Dubai: FAQ - Dubai and the Middle East

Yes! It is very fun there and one of my favorite cities. It is very safe and clean, a very nice attitude, no shadiness or anger you might encounter in some cities. The restaurants and service are as good as anywhere in the world and there are a good number of attractions to see.

How is the heat, is it nice or too hot? Will that interfere with Dubai's success?

I didn't find the heat that bad really, its kind of nice in fact. Keep in mind, the city is planned in consideration of the weather. ALL cabs, buildings, etc have air conditioning. In places with more moderate temperatures things sometimes are not designed as well for dealing with heat. If you are not a fan of warm weather I think you will still have fun there, there is plenty to do in air conditioning. However, I think that the heat isn't that bad - I was there in the summer and it was kind of nice. There is a tranquility to the desert that I like and a lot of people find very nice. I'd like to spend some more time outside and in the desert areas next time.

No, the heat wont affect Dubai's success in any negative way in my opinion. There are many financial centers in areas with bad weather (including London) - warm places like Tunis and Cairo have been important in the world for many centuries.

Are there human rights violations for workers in Dubai?

There has been some question about the workers in Dubai. When America was built we had very hard working conditions. The Irish and Italian immigrants who built the Brooklyn Bridge and Empire State building had hard working conditions.

Dubai is in a fast growth stage like America was 100 years ago. With this comes hard working conditions but also great opportunity. The workers who are in Dubai are there by choice and universally are there in search of a better life and the Dubai dream. The conditions also are almost always better than what they escape in their own country.

It is interesting that any criticism in this area would come from Americans because it is the US who has tightened immigration policy so tight that almost no workers can enter the country, particularly unskilled workers or those from poor nations. Would we have these workers simply stay in their own nation and not seek a better life for their families?

Here's my opinion: If we are not willing to let them into the US, it is not our place to criticize Dubai or anyplace else who allows them to come and work. This is Dubai's issue to deal with. There are at least five billion people on planet earth who would give nearly anything for the opportunity to pursue the American dream in the US. Go ahead and sponsor a Visa for one of them. Otherwise, the Dubai dream is what they will pursue. Ultimately this is good for Dubai, for the world and for the workers and their home nations. Some of the poor and unskilled workers have already begun success with entrepreneurial ventures in Dubai and are providing better lives for their families. Can workers lives be improved? Sure. But its not our business unless we want to be the one to improve them.

Won't the IRS crack down on businesses trying to evade taxes in Dubai?

There is some confusion here. The tax benefits in Dubai are not some shady or secret thing. If you want to evade taxes, Dubai is not the place to do it.

Dubai has a legal tax free status for many corporations and individuals. The IRS has no problem with this and it is not illegal in any way. The US is well aware of and supportive of the UAE and its interactions with American companies, including tax treatment.

What would be illegal is an American not reporting his income in Dubai (or anywhere else) to the IRS. Americans must report all worldwide income to the IRS in America. This law is no different than if someone is in Minnesota, California or England. The difference is that in Dubai they do not receive double taxation from the UAE government.

Dubai has no income taxes and in many special districts such as the Dubai International Financial Center, no corporate taxes.

What about a [real estate crash, stock market crash, fraud crisis, worker riot, death of a key figure etc etc.]?

There are many questions about potential problems for Dubai. No one knows what the future will hold. Will there be problems? Sure. Given this type of growth, certainly problems will occur. The key is how well Dubai deals with them, so far the indication is that they deal with obstacles quite well. There are unanticipated issues that will occur in this exciting and fast paced area, some will cause setbacks, some will cause opportunity. Dubai will surely see its share of growing pains on its continued road to greatness. The question is how will this place be in 10 or 40 years? I can hardly imagine.

In the movie "Gangs of New York" we saw that the US had a riot with 3000 deaths and our own military ships fire upon the streets of New York City. We had our bumps in the road as well and I'd say New York City turned out just fine. They even have the second best baseball team. :)

What's this about the Sheik in charge of Dubai being sued?

Sheik Mohammed is a very wealthy, powerful and high profile person. Being sued is much different than being found guilty of something. People like Bill Gates are sued dozens of times every week. In any issue it makes sense to see what the final result is before jumping to any conclusions.

From what I know about the leaders of Dubai they seem to be amazing visionaries who are doing a lot of good.

Again, I am not some kind of advocate or attorney on these things so I am probably not the best person to ask. I do think that there are so many misconceptions that it is worth me doing my best to answer.

What language do they speak there?

Arabic and English primarily. There are many languages in Dubai, including Urdu and just about any other you can think of. You can get by just fine on either Arabic or English.

I am interested in going and bringing my wife. Would she have to wear special clothing?

No, she would not at all. There are many tourists who wear a variety of clothing including mini skirts and bikinis depending where they are.

