Why Dubai? Its hot Hot HOT!

Economies, like sand dunes, move with the winds and there are highs and lows in cyclical patterns depending upon all of the influencing factors. Recently the Gulf has been hit with what they term an oil crisis where the value of their oil has decreased and exports have softened. Some of this Gulf recession is due to American fracking and greater efficiency gains from solar, wind and other technology. 

A good deal of the Middle East is in political flux or outright war but there is stability and security in the Gulf which is slowly modernising and improving human rights. 

The Gulf market is heavily dominated by Saudi Arabia and the emeritus from Kuwait, Bahrain, Doha and the United Arab Emirates which is made up of seven emirate states which include Dubai.

محمد بن راشد آل مكتوم

Dubai’s leader His Highness Sheikh Mohammed bin Rashid Al Maktoum has wisely navigated his enclave with vision and craft as he has no oil reserves and has to create new beach front real estate out of thin air, The Palm Jumeirah is an artificial archipelago in the United Arab Emirates, created using land reclamation by Nakheel, a company owned by the Dubai government as one example, and the world's greatest shopping experience where malls have ski slopes and penguins, huge aquariums and an ice rink. The Sheikhdom has created concern due to the treatment of its foreign labour force, environmental issues, and on a clear day, from the top of the world's tallest Burg Khalifa tower, one can Iran which invests billions but is seen as a potential threat. With fewer oil revenues there are plans for the creation of tax revenues and VAT charges.

Commerce leader souk.com and TV shopping company Citruss TV were was founded in 2005 and have steadily and carefully grown but they have been dwarfed by the super malls.

The potential of trans Middle East commerce has been known for a long time but the logistics, regulations, customs, tax, cross-border secure delivery and market conditions have been slow to improve. eCommerce in this region is not as cannibalistic as in the West partly because of how women shop, the culture and distances some must travel to shop. 

Gold Rush to Dubai

SOUK & Amazon: Amazon just purchased Souk for a reported $650m USD and will have a good base to rapidly improve and expand operations. 

NOON: Why did Amazon enter the market now? Maybe the newest significant commerce player noon.com, which launched at the start of October 2017, prompted Amazon to enter and drive their brand further? Noon is funded with $1b USD from Saudi Arabia’s Public Investment Fund and Dubai real estate tycoon Mohamed Alabbar, whose firm owns The Dubai Mall and the Burj Khalifa, among other projects.

HSE24 & mbc: And a month earlier the 800m Euro German TV shop channel HSE 24 signed a 65%/35% deal with Middle East Broadcasting and will launch a new TV shop channel to establish their brand and compete head-on with Citruss TV. UPDATE March 2018: mbs has pulled out of this deal and HSE are going it alone apparently.

Here is Why Dubai will thrive

For decades the Arab world was blessed with oil but some knew that the miracle of the desert could not last forever. Some built and invested for that day to come and Dubai, with no petroleum industry, had to fabricate the perfect business conditions, a tolerant and safe society, and impeccable infrastructure, to lure investment and people to live, work, shop and relax.

There is an abundance of talent, drive, dedication and professionalism from all cultures throughout the Gulf states. I was always treated fairly, with sincerity and respect and with the most wonderful and generous hospitality. It took me weeks to get used to the honesty and lack of crime, one could walk and feel safe and leave valuables and no one would take them. How crazy is that? It was a delight to experience.

Next Stage

Dubai is synonymous with luxury lifestyle and shopping and is the world's top shopping destination. Dubai has great hotels such as the sail-shaped Burg al Arab and some of the finest restaurants on the planet. 

But it is His Highness Sheikh Mohammed bin Rashid Al Maktoum محمد بن راشد آل مكتوم vision that makes this beneficial monarchy a miracle in the desert. Here one can efficiently and quickly start up and operate a business without fear of corruption and crime.

Amazon gets it and now continues its march to conquer the Middle East with quality service, product, fair value and above all logistical superiority. The plans for slow and steady expansion are on course with Singapore, Southeast Asia & Australia the best likely next targets.

The Middle East will now benefit from the large investment and introduction of hard-hitting competitive digital and video retailers and for the customers, they can now shop like the rest of the world.