Richest City in the World - Emirates International Capital Advisory

Ninety miles from Dubai, another Xanadu has been decreed.
Its name is and that $3 billion hotel you’re looking at is just
the beginning of the story.
1 6 8 • F O R T U N E

PHO T O G R A P H S B Y B E N J A M I N L O W Y
The
Emirates Palace hotel and
the skyline of Abu Dhabi

a l M u b a r a k is a
m a n in a h u r r y .T h e 3 1 -y e a r-o ld , A m e r ic a n -e d u c a te d d e v e lo p e r
s te p s o n th e g a s o f h is s ilv e r A u d i a n d z o o m s p a s t a h o le in th e
g r o u n d c r a w lin g w ith c o n s tr u c tio n w o rk e r s — th e fu tu r e h o m e o f
a $1 .3 b illio n c o m p le x fe a tu r in g th r e e s k y s c r a p e r s , tw o fi v e -s ta r
h o te ls , a n d a s o u k .T h e c a r z ip s b y a n e w $3 b illio n h o te l th a t
b o a s ts 1 ,0 0 2 S w a r o v s k i c r y s ta l c h a n d e lie r s a n d a g o ld -le a f d o m e
la r g e r th a n th e o n e a to p S t.P a u l’s C a th e d r a l in L o n d o n .I n th e
d is ta n c e , g litte r in g in th e a q u a -b lu e P e r s ia n G u lf, a r e d o z e n s o f
is la n d s th a t w ill o n e d a y s p r o u t s k y s c r a p e r s , h o te ls , m u s e u m s ,
h o s p ita ls , a n d fa c to r ie s fi n a n c e d in p a r t b y th e g o v e r n m e n t-
o w n e d in v e s tm e n t c o m p a n y th a t K h a ld o o n r u n s , M u b a d a la
D e v e lo p m e n t.I n a ll, p la n s c a ll fo r a lm o s t $2 0 0 b illio n to b e
s p e n t h e r e o v e r th e n e x t te n y e a r s .
“ W e m o v e fa s t,” K h a ld o o n s a y s , h is c r is p , w h ite h e a d s c a r f
w h ip p in g in th e w in d .“ T h in k a b o u t it: H o w m a n y p la c e s in
th e w o r ld c a n y o u s a y , ‘I ’m g o in g to e s ta b lis h a n a ir lin e ,’ a n d
b o o m , tw o y e a r s la te r y o u h a v e 2 1 p la n e s a n d 3 7 d e s tin a tio n s
H o w m a n y p la c e s in th e w o r ld c a n y o u s a y , ‘I n e e d 1 5 ,0 0 0 h o te l
r o o m s ,’ a n d b o o m , y o u h a v e 1 0 0 n e w h o te ls in th e w o r k s H o w
m a n y p la c e s c a n y o u s a y , ‘I w a n t w o r ld -c la s s h o s p ita ls , u n iv e r s i-
tie s , a n d m u s e u m s ,’ a n d b o o m , th e S o r b o n n e , C le v e la n d C lin ic ,
G u g g e n h e im , a n d L o u v r e a r e o n th e w a y ”
W e lc o m e to A b u D h a b i, th e c a p ita l o f th e U n ite d A r a b E m ira
te s a n d th e r ic h e s t c ity in th e w o r ld .T h e
e m ir a te ’s 4 2 0 ,0 0 0 c itiz e n s , w h o s it o n o n e -
te n th o f th e p la n e t’s o il a n d h a v e a lm o s t $1
tr illio n in v e s te d a b r o a d , a r e w o r th a b o u t
Khaldoon Khalifa al Mubarak
sits in front of portraits of Sheikh Zayed
(center) and sons Khalifa and Mohammed.
$1 7 m illio n a p ie c e .(A m illio n fo r e ig n w o r k e r s d o n ’t s h a r e in
th e w e a lth .) Y e t m o s t p e o p le c o u ld n ’t fi n d A b u D h a b i o n a m a p .
K h a ld o o n ’s jo b is to c h a n g e th a t.T a ll, h a n d s o m e , a n d p o litic a lly
s a v v y , h e w a n ts to m a k e h is h o m e to w n m e n tio n e d in th e s a m e
b r e a th a s S in g a p o r e , T o k y o — a n d y e s , D u b a i.
