hotel roomoccupancyto75.6percent inOctober on continued supply growth.Average daily room rates were downalmost 10 per cent year on year — to$182—the lowest level seensince2005.

Industry monitor STR Global saysDubai’s occupancy was down 2 per centto78percent,withdailyratesalsodown10 per cent to $208. Revenue per availa-ble room dropped 11.6 per cent to $162fromthepreviousyear.

Hoteliers say the sector is holding uponglobal terms,but theUAEwillhavetoattract more guests than ever as 54,000newhotel roomsareset forconstructionby 2020, when Dubai will host the worldfair. The UAE received 14.2m visitors

last year. It aims for 20m tourists annu-ally by 2020. “Revenue [per availableroom] will continue to decline, we needto make sure that Dubai is not seen as anexpensive destination,” says RussellSharp, Dubai-based chief operatingofficerofCitimaxhotels.

A British tourist, for example, cur-rently has to pay at least £11 for a pint ofbeer in most establishments. “The new

Continued on page 4

Destination

UAEF T S P E C I A L R E P O R T

I n November, Dubai opened thefinal phase of a 12km man-madecanal connecting the city’s existingnatural creek to the waters of theGulf. The second phase of the $1bn

waterway project has opened up 6.4kmof extra waterfront, to be lined with footand cycle paths, another stage in therejuvenation of the emirate that haslured investors and tourists since thecity opened property ownership to for-eigners14yearsago.

The delivery of government-driveninfrastructure — following the creationof the Palm islands a decade ago — sits insharp relief to a broader economic slow-down in the United Arab Emirates thathas been caused by two and a half yearsof lowoilprices.

The International Monetary Fund ispredicting gross domestic productgrowthwill fall from4percent to2.3percent this year, seeing only a modestrecoveryto2.5percentnextyear.

“There has been a deceleration of eco-nomic activity in 2016, because of a

more restrained fiscal policy due tolower oil prices in Abu Dhabi and thestrong US dollar impacting externalcompetitiveness,” says Monica Malik,chief economist at Abu Dhabi Commer-cial Bank. “The UAE is an externally fac-ingeconomy.”

Decades of effort have made the UAEthe Gulf’s least oil-dependent economy.Around three quarters of GDP is nowderived from sources other than oilthanks to Dubai’s services-orientedeconomy and attempts in Abu Dhabi todiversify into industry, tourism andfinancial services.

But there has been no escaping the oilslowdown, which has hit sectorsdependent on the oil industry and con-struction. The knock-on effect in con-sumer sentiment and employment lev-els has brought sober years to the coun-try’s economy — though not as bad asthose that followed the financial crisis in2008-09. Ms Malik says Dubai has alsobeen hit by the strong dollar and weakglobal demand. “We will see a pick-up innon-oil GDP, from 2.3 per cent this yearto2.8percentnextyear, largelyonmoreinvestment activity in the run-up toExpo 2020 [the world fair that Dubaiwill host that year]. But the multipliereffect from this recovery will be weakerthaninprevious investmentcycles.”

The UAE’s hospitality sector is experi-encing slow decline, reporting a year-on-year fall of 3 percentage points in

Emirates pour concrete to fight slowdownCities are lookingfor growth fromsources other thanoil, says Simeon Kerr

‘Dubai has been hit by thestrong dollar and weakglobal demand. We will seea pick-up in non-oil GDP’

Breaking with customWomen are studyingin record numbersHIGHER EDUCATION Page 3

The next generationYoung artists findinspiration at homeART AND DESIGN Page 5

Towers of toysLegoland Dubai is one ofseveral new theme parks

ENTERTAINMENT Page 2

Building on: Dubai’s waterfront properties and public spaces have lured investors and tourists — Kamran Jebreil/AP Photo

Saturday December 10 2016 www.ft.com/reports | @ftreportsSaturday December 10 2016

2 ★ FINANCIAL TIMES Saturday 10 December 2016

Destination UAE

ContributorsSimeon KerrGulf correspondent

Judith EvansProperty correspondent

Burhan WazirFreelance journalist

Hamida GhafourFreelance journalist

Arsalan MohammadFreelance journalist

Cordelia JenkinsCommissioning editor

Steven BirdDesigner

Alan KnoxPicture editor

For advertising details, contact:Mark Cawardine+44 (0) 207 873 4880mark.carwardine@ft.com, or your usualFT representative.

All editorial content in this report isproduced by the FT. Our advertisers haveno influence over or prior sight of thearticles. Follow us on Twitter @ftreports

Spending cuts across the private andpublic sector in the United Arab Emir-ates are leading to job losses in the oil,banking, construction and supply serv-ices. Yet efforts by its rulers to diversifyits economic base have continued overthepastyear.

The leading emirates — Dubai, AbuDhabi, Sharjah and Ras al-Khaimah —are all investing in arts and culturalattractions to boost tourism as part ofthiseffort.

Dubai will be hosting the next worldfair, Expo 2020, and a host of new infra-structure projects are under way inpreparation, includinganewmetro line.The 4.4 sq km Expo site, featuring exhi-bitions and daily events, will house aresidential Expo village with 2,100apartments.

The UAE’s arts calendar peaks in thewinter and spring months due to a moretemperate climate. Recent events haveincluded the eighth edition of AbuDhabi Art, a four-day, citywide festivalshowcasing international and MiddleEasternart.

The Dubai Film Festival, which runsuntil December 14, is screening morethan 150 films including 57 world pre-mieres. Art Dubai in March will showcontemporary art while Abu DhabiMusic, running in the same month, isplanned as a series of classical music

recitals themed around culture and tol-erance. Also in March, the Emirates Air-line Festival of Literature in Dubai willfeature talks and readings from interna-tional and Emirati authors. When thefestival started in 2009, it featured 65authors spread over three days. It hassteadily grown — its 2017 event will fea-ture160authorsover10days.