Having said that I think it is very nice as an outsider to be respectful to people in a historically conservative area. I would suggest wearing cloths that might be appropriate in the American mid-west and south: sleeves and legs covered. Certain government buildings, religious sites and museums have dress codes as do fine restaurants. If one wishes to dress like a 1980s clubber one can do so, I suggest conservative dress.

Suppose my kid reads this and decides to go there with this college buddies. What about the dangers you seem to casually gloss over and ignore? Suppose someone has rap music on his iPod and gets his hands cut off? You need to provide full information here.

Where did you hear that? Please send me a link, I am really curious where such things come from. Is this confusion about another country again? That is such a totally crazy question I almost didn’t want to respond.

Listen, the UAE is a Muslim nation, as such they are conservative. Yes, it is true that swearing, particularly at another person is illegal. From my understanding it means a fine and some time doing paperwork at the police station, certainly not getting your hands cut off! As far as I know, no one cares what you have on your personal iPod.

Just think of it like you would a conservative area of the US like the bible belt. You wouldn’t go blasting rap music from your stereo in certain areas of the US, or running around town drunk without having legal problems, do the same thing here and you'll be fine.

Is it safe for children there? Should we ask the State Department before going?

Yes, Dubai is very child friendly. You can review the State Department website before traveling to any country. You will find that the UAE is rated extremely safe, like London or Paris or other places tourists go to.

How can there be a nightlife and night clubs if drinking isn’t allowed? Is smoking allowed?

I am not a drinker myself but if you are there is no problem in going to clubs and bars with alcohol. Theses are typically located in hotels and there is a variety of places based on your preferences and budget. You can also obtain a license for alcohol in your home. Again, I didn’t drink at all while there and wouldn’t miss it but if you want to drink like a European pub owner you won't have a hard time finding it. Smoking is allowed.

What kind of food do they eat there? Can I find [fill in the blank]?

Every kind of food you can think of. I think the food is delicious and there are many fine restaurants. It is easy to find Middle Eastern food of course and there are many European and American restaurants. No matter what your tastes you can find what you want here. There are Applebee's, TGI Fridays even Johnny Rockets if you have very American tastes. Personally I liked the local food best because it is different than what we eat in the US I also think the Indian food was great. Basically all the food was excellent.

Is it expensive there?

It's about the cost of a moderate to large US city, say Boston or Columbus Georgia but with the option to go to ultra luxury restaurants and hotels that one could only find in NYC or LA. Dubai is cheaper than NYC, London or LA for the most part but its costs have gone up over recent years. If it levels out somewhere around other major cities it will still be very worthwhile to go to.

Certain things, like labor, drivers etc are cheaper in Dubai, as are cars for some reason.

What kind of medical care do they have?

The UAE has excellent medical care and hospitals.

How can I get some of these wealthy people to [invest in my business, donate to my charity, pay for my school etc]?

It is just like any other investor or benefactor. People need to have relationships with those they deal with. It is a mistake to think that because an area is wealthy that people will invest in something on a whim. The major investors in the area as just as savvy and careful as any other major investors. Remember, the US is also considered a wealthy nation. Just as it would not make sense for someone from another country to assume that US citizens can throw money at frivolous investments, it doesn’t anywhere else. The UAE is very pro-business so a good deal with hard work can be well received.

I want to go shopping, do they have ____?

Yes. The stores have everything.

What if there is a war? Couldn’t all this be destroyed?

Sure, just as if there were a war in England, Japan, Finland or Florida. There is no sign at this point of the UAE being involved in any new war. The same cannot be said for many other nations including the US.

If they are so progressive, wont they be a target for terrorists in their region? Surely terrorists must dislike how western Dubai is becoming.

I don’t know if I would say that Dubai is "becoming western". Dubai is progressing and moving and doing great things, many of which are things we embrace in western culture.

When we talk about extremist, insane terrorists, who knows what is in their mind? We could not have predicted the horrors of Oklahoma City or 9-11 or the reasons behind them. Dubai's greatness might cause negative attention from a tiny minority of extremists but I can't imagine that anyone would want any place to delay greatness or growth based on the fear of terror. Are there some people in the world who want to destroy anything great? Sure. Growth and progress in the world must continue everywhere, including Dubai. When people have fun and are building something and providing for their families it is a recipe for peace. I see Dubai being a great creator of opportunity and peace.

What can I do to not embarrass myself manners-wise while there?