B u t d o e s th e U A E , a fe d e r a tio n o f s e v e n e m ir a te s s tr u n g o u t
a lo n g th e P e r s ia n G u lf, n e e d a n o th e r D u b a i ju s t a tw o -h o u r d r iv e
a w a y D o e s it n e e d a n o th e r lo n g -h a u l a ir lin e , a n o th e r fi n a n c ia l
c e n te r, a n o th e r to u r is m d e s tin a tio n , a n o th e r b illio n -d o lla r h o te l
“ T h e s h o r t a n s w e r,” s a y s K h a ld o o n , “ is y e s .B u t I d o n ’t lik e to
u s e c o m p a r is o n s w ith D u b a i.W e ’r e n o t tr y in g to b e D u b a i.W h a t
th e y ’v e d o n e is p h e n o m e n a l, a n d w e ’r e v e r y p r o u d o f it.B u t h e r e
w e h a v e a u n iq u e o p p o r tu n ity to g e t it r ig h t.”
T h a t’s a s u b tle d ig a t A b u D h a b i’s b r a s h n e ig h b o r to th e n o r th .
O n th e s u r fa c e , w h a t’s h a p p e n in g in A b u D h a b i m ir r o r s D u b a i.
B u t w h a t’s d r iv in g g r o w th h e r e is d iffe r e n t.D u b a i is a s to r y o f
s u r v iv a l— h o w o n e s m a ll c ity r u n n in g o u t o f o il s a v e d its e lf w ith
a m ix tu r e o f to u r is m , c o m m e r c ia lis m , a n d p iz z a z z .A b u D h a b i
d o e s n ’t n e e d to d o a n y th in g .It h a s th e o il r e s e r v e s a n d th e fi -
n a n c ia l c u s h io n to s it b a c k a n d w a tc h th e D u b a i e x p e r im e n t.B u t
th e le a d e r s o f a n e w g e n e r a tio n w a n t m o r e .A n d th e y w a n t it
o n th e ir te r m s , w ith a ll th e s p le n d o r a n d n o n e o f th e c r a s s n e s s
th a t h a s a ffl ic te d D u b a i.“ T h e y k n o w th e y a ls o h a v e to d iv e r s ify
th e ir e c o n o m y a w a y fr o m ju s t o il,” s a y s C h r is to p h e r D a v id s o n ,
a p o litic a l s c ie n c e p r o fe s s o r a t D u r h a m
U n iv e r s ity in B r ita in , w h o h a s w r itte n a
b o o k o n th e U A E .“ B u t th e re ’s a ls o a b it o f
r iv a lr y .A b u D h a b i is p e e v e d th a t D u b a i is
1 7 0 • F O R T U N E M a r c h 1 9 , 2 0 0 7

in te r n a tio n a lly re c o g n iz e d a n d it is n ’t.”
K h a ld o o n ’s c e llp h o n e r in g s .“ H e llo ,
b o s s ,” h e s a y s , th e n w h is p e r s , “ W h e n th e
c r o w n p r in c e is o n th e p h o n e , y o u a n -
s w e r.” T h e 4 6 -y e a r-o ld c r o w n p r in c e , M o h a m m e d b in Z a y e d a l
N a h y a n , h a s b e e n c a llin g a lo t la te ly .W ith th r e e d o z e n c o n s tr u c -
tio n p r o je c ts p la n n e d in A b u D h a b i, p lu s in fr a s tr u c tu r e in v e s t-
m e n ts in A lg e r ia , P a k is ta n , a n d o th e r c o u n tr ie s , th e r e ’s p le n ty
to ta lk a b o u t.“ H e ’s lik e a C E O r u n n in g a m a jo r c o r p o r a tio n ,”
K h a ld o o n s a y s .“ H e w a n ts r e s u lts , a n d h e w a n ts th e m n o w .”
T H E C I T Y O F A BU D HABI s its a t th e tip o f a T -s h a p e d is la n d
ju ttin g in to th e P e r s ia n G u lf.W id e tr e e -lin e d b o u le v a r d s r u n
th r o u g h c lu s te r s o f u tilita r ia n c o n c r e te -s la b h ig h -r is e s a n d m o d -
e r n m ir r o r e d to w e r s .A n e le g a n t c o r n ic h e s tr e tc h e s th e le n g th o f
th e c ity a lo n g th e c o a s t.T h e re a re fi n e ly m a n ic u re d r o u n d a b o u ts ,
a b u n d a n t fo u n ta in s , a n d m o r e tr e e s th a n a n y w h e r e e ls e o n th e
G u lf.B u t it’s o d d ly q u ie t— th e r e ’s little tr a ffi c , fe w p e d e s tr ia n s ,
a n d n o n ig h tlife to s p e a k o f.