“When we had the first one, we wereprimarily looking at the regional audi-ence and not at tourism,” says IsobelAbulhoul, chief executive and trustee ofthe Emirates Literature Foundation andthefestival’sdirector.

“We thought it was a great initiativefor reading and education. I don’t thinktourism alone has driven culture in theUAE — culture is a very real part of anycountry’s development. When youstart, you are focused on roads, schoolsand infrastructure. Culture becomes a tangiblepartofnationbuilding.”

But the fall in the price of oil over thepast two years has pared down spendingacross the Gulf states. As governmentand private companies have made cuts,wealthy expat workers have departed,leaving empty housing units and hotelresidences. The effect on tourism hasbeen particularly acute, with an over-supply of hotel rooms in both Dubai andAbuDhabi.

The boost offered by the forthcomingworld fair may be short lived, says Mar-tin Kubler, chief executive of SPS Affin-ity, a business consultancy in Dubai. “Itis difficult to predict what happens afterExpo 2020. Will the oversupply ofhotels be temporary? The Expo has cre-ated a lot of jobs that may not exist afterit isover.”

Myrna Ayad, director of Art Dubai,says that despite the fall in tourism, “theUAE has seen incredible growth in itscultural offerings, which show no sign ofslowingdown”.

Art Dubai was established in 2007 inpartnership with 40 galleries. Lastyear’s edition was attended by over 90galleries and 27,000 visitors. Ms Ayadpoints to the sheer number of forthcom-ingshowsacrossthecountryasoneindi-catorofamaturingartssector.

“You only have to look at the next fewmonths: you have the Sharjah Biennialin March, as well as a new show by theGuggenheim in Abu Dhabi. This year,we saw the launch of Dubai operahouse,”shesays.

“I have been living in the UAE for 35years. As a resident, I can see how a safehaven[fromregional turmoil]becamealand of opportunity and a city of com-merce. Increasingly, that descriptionhas changed to a place of culture anddiscovery.”

As tourism falters, rulers bet on the artsFestivals Dubai andAbu Dhabi are liningup cultural events toattract more visitors,writes Burhan Wazir

Hoteliers intheUnitedArabEmiratesarebracingthemselves forsomefreshcompetition:another54,000hotelroomsareset forconstructionby2020,accordingtoareport thisyearbyTopHotelProjects—anincreaseonpresentnumbersofmorethanathird.

Theboominhotelconstructioncomesdespite fallingrevenuesandslowingeconomicgrowthin importanttourismmarketssuchasChinaandtheeurozone.Largehotelchains—includingParamount,MarriottanditssubsidiaryWHotels,whichallhavenewopeningsplanned—seemundeterred.

Propertyagentssaytheirconfidenceis inspired, inpart,bytheemirates’ambitionstoexpandtheirappeal todifferent typesofvisitors.Dubaiwantstobeknownformorethanitsmalls,andAbuDhabi forattractionsbeyondtheoilbusiness.“Abouthalfof the[forthcominghotel] inventory is inDubai,which is transforming itself fromabeach,shoppingandbusinessdestination,”saysGauravShivpuri,headofcapitalmarkets for theMiddleEastandnorthAfricaat JLL,anestateagencygroup.

Aspartof this transformation,Dubaiis seekingtoaddmorecorporatehospitality,conferencingandculturalevents to itsofferings,whilealsoattracting familytourismwiththeopeningofnewthemeparks.Fournewparkshaveopenedthere in2016alone—IMGWorldofAdventure,Legoland,BollywoodParksandMotiongate—andanothertwoare inthepipeline.ThethemeparksareaimedmainlyatAsianvisitors, saysMrShivpuri.

SimilareffortsareunderwayinAbuDhabi,whichhasbeenhitharderthanDubaiby lowoilpricesoverthepast twoyears.Yas Island,aman-madeislandintheemirate, isalreadyhometotheMarinaGrandPrixracingcircuit,FerrariWorldthemeparkandawaterpark.“AbuDhabi . . . willneedmoretimetoabsorb[thenewhotel rooms]as[theemirate is]still evolvingatourismstrategyandmix,”saidMrShivpuri.

IanAlbert, regionaldirectoratCollierspropertyconsultancy, saysthemarketplace is“challenging”forAbuDhabi’s five-starvenues,while itsnewattractionsarenot fullyoperational.

At thesametime,revenuesperaveragehotel room—animportantindicatorof financialperformance—havebeenfalling inDubaiandAbuDhabioverthepastyear,althoughtheycontinuetorise inRasal-Khaimah, thefourth-largestemirate tothenorth.

Across theUAE,theaveragecostofahotel stayreachedan11-year lowinOctober,accordingtotheresearchfirmSTRGlobal,asrisingsupplycoincidedwithfallingdemand.

There isaseriesof testsahead.Mostofthenewhotel roomswillbecompletedby2020, theyear inwhichDubai is set tohost theworldfair—thefirstcountry intheregiontodoso.

Theemirate isaimingfor25mvisitorstoattendExpo2020(comparedwith14.5mvisitors toDubaioverthewholeyear in2015)andacontinuing increaseinvisitornumbersafterwards.Expo2015 inMilanattracted20m.

Astheemiratesbuilduptothatdate,MrAlbertsaysthecurrentweakness inthehotelsmarkethasnothurt thoseatthetopendof thescale.

“Profitability is still goodinwell-managedhotels,”hesays.

