Dubai Inc.

Dubai World is a global holding company centered on strategic growth in areas such as transport and logistics; urban development; dry-dock and maritime; and investment and financial services.

Dubai World therefore is the parent company of several subsidiaries that include:

• Dubai Drydocks is the Middle East's largest shipyard facility [1].

• Dubai Ports World, a maritime company that owns over 65 marine terminals in over 6 continents.[2]

• Istithmar World is a Dubai-based investment firm.[3]

• Leisurecorp; an investment firm specializing in sports and leisure facilities, with golf being a primary focus.[4]

• Maritime City: an organization involved in ship repair, conversion, shipbuilding, maritime cluster and offshore.[5]

• Nakheel; a real estate developer in Dubai, responsible for the construction of the Palm Islands, Dubai Waterfront, The World, and The Universe Islands.

• P & O Ferries: One of Europe's leading ferry operators involved in freight and travel.[6]

• Tamweel, a real estate developer based in Dubai.

Dubai Holding was established in 2004 and is a global investment holding company with operations in 24 countries. Dubai Holding has 20,000 employees and is managed through the Dubai Holding Commercial Operations Group (DHCOG) and the Dubai Holding Investment Group (DHIG).[7] While DHCOG manages hospitality, real estate, and telecommunications, DHIG manages the financial assets of Dubai Holding company. These assets include investments and diversified financial services.

• DHCOG
  • Dubai Properties Group - A developer of locations that support the long-term development of Dubai, including destinations such as Business Bay, DubaiLand, The Walk at JBR and Culture Village. Through its subsidiaries Dubai Properties (DP) and Ejadah, the Dubai Properties Group also provides property related services such as project development and portfolio and asset management.[8]
  • Emirates International Telecommunications - An organization that invests in telecommunications in the Middle East, North Africa, and Europe.
  • Jumeirah Group - luxury hotels and resorts.[9]
  • TECOM Group - Formerly known as TECOM Investments, TECOM Group, a developer and operator of business communities that make a contribution to Dubai's sustainable economic growth. Through these communities, the company has provided a location for over 4,600 businesses, representing a total workforce of 74,000.[10]
• DHIG
  • Dubai Group - Established in the year 2000, Dubai Group is a company focused on financial services such as banking, investments and insurance on local and global scales. Through various affiliates, Dubai Group operates in the Middle East and North Africa region, European Union, North America, and Asia.[11]
  • Dubai International Capital - An investment company which primarily focuses on private equity in the Middle East and Western Europe.[12]

The Investment Corporation of Dubai (ICD) was formed in 2006 in order to consolidate and manage Dubai's investment portfolio with the aim of developing and implementing government policies and investment strategies to maximize shareholder value and benefit Dubai in the long term.[13] ICD has a portfolio that is representative of sectors that are deemed ‘strategic’ for the continued development of Dubai. Strategic sectors include Financial Industry Investment, Transportation, Energy Industries, Real Estate, Leisure, and other Holdings

• Finance and Investment
  

  Logo for Emirates NBD
  • Borse Dubai - “Borse Dubai is the holding company for Dubai Financial Market (DFM) and NASDAQ Dubai”.[14]
  • Dubai Investments - An investment company listed on the Dubai Financial Market (DFM). Dubai Investments has over 19,800 shareholders and a paid-up capital of AED 4 billion.[15]
  • Dubai Islamic Bank - An Islamic bank established in 1975 that is tasked with managing assets over US$1 trillion globally.[16]
  • Emirates NBD - A bank formed in 2007 when its shares were officially listed on the DFM.[17]
  • Others - Commercial Bank of Dubai, National Bonds, Noor Bank, Union National Bank, National Bank of Fujairah, Emirates Investment and Development, HSBC Middle East Finance Company, and Galadari Brothers Group.
• Transportation
  