T h a t’s a ll a b o u t to c h a n g e .F r o m a h e lic
o p te r y o u c a n s e e s a n d y is la n d s c o v e r e d
w ith d u m p tr u c k s a n d c r is s c r o s s e d w ith
e m p ty h ig h w a y s s ittin g o ffs h o r e lik e b la n k
c a n v a s e s .It’s a s ta r k c o n tr a s t to w h a t lie s
ju s t 1 5 m in u te s u p th e c o a s t b y a ir : a la n d -
s c a p e o f c r a n e s , y a c h t h a r b o r s , m a n -m a d e
is la n d s in e x o tic fo r m a tio n s , a n d w h a t w ill
s o o n b e th e ta lle s t b u ild in g in th e w o r ld .
T h e r e ’s n o th in g s u b tle a b o u t D u b a i.I ts
1 7 2 • F O R T U N E M a r c h 1 9 , 2 0 0 7
No cranes yet, but hundreds
of dump trucks like these on Al Raha
Beach are paving the way for development.
“When the crown
prince is on the phone,
you answer. He’s like
a CEO running a major
corporation. He
c r o w d e d , s m o g g y s k y lin e is p a r t M ia m i,
p a r t L a s V e g a s , a n d a ll n e w .T h e r e ’s
s c a r c e ly a p lo t o f o p e n s p a c e o r a n u n -
c o n g e s te d h ig h w a y .
A s m u c h a s K h a ld o o n a n d o th e r s s a y th e y d o n ’t lik e to m a k e
c o m p a r is o n s , it’s im p o s sib le to a v o id th e m .A b u D h a b i a n d D u b a i
o p e r a te lik e fa m ily b u s in e s s e s .W h ile th e M a k to u m fa m ily o f
D u b a i a n d th e N a h y a n fa m ily o f A b u D h a b i a r e c o u s in s , th e y
w e r e b o r n in v e r y d iffe r e n t n e ig h b o r h o o d s .T h e p o p u la tio n o f
D u b a i, a n e m ir a te th e s iz e o f R h o d e I s la n d , w a s c o n c e n tr a te d
in a s m a ll m e r c h a n t c o m m u n ity th a t c a p ita liz e d o n th e to w n ’s
s h e lte r e d a n d n a v ig a b le c r e e k .A b u D h a b i, r o u g h ly th e s iz e o f
W e s t V irg in ia , w a s m u c h p o o re r.B e d o u in tr ib e s m e n ro a m e d th e
d e s e r t; p e a rl d iv e r s liv e d in h u ts w h e re th e c ity is to d a y .
T h e n , in 1 9 5 8 , B r itis h e x p lo r e r s d is c o v e r e d w h a t w o u ld tu r n
o u t to b e th e w o r ld ’s fi fth -la r g e s t c r u d e r e s e r v e , 9 0 % o f w h ic h
w a s u n d e r A b u D h a b i.T h a t d is c o v e r y — a n d th e w e a lth th a t c a m e
w ith it— m a d e th e N a h y a n s th e d o m in a n t fa m ily in th e r e g io n
w h e n th e B r itish p u lle d o u t in 1 9 7 1 .S h e ik h
Z a y e d b in S u lta n a l N a h y a n , th e r u le r o f
A b u D h a b i, b e c a m e P re sid e n t o f th e n e w ly
in d e p e n d e n t U A E , w h ile S h e ik h R a s h id
b in S a e e d a l M a k to u m o f D u b a i b e c a m e
P r im e M in is te r.
Z a y e d se t o u t to c a r v e a m o d e r n c o u n tr y
in th e s a n d .W h e n th e o il sta r te d fl o w in g ,
th e c ity o f A b u D h a b i h a d ju st 4 6 ,0 0 0 p e o -
p le , fo u r d o c to rs, a n d fi v e sc h o o ls.R ic h p e o -
p le h a d m u d h o u s e s; p o o re r fa m ilie s b u ilt

Some of the scores of residential, commercial, and
cultural projects on the drawing board in Abu Dhabi.
