Dubai Government on how it overcame the crisis

by Jörgen Eriksson on March 1, 2014

Dubai skyline

Dubai - The Global Financial Crisis - Lessons learnedThe Government of Dubai’s Department of Finance on Thursday released a report which highlights how it overcame the 2009 global financial crisis.

The report is an interesting explanation of how active and bold place management can overcome financial problems. It does not explicitly mention the risks that were taken but it can be read in-between the lines. There are seven major lessons:

  1. Lesson one: There is a need for constant readiness for a crisis, particularly when the economy is passing through prolonged periods of prosperity and growth as mistakes are overlooked, accumulated and leading to a crisis, and therefore caution should be taken and periodic reviews of monetary and fiscal policies should be done.
  2. Lesson two: Globalization needs to be developed and strengthened rather than abolished as well as strengthening the global financial institutions and the speed of response of countries around the world to coordinate their efforts to cope with the crisis.
  3. Lesson three: Governance means re-Governance of the government sector, the private sector as well as financial institutions and increasing the control of the Central Bank on the activities of financial institutions, and reviewing many of the credit rating agencies since this classification was one of the reasons for trading in weak securities which contributed to increasing the bubble.
  4. Lesson four: Adoption of clear and strict fiscal policies in dealing with public debt and budget deficit levels to restrict it and increase the efficiency of government spending through the creation of a government entity specializing in public debt.
  5. Lesson five: Contracting the financial system with higher levels of supervision and regulation, since the expansion of the financial system over the real economy creates false inflation and eases the introduction of samples into the market facilitating the collapse of these markets.
  6. Lesson six: Review foreign investments which were negatively affected with the move towards domestic investment and that applies to most Arab countries, especially the Gulf who lost many of its foreign investments.
  7. Lesson Seven: The expansion of investment and raising the efficiency of operational spending while focusing on investment spending. Dubai benefited from this lesson and worked accordingly which had a great impact on the speed of economic recovery in the UAE.

The report can be downloaded by clicking on the link below. Read the report from page 26 and in reverse for the English version.

About Jörgen Eriksson :

Jörgen Eriksson is the founder of Bearing and is the Chairman of the firm since it was created. He has successfully expanded Bearing into covering projects on four continents. He is also Adjunct Professor of Innovation Management at the International University of Monaco and at Universitat Politècnica de Catalunya in Barcelona and he is an active member of the Founders Alliance organisation.

Working with consulting engagements across Bearings practices, he has over the past fifteen years participated in and supervised a large number of client projects, from innovation system development and place development and branding, to merger and acquisition assignments and leading edge research and business development activities for key clients.

His new book, Branding for Hooligans, will be published in 2015. It is about how innovation and branding are key survival factors in our modern times of hyper competitive markets.

Prior to Bearing, he was Director of Europe, Middle East, and Africa for Trema Treasury Management, a technology and consulting services provider, supplying financial software solutions for the global financial industry, Clients included The European Central Bank, Citibank, SEB, South African reserve Bank, Deutsche Bank, Abu Dhabi Investment Authority (ADIA), as well as many other large financial institutions and Fortune 500 companies.

Early in his career Eriksson was educated at the Stockholm School of Economics, where he studied economics, financial economics and philosophy. He then worked in Scandinavian investment banks and also for the Swedish Institute of National Defense Research.

You can contact Jörgen on e-mail jorgen.eriksson@bearing-consulting.com, connect on LinkedIn on http://fr.linkedin.com/pub/jörgen-eriksson/0/38/8a0/ and follow him on twitter on joreri508.

{ 1 comment… read it below or add one }

Amber campbell March 2, 2014 at 20:59

Hi jorgen,
I like very much and understand the article on saving financial crisis and precautions, which are obvious, to any bank and economy. i live inMonaco and if you are here, It would great to possibly hire or involve you in our newest venture.

Thank you,
Amber Campbell

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