PCF International featured in Dubai Now
Dubai, the capital of the Emirate of Dubai is the most populous city in the UAE. By 2024, its population had topped 3.76 million residents. Over 90% of this bustling city’s inhabitants are expats. Since the mid-20th century, the region has expanded steadily as both a business hub and a tourist destination.
Petroleum exploration in the region commenced around 1950. And those oil revenues from UAE fast-tracked the development of Dubai. It may surprise you to learn that oil production today represents less than 1% of the emirates GDP, they claim. Still, financial secrecy prevents one from gaining total insight into the machination of this enigmatic locale.
Nighttime skyline in Dubai. Image Ginger Peterson
An ancient Arab proverb says “Daba Dubai,” meaning, “they came with a lot of money.” That must be right. Dubai in one form or another has been highlighted on maps and trading records for a thousand years.
Spot on the Gulf
By 1900 the village was established as a free port by the visionary Sheikh Maktoum bin Hasher who would not impose taxation levies on imports or exports with traders. To sweeten the deal, he also gave the merchants parcels of land with guarantees of protection and tolerance. While bin Hasher’s reign was short, having died in 1906, he left behind a unified Dubai with a thriving port and a pearl trade directly employing some 7,000 men.
By the mid-20th century, oil became the focus of the Middle East’s exports. And in 1966, years after the commencement of its oil exploration, Abu Dhabi discovered oil in territorial waters off Dubai. The population subsequently swelled by some 300% from 1966 to 1975.
Exploding Commerce
Against this exotic, ancient backdrop, Dubai is bursting onto the global stage again, by stirring up excitement with today’s international traders. A recently taped conversation, Discover Dubai; the Business Hub of the Future, Martin Rapaport and Ahmed bin Sulayem, Executive Chairman & CEO of DMCC (Dubai Multi Commodities Centre) explored what’s going on there.
Diversify into the Future
Rapaport, founder of Rapaport Diamond Report, animatedly probed, “Why Dubai? It was all desert!” Reflecting on an earlier visit decades ago, he recalled, “When I was here in 2004 or 2005 there was nothing. We were in a small office at the airport.”
Bin Sulayem quickly offered, “We had to diversify – which is important.”
And for Dubai, that means an intentional move away from oil exports that created billionaires of the regions citizens for decades. But it’s not a completely new idea. Since 2016, business journals covering the region have been reporting on ways the Middle East would transition from its oil exports reliance.
Western Perspective
Charles Carmona, president and founder of Guild Labs, Los Angeles, (www.guildlabs.com) shared his take on Dubai now. “I was in Dubai in February 2023 for the ICA (International Colored Gemstone Association) Congress.” He attended the large gathering of trade members held at the DMCC for this event. “Dubai is like Las Vegas, but on steroids.”
He also took mental notes on what was there, and what wasn’t. “Glitz and glamour were everywhere with no expense spared. There was just no gambling that I saw – nor alcohol, except in designated [hotel] areas.”
Dress for Dubai
Carmona realized Dubai was a land of divergencies. “Such contrasts. Local women wore the traditional dress, but their huge expatriate community were seen in the latest fashions from Paris, Milan or New York. Every corner has a more expansive shopping mall than the previous.”
Ginger Peterson, CEO and founder of PCF International Integrated Marketing & Technology, (www.pcfinternational.com) added, “Dubai is one of the cleanest cities I’ve ever seen. It’s an architectural wonder to visualize, and seeing it in person is like none other!”
Dubai is very fashionable so bring your very best business attire, Peterson said. “Women dressing conservatively shows respect for their culture – like not showing a lot of skin but dressing in moderate length skirts or pants.” She noticed most women wore heels paired with designer handbags, and modest jewelry.
Madrid-based jewelry designer Lisi Fracchia, (www.lisifracchia.com) has been to Dubai five times. She was invited by MUBRI, an international jewelers association, to visit Dubai in 2023. There she received a Global Icon award from the Chamber of Commerce India for her Spiral Rings collection.
The officials admired that large ring collection, which can be crafted in 15 different gems. But they also expressed delight in her choice of a long loose fitting dress to accept her award. “They were really pleased that I was wearing their style of clothing, saying they respected that very much. It was my way of thanking them for the award.”
Shift Away from Oil
According to Energy Trader Asia, “The UAE is undergoing a significant transformation in its economy, gradually moving away from a heavy reliance on oil. The country has been proactive in diversifying its revenue streams, with an increased focus on sectors like tourism, technology, and renewable energy.”
The report further explained what was behind the seemingly radical re-direction. “Spurred by the crash in oil prices in 2014, the UAE realized its vulnerabilities in a fluctuating global market. So much of its economic growth is dependent on oil production.”