Persian
Gulf
Al Lulu Island
Emirates
Palace
hotel
(completed)
Emirates
Pearl hotel
Performing
Arts Center
See image
Abu Dhabi
downtown
Central
Market
Mixed residential
and commercial
Hotels / Resorts
Island development
and infrastructure
Al Reem
Island
Al Gurm
Resort
Saadiyat
Island
Shams
Abu Dhabi
See image
Najmat
Abu Dhabi
Angsana
Resort & Spa
Capital Center
Zayed
Sports
City
Shangri-La
Hotel
Golf
Gardens
Residential
Community
Al Raha
Beach
EUROPE
AFRICA
ASIA
0 50 100 mi
QATAR
Yas
Island
Al Raha
Gardens
P E R S I A N
U N I T E D
SAUDI ARABIA
IRAN
G U L F
Dubai
A R A B
E M
I R A T E S
OMAN
OMAN
Abu
Dhabi
International
Airport
expansion
0 2 4 mi.
GRAPHIC BY 5W INFOGRAPHICS; SATELLITE IMAGE BY DIGITALGLOBE VIA GOOGLE EARTH; MAP BY INTERNATIONAL MAPPING
w ith re e d s .“A s stu d e n ts , w e w e re p ro v id e d
w ith b o o k s , tr a n s p o r ta tio n , a n d a s m a ll
s a la r y ,” re m e m b e r s M o h a m m e d A h m e d
a l B o w a rd i, a lo n g tim e g o v e r n m e n t a d v i-
s o r.“ S h e ik h Z a y e d , o u r c o u n tr y ’s G e o rg e
W a sh in g to n , re a liz e d th a t th e p e o p le n e e d e d a n in c e n tiv e to c o m e
to sc h o o l.S o th a t 1 0 0 d irh a m [a b o u t $2 7 ] m e a n t a lo t to u s .”
A s h is c o u n tr y b e c a m e w e a lth y , Z a y e d in s is te d th a t “ n o t a
s in g le g r a in o f s a n d ” b e s o ld .T h o u g h m o s t m e n r e c e iv e d p lo ts
o f la n d , tr a n s fe r r in g o w n e r s h ip r e q u ir e d th e s h e ik h ’s a p p r o v a l.
A s a r e s u lt, n a tiv e -b o r n A r a b s — r a p id ly b e c o m in g a m in o r ity in
th e ir o w n c o u n tr y — g o t la n d w h ile o u ts id e r s c o u ld n ’t b u y a n y .
T h a t m a d e it d iffi c u lt to a ttr a c t fo r e ig n in v e s tm e n t, e s p e c ia lly
w h e n o il p r ic e s p lu n g e d to $1 8 a b a r r e l in th e la te 1 9 9 0 s .T h e
g o v e r n m e n t’s m o s t a m b itio u s p la n a t th e tim e , th e S a a d iy a t F r e e
Z o n e A u th o r ity , a n a tte m p t to c r e a te a fr e e -m a rk e t fi n a n c ia l a n d
c o m m o d itie s c e n te r o n a s a n d y is la n d , n e v e r m a d e it p a s t th e
p la n n in g s ta g e .T h e s a m e fa te m e t a p r o p o s a l to b u ild a th e m e
p a r k a n d r e s o r t o n a m a n -m a d e b r e a k w a te r k n o w n a s A l L u lu
I s la n d .O n e r e a s o n : F o r e ig n e r s c o u ld n ’t o w n a n y la n d .
D u b a i le a r n e d th a t le s s o n e a r ly .T h e e m ir a te le g a liz e d
p r o p e r ty s a le s to lo c a ls in 1 9 9 7 a n d fi v e y e a r s la te r, in c e r ta in
a r e a s , to fo r e ig n e r s to o .W e a lth y M id d le E a s te r n e r s — in c lu d -
in g th o s e in A b u D h a b i— a c c u s to m e d to b u y in g I ta lia n v illa s
a n d U .S .T -b ills s u d d e n ly h a d v ia b le in v e s tm e n t o p p o r tu n itie s
c lo s e to h o m e .C a s h p o u r e d in , a n d h o te ls , c o n d o s , a n d m a lls
s p r a n g u p .S o o n D u b a i w a s th e p la c e w h e r e S a u d is s h o p p e d ,
B r its ta n n e d , a n d R u s s ia n s p a r tie d .
Abu Dhabi is a
canvas for imagining the future. Opposite,
from top: a performing arts center designed
by Zaha Hadid; mixed-use skyscrapers.
A s D u b a i r a c e d a h e a d , A b u D h a b i
s to o d s till— a M e lb o u r n e to a S y d n e y , a
P h ila d e lp h ia to a N e w Y o r k .O n e b u s i-
n e s s m a n re m e m b e r s w e e d s g r o w in g o u t o f
c r a c k e d s tr e e ts in 2 0 0 0 .Z a y e d h a d g r o w n
ill, a n d n o o n e d a r e d to s u g g e s t r a d ic a l c h a n g e s .A n o th e r p r o b -
le m : Z a y e d te c h n ic a lly o w n e d a ll th e la n d .“ T h e h o r s e s w e r e
b e in g h e ld b e h in d ,” s a y s a l B o w a r d i.
