Dubai 2003 pays back

It is indeed a coup - in direct and potential business terms - for the UAE to host the IMF-World Bank meetings in September.

The bid fits in neatly with the ambitions of Dubai, the host city, to build itself on the global scene as a major centre of not only commerce and trade, but also as an international tourism destination and a global lifestyle centre.

The dividends have begun to come in.

USD270m has been budgeted for the event. It is money well spent.

Over 65 per cent or USD175m of the budget has already been invested in building one of the most modern convention facilities that the region has seen. This is a direct injection into the domestic construction sector.

That is not all. The occasion has prompted direct investment in the construction of three new hotels - Madinat Jumeirah, Ibis and Novotel.

It has also added to the civic infrastructure by pressing the local government to upgrade its roads network and spruce up its municipal services and facilities.

The secondary impact on the construction sector is also substantial. "I'm being worked off my feet," complained a sales manager at a building materials supply firm. He was blaming the construction boom that has gripped the local economy. Dubai Municipality figures confirm this with 922 applications for building permits received in the usually slow month of July alone.

The construction sector is the largest in the UAE and its health is critical to the robustness of the domestic economy.

Another direct beneficiary will be the hospitality sector. Hotels, the travel trade and their associates and suppliers will benefit from the thousands of participants and visitors that are expected to be in Dubai to attend the events surrounding the meetings.

And nobody comes to Dubai and does not shop. The retail trade will directly benefit, especially with the 25-kilos of gold that will be on raffle.

Then there are the sundry supplies that have to be sourced like the banners on the bridges, the stationery, the office and IT equipment and the rest. Jobs are being created and exposure given to young nationals.

The indirect and potential benefits are even greater.

Dubai 2003 is a driver into the global conventions market with a facility that can seat 6,500 and stand 15,000. Dubai has been doing well with exhibitions like Gitex and events like the globe's richest horse race, the World Cup, and the Dubai Shopping Festival.

Dubai 2003 will further enhance the overall marketing, incentives, conferences and exhibitions sector - not to forget the boost that the issue of sovereign bonds has given to the financial market.

Sentiment is the key to an economy's well being. The upbeat mood in Dubai has had a ripple effect with the result that this summer has not been dull at all - despite depressing news from the north of the Gulf.

Then there are the perception advantages. With the world's eyes on the region, there will be an opportunity for the Arab world to showcase its best face as also its best opportunities.

So far efforts on both counts have not been very successful. After September 11, 2001, there are misperceptions about the Arab world, and neither is the region well integrated into the global economy.

Dubai's becoming the financial capital of the world for those few days will present an opportunity for the region to restart on the road to better understanding and integration with the world.

Countries vie for hosting global events like the World Cup football or the Olympics because of the economic benefits it brings to their countries.

The UAE has a similar business opportunity. The trick is to sustain the momentum that has been built. To optimally utilise the infrastructure that has been founded - so that September 2003 could be remembered as a kick-off for a new phase of development for the UAE and the region.