Vision Dubai 2022

The charismatic ruler of Dubai has managed to build the most popular destination brand name in the world. Dubai is said to have everything as a destination for leisure and business travellers and it is one of the most visited places on the earth. HH Sheikh Mohammed Bin Rashid Al Maktoum, who is a visionary and strategist, has been personally engaged in making his dream a reality. Dubai is preparing to host Expo 2020 but the ruler's vision extends beyond 2020 although the global economic environment is essentially turbulent and unpredictable. It means, realising his vision very much depends on how effectively Dubai is able to manage its economy when the oil price stays below the threshold level and developed economies in the West are suffering from prolonged stagnation. Unexpected fall in oil price is adversely affecting the GCC economies, including Dubai, where managing the fiscal deficit remains a huge challenge. Obviously, widening fiscal deficit is forcing the oil-dependent economies to slash their spending and abandon some of their cherished projects that are currently underway or planed for the future. Most of these countries will be forced to borrow in the market to cover the deficit. Obviously, it is cause for concern. Saleem argues that the debt-financed economic model of the West is not sustainable in the long-run and proposes an innovative concept called 'sovereign equity' model for managing the economy. Dubai with its existing institutional framework and organisation is in a good position to adopt and apply the model that will enable to fund its spending and achieve economic sustainability without recourse to borrowing. A debt-free economy is not only sustainable but also aligns with the Islamic principles.