Peterson, who traveled there recently, witnessed Dubai’s construction boom. “Dubai International Airport, the busiest in the world, also operates very smoothly. Everything in UAE is well organized, superbly designed, and created to maximize space. They say the world’s construction cranes all go to Dubai and I can believe it. I saw 100s of construction cranes everywhere I looked – it was building, building everywhere.”
Gold and Diamond’s Future
Today, there’s a massive push for developing multiple robust revenue streams in Dubai. The diamond, gemstone and jewelry trade folds perfectly into its new strategy.
Jewelry, particularly gold, is not new for the Middle East, but until recently it was solely their own cultural enterprise. Jawhara Jewellery, a 107 year old business has over 300 stores in 11 Middle Eastern countries. Tawhid Abdullah, Jawhara’s CEO, and Chairman of Dubai Gold & Jewellery Group offers insight into gold jewelry’s place in their culture.
Responding to “what’s happening locally?” he was straightforward. “Over 19 million tourists are coming here this year.” Importantly, Abdullah offered, the local market is growing equally with the commercial business at about 5-8% growth annually. With this influx of tourism, people come here to spend, he explained. “Jewelry needs to be available for all cultures.”
The Gold They Love
The souks (markets) are full of jewelry items. That’s because “gold is very important to Dubai – it’s part of our culture – and it’s part of budgeted spending every month for local families including the young generation.” So it’s understood that the jewelry store is part of the community. Jewelry for marriages is very heavily spent on,” Abdullah pointed out.
Fracchia was intrigued by the local gold jewelry sold in the bazaar, especially on her first trip to Dubai years ago. “The souk! The way they sell gold and ornaments, theirs are very heavy.” She recalled, “It was a really great place to buy gemstones. You could buy the most amazing tanzanite I’ve ever seen in my whole life,”
She took note of the products presented at Dubai’s trade shows. There were diamond, gemstone jewelry and mountings, naturally. Still she was surprised by all the companies that went there. While they may not have displayed the widest extent of jewelry as in other fairs, what exhibitors took were all superior merchandise.
Fracchia was pleased to share her iconic gold cuff bracelet at Dubai, which showed all the countries in the Emirates, and featured palm trees and Abu Dabi. The 20 gemologists she joined from around the world all agreed on one thing, “while Dubai has many different traditions and customs, a woman feels safe to buy gemstones and jewelry there.”
“Gold chains, gemstones and mountings were clearly there, but not all the gemological tools and instruments needed for our trade,” she found. This contrasted noticeably with jewelry manufacturing instruments offered in other fairs. “In Turkey for instance, they display the very latest instruments including lasers and have a section for showing machinery just for our jewelry business,” Fracchia said.
The Dubai jewelry fairs are evolving. “I plan to attend Dubai’s next fair in October. Currently the latest jewelry trends in Europe and Spain favor very delicate pieces, quite different from what’s offered in the Emirates. The Europeans are creating diminutive designs, not heavy like the Emirates are used to,” Fracchia pointed out. “So we are bringing companies to show that.” Fracchia said they really consider what the buyers at the jewelry fairs want. So the Emirates are showing these small and light jewelry items knowing they’ll do well at their shows. As the expos keep growing, they draw more exhibitors from across the globe.
A Star on the Ascent
Carmona projected, “As far as the jewelry industry, this region is working very hard to make itself into another major international trading center.” They’ll accomplish this by giving various promotions and subsidies that encourages foreign investment, he explained. “They understand that petro-dollars will not last forever, so they know that they have to build a sustainable economy for the future.”
Peterson was awed by the enormity of development in this forward-thinking region. “Yes, Dubai is truly an international city with a very international crowd. The Burj Khalifa looks really tall and slim from a distance, when you exit Dubai International Airport.” The closer you approach, she found, “you are impacted by the sheer enormity of the tallest skyscraper in the world!”
And Dubai has not peaked with its development, Peterson points out. “Dubai will soon break ground with building the 2nd largest high-rise in the world which will be called Burj Azizi. That should be completed in 2028, towering some 2,379 feet tall, with 133 floors.”
Bin Sulayem and Rapaport wrapped up their conversation with projections of their own for the decades ahead. “There’s a good vibe here – a tremendously positive vibe,” claimed Rapaport. “It’s kind of a haven, with cultural integration, it has the foundation of everything.”
Bin Sulayem added, “His Highness is looking to make Dubai a culturally integrated hub. We take inspiration from that.” He waxed philosophically with Rapaport about DMCC’s future. “Happiness comes and goes. So we have to let it happen. Happy days don’t last, and sad days don’t last forever We’re aiming for meaning – not happiness.”
Rapaport’s take away of Dubai mirrors that of others in the trade. “Just being here in Dubai – a week or ten days, it’s eye opening.”