Hotels groups buildon as growth slowsHospitality A boom inconstruction comesdespite fallingrevenues per room,writes Judith Evans

Legoland Dubai opened in October

W hen it is completed, ICDBrookfield Place — anew Foster + Partners-designed skyscraper inDubai’s financial dis-

trict — will tower 282m above theground. It is one of the few developmentprojects in the United Arab Emirates totap into institutional investment fromoverseas. In 2012, the Investment Cor-poration of Dubai formed a joint ven-ture with the global property arm ofCanada’s Brookfield Asset Manage-ment, one of the world’s largest com-mercial property companies, to build it.Constructionbeganthisyear.

Skyscrapers have sprouted rapidlyout of the deserts of the UAE over thepast 20 years, but so far ICD BrookfieldPlace remains a rarity in a commercialproperty market that is largely domes-tic and regional. Property advisers hopethetower isasignof things tocome.

“This is the single biggest opportunitythat the UAE has in its real estate sector.There is extraordinary interest, but it is

difficult because this is a fairly illiquidmarket,” says Nicholas Maclean, man-aging director for the consultancy CBREMiddle East. CBRE and estate agencygroup JLL are joint letting agents for ICDBrookfieldPlace.

“We repeatedly have people repre-senting funds come through our officelooking for market briefings, for oppor-tunities, but many of those investors goaway disappointed,” he says. “There isno shortage of demand; it’s the supplysidethat is lacking.”

Overseas ownership of real estate inDubaihasonlybeenallowedsince2002,when some areas were opened up. Gau-ravShivpuri,headofcapitalmarkets forMiddle East and north Africa at JLL,says new laws have helped to make thesectormoretransparentsincethen.

Most inbound investment has comefrom institutions and wealthy individu-als from Gulf Cooperation Councilstates, says Ian Albert, MENA directorat property consultancy Colliers Inter-national. Residential properties aremarketed to individual investors incountriessuchasChina.

Global investors who have dippedtheir toes in the water include Pramer-ica, the asset management arm of USinsurance group Prudential Financial;the insurer AIG; Australia’s GoodmanGroup; New York-based Related; Singa-pore’s CapitaLand and Texas-basedHines. But such investments remain

“few and far between”, Mr Shivpurisays, partly because of rapid and dra-matic property cycles — a sign of animmature market. “Since 2002, theemirate has typically gone only three tofour years between property marketslumps,”headds.

Large malls and office buildings arerarely put up for sale, with owners pre-ferring to hold on them as long-termincome investments. The “strata” sys-tem — under which office buildings aredivided up and sold to different inves-tors ahead of completion — has also heldback the market, says Mr Maclean.“Being multi-owned prevents themfrom being let to their full potential orsold, because many international occu-piers won’t go into a building that isstrata titled,”hesays.

Lower oil prices have affected occu-pierdemandforrealestate,especially inAbu Dhabi, a centre for oil and gas.Dubai has suffered less, says Mr Shiv-puri, while a “flight to quality” hasallowed rent levels and occupancy toremainstable inprimelocations.

The emirates, especially Dubai, rap-idly developed their existing real estateby using local funding. Low oil prices inrecent years have had a dampeningeffect on demand for new offices andhotels. This might beg the questionwhether the UAE really needs addi-tional property investment from over-seas. Mr Maclean believes it does, not

least because “cross-border investment[in real estate] tends to cause improve-ment inthequalityof thestock.”

Jesse Downs, managing director ofDubai-based Phidar Advisory, a prop-erty research firm, says that despite anoffice vacancy rate of 21 per cent inDubai, there is still a scarcity of top-quality options aimed at internationalcompanies. This has prompted bothHSBC and Standard Chartered to buildtheirownheadquarters.

Pressure from lower oil prices maypush Middle Eastern governments toopen up to more foreign direct invest-ment, CBRE argues. Mr Maclean is urg-ing the UAE government to sell some ofthe developments it owns and occupiesto help build confidence in the sector byoffering assets with long-term, govern-ment-backed, incomestreams.

Meanwhile, the global search forincome in a low-yield environment haspushed capital towards property. MrShivpuri says that global investors suchas Brookfield Asset Management andBlackstone, the private equity investorswho have become the world’s largestproperty managers, are now “exploringemerging markets for higher returnsandassetdiversification”.

Mr Maclean says Brookfield’s boldskyscraper in Dubai is “an example of amajor international corporate putting astake here, and that’s caused quite alevelof interestamongothers”.

Dubai lures foreign investorsReal estate Globalgroups dip their toesinto the commercialproperty market,writes Judith Evans

Towering ambition: a rendering of ICD Brookfield Place, funded by institutional investment from abroad

Across the United ArabEmirates, the average costof a hotel stay reached an11-year low in October

Plastic Tree C by Pascale MarthineTayou at Art Dubai

Saturday 10 December 2016 ★ FINANCIAL TIMES 3

Destination UAE

M aitha al-Memari’s grand-mother could only dreamof going to school and hermother had just a basichigh school education.

But for Miss Memari, 20, the horizonseems wide as she contemplateswhether she should take up postgradu-ate studies after she earns a bachelorsdegree at one of the most prestigiousuniversities intheworld.

“Or maybe I’ll join the ministry of for-eignaffairs,”shemuses.

For many Emirati women, who havegrown up in a socially conservative soci-ety where traditional gender roles havelimited their prospects to early mar-riage and motherhood, such a choicewould be unthinkable. But MissMemari, who is studying social researchand public policy at New York Univer-sity Abu Dhabi, is part of a millennialgenerationofhighlyeducatedwomen.

