Dubai's "Operation Clean-up" has begun. As reported in this column in the October 2009 issue, last year, Dubai began an investigation into corruption in real estate companies, which benefited from surging demand after foreigners were allowed to buy property for the first time.Several top officials were arrested including top honchos of Deeyar, Tamweel & Dubai Properties. The financial shock that Dubai has had to face has also taken a toll on the top three stars of Dubai. Sheikh Mohammed Bin Rashid Al Maktoum on Nov. 20 removed the governor of the Dubai International Financial Centre, Omar Bin Sulaiman. A day earlier, he dropped Mohammad al-Gergawi, Sultan Ahmed Bin Sulayem and Mohammed Ali Alabbar from the board of the Investment Corporation of Dubai, the emirate's main holding company. New faces have now been inducted as reported on the last page of the issue under " Newsmakers".

As reported in September 2009 in this column that, " Of the total projects worth $900 billion across GCC, the UAE accounts for 46 per cent. Now compare this with India which is currently raising funds to embark upon a $ 500 billion programme to build infrastructure over a five year period. The investment programme itself was too ambitious to begin with but the boom fuelled the belief that it was within grasping distance. Land is abundant in UAE and to try and build new concepts to attract immigrants at high costs of development is like focusing your business strategy only on marketing a luxury product."

In April, we had assessed that industrial growth needed to be enhanced. We reported under this column that, "Sultan Bin Saeed Al Mansouri, the UAE's Minister of Economy recently at the Arab Steel Summit reiterated that the UAE's strategy is to support the economy by directing large investments toward the industrial sector in order to increase industry's contribution to the national GDP and decrease the country's dependence on oil."

Our March issue pointed out that, " Dubai needs to follow the example of China and India and closer still of Oman where construction projects are continuing despite the slowdown. This has been possible due to the government's resolve to build infrastructure. Government sponsored infrastructure projects open up more areas for development and some critical locations continue to see restraint in prices as the other options hold the tendency of prices from going wild."

Making a sustainable model has proven to be the most important lesson for all right through the dotcom era, housing bubble era and the derivative era. CW has always urged and touted the practices of sustenance whether it be by focusing on infrastructure for growth or for building the industrial sector, or for transparency and good governance or value based investments. Economy Minister Sultan bin Saeed al-Mansouri said recently on the federation's national day that UAE's Gross Domestic Product should rise by up to 3 percent next year after 1.3 percent growth this year. This indicates that although the world might like to believe that the cup of woes has begun to flow, we may be closer to the end of the downward curve. Dubai's economy accounts for only 8 percent of the total GDP of the six-member Gulf Cooperation Council bloc, which includes Saudi Arabia, the UAE, Kuwait, Qatar, Oman and Bahrain. The entire GCC has to work together at rebuilding the confidence in the GCC. If  Dubai was athe beacon for all foreign investments which helped propel the GCC to the global investors then the GCC too should work together in rebuilding the edifice of confidence.

Happy New Year!