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Home / Rotorua Daily Post

Oscar Nathan: Lessons from UAE

By Oscar Nathan
Rotorua Daily Post·
10 Jan, 2012 08:18 PM5 mins to read

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The United Arab Emirates has gone from camels to Cadillacs in just 40 years. Rotorua's Oscar Nathan reflects on the rise of this oil-rich nation and how it has been affected by the global economic crisis.

Whanau based in the United Arab Emirates are a useful excuse to get to the region whenever time and the wife allow.

With approval granted, and my start at Destination Rotorua Marketing looming, my son and I headed to the UAE on Christmas Day.

Despite it being the middle of winter and a chilly desert 28C, it hasn't rained for more than a year - something we've had considerably too much of recently.

While various economies continue to suffer financial woes, this oil-rich nation continues to enjoy a relatively unchanged lifestyle, albeit the downturn has slowed a number of significant projects, such as the development of the cultural district on Saadiyat Island.

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That these projects are postponed, rather than cancelled, is not surprising for the city Forbes Magazine ranks as the richest in the world. It is based on large hydrocarbon resources and locals - known as Emirati - enjoy one of the world's highest gross domestic products per capita.

Abu Dhabi, as its premier sheikdom and state, owns the majority of these resources, which make up more than 9 per cent of the world's oil reserves and 5 per cent of its natural gas supply. Therefore, it comes as no surprise that Abu Dhabi's sovereign fund is among the world's wealthiest at more than US$875 billion.

But the UAE is not immune or ignorant of threats - financial or political - and recently purchased $3.5b in advanced anti-missile capability from United States arms giant Lockheed Martin, in response to the rising instability from Iran.

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The UAE's story is a pretty amazing one. The wealth enjoyed by today's citizens is new. Little more than half a century ago, these Bedouin tribespeople had little or no material wealth.

Through the discovery of oil and the leadership of founder and first president Sheikh Zayed bin Sultan Al Nahyan, the UAE has gone from camels to Cadillacs in just 40 years - transforming what was previously a series of desert villages, governed by the British, to one of the wealthiest nations in the world.

Ex-pats employed in the UAE have no direct tax on incomes, making pay levels well above anything found at home. However, the sheer scale of wealth, combined with the blasé work attitude of many local Emirati, can be daunting.

For example, imagine being an English language tutor. Many of your school-leaver, Emirati students will likely turn up in their own late model luxury car - Hummer, Porsche, Mercedes ... Some students who live out of town will be put up in four-star hotels and be paid about NZD$4000 a month to attend the course, although attendance is, for the most part, voluntary.

This is a long way from our reality, but it is a genuine example of what local Emirati have come to expect.

You could be cynical about such a wealthy social state, supported by a low-paid labour workforce of predominantly Indian and Pakistani and by European, Asian and Australasian ex-pats. However, I can't help but think what a visionary Sheikh Zayed must have been.

At a time when British influence in the region was so strong, to have negotiated and effectively built a country on such a lasting legacy of prosperity is awesome. For those considering taking on contracts here in Abu Dhabi, it is a balancing act between giving away certain freedoms - the UAE is a Muslim country - and being paid well.

Leaders encouraging public use of multimillion dollar facilities, built to attract leading international events and conventions.

During our visit we were able to walk the acclaimed Formula One Circuit on Yas Island. In the lead up to New Year's, watched the likes of Djokovic, Nadal and Federer slog it out at the state-of-the-art Mubadala Tennis Championship at Zayed Sports City. Coldplay played at Abu Dhabi's lakefront for New Year's Eve and, four days later, the Volvo Ocean Yacht Race hit town. Later this month, Tiger Woods and his PGA buddies arrive for the Abu Dhabi Golf Classic.

It is home to Ferrari World - the world's largest indoor theme park at 200,000 sqm, Burj Khalifa - the world's tallest building, and Dubai Mall - the world's largest shopping centre.

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The most memorable moments of this trip have been catching up with Kiwi ex-pats and hearing about the amazing things they are doing in this region - from an engineer with Etihad Airways and a regional development manager with Ericson to a friend heading up Abu Dhabi Tourism Authority's strategic intelligence and research group and Larry Swan - business partner of Rotorua entrepreneur Wetini Mitai-Ngatai in the SnoozeCube lounge at Dubai International Airport.

These people are all focused, motivated and soak up each moment and opportunity to experience, work and travel in this dynamic and growing region of the world.

For Rotorua, as a destination, this trip has reinforced that our goal is not about puffing up a view of what our reputation should be, but communicating and living up to the character of what it is to be Rotorua.

Our unique point of difference will never be premised on world-class scale, infrastructure or wealth - and nor should it be. It is our ability to offer unique hospitality and genuine manaakitanga - a level of experience and interpretation that leaves people with a sense of mutual respect and connectivity.

I'm looking forward to getting home and getting stuck into my new role as Destination Rotorua Marketing general manager - a role and a responsibility I consider a huge privilege.



 - Oscar Nathan is the managing director of the RENOSC Group and takes up the role of Destination Rotorua Marketing general manager later this week

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