Great question! I am not an expert on etiquette and the other things people need to know, just a business person who has gotten a lot of response to my article. Read up on the culture and etiquette. This is a major city so there are a variety of people and the residents are used to dealing with all types of people. Certain things should be watched out for such as not crossing your legs in a way that shows the sole of your shoe to someone, this is considered offensive in Arab countries. During Ramadan, a holy month, there are additional things that should be noted such as avoiding playing load music and eating in open public places on fasting days (you can eat in hotels and restaurants). If you are male it is not appropriate to stare at local women, in fact I don’t think it's polite to stare at anyone. I do not know what the dating scene is like because I am married, but I do know that dating as we know it in the US does not exist here. Do not ask someone who is local on a date like you would in the US. This is a whole large area that I didn’t research and don’t know anything about other than that you should read up on what is acceptable first. Be humble and polite. As with most cultures, when you make an effort, show that you care and are respectful you will do well even if you do not know every detail of what you should.

Can you help me contact Dubai citizens for investment in my project?

No, sorry. We bring money to the region not from the region. Mainly we help US customers who want to invest in the Dubai and Middle East. We have many Dubai citizens who are contacts of ours, if one wishes to invest with us we help them invest in US markets but not typically in individual projects but through companies we already have relations with, recognized venture capital and investment firms etc. This is not our market or focus, sorry.

If you are really serious about raising money from the area your best bet is to create a relationship with someone who is local. Be cautioned that your plan must add value and not simply exist because you perceive that rich people in Dubai want to invest in anything you can throw their way. If you offer something truly good and a sound plan then you might have luck. You might be

best off sticking to an area you know better.

Isn't the stock market a little bit small?

Thank you, a question that’s actually in my area of expertise. Yes, the overall market cap of the stock market is small by American standards; the market is brand new, started in 2005 and is at the time of this writing dominated by one large stock. We think there is a good chance this will change dramatically as more companies are listed on the stock exchange. Many IPOs are in the pipeline for the near future.

Okay, you've said all the great things about Dubai, what about the down side?

One down side is that things are changing so fast that no one can be sure what will occur. For example with the real estate development of the city, we certainly have a very good idea which areas will be the nicest areas of town but no one can be certain.

Another drawback is that, just like the dot com era, with great opportunity comes great risk. There are some people in this market who are speculating heavily and overpaying for investments based on the hope that something will work out, this is risky.

Are you being paid by the government or some other group to say positive things?

Not a cent. Thanks for the compliment though. I have no bias in favor of this region, just observation. To be honest, writing isn’t a very profitable part of my day but its fun and I'm glad that what I've written about Dubai has reached so many people.

If this seems overly advocate-like or positive it's only because I think there is a lot to learn. The questions I am getting make me realize that even more needs to be learned than I thought.

I want to participate. What do I do?

It depends on your goals. What we offer at Atlantic is not appropriate for every investor. In fact it is inappropriate for many. Typically we serve a high net worth clientele with a large amount of investable assets. We also do not accept every potential customer. Please feel free to contact us if you wish to find out if you are a fit.

For things other than investing, take a look at the Dubai websites or, better yet, take a trip over there and see for yourself.

Will the Middle East become an economic success story and end up like Japan in the 1950s and beyond as it is rebuilt?

When you say the Middle East being "rebuilt" it makes me think that you might be generalizing.

Again, remember that Iraq and the UAE are very different. The UAE does not need any rebuilding and is already a large economic success story. To answer your question, there is little doubt that the entire Middle East is transforming and will continue to transform. This includes very positive changes from places like Dubai. The Dubai influence is spreading already to other nations in the Mid East and the success of the area is also employing people from other Mid East nations. Countries like the UAE are already like Japan in many respects: economically modernized and successful first world systems. The other countries you might be referring to hopefully will be helped by changes in the region and we will see a more successful entire region spreading all through the Middle East and North Africa as well as Asia.

In reading more about all this I am actually pretty embarrassed about how little I knew. What can I do next?

Well, my little essay is hardly an authoritative textbook on the subject, read some more, visit and talk to people. Most importantly, tell other Americans that there is a Middle East we don’t know.

The only thing I knew about Dubai was Tiger Woods. How can this be so huge if no one has heard of it?

Well, billions of people have heard of it, just not a huge percentage of Americans. There are many Europeans, Africans and Asians who have visited Dubai and are very familiar with what is going on there. America is a relatively isolated country where international travel is less common that other nations. Only 15% of us have passports! This, as well as increased misconceptions about the Middle East, has contributed to the lack of knowledge.

Why don’t they reach out to us more to tell us of all these developments?

I can't speak for anyone else. If you mean the government and tourism industry, I think they have reached out to us but perhaps it has been difficult to reach past some major misconceptions. Remember the world does not revolve around America. We are an important nation but we need to take responsibility to be a part of and to learn about our world. The door is open in Dubai and many other places across the globe for us to learn.

Are they angry about the Dubai Ports deal? Do they understand our opinion?

I didn’t see anger, more like sadness or bewilderment. But this was not something I spoke with people about in any official capacity.

