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Standing a few yards behind him, at an event at the Dubai Expo earlier this year, was another man who may be less prominent on the city’s social scene but whose influence has been lauded by foreign investors while taking the lead from executives Control keeps companies on their toes.
With their 73-year-old father, the ruler of Dubai, handing them more responsibility, Sheikh Hamdan bin Mohammed Al Maktoum, 39, and his brother Sheikh Maktoum, 38, have each carved a niche for themselves. They are tasked with maintaining Dubai’s status as the Middle East’s pre-eminent business hub amid competition from regional rivals and international scrutiny in the wake of Russia’s war with Ukraine.
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“Think of it as a company,” said Nasser Al-Shaikh, Dubai’s former chief financial officer who helped steer the emirate through the 2009 debt crisis. “Hamdan is the chairman and Maktoum is the CEO. Hamdan is the face of Dubai and the Crown Prince, but decisions on all issues will be taken after consultation between the two brothers.”
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Sheikh Hamdan, the charismatic crown prince and heir, is chief market leader in a city built on splendor and its ability to attract capital and millions of tourists. Sheikh Maktoum is proving to be key to Dubai as a financial market this year as he commands the emirate’s sprawling state-owned enterprises. He is part of a push to sell stakes to investors – most recently to road toll operator Salik this month – and has occasionally convened company bosses to discuss their numbers.
Beyond financial markets, Dubai is under pressure to tackle illicit cash flows, while the energy crisis, while boosting oil revenues in the UAE, will accelerate the global fossil fuel shift in the longer term.
The brothers, who were born to the same mother a year apart, must also maintain the delicate balance of power within the UAE. This comes after Dubai’s leadership convinced Abu Dhabi to refocus on business and the economy and less on foreign policy, prompting military engagements in conflicts stretching from Yemen to Libya and Turkey. Saudi Arabia, on the other hand, poses another challenge with its desire to emulate Dubai as a magnet for foreign talent and investment.
The two men rarely speak to the media. The Dubai Media Office said it was unable to arrange interviews within the timeframe given and declined to comment further.
Sheikh Hamdan is nicknamed Fazza, Arabic for one who rushes to the aid of others. He was made crown prince in 2008, passing an older brother Sheikh Rashid, who died in 2015 at the age of 33.
While his social media accounts are peppered with more formal images of government business, Sheikh Hamdan has also been shown skydiving, mountaineering, horseback riding or standing atop the world’s tallest tower. He has 14.6 million Instagram followers — more than the population of the United Arab Emirates — and mingles in Dubai’s malls and restaurants to continue the approachable leader image his father cultivated while he was growing up prepared for his future role.
Hamdan accompanies his father to most meetings with other rulers in the UAE’s sheikhdoms and chairs Dubai’s 22-member Executive Council, of which his brother is also a member. The council’s website states that Hamdan “is notable for his young and vibrant personality” which has helped him forge links with the people of Dubai. He is also Chairman of the emirate’s sovereign wealth fund, the Investment Corporation of Dubai.
Maktoum, on the other hand, is described by the council as having “the qualities of an ambitious young leader”. He shot into the limelight when he was appointed UAE finance minister in September 2021 following the death of his uncle.
“Sheikh Maktoum is currently playing his assigned role, which is defined and technical,” said Sheikha Najla Al Qassimi, a senior researcher at Dubai Public Policy Research Centre, B’huth, who also served as UAE Ambassador. “Sheikh Hamdan’s role as Crown Prince is more of a political nature. He is well-liked by locals and tribes, while at the same time being able to connect and speak to Dubai’s large expatriate community.”
This year’s listings mark the beginning of a spate of a total of 10 state-owned companies that will offer shares to investors. Sheikh Maktoum has helped push through the sale of shares in main utility Dubai Electricity and Water Authority alongside business park operator Tecom Group, raising a total of more than $6 billion.
