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News & Updates<br />
NAFL REVIEW<br />
DEC study: Export-orientation policy drives economic<br />
transformation<br />
Export-orientation has been credited as a<br />
successful development strategy leading to<br />
economic transformation while sustained<br />
export-oriented policies have been<br />
associated with significant export<br />
diversification, according to a working<br />
paper on productivity of exporting firms in<br />
Dubai in two economic zones, Dubai main<br />
and free zones.<br />
The paper also described how countries,<br />
which initially remained confined to<br />
exploiting the natural resources they were<br />
endowed with, sought to avoid abrupt<br />
sector-specific shocks by shifting towards<br />
manufacturing. The export of manufactured<br />
products was seen as non-traditional<br />
export.<br />
In fact, non-traditional exports are<br />
characterized by higher income elasticity,<br />
less volatile terms of trade, and higher<br />
prospects of dynamic productivity gains,<br />
said the paper prepared by the Economic<br />
Policy & Research Center (EPRC), the<br />
operational arm of Dubai Economic Council<br />
(DEC).<br />
Dubai has recently launched a far-reaching<br />
development plan (the Dubai 2021<br />
Development Plan). Among other things,<br />
this plan is aimed at enhancing high<br />
productivity through the promotion of the<br />
'light manufacturing sector'. The received<br />
wisdom about the role of manufacturing,<br />
especially manufacturing exports, in<br />
economic development should augur well<br />
for this strategic objective of the Dubai<br />
development plan.<br />
A more prominent role for manufacturing,<br />
therefore, should entail higher productivity<br />
growth and, hence, more stable and<br />
sustainable growth. This has rightly been<br />
the main policy concern for Dubai in view of<br />
the increasingly volatile global economy,<br />
which has substantially impacted the highly<br />
open and largely service-oriented economy<br />
of the Emirate. Moreover, though the<br />
massive factor accumulation and superb<br />
business environment have been enough to<br />
allow Dubai to achieve one of the most<br />
phenomenal economic transformations in<br />
recent history, there is a wide consensus<br />
that this growth model might have now<br />
reached the point of diminishing returns.<br />
Based on phone interviews with managers<br />
or senior staff in 982 firms, the Dubai<br />
enterprise level survey was designed to<br />
cover a representative sample based on<br />
eight industrial sectors (i.e. construction,<br />
financial services, hotels and restaurants,<br />
non-financial and social services, retail<br />
trade, wholesale trade, transport, storage<br />
and communication and manufacturing),<br />
and two zones (i.e., Dubai main and Dubai<br />
free zones).<br />
Firms in FZs had a higher share of foreign<br />
investment compared to their DM<br />
counterparts with about 26 percent in the<br />
FZs and 4.4 percent in DM. However, nonexporting<br />
firms in FZs are attracting more<br />
foreign investments relative to their<br />
exporting counterparts in FZs (<strong>27</strong>.6 percent<br />
and 14.6 percent, respectively).<br />
Firms in FZ are more capital intensive than<br />
their DM counterparts (AED50,000 of<br />
capital per worker in FZ against AED30,000<br />
in the case of DM). Moreover, non-exporting<br />
firms in FZ have more capital intensity than<br />
exporting FZ firms, with AED56,500 per<br />
worker in the former and AED37,500 per<br />
worker in the latter).<br />
According to the policy recommendations,<br />
the focus of the 'light industry' initiative of<br />
the Dubai 2021 Plan should target<br />
enhancing productivity, since these<br />
manufacturing firms are likely to be less<br />
productive than other firms. In view of the<br />
dominance of SMEs in the manufacturing<br />
sector, the agenda for promoting 'light<br />
manufacturing' should also be driven by<br />
those related to the promotion of SMEs,<br />
such as better access to finance and<br />
registry of assets.<br />
Hawk Freight Services new COO and CFO<br />
Zaheer Qaiser<br />
Baburaj Vakiyal<br />
Formed in 1987 and part of the growing<br />
Hawk Group, Hawk Freight Logistics<br />
provides specialized services.<br />
HFL has been consistently supplying<br />
innovative and comprehensive logistics<br />
solutions to a worldwide<br />
client base from<br />
its offices in London<br />
and Dubai.<br />
I n l i n e w i t h t h e<br />
company's vision of<br />
growth & expansion,<br />
new promotions have<br />
been announced by<br />
the management.<br />
Bob Puri, CEO of Hawk<br />
Freight Services, announced the<br />
promotions of Baburaj Vakiyal as Chief<br />
Operating Officer (COO) and Zaheer Qaiser<br />
as Chief Financial Officer (CFO).<br />
Executive Moments<br />
Vakiyal will be heading Hawk Freight<br />
Services, Dubai after the departure of<br />
Chanaka Malalasekera.<br />
Hawk consistently posted growth in the Far<br />
East and is known for its unrivalled ability<br />
to help customers facilitate the efficient<br />
transportation of goods.<br />
The Hawk Group of Companies provide<br />
specialist support to its clients where<br />
a p p r o p r i a t e f r o m s o u r c i n g a n d<br />
procurement through air, sea and land.<br />
The company has a pro-active, hands-on<br />
Board of Directors get fully involved in<br />
ensuring the company is always<br />
customer-focused and service-oriented.<br />
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