As oil prices remain depressed andthe region reels from turmoil in Iraq andSyria, the success story of women’s edu-cation in the United Arab Emirates isone of the few bright spots in the MiddleEast. Progress has been made over a rel-atively short period and driven by vasthydrocarbon wealth — the UAE has theseventh-largest proven oil reserves intheworld,nearlyallofwhichare locatedintheemirateofAbuDhabi.

In 1975, shortly after the oil was dis-covered, only 38 per cent of Emiratiwomen over the age of 15 could read orwrite. Today, that figure is 92 per cent,compared with 90 per cent for men.Women make up 70-75 per cent of thestudent body in state universities,according to government figures. In pri-vate institutions, the gender ratio isabout50percent.

As oil prices have fallen since June2014, federalpublic spendingwascutby27 per cent in 2015, according to local

news reports. But Emirati rulers are stillinvesting in education, encouragingwomen, inparticular, tostudy.

“Our best bet, at this period of timewherewehavewealth, is to investallourresources in education; there will be atime, 50 years from now, when we loadthe last barrel of oil aboard the ship,”said the crown prince of Abu Dhabi,Sheikh Mohammed bin Zayed al-Nahyan, inaspeechlastyear.

It was not until the late 1960s that aformal education sector was developedin the UAE and primary schools opened.Before that, some children might havereceived a rudimentary education froman imam. At first, many families werereluctant to send their daughters toschool, out of fear that they would mix

with boys. But as the money from oilexports began rolling in during the late1970s, the sheikhs began to build a sys-tem of separate boys’ and girls’ schoolstoaccommodatecultural traditions.

The first university in Abu Dhabiopened in 1977, but it was not until the1990s, when literacy rates soared after ageneration’s worth of investment ineducation, that women began going touniversity in large numbers. Zayed Uni-versity, a popular women-only institu-tion, opened in 1998. In 2008, the uni-versityopeneditsdoors tomenonasep-arate campus. Tuition at Zayed Univer-sity is free forEmiratis.

Abeer, 21, who did not want to useher last name, is a recent ZayedUniversity graduate working in public

relations. Her family felt comfortableallowing her to study, she says, knowingshe would be in a women-only environ-ment. Although her father is a success-ful businessman, the fact that tuitionwas free was an added incentive. “Myfather really encouraged and advisedme,” she says. “He only said, ‘I want youtostudysomethingthatyou’dbeexcitedtogotoworkinthemorningfor.’”

At private institutions such as NYUAbu Dhabi, a sprawling white-stonecomplex surrounded by sandy desertwhere annual tuition for a full-timeundergraduate is $76,032, scholarshipspaid for by the Emirati governmentensure that any student bright enoughto win a place can attend. There are cur-rently1,050studentsat theuniversity.

The social consequences of two gener-ations of educated women are nowbeginning to emerge. Emirati women,like their counterparts in the west, arestarting to get married later in life. Theaverage age of marriage is now 23.9,according to the Abu Dhabi StatisticalYearbook. While that is still muchyounger than in the US, where the aver-age age is 28, in the pre-oil era, Emiratiwomencouldbemarriedasyoungas13.

Other consequences are more diffi-cult to measure, but just as striking.Some women are beginning to questionsocial conventions in a way that wasonceunthinkable.

Emal, 34, who also declined to giveher last name, was accepted to Strath-clyde University in Abu Dhabi severalyears ago to study business administra-tion. The campus is mixed gender, butshe kept that a secret — her older broth-ers would have refused to let her attendhadtheyknown,shesays.

“It was only after I graduated that Isaid, ‘Listen, it was a mixed university,’”Emal laughs. “They were shocked. But,come on, you can’t just spend time withwomen.This isnotnormal life.”

Her gamble paid off. Emal is nowcompleting a masters degree at the(mixedgender)Paris-SorbonneUniver-sity Abu Dhabi and her family membersare supportive. “I tell them I’m 34 andit’smylife,”shesays.

Another 22-year-old former studentfrom Dubai, who did not want to benamed because she has fallen out withher family, fought with her mother for ayear to attend NYU Abu Dhabi. “Theydid not want me to live on campusbecause they felt it is disrespectful toour culture,” she says. “But in the end Inagged so much. I said I would not liveon campus, I would drive every dayfrom Dubai. I got a full scholarship, soeverythingwaspaidfor.Theyagreed.”

Now she lives at home, like mostunmarried Emirati women, but shewould like to move to Abu Dhabi andhas secretly applied for a job in humanresourcesatauniversity there.

“I need to convince my parents to letme live by myself,” she says. “I will bethe first woman in my family to do this.But I’m confident: I have already won thefirstbattle.”

Women break with tradition in order to studyEducation A push toencourage girls to goto school has shiftedsocial norms, reportsHamida Ghafour

On campus:Maitha al-Memari is anundergraduatestudent at NewYork UniversityAbu DhabiSiddarth Siva

‘Our bestbet, in thiswealthyperiod, is toinvest all ourresources ineducation’

4 ★ FINANCIAL TIMES Saturday 10 December 2016

inventory [of hotel rooms] is going tobring prices down, so we will have totighten our belts,” he says. “Yes, touristnumbers are growing, but inventory isgoingupquickerthandemand.”

Despite anecdotal evidence of a slow-down in expatriate employment in theemirates, more schools are entering theDubai market. North London CollegiateSchool, the UK’s top-performing Inter-national Baccalaureate school, is toopen a campus in Dubai next year. NLCSDubai’s principal, Daniel Lewis, says heis confident about bringing similarstandardsofexcellence toDubai,havingalready launched a branch of the schoolin Jeju,SouthKorea.