Honestly I don’t know if most people in the Dubai and the Middle East realize how many misconceptions there are here. This is part of their bewilderment. If they realized that most Americans think that Afghanistan and the UAE are the same place, the reasoning might make more sense to them.

To people in the area or who know anything at all about our world, this thinking makes no sense at all. Essentially the Dubai Ports decision punished Dubai based on total misunderstanding of the world: because of its religion and its relative proximity to countries we identify as enemies.

It's sort of like being a doctor with millions of dollars and having a bank denying you a vacation home loan because someone two blocks away with the same basic religion had been arrested. It is no wonder they are bewildered by Congress's actions.

The people of Dubai tend to interact with Americans who already "get it" - people who have already been there or very educated Americans or officials in the US. These Americans are not at all representative of the typical American knowledge level. I don’t think they realize the depth and scope of how little we know.

What does MENA stand for?

ENA stands for Middle East North Africa and is a very common term in the area among investment groups. North Africa includes Egypt, Morocco and Syria as well as the Middle East countries.

Is the UAE part of OPEC?

Yes, the UAE is a member of OPEC, a group of oil producing nations who cooperate on setting prices for their oil production sales.

What is the GCC?

It’s the Cooperation Council for the Arab states of the Gulf, often called the Gulf Cooperation Council or GCC, a group of six countries who cooperate economically, similar to NAFTA or the European Union. The six countries are UAE, Bahrain, Kuwait, Oman, Qatar and Saudi Arabia. This is also a common term in the area.

What is the DIFC?

The DIFC is the Dubai International Financial Center, a 170 acre city within a city that offers 100% foreign ownership and tax free corporate status to companies in the financial services sector. The laws of the DIFC are written in English and transactions are in US dollars.

What is the currency of the UAE?

The currency is the Dirham, which is typically pegged exactly and at a fixed rate to the US dollar. This fixed valuation is very interesting from a financial standpoint and is a large benefit to US and international banks and investment firms.

What opportunities do you see there?

There are many opportunities in Dubai. It depends on your goals and what you are looking for. If you need a job and have skills, particularly in American business, that is valued in Dubai. If you speak Arabic and English, that is valued as well. If you are an entrepreneur there seems to be a huge amount of opportunity in this area. Many new companies will be needed to fill a variety of needs: boat taxi companies, yacht brokerage and fractional ownership, cleaning services for all the offices being built, grocery stores, air conditioner repair contractors, legal services, consulting, IT and many other needs can be filled by the right entrepreneur. It’s a fast changing market so it will take luck and skill to succeed. Our focus is on the larger companies, publicly traded companies and the like.

What does 'cutting through the fog' mean?

With such tremendous growth and change, a "fog" develops which makes some simple things sometimes harder to do. For example, keeping track of phone numbers, streets and office locations, let alone directions is very difficult because things change so rapidly. This presents some opportunity. One thing we do is work to cut through this fog and enable certain US investors to invest in the region. This is easier said than done. One cannot simply send a check over and have it invested. We take care of the details needed to get things done.

Who on earth are these people asking these questions? Do Americans really know this little about Dubai?

It seems like half my comments are along the lines of "This is insane! What kind of fool thinks that Dubai is a poverty ridden terrorist state?"

The other half of my comments seem to be along the lines of "What are you perpetuating this pro-Arab propaganda? Don’t you realize we are at war? Dubai is an ally of Iran and part of a region that has been fighting for 2000 years, if you think some shiny building will fix that you're crazy." Or the more positive "Wow Bruce, I had no idea, I feel kind of embarrassed. I guess I was one of the ones who just lumped them in with Afghanistan."

One thing I have learned from the reaction to this article is that there are HUGE gaps in perception and reality. On the one hand, people familiar with Dubai seem to have little understanding of just how far off base most of America is. And on the other hand, mainstream America has some very deep misconceptions.

Member of Congress Duncan Hunter R-Calif said that "Dubai cannot be trusted" and is "a bazaar for terrorist nations". Talk radio hosts have said that essentially all Arabs and Muslims are enemies of the US. If you have any doubts about the commonplace nature of the questions and comments in this FAQ, take a look at CAIR (Center for Arab Islam Relations) and some of the comments and actions they have worked to set straight.

On the other hand, if you are one of those who has doubts about the positive aspects of Dubai and this story, do some research, look at the photos, speak to someone like me who has been there, or better yet go visit for yourself.

Misconceptions are there, they are far greater than most realize and, when amplified across the whole Mid East, they are an impediment to world peace.

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Dubai: Frequently Asked Questions
(Part Two)

Home | Videos | Articles | Bruce Fenton | Feeds | Contact

The FentonReport is an Atlantic Financial company

Dubai: Frequently Asked Questions (Part Two)

Dubai: Frequently Asked Questions
(Part Two)