- Bring Dubai in line with other leading economies in the world that routinely conduct Enterprise Level Surveys to enhance the understanding by key agents and investors on the productive performance of competing industries in the economy.
- Generally, the Enterprise Level Survey will provide firms and the government with new knowledge thus leading towards an optimal use of available resources, with the potential gains in productivity; enhance economic growth and greater levels of welfare for firms and individuals co-existing in Dubai
In the seminar hosted by Jafza, it has been emphasized that Jafza is home of thousands of businesses and it is imperative to provide accurate and relevant information on their performance and their responsiveness to Government policies and interventions.
The seminar highlighted the motivations for this survey which is to assess the investment climate and evaluate the contribution made by both Dubai-based and free zones firms to the Dubai economy. The survey will also identify the current export structure of Dubai in addition to drive policies based on scientific research.
Jafza also stated its role in this project namely providing the logistics and informational support to optimally conduct the Enterprise Level Survey at companies operating in the Free Zone Areas in Dubai.
The Economic Policy & Research Center (EPRC), the operational arm of DEC, has presented the main aims of ELS. It has emphasized the role of the ELS study at enhancing the general dialogue between Government agencies and private sector and how these dialogues can lead to effectively improving the productive outcome of firms in Dubai. The presentation also highlighted some technical aspects of ELS stating that the study covers three areas, namely, main Dubai non-free zone; Free Zones areas in Dubai and the Financial Sector. Moreover, whining economic sector, the survey will provide information on different industrial sub-groups; heavy manufacturing, light manufacturing, the construction sector, the sales sector (retail and wholesale) and the service related sector. The two levels of stratification lead to the selection of about 700 firms such that all three operational sectors are represented in the sample as in the population. The two way stratification allows the scientists at the DEC to compare the productive performance between industries and within economic sectors for sound policy advice to key decision makers in the economy.
Moreover, EPRC emphasized that the results of the ELS will be subject to an accurate analysis leading to the main Dubai Investment Climate Report (DICR) in addition to a sequence of comprehensive coverage of various areas related to Dubai's industrial performance and productivity dynamics. Both the main DICR and the complementary scientifically based reports will aim at supporting the strategic plans and active policies made by the governmental entities that aim at enhancing sustainable economic growth. The ELS will also provide research output that should be the base for optimal choice on behalf of economic decision-makers but should also lead the research level of centers in Dubai and the UAE.
With reference to the seminar organized by Jafza, EPRC acknowledged it's successful outcome and the fact that such seminar underlines the successfulness of crating such strategic partnerships between the private sector (i.e. Jafza) and publicly driven organizations (i.e., DEC and DSC). It is emphasized also that the cooperation rendered by the Center for Global Development in Washington DC for their expertise and contribution that enhances the potential for a high quality outcome emanating from the survey.
EPRC experts also presented the scientific methodology behind the sample design and selection of the representative sample that should lead to a data set fully representative of Dubai's industrial setting. They explained that such methodology is based on accurately collecting information from all operational sectors and industrial sub-groups in a way that estimate should minimizes the error with regards to the true estimates in the population. The resulting sample scheme implied that at least 713 firms should be surveyed in order for the data to represent Dubai's firms that are defined as having 5 or more employees. Approximately, the survey represents the three economic zones such that 15% from FZ and the rest (85%) from Dubai non-free zone and the financial sector. The number 713 results after applying the original sample selection methods as put forwards by the World Bank methodology; this techniques are observed and applied in all economies where the survey is applied thus leading to datasets that are fully comparable across economies, between industries and between operational economic sectors.
Notably, the Centre for Global Development (Washington DC) is one of the prominent international centers in ELS Surveys. This kind of survey has been conducted in a total of 130 economies worldwide resulting in reforms that have significantly affected the performance of business and companies in both the developing world, emerging economies and the developed world. Although the ELS was initially pioneered by the World Bank Group, leading think tanks and government agencies around the world have now implemented the survey as key indicator of industrial performance in their economies.
The survey aims at identifying key problems that businesses face, for example, fewer regulations in Asia and greater investments in infrastructure in Africa, provide solutions to these problems by comparing the outcomes to regional competitors and to provide evidence on key positive aspects that should be enhanced in order to lead the economy towards sustained economic growth.
Centre for Global Development stated that the survey places Dubai a la par with economies the likes of Singapore and Hong Kong in terms of providing the private sector and key policy makers with scientifically based information upon which to make optimal choices to enhance productivity levels for al industrial sectors in the economy.
The center asserted that the survey should allow opening up a dialogue between the private sector and government agencies thus allowing for interchange of ideas leading to optima decision making on behalf of all key agents in the economy. 
The survey aims at identifying key problems that businesses face, for example, fewer regulations in Asia and greater investments in infrastructure in Africa, provide solutions to these problems by comparing the outcomes to regional competitors and to provide evidence on key positive aspects that should be enhanced in order to lead the economy towards sustained economic growth.
Centre for Global Development stated that the survey places Dubai a la par with economies the likes of Singapore and Hong Kong in terms of providing the private sector and key policy makers with scientifically based information upon which to make optimal choices to enhance productivity levels for al industrial sectors in the economy.
The center asserted that the survey should allow opening up a dialogue between the private sector and government agencies thus allowing for interchange of ideas leading to optima decision making on behalf of all key agents in the economy.
-Ends-
© Press Release 2010