The Dubai schools regulator says theopening of 15 new schools this year,compared with seven last year, is evi-dence of demand for places. “Peoplemake babies and babies go to school,”says Abdulla al-Karam, director-gen-eral of Dubai’s Knowledge and HumanDevelopment Authority. “Even in theworst year of 2009-2010, schools werestill growingat3percent,”hesays.

Continued from page 1

Dubai’s debt crisis of 2009, when theemirate was bailed out by its richerneighbour, Abu Dhabi, has now receded— although at 130 per cent of GDP, theburdenmakesnewborrowingtrickier.

Four new theme parks on the out-skirts near the border with Abu Dhabiare testament to imaginative financingmethods being required to keep up thepace of development. The start-up costsof $2.9bn for the theme parks, whichinclude a Legoland and Motiongatepark, were covered by launching an$680m initial public offering in 2014 forDubai Parks & Resorts and a $458mrights issue earlier this year to fund a Six

Flagsparkscheduledtoopenin2019.The developer’s parent company

Meraas, which is controlled by Dubai’sruler, launched the offering whenDubai’s stock market index was 25 percent higher than it is today, riding highonthebackof the2011-2014boom.

Legolandhopes toattract repeatvisitsfrom local residents and regional tour-ists. Some, however, have lambasted thehigh prices which are around 80 percent higher than at the British version ofthe park. “Our ticket pricing structure ispositioned in line with marketplaceconditions,” says Siegfried Boerst, gen-eralmanagerofLegolandDubai.

Other government-related entities,and the large merchant families thatdominate the private sector, are helpingto keep spending on infrastructure tick-ing over. Contractors have helped bybringing their own financing to con-structionprojects.

“Non-core projects and those notrelated to Expo 2020 might be scaleddown, but the critical areas needed toexpandtheeconomicbase, liketourism,will continue,”saysMsMalik.

Pouring concrete to fight a slowdown

Destination UAE

Wolfgang Hohmann arrived in Dubai 14years ago and unpacked a container inan empty showroom on Sheikh ZayedRoad to set up the city’s first indepen-dentbikeshop.

Recreational cycling was then a mar-ginal sport, with ragtag groups ofcyclists taking their lives into theirhands on the treacherous highways,where 4x4s and sports cars drive dan-gerouslyandathighspeed.

In response, Mr Hohmann took overthe organisation of a road cycling cluband introduced safety cars to drive pro-tectivelybehindgroupsofriders.

“When we started people thought:‘What a stupid idea, riding your bike inthe desert’. So in the first years it washard to make it a success,” says the Ger-man expat, who is known in the cyclingcommunity as the eponymous “Wolfi”of Wolfi’s Bike Shop, one of manycycling outlets that now exist in theemirate. “But then the royal familyfound an interest in cycling, and we gotthe cycling track and that made it spe-cial.”

Dubai’s crown prince, Hamdan binMohammed al-Maktoum, is a keencyclist and Abu Dhabi’s crown princeand de facto ruler, Mohammed binZayed al-Nahyan, has also taken aninterest in the sport as part of a cam-paigntoencouragehealthy living.

The United Arab Emirates, like otherGulf states, is facing an obesity crisis,with rates at double the global average.One in five Emiratis suffers from diabe-tes. “The vision is to make sport morepopular to reduce obesity anddiabetes,” says Mr Hohm-ann.

A combination ofamateur endeavoursand state planninghas transformed thecity’s cycling sceneover the past fewyears. In 2012, adefunct camel race-track was transformedinto loops of up to 8kmnext to Dubai’s racecourse atNad al-Sheba. Around 130km oftrack have been added at Al Qudra inthedesertoutskirtsof thecity.

Bike tracks are also being built alongthe man-made Dubai canal, which hasextended a natural creek through thecity to the open sea. A cycle and pedes-trian bridge will link them to the Nad al-Sheba track and, eventually, to thedesert loops. The city’s master plan,

already encompassing about 200km ofcycle lanes, envisions more routes bytheendof thedecade.

“I don’t think there is anywhere elsein the world where you could find hun-dreds of kilometres of purpose-builttracks that are free for anyone to use,”says David Stark, a partner at Deloitte,whoregularlyrideswithhiscolleagues.

As Dubai and the other emirates pro-mote recreational cycling as a way totackle health problems, the UAE is alsocourting the professional sport. In 2002,the neighbouring Gulf state of Qatar wasthe first to use its petrodollars to lure professional cyclists to race under thewintersun.Omanfollowedsuit in2010.

Dubai’s annual tour began in 2014and was followed by Abu Dhabi’s end-of-season event in 2015. The capital’srace this year will be repeated in Febru-ary 2017, this time as a competitionscheduled at the beginning of the eliteracingcalendar.

Cycling purists, however, tend to lookdown on these new races in the Gulf.Theirbarren,pan-flatdesert stagesend-ing in sprints in the shadow of glassyskyscrapers are a long way from the ver-dant climbs, ancient churches andquaint villages of traditional Europeanraces. A lack of cycling heritage in theregion also means paltry crowds turningout to cheer the peloton. In November,the British commentator Ned Boultingtold The Cycling Podcast that the DubaiTourwasa“stinker”.

Nevertheless, Dubai cyclists say thesport must evolve at its own pace. As inthe west, cycling is growing in popular-ity among older professionals, who havethe spare income to splurge on carbon-fibre bikes that can be more expensivethan a car. Emirates airline, Dubai’snational carrier, has started its owncycling club, while other companiesorganise safety-car-supported rides fortheiremployees.