  Logo for Emirates Airlines. A subsidiary of Emirates Group.
  • Dnata - A combined air services provider with over 23,000 employees from 38 countries.[18]
  • Dubai Aerospace Enterprise (DAE) - An aerospace company that provides aircraft leasing, repair, maintenance, and overhaul services.[19]
  • Emirates Group - An international aviation company in charge of Emirates Airline, Marhaba, Skywards, and many other subsidiaries.[20]
• Energy and Industrial
  • Cleveland Bridge and Engineering ME (CBEME) - A global leader in technology based engineering, construction and steel fabrication. CBME was founded in 1977 as a subsidiary of Cleveland Bridge & Engineering Company.[21]
  • Dubai Cable Company - A cable manufacturing company.
  • Emirates Global Aluminium (EGA) - An aluminium conglomerate with interests in bauxite and primary aluminium smelting.[22]
  • Emirates National Oil Company (ENOC) - The main energy group for the Dubai Government.
• Real Estate and Leisure
  • Emaar - A world leading real estate and development company.[23]
  • Atlantis The Palm - A 5 star hotel and amusement park located on the Palm.
  • Dubai Airport Free Zone (DAFZA) - Established in 1966, the free zone is located near Dubai International Airport.
  • Dubai World Trade Centre - A complex built for hosting events and exhibitions, responsibly largely for the growth of international trade in the Middle East.[24]
  • Others - Golf in Dubai, and Dubai Silicon Oasis Authority.
• Other Holdings
  • Aswaaq - A local shopping mall.
  • Dubai Duty Free Establishment - The largest airport retailer in the world, employing over 5,600 people and receiving over 480 rewards for its success.[25]
  • Emartech - The “leading technology and consulting company in the Arab World”.[26]
  • Emirates Rawabi - Established in they year 2000, Rawabi is UAE's leading poultry and dairy producer.[27]
  • Others - Emirates Refreshments Company.

Being a subsidiary of Dubai Inc., there is a major controversy regarding the Partnership for Open and Fair Skies. More specifically the “big three” US airlines, Delta, United Airlines and American Airlines,[28] believe that Qatar Airways, Etihad Airways and Emirates, are receiving billions of dollars worth of government subsidies to aid them in the growing airline industry. In terms of Emirates specifically, the “coordination between Emirates and its government owner, the Emirate of Dubai, is particularly brazen.”[29]

The ownership of Emirates by the Dubai government and the system of Dubai Inc. allows Emirates to operate in pursuit of its governments' own economic objectives, rather than by market forces like other commercial airlines.

A smaller example of this subsidy can be demonstrated through the recent TV commercial featuring Jennifer Aniston. This commercial, costing an estimated $20 million,[30] depicts Jennifer attempting to locate the shower on a generic U.S. airlines flight. The three flight attendants laugh and tell her there are no showers on board. The scene cuts to Jennifer waking on the Emirates A380, describing her “nightmare” to the bartender while sipping a martini.

American brands like American Airlines, Delta Airlines, and United Airlines, must be careful with money since they can't use taxpayer money similar to the European carriers. The multimillion dollar ad was only the tip of the iceberg when it comes to the amount of subsidies Emirates is receiving from the government: “If you're Emirates, based in Dubai, you can install showers, butlers, and bars on your A380s because your government owners deliver wheelbarrows of subsidy cash”.[31] Whereas American airlines such as American Airlines, Delta Airlines, and United Airlines, or their European counterparts, must take costs into consideration and spend prudently as they themselves do not have access to state treasuries. Emirates has spent over $11 billion in the purchase of goods and services, $2.4 billion from the government's assumption of fuel hedging losses, and $2.3 billion from subsidized airport infrastructure.[32] This mass subsidizing creates an increasingly tilted playing field for which airlines cannot compete. Not to mention, it violates the provisions of the two “Open Skies” agreements, which allowed the UAS open access to the U.S. aviation market in exchange for fair competition, between the United States and the United Arab Emirates. This results in not only the violation of the agreement, but also harms American jobs.[31]

Emirates has since responded to allegations of subsidies and unfair competition, claiming that the allegations of these three airlines are incorrect and accusing them of having "launched an aggressive lobbying campaign in January, in a protectionist bid to restrict consumer choice, and restrict the growth of international flights to the USA operated by Emirates and other Gulf airlines."[33] The Airline denies that it has received subsidies, and the president of Emirates, Sir Tim Clark stresses that Emirates has "been profitable for 27 years straight"[33] and, therefore, all subsequent growth has been sourced from the company's own cash flow. Emirates says it's successful because of better business practices and a model that uses geography and long flights.[34] Emirates estimates that the total amount of government investment since its foundation has been $218 million,[35] an amount that pales in comparison to the $6 billion accusation made by the US airlines. This amount is also negligible for a business that earned $23.6 billion in revenue last year, and Emirates claims that the initial investment has been repaid many times over through dividends.[36]

Furthermore, Clark argues that the US airlines have built their argument on the wrong legal standards, stating that the World Trade Organization's anti-subsidy rules are not applicable to international aviation, nor are