Dubaization and Lessons for Gwadar Development

The development of the port city has been the subject of debate in economic geographers and urban planners’ circles. Whether it is London, Hamburg, or Karachi, major cities all over the world originated and flourished initially as a result of port-related operations. Many, however, have expanded through time to include services other than port-related operations due to the increasing role of agglomeration and concentration of advanced producer services such as finance, insurance, accountancy, and advertising in the new urban economy. On the other hand, the maritime sector is losing blue-collar jobs as a result of port automation and containerization.

As a result, the share, and thus the importance of maritime services in port cities’ overall economy have been dropping since. And the role of the Advanced Producer Services is growing while being supported by the city’s position in the World City Network- a form of social network with economic at the core. Such connectivity and global-ness of the cities are captured through indicators like GaWC (Globalization and World Cities). Dubai is ranked Alpha+ alongside Hong Kong, Singapore, and Shanghai in 2020. Certainly, London and New York, with Alpha++, stand out as more integrated than all other cities in the World City Network.

Dubai's rapid rise in the World City Network cannot be attributed simply to its geographical location, as many economic geographers refer to Dubai as a "gateway global city," rather than a "hub port city," as Singapore and Hong Kong are. Despite its relative disadvantage, Dubai’s rise from a port of pearls with only 20,000 inhabitants in 1950 to a globally integrated city with a population of over 2.8 million now holds significant lessons for many nascent port cities and can serve as a laboratory for port-city development like Gwadar.

The first lesson is the flexible urbanism approach employed in Dubai's development. In 1950, British architect John Haris created the first plan for Dubai, which was updated to the Dubai Development Plan Review in 1971 to accommodate port and ancillary infrastructure. The earlier plan, however, was replaced with the Comprehensive Development Plan 1985-2000 to guide Dubai's spatial and economic development into a 21st-century post-oil city. Other plans that followed included the Dubai Strategic Plan 2015 and the Dubai Urban Development Master Plan 2020, both of which aimed to make Dubai's development more sustainable and environmentally friendly, with a focus on economic & social development, infrastructure, land & environment, safety, security & justice, and governance. Trade openness, port & airport rankings, financial center competitiveness, and tourist flow are just a few of the indicators on the agenda for improvement.

Second, an efficient and lean governance system has been put in place to facilitate the implementation of the development plans. "Speed" has become a defining feature of Dubai's governance system. "Bureaucracy is a locomotive rather than a drag," is a statement that reflects the efficiency of the bureaucracy in Dubai.

Flexible urbanism combined with a mix of state-led and corporate governance systems has undoubtedly simplified doing business in Dubai and created an environment conducive to economic diversification and growth. Dubai's twenty-one Free Zones with expanded hinterland have aided in economic diversification. Jebel Ali Free Zone alone, which spans 10,000 acres of land, is home to over 7,500 businesses and has created 135,000 direct jobs.

The hinterland is undeniably important for a city's port-centric development and is a key factor driving port competitiveness. To achieve the desired results, it must, however, be seamlessly integrated with the port and airport. Dubai has also done exceptionally well in this regard. The Jebel Ali Free Zone, the Port, and Al-Maktoum International Airport operate as a single bonded customs zone.

Big names, no doubt, spell credibility, and Dubai is ensuring their success by developing and operating Free Zones in collaboration with big names. Healthcare City in Dubai, for example, has partnered with Harvard Medical School to conduct collaborative research & training to improve global health delivery.  It has also attracted entities in the health sector such as AstraZeneca, the Mayo Clinic, the American Society of Plastic Surgery, and others.

Another important factor driving Dubai's rapid development is its flexible workforce. Each stage of development necessitates a different skill set, and Dubai's lucrative labor market has little to no difficulty in attracting the necessary labor force from the international market to meet their development needs. Because labor is brought in and then returned to its respective homeland, Dubai has the flexibility and leverage to meet each stage of development goals efficiently.

In terms of infrastructure financing in Dubai, oil revenues were used to fund the early stages of trade-related infrastructure. Later flagship projects, ranging from Palm Island to the Burj Khalifa, as well as Al-Maktoum International Airport with a capacity of 120 million passengers per year, were financed during the real estate boom period through a combination of financing modes, including aid from Abu Dhabi. It should be noted that these projects were built with overcapacity and against expert advice, based on the economic principle of "supply creates its own demand." The long-term viability of the projects, however, is an issue that needs to be investigated further.

In short, there is more to the Dubai model than can be explained here. Certain lessons, however, are unquestionably important for the future development of Gwadar. The flexible urbanism of the Dubai model, a mix of state-led and corporate-like governance of the city, and its strategies for economic diversification are worthy of imitation.

Moreover, the development and operation of the hinterland in tandem with port and airport have aided in the transformation of Dubai over time from an entrepôt city in the 1970s to a transportation hub and now an exemplary logistic corridor in the region.

Furthermore, the development of tourism and thematic industrial and trade parks, and the creation of a conducive businesses environment therein with emphasis on advanced producer services, all hold lessons for Gwadar's development. Although manufacturing still contributes a fair share in Dubai’s overall economy, Dubai is still regarded as a service economy with a focus on financial services and tourism.

Indeed, each development path is unique and separated by time and space. However, the similarities between 1950’s Dubai and current-day Gwadar provide us with some aspirations for Gwadar’s economic development and insights into how to leapfrog into the future.