In Dubai, where golf is king, cycling isbeginning to lure those who

want to burn more calo-ries. “Lots of people are

moving over from golfto cycling — it’s moredynamic and theycan enjoy an extrasporty element,”saysMrHohmann.

Khalid al-Zarooni,the president of

Dubai Sports City — asports complex that also

contains residential andcommercial property — has taken

to cycling himself. One of Dubai’s newerresidential areas, Sports City also organ-isescyclingevents throughtheyear.

Mr Zarooni says the Dubai and AbuDhabi tours have encouraged residentsboth to take part in and watch the sport.“We want as many people as possible tolive their life by staying fit, healthy andactive,”hesays.

Purpose-built tracksentice locals toget on their bikesSport An effort to fightobesity and diabeteshas prompted rulers toinvest in cycling,reports Simeon Kerr

S ince the late 1990s, two citieshave accounted for the lion’sshare of the United ArabEmirates’ success in attract-ing tourists and expatriates:

Dubai and Abu Dhabi. The country’sother big centres lacked the developedsocial and cultural infrastructureneededto lureacriticalmassofvisitors.

But, since the 2008 financial crisisand subsequent global recession, thenorthern emirates of Sharjah and Rasal-Khaimah have revived earlierattempts to broaden their appeal totourists and residents seeking cost-effi-cient alternatives to their counterpartstothesouth.

Sharjah is just 20km north of Dubai,but its modest Arab and Indian archi-tecture, inexpensive hotels and infor-mal atmosphere present a conspicuouscontrast to Dubai’s luxurious offeringssuch as the Armani hotel and theShangri-La. Itspopulation—over30percent of whom are Pakistani or Indian —is large: currently 1.25m in a country ofmorethan8.2mpeople.

Between Sharjah International Air-port and the city’s well-maintained,tree-lined Corniche Street, lies a dustyindustrial area that supplies both Dubaiand Abu Dhabi with metal, wood andconcrete for its infrastructure projects— Sharjah is home to a third of the coun-try’s manufacturing base and about45,000 small and medium enterprises,such as electricians, garages and rawmaterials suppliers.

Not far away, museums, Emirati mar-kets, parks and budget restaurants canbefound.AnIndianmeal inarestaurantwithin walking distance of Sharjah’s artsdistrict costs the equivalent of $4 and acup of sweetened Pakistani tea about 25cents.

As part of its rejuvenation, Sharjahhas embarked on a green energy drive,with 20km of solar-powered streetlighting in its tourism hub, parks andstadiums. The city is hosting arts festi-vals, including its 13th biennial, SB13, inMarch 2017 at the Sharjah Art Founda-tion. Over the next year, SB13 will stageprogrammes in Sharjah and Beirut aswell as projects in the Senegalese capitalofDakar, thePalestiniantownofRamal-lahandIstanbul.

In January, there are plans to launchPublishing City, a permanent 19,000 sqm structure, housing translators, dis-tributors,printersandover150publish-ers from the UK, the US, India andChina. “I have been going to the SharjahBook Fair and the area for severalyears,” says John Ingram, chairman ofthe US-based Ingram Content Group,which specialises in print-on-demandand distribution. “We are very seriouslylooking at the possibility of opening upan operation as early as next year or theyear after. The attractions are multiple:the opportunity to distribute closer tomarkets is key, since speed is always aconsideration when shipping from theUS or UK. A tax advantaged location isalsoveryattractive.”

Faisal Durrani, head of research atproperty advisers Cluttons, says Shar-jah’spotentialasa less-expensivetouristdestination is emerging: “It has been anunknown community for a long time,often perceived to be a cheaper alterna-tive to Dubai. Rents are roughly half ofwhat they are there.” While averageapartment rents in Dubai fell 2 per centin the third quarter of 2016 from theprevious quarter, the average cost ofrenting an apartment — about $2,800 amonth — is still higher than at its 2008low point. In Sharjah, a three-year rentcap, beginning once the tenancy agree-ment has been signed by both parties,offersanextra incentive.

In 2014, Sharjah introduced newproperty laws, allowing foreigners tobuy homes in designated areas, openingthe city’s housing stock to foreign buy-ers for the first time. “Families gravitateto Sharjah because of the city’s cost andmore regional feel,” says Mr Durrani.“People who live in Sharjah usually seeka lessglamorous lifestyle.”

Further north, the emirate of Ras al-Khaimah, a once-secluded fishing out-post, is also being modernised for thoseseeking lower prices. A 27 per centannual increase in UK visitors from2015 to 2016 is partly the result of astrategy to lure 1m visitors a year by theend of 2018 and 2.5m-3m a year by2025. The Ras al-Khaimah TourismDevelopment Authority is targetingUAE residents, as well as tourists fromGermany,RussiaandIndia.

Northernemirates striveto reinventtheir image

Tourism Alternatives emerge for those seekinga less flashy experience, writes Burhan Wazir

Historic tours:A fort in Hatta,Ras al-KhaimahClint Lucas/ Getty Images/

Lonely Planet Images

“Ras al-Khaimah is attracting visitorswho want a more unique Arab experi-ence,” says Haitham Matter, chief exec-utive of Ras al-Khaimah Tourism Devel-opment Authority. With more than 18heritage sites such as forts and castles,the emirate offers both history and cul-ture, he says. “That has proven to bevery attractive as a package. You cansave up to 30 per cent on an equivalentholiday [in another emirate such asDubai], which is why we saw 15 per centgrowththisyear.”

Meanwhile, the UAE is also beingcourted by the halal tourism industry,which caters for observant Muslimguests, with segregated beaches, poolsand gyms. Abu Dhabi will host theWorldHalalTourismsummit in2017.

