Dubai as a model for Singapore (page 3 of 3)

Earlier this year, neighboring Abu Dhabi hired Linda Low, an economist from the National University of Singapore, as an adviser to on its industrialization program.

The parallels between Singapore and Dubai extend to strong, visionary leadership. Singapore's economic miracle was kickstarted by Lee Kuan Yew, whose son Lee Hsien Loong was due to become prime minister in August 2004. Dubai's modernization was launched by Sheikh Rashid bin Saeed Al Maktoum in the 1970s.

In 1994, his son Sheikh Mohammed bin Rashid Al Maktoum became Crown Prince and has since run the emirate like a dynamic CEO. Dubai may just have the best of both worlds. As well as state-backed organizations, it is home to a thriving entrepreneurial culture, particularly in its free zones.

As such, Singapore can begin to learn lessons from Dubai - particularly in tourism, where Dubai has succeeded in making the transition from being a two-day stopover destination to becoming a major destination in its own right. Singapore's Yeo recognizes the recent successes of some Gulf states.

"Early movers like the UAE, Bahrain and Qatar are already benefiting from this new outward-looking strategy. Dubai has already overtaken Singapore in some areas. Bahrain has achieved great success as an offshore banking center."

In particular, Standard Chartered's Hanna says Dubai has emerged as a role model in destination marketing. "Dubai at the moment is a great brand. It has a reputation for being tax-free, liberal, business-friendly. Singapore at the moment doesn't seem to be selling itself to the world as a place to come and do business.

"Talking to colleagues in Singapore, they feel there is a lot Singapore can learn from Dubai. The Singapore model also has drawbacks. Because it is state-led, it can stifle competition and also entrepreneurship. That is a criticism from within Singapore. Perhaps Singapore has gone as far as is can with the current development model. It needs to be more entrepreneurial. It needs more creative flair. The Middle East needs to take that on board. You can only go so far with government initiatives."

Successive economic studies have shown that the biggest creator of jobs is not large corporations, but SMEs. The Middle East must pick the best elements from Singapore's successful economic model, but ignore the mistakes that Singapore is now trying to redress. For all these reasons, Singapore has never been keener to penetrate Middle East markets - and the Middle East to welcome Singapore companies with open arms.