T HAT A L L B E GAN T O C HAN G E in 2 0 0 4 , a fte r Z a y e d ’s d e a th .
P o w e r fe ll to tw o o f h is 1 9 s o n s : S h e ik h K h a lifa , h is e ld e s t, b e -
c a m e P r e s id e n t, a n d th e m u c h y o u n g e r S h e ik h M o h a m m e d
b e c a m e c r o w n p r in c e , ta k in g o v e r th e d a y -to -d a y r u n n in g o f A b u
D h a b i.S o ft-s p o k e n b u t s h r e w d , M o h a m m e d is c o n s id e r e d th e
m o s t W e s te r n o f th e e m ir a te ’s le a d e r s .A g r a d u a te o f B r ita in ’s
p r e s tig io u s S a n d h u r s t m ilita r y a c a d e m y , h e u s e d h is c o n tr o l o f
th e U A E ’s a r m e d fo r c e s to a m a s s th e e c o n o m ic a n d p o litic a l
c lo u t h e n e e d e d to b e c o m e th e h e ir a p p a r e n t to K h a lifa .( H e ’s
a ls o a p r e tty g o o d fi g h te r p ilo t.)
O n e o f th e fi r s t p r o je c ts to g e t o ff th e g r o u n d w a s A b u D h a b i’s
o w n in te r n a tio n a l c a r r ie r, E tih a d A ir w a y s .T h e id e a w a s to d u -
p lic a te th e s u c c e s s o f E m ir a te s , th e a irlin e th a t h e lp e d p u t D u b a i
o n th e m a p a s a to u r is t d e s tin a tio n w ith its h ig h -c la s s s e r v ic e .
S o E tih a d p la c e d a n $8 b illio n o r d e r w ith A ir b u s , in c lu d in g
fo u r A 3 8 0 s .“ It’s a fu n c tio n o f g e o g r a p h y ,” s a y s J a m e s H o g a n ,
E tih a d ’s A u s tr a lia n C E O .“ W e ’r e in th e m id d le o f th e w o rld a n d
c a n a c t a s a n a ir b r id g e b e tw e e n E u r o p e , A s ia , a n d th e U .S .”
T h r e e y e a r s la te r it’s d iffi c u lt to a s s e s s E tih a d ’s s u c c e s s , s in c e
1 7 4 • F O R T U N E M a r c h 1 9 , 2 0 0 7

it d o e s n ’t r e p o r t e a r n in g s , b u t a n a ly s ts d o u b t th a t tw o lo n g -h a u l
c a r r ie r s c a n p r o fi t in s u c h c lo s e p r o x im ity .“ T h e id e a th a t ju s t
a n y o n e c a n p u t a s tic k in th e g r o u n d a n d w a tc h it g r o w in to a tr e e
is lu d ic r o u s ,” s a y s R ic h a r d A b o u la fi a , a n a v ia tio n a n a ly s t a t T e a l
G r o u p .“ T h e r e r e a lly is n ’t e n o u g h tr a ffi c , n o t to m e n tio n th a t
th e E u r o p e a n a n d A s ia n c a r r ie r s a r e s ta r tin g to fi g h t b a c k .” B u t
if th e a ir lin e ’s g o a l is to p u t A b u D h a b i o n th e m a p , it’s s ta r tin g
to s u c c e e d — it c a r r ie d th r e e m illio n p a s s e n g e r s la s t y e a r, m o r e
th a n tw ic e th e n u m b e r in 2 0 0 5 .
T h e n e x t th in g A b u D h a b i n e e d e d w a s a la n d m a r k .T h e a n -
s w e r w a s th e $3 b illio n E m ir a te s P a la c e h o te l, w ith its $1 ,0 0 0 -
a -n ig h t r o o m s a n d $1 0 ,0 0 0 s u ite s .I t w a s A b u D h a b i’s b id to
o u td o D u b a i’s B u r j A l A r a b , th e $1 b illio n s a il-s h a p e d h o te l
th a t h a s b e c o m e a to u r is t a ttr a c tio n .T h e p la n w o r k e d : W h ile
th e E m ir a te s P a la c e d o e s n ’t s e e m to h a v e m a n y g u e s ts , it d o e s
h a v e g a w k in g E u r o p e a n to u r is ts .