The global value of tourists who onlygo on halal holidays has grown in recentyears. An industry worth £115bn in2014 is projected to increase to £160bnby 2020, as resorts in countries such asTurkeyseektocapturethemarket.

“Both Sharjah and Ras al-Khaimahare upcoming alternatives,” says UfukSecgin, chief marketing officer of Halal-Booking.com. “Sharjah has offeringssuch as non-alcohol hotels. We are wait-ing for segregated beaches, pools andother facilities.”

‘The historyand culturehas provenveryattractive asa package’

Saturday 10 December 2016 ★ FINANCIAL TIMES 5

Destination UAE

A typical expensive Dubai restauranttends to be a facsimile of tried-and-tested concepts parachuted in from thefood capitals of the world. Importedingredients, fawning silver service andexpensive wines leave diners thankfulthat the tax-free city affords many ofthemalargedisposable income.

The Waney brothers’ network of Japa-nese, French and Peruvian outlets —Zuma, La Petite Maison and Coya,respectively — continue to set the stand-ard for fine dining, appealing to busi-ness people and casual lunchers as wellasyoungbankers letting theirhairdownat night. A branch of their Arts Club inMayfair, London, is also planned inDubai, saypeopleawareof thematter.

But globally recognised brands do notalways last the distance. Caprice Hold-ing’s joint venture with Dubai hotelchain Jumeirah has come to an end,leading to the closing of two RivingtonGrill outlets this year, as well as a branchof theIvy intheEmiratesTowers.

Homegrown concepts and sustaina-bly-sourced food are in greater demandamong customers more interested inauthenticity than bling. Baker & Spiceopened in Dubai in January 2009,expanding from its base in London andseeking to introduce a more casual, sus-tainableconceptusing localproduce.

Back then, the restaurant could relyon just three certified organic suppliersin the United Arab Emirates. But thesedays it works with 25 farms offering 125certified products, showcasing the localproduce at the restaurant and its shop,as well as at a farmers’ market it organ-isesduringthewinter.

“When you can’t find somethinglocally, these obstacles are merely waysto show one’s culinary prowess,” saysAndre Gerschel, director of operationsfor Baker & Spice in the UAE. Omanioctopus, for example, is used overimportedseafood.

When regional produce is unavaila-ble, however, Baker & Spice will go far-ther afield. Mr Gerschel sources beefand lamb from Canada. “When we can

find the same quality locally, we will dothat,”headds.

Mr Gerschel accepts that farming inan arid region causes its own environ-mental problems but argues that thishas to be balanced against the carbon footprint caused by imported food. Therestaurant is battling against the Dubaicustom of offering expensive bottles ofimportedwaterover local supplies.

“It is hard to struggle for perfection inthe desert in terms of sustainability andwe are in an adolescent phase. So weserve free local filtered water to try andencouragebestpractices,”hesays.

Baker & Spice, which is now expand-ing into Bahrain and Kuwait, is morefocused on serving nationals and resi-dents than the tourism market, he says.But the challenge of catering for clien-tele who are always looking for noveltyas well as coping with very high rentalcosts mean many restaurants shut

downbarelymonthsafteropening.“We have not seen a downturn in

business, though it is clear that lots ofbusinesses are struggling this year,” saysMr Gerschel. “We have decided againsta downward collusion — no three-for-one offers. We just do what is affordableforusandcater forresidents.”

Tough trading conditions are not pre-venting new concepts starting up, how-ever. A few years ago, Ali Sidani left hisjob in banking technology to pursue asecondcareerasarestaurateur.

Mr Sidani, whose mother-in-law isfrom Peru, took a culinary tour of thecountry to learn more about its cuisine.There he met Alex Barerra, now execu-tive chef at Mr Sidani’s restaurant inDubai’s financial district. The venture,Totora, is named after the South Ameri-can plant used to make traditional surf-boards. He has also launched the Gulf’sfirst Peruvian pollerio, Pollo Pollo, led byaspecialist inrotisseriechicken.

When Mr Sidani approached thePeruvian embassy with his plans threeand a half years ago, the excitement atthenoveltyof the ideawasclear,hesays.Now, there are at least 11 Peruvian-themed restaurants and bars in Dubaioffering ceviche and meat empanadas —andtherearemoretocome.

Mr Sidani takes a purists’ approach,eschewing the trend for fusion food. “Ibelieve fusion can lead to confusion,” hesays. “My philosophy is to give diners amini vacation, give them a trip to Peru.”Recreating Peruvian flavours from localingredients is difficult. Three types of aji— chilli pepper — are the core ingredientto his sauces, but are not available in theUAE. So Mr Sidani imports bottled aji toensureauthenticityof flavour.

When the chefs from one of his com-petitors came for lunch, they said theyneededthis flavour for theirownsauces.But Mr Sidani is not yet ready to sell hisspecial ingredient to competitors:“Theycancomeheretoeat it,”hesays.

Local restaurants seek outsustainable produceFood Diners areincreasingly interestedin authenticity ratherthan luxury brands,reports Simeon Kerr

Farm to fork: Andre Gerschel with his team of chefs at Baker & Spice, Dubai

‘When you can’t find[an ingredient] locally,these obstacles aremerely ways to showone’s culinary prowess’

T he United Arab Emirateshas often been derided forthe paucity of its culturalscene, its glitzy real estateprojects and mile upon and

mile of retail malls. But the last decadehas seen a surge of young artistic anddesign talent following the rise to inter-national fame of Emirati artists HassanSharif and Mohammed Kazem. Bothforeign residents and Emiratis havetaken advantage of a drive to promoteanartisticecosystem.