Investors bought all of the offered shares in road toll operator Salik in September, and Dubai increased the size of the sale. The transaction, which is coordinated by Goldman Sachs Group Inc. and Merrill Lynch, among others, is expected to bring in $1 billion.
“As the region’s financial hub, Dubai’s markets do not fully reflect this status,” said Mohamed Abu Basha, head of macroeconomic research at Egyptian investment bank EFG Hermes. “If you want to continue advancing the history of Dubai, you must continue with this IPO push, which I believe is long overdue.”
Sheikh Maktoum has also focused on corporate governance. As head of the government’s audit department, he keeps a keen eye on the finances of Dubai’s state-controlled entities, some of which were at the root of Dubai’s financial woes over a decade ago. The focus makes sense – he’s one of the main officials tasked with keeping an eye on the city’s finances.
Since taking the helm at the Financial Audit Office, the king has ordered financial investigations into several state-owned companies over suspicions of possible corruption, people familiar with the matter say and declined to speak on the record of confidential talks. He keeps official meetings short, serious and to the point, they said, in a region where a long chat over tea often precedes actual business.
An executive at a Dubai-based company said he was surprised when he received a call from Sheikh Maktoum’s office to summon him. When he arrived at the offices, he was only ushered in by Sheikh Maktoum, only to walk in moments later with a bottle of water in hand. He immediately started going through some transactions, asking for details and reasons.
Unnerved by the meeting, the executive began reaching nervously for his files before being reassured by the sheikh, he said, declining to be named when speaking about a private meeting. As he left, Sheikh Maktoum gave his direct number.
Sheikh Maktoum, who also holds the role of deputy prime minister and deputy ruler of Dubai, is known for sometimes requesting updates on certain projects late at night or at weekends, a banker said.
“There has been a positive change in the UAE stock exchanges since Sheikh Maktoum’s takeover,” said Tarek Fadlallah, Head of Nomura Asset Management’s Middle East operations.
Sheikh Maktoum’s aim is to ensure that Dubai’s 2009 meltdown, when Abu Dhabi needed a $20 billion bailout, is not repeated. When Sheikh Maktoum was in his early 20s and Dubai was on the brink of insolvency, he approached Al-Shaikh, then CFO, for a detailed overview of the financial situation.
“He asked me to sit with him and run him through the numbers,” Al-Shaikh said. “He wanted to know exactly where the stress points were and what was causing them.”
Dubai is now facing new hurdles. Earlier this year, the UAE was added to the so-called “grey list” of the Paris-based watchdog Financial Action Task Force, pointing to the Gulf nation’s shortcomings in tackling illicit funds. Since then, the UAE has announced plans to step up extradition pacts. UAE steps up extradition pacts to fight dirty money
Since Russia’s invasion of Ukraine, international scrutiny over Dubai’s crackdown on illicit finance has increased. Politically, the UAE maintains relations with Russia. UAE officials privately said the country will comply with international sanctions.
Saudi Arabia’s opening-up under millennial de facto leader Crown Prince Mohammed bin Salman is also beginning to attract foreign talent that would normally have ended up in Dubai.
The UAE has responded with efforts to make the country more attractive to foreign firms and encourage newcomers to put down deeper roots. It decriminalized the cohabitation of unmarried couples, allowed expatriates to marry, divorce and use the inheritance laws of their home countries, and removed the requirement to have a license to consume alcohol. It has also eliminated the need for local partners to set up a business. It has instituted long-term visa programs and selectively opened the door to granting UAE citizenship, a rare move in the Gulf region.
How Dubai navigates the next chapter depends on the dynamic between the two brothers, as Sheikh Hamdan eventually succeeds his father as the face of the city, while Sheikh Maktoum cements his role as the numbers man.
When Sheikh Maktoum was first appointed, “there were pretty low expectations,” said Jim Krane, author of the 2009 book City of Gold: Dubai and the Dream of Capitalism. “He was kind of an unknown quantity in the strength of his personality and his willingness to get involved.”
This story was published from a wire agency feed with no changes to the text.
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