B u t th e m o s t im p o r ta n t c h a n g e w a s L a w N o .1 9 .I t fo r m a lly
a b a n d o n e d th e o ld p r o p e r ty r e g im e a n d
p e r m itte d th e s a le o f la n d b y c itiz e n s
a n d , in s o m e a r e a s , th e p u r c h a s e o f 9 9 -
y e a r le a s e h o ld s b y fo r e ig n e r s .T h e r e a l
e s ta te b o o m s ta r te d im m e d ia te ly .“ M a n y
p e o p le h e r e h a d b e e n in v e s tin g h e a v ily
in D u b a i,” s a y s A h m e d A li a l S a y e g h ,
w h o fo u n d e d A b u D h a b i’s fi r s t p r iv a te -
p r o p e r ty d e v e lo p m e n t c o m p a n y , A ld a r
P r o p e r tie s .“ T h is w a s th e fi r s t tim e th e y
c o u ld d o s o m e th in g in th e ir o w n c ity .”
Saadiyat Island
Al Reem Island
“In Abu Dhabi,”
says architect Frank
Gehry, “you can do
things that would be
anywhere else.”
W h e n h e to o k A ld a r p u b lic in 2 0 0 5 , it w a s o v e r s u b s c r ib e d m o r e
th a n 4 5 0 tim e s .P e o p le w a ite d in lin e o v e r n ig h t to b u y v illa s
in A l R a h a G a r d e n s , A ld a r ’s fi r s t p r o je c t.T h e $4 0 0 ,0 0 0 u n its
s o ld o u t in 4 5 m in u te s .
B u t a s m u c h a s A ld a r w a s m o d e le d a fte r E m a a r P r o p e r tie s ,
th e d e v e lo p m e n t c o m p a n y th a t b u ilt m u c h o f D u b a i, th e r e w a s n ’t
a r u s h to s im p ly c o p y w h a t D u b a i d id .A fte r a ll, b e n e a th th a t
c ity ’s g litte r a r e s e r io u s p r o b le m s n o o n e lik e s to ta lk a b o u t.Its
in fr a s tr u c tu r e is o v e r ta x e d , in fl a tio n is c lim b in g , a n d c r im e a n d
p r o s titu tio n a r e o n th e r is e .A b u D h a b i h a s a m o r e tr a d itio n a l
a n d m o r e r e lig io u s p o p u la tio n , u n w illin g to s a c r ifi c e its w a y o f
life fo r to u r is t d o lla r s .
T h a t’s w h y it is b u ild in g th e w o r ld ’s s e c o n d -la r g e s t m o s q u e .
T h a t’s w h y th e E m ir a te s P a la c e lo o k s r ig h t o u t o f The Arabian
Nights.T h a t’s w h y th e c ity ’s p la n n e d C e n tr a l M a rk e t h a s a s o u k .
It’s e v e n e v id e n t in th e a d v e r tis in g .I n D u b a i, p r o p e r ty a d s fe a -
tu r e p ic tu r e s o f s m ilin g , w in e -d r in k in g W e s te r n e r s fr o lic k in g
o n th e b e a c h e s .I n A b u D h a b i th e y te n d to s h o w A r a b fa m ilie s
in tr a d itio n a l d r e s s .“ W e d o n ’t s e e k to b e c o m e a c o m m o d itiz e d
d e s tin a tio n fo r m a s s to u r is m ,” s a y s S h e ik h S u lta n b in T a h n o o n
a l N a h y a n , c h a ir m a n o f th e n e w A b u D h a b i T o u r is m A u th o r ity .
“ W e ’r e c r e a tin g a n e x c lu s iv e , h ig h -e n d to u r is t d e s tin a tio n .”
P e r h a p s th e b e s t e x a m p le o f th a t is S a a d iy a t I s la n d , a $3 0
b illio n p r o je c t th a t in c lu d e s 2 9 h o te ls , th r e e m a r in a s , tw o g o lf
c o u r s e s , a n d h o u s in g fo r 1 5 0 ,0 0 0 p e o p le .B u t w h a t m a k e s it
d iffe r e n t fr o m D u b a i is th e a tte m p t to c r e a te a c u ltu r a l o a s is
in th e d e s e r t.“ W h e n w e w e r e d e s ig n in g it, w e th o u g h t th e r e
h a d to b e s o m e o f w h a t w e c a ll ‘p e a r ls ,’ ” s a y s J o s e S ir e r a , a n
a r c h ite c t w ith G e n s le r, a S a n F r a n c is c o fi r m th a t d e s ig n e d th e
m a s te r p la n fo r th e is la n d .“ It n e e d e d a r t g a lle r ie s o r m u s e u m s
o r s p e c ia l g a th e r in g p la c e s .”