Since contemporary art galleriesbegan trading in the dusty Al Quozindustrial district of Dubai during theearly 2000s, increasing numbers of cul-ture-hungry expatriate residents in theemirate and in Abu Dhabi have partici-pated in the rise of a local art scene, dis-covering and collecting works fromacross the Middle East. The launch ofthe Art Dubai fair in 2006 brought auc-tions,biennialsandpop-upplatforms.

Much of the progress has beenfocused on building infrastructure.Dubai now boasts an array of galleries,facilities and platforms, such as theAlserkalAvenuecomplexthathostsres-idencies for localandglobalartists.

Art Dubai has brought a youthful,international crowd to the city everyMarch and private awards and prizes

have emerged, from the Abraaj GroupArt Prize to the Sheikha Salama Foun-dation’s annual fellowship with theRhodeIslandSchoolofDesign.

As Dubai’s financial crisis started tobite in 2008, contemporary galleriesbegan to move into Alserkal Avenue, acompound of industrial warehousingunits in Al Quoz. Since then, it hasexpanded into a complex that housesmore than 60 art, design and creativevenues that include foundations, pri-vate collections and communityprojects. “That is an indication of theexponential growth that the creativesector has seen,” says Vilma Jurkute,directorofAlserkalAvenue.

The government recently unveiledD3,adedicatedzoneaimedatencourag-ing international design companies toset up in Dubai. There, ideally, experi-enced designers will integrate with alocal pool of talented Emirati millenni-als, upon whose shoulders rests anambition to make the country a sourceofskilledartanddesignprofessionals.

“I think the future looks promising,”says Sultan Sooud al Qassemi, founderof the Barjeel Art Foundation in Shar-jah. “[Art] is an industry that is here tostay. It won’t be one of Dubai’s mainindustries but it’ll be stable and slowlygrowingoverthenextdecade.”

Artists anddesigners findinspirationclose to homeArt Local and global talent has been fostered bynew facilities, writes Arsalan Mohammad

Farah al-Qasemi, photographer, AbuDhabi, studying at Yale School of Art

What themes and concerns drive you?

For my recent Alserkal Avenuecommission It’s Not Easy Being Seen, Ibecame interested in the invisible actsof physical and emotional labour thatwomen carry out on a daily basis. I useda green screen as a metaphor forphotographic visibility and made asequence of images, as well as video.

Can one have a fulfilling career as ayoung artist within the UAE?

We are lucky [as citizens] to have somany institutions as platforms foryoung artists. We must extend thoseopportunities to other UAE residents.We need to continue working towards aself-sustaining, outward-facing, artisticcommunity.

How do you contrast the experience ofbeing an artist in the US and UAE?

It’s very different. In the UAE, we’re stillworking towards critical dialogue — Ithink there’s a tendency to err on theside of praise rather than criticism.

Janet Bellotto, artist and professor atZayed university, Dubai

Can young artists make a serious careerin the UAE these days?

I think it really depends on your ideasand determination. While many citiesare still experiencing a strugglingeconomy, there are opportunities foremerging artists — in particular fornationals and UAE residents. But thereis still a need for non-profit platformsand spaces where artists canexperiment and test their ideas. Also weneed competitive grants for the arts.

How have your students evolved intheir approaches in recent years?

It is important to see what else ishappening in the world — how differentartists are using materials. I thinkInstagram, and other social mediaplatforms have a major impact here.

Students today are used to seeinginterdisciplinary practices, likeinstallations and video projects, and sothese ideas are more accessible. Also, asthere is more information about the artthat is being exhibited locally, thevocabulary is becoming more familiar.

Noor al-Suwaidi, Emirati artist andcurator who studied in the UK and US

How do you contrast the experience ofbeing an artist at home and abroad?

There is a gap, but I graduated over 10years ago and it’s a different landscapetoday. Back then, I would search to findan art show but now we are spoilt.There are so many events that I can’tattend them all! That’s a sign that thecultural scene has evolved and grown.

Finding your art tribe was hard then,but now it is easy to connect and stayupdated because of social mediaplatforms. I think social media plays ahuge role on how artists and curatorsconnect all over the world today.

Who would you cite as an especiallyimportant influence? And how do youwant your work to evolve?

My works are personal in nature andcome from my own experiences. Thebooks I read influence me the most,along with music and travelling.

I believe artists have a role to addbeauty, hope and positivity in the world,especially at a time when so muchnegativity is happening in this region.

Shaikha al-Mazrou, Emirati artist andteacher at the University of Sharjah

Has the drive to develop a culturalindustry been tied to the policy ofdiversifying output in years to come?

Art should not be considered primarilyan economic asset, although obviouslyartworks do have financial value. Weshould concentrate on the aesthetic andintellectual quality of the creation, andresist over-commercialisation of culture.

Does Dubai promise young artists thepossibility of a successful career? Howhave foreign influences affected recentgenerations of Emirati artists?

In the middle of the boom of thecreative industry in this city, one canhave a successful career with a well-paid job. The development of artsinfrastructure can lead to a moreoptimistic future. But this country hasnever been really isolated — especiallyin recent history. Therefore, the westerninfluence was inevitable but it is not theonly reason for the inspiringinternationalism we are seeing, which isanyway characteristic of the art anddesign scene. AM

Building careers Emirati artists and teachers discuss a developing art scene

From left: Farah al-Qasemi’s It’s NotEasy Being Seen; Janet Bellotto’sExpedition to Paradise Adrift;Reflections by Noor al-Suwadi;Tension II by Shaikha al-Mazrou

6 ★ FINANCIAL TIMES Saturday 10 December 2016