S o o n th e c r o w n p r in c e w a s m e e tin g w ith T h o m a s K r e n s ,
th e d ir e c to r o f th e G u g g e n h e im M u s e u m in N e w Y o r k C ity .
“ H e s a id h e w a n te d a c u ltu r a l d e s tin a tio n th a t e v e r y b o d y in
th e s o p h is tic a te d w o r ld o f a r t a n d c u ltu r e w o u ld h a v e to v is it,”
K r e n s s a y s .“ S o I s a id , ‘L e t’s ta k e w h a t’s w o r k e d a r o u n d th e
w o r ld a n d m a g n ify it b y 5 0 %.’ ” T h e r e s u lt: a 6 7 0 -a c r e c u ltu r a l
d is tr ic t d e s ig n e d b y s o m e o f th e w o r ld ’s b e s t-k n o w n a r c h ite c ts ,
in c lu d in g Z a h a H a d id , J e a n N o u v e l, T a d a o A n d o , a n d — a t
th e s p e c ia l r e q u e s t o f th e c r o w n p r in c e — F r a n k G e h r y , w h o
w ill tr y to o u td o w h a t h e d id fo r th e G u g g e n h e im in B ilb a o ,
S p a in .F o r g o o d m e a s u r e , A b u D h a b i o ffe r e d a r e p o r te d
$1 b illio n fo r a n o u tp o s t o f th e L o u v r e , th e P a r is m u s e u m ’s
fi r s t.T h e e n tir e p la n is e s tim a te d to c o s t b illio n s .“ I n e v e r
e x p e c te d to b e a b le to d e s ig n a n o th e r o n e o f th e s e p la c e s ,”
G e h r y s a y s .“ B u t in A b u D h a b i y o u c a n d o th in g s th a t w o u ld
b e u n th in k a b le a n y w h e r e e ls e .”
A ll th a t h ig h b r o w in te n tio n d o e s n ’t m e a n A b u D h a b i h a s n ’t
b o r r o w e d s o m e D u b a i-lik e id e a s .Y a s I s la n d w ill h a v e a F e r r a r i
th e m e p a rk a n d d r iv in g s c h o o l (A b u D h a b i
o w n s 5 % o f F e r r a r i th r o u g h M u b a d a la ),
a r a c e tr a c k w in d in g its w a y a r o u n d th e
is la n d , w a te r p a r k s , a d o z e n h o te ls , fo u r
p o lo fi e ld s , a g o lf c o u r s e , a n d a F o r m u la
O n e r a c in g te a m .T h e D a n e t A b u D h a b i
d e v e lo p m e n t w ill fe a tu r e 3 6 m ix e d -u s e
to w e r s , tw o s h o p p in g m a lls , tw o m o s q u e s ,
a n d a fi v e -s ta r h o te l.O n A l R e e m I s la n d ,
S h a m s A b u D h a b i w ill h a v e a c a n a l s y ste m
F E E D B A C K bgimbel@fortunemail.com
M a r c h 1 9 , 2 0 0 7 F O R T U N E • 1 7 5

lik e V e n ic e ’s , a c e n tr a l p a rk lik e N e w Y o rk
C ity ’s , a n d a n 8 3 -s to r y s k y s c r a p e r.
S O , I F T H E Y B U I L D I T , w ill th e y c o m e
C e r ta in ly s o m e o f th e r e s id e n tia l p r o je c ts w ill s e ll, b e c a u s e A b u
D h a b i fa c e s a h o u s in g s h o r ta g e a n d r e n ts th a t a r e in c r e a s in g
a lm o s t 5 0 % a y e a r.(A th r e e -b e d r o o m a p a r tm e n t is a s e x p e n s iv e
a s in M a n h a tta n .) O th e r p r o je c ts m a y n e v e r g e t o ff th e g r o u n d .
B u t D a v id s o n , th e U A E e x p e r t, th in k s A b u D h a b i h a s a b e tte r
m o d e l th a n D u b a i’s .“ D u b a i r e lie s to ta lly o n c o m m e r c e a n d
to u r is m , s o if th e r e w e r e a w a r, in s ta b ility , o r te r r o r is m , D u b a i
is fi n is h e d ,” h e s a y s .“A b u D h a b i’s b r a n d o f to u r is m w o u ld b e
a b le to b o u n c e b a c k .It’s n o t r e ly in g o n E u r o p e a n s w h o c o u ld
c h a n g e th e ir fa v o r ite d e s tin a tio n o n a w h im .A b u D h a b i is g o in g
a fte r A r a b to u r is m a n d in v e s tm e n t.”
S till, A b u D h a b i fa c e s s o m e o f th e s a m e p r o p e r ty -b u b b le
d a n g e r s a s its n e ig h b o r to th e n o r th .W h ile m u c h o f D u b a i
h a s b e e n p u r c h a s e d b y r e a l e s ta te fl ip p e r s , th e c ity h a s b e -
c o m e a le g itim a te b u s in e s s c a p ita l, w ith
th o u s a n d s o f e x p a tr ia te s m o v in g in e a c h
m o n th .I t’s g o in g to b e d iffi c u lt fo r A b u
D h a b i to a ttr a c t th e k in d s a n d q u a n titie s
o f m u ltin a tio n a l c o m p a n ie s th a t h a v e s e t
u p s h o p o r o p e n e d r e g io n a l h e a d q u a r te r s
in D u b a i.
T h e fo lk s in A b u D h a b i d o n ’t s e e m to
w o r r y a b o u t s u c h th in g s .A fte r a ll, th e y
s a y , th e y a r e n o t ju s t d iv e r s ify in g in to r e a l
e s ta te a n d to u r is m .M u b a d a la is in v o lv e d
1 7 6 • F O R T U N E M a r c h 1 9 , 2 0 0 7
A $6.8 billion airport
expansion includes a runway wide enough
to land Etihad Airways’ Airbus A380 jets.
“They are smart,
and well trained—
they could just as
well be working
at Goldman Sachs.”
in d e v e lo p m e n t p r o je c ts a r o u n d th e w o rld ,
in c lu d in g o il e x p lo r a tio n in L ib y a a n d te le -
c o m s y s te m s in N ig e r ia .T h e A b u D h a b i
I n v e s tm e n t A u th o r ity , w h ic h S h e ik h Z a -
y e d s e t u p to m a n a g e th e e m ir a te ’s o il p r o fi ts in 1 9 7 6 , n o w h a s
a n e s tim a te d $1 tr illio n in v e s te d in w o r ld m a r k e ts .
T h a t’s w h y A b u D h a b i m a tte r s , s a y s T o m P r itz k e r, c h a ir m a n
o f th e G lo b a l H y a tt h o te l c o m p a n y , w h o is c o n s id e r in g s e v e r a l
d e a ls in th e e m ir a te .“ T o m o r r o w ’s w o r ld m a y s e e th e U .S .a s th e
c e n te r o f in n o v a tio n a n d m ilita r y s tr e n g th , C h in a a s a c e n te r
o f p o p u la tio n a n d e c o n o m ic g r o w th , a n d th e M id d le E a s t a s
a p r im a r y s o u r c e o f o il a n d c a p ita l,” h e s a y s .“ T h e s e g u y s a r e
v e r y im p o r ta n t to o u r g r o w th a n d s ta b ility , b e c a u s e a t th e ir c o r e
th e y a r e s im p a tic o to o u r v a lu e s a n d a p p r o a c h to life .T h e y a r e
s m a r t, s o p h is tic a te d , a n d w e ll tr a in e d — th e y c o u ld ju s t a s w e ll
b e w o r k in g a t G o ld m a n S a c h s o r B la c k s to n e .”
K h a ld o o n lik e s to te ll a s to r y a b o u t h o w th e c r o w n p r in c e
w o r k s .A b u D h a b i’s o u td a te d s e a p o r t, s itu a te d in a p r im e
lo c a tio n , w a s c a u s in g p r o b le m s fo r r e -
d e v e lo p m e n t.“ H e s a id , ‘W e ’v e g o t to
fi n d a n e w lo c a tio n ,’ ” K h a ld o o n s a y s .
“ W ith in 6 0 d a y s , e v e r y o n e c a m e b a c k .
A ll th e o p tio n s w e r e p u t o n th e ta b le .
H e m a d e h is d e c is io n r ig h t th e r e .B o o m .
A n e w lo c a tio n fo r a n e w p o r t a n d th e
la n d to g o w ith it.T h in g s lik e th a t ju s t
d o n ’t h a p p e n th is q u ic k ly a n y w h e r e e ls e
in th e w o r ld .”
T h e n a g a in , th e r e ’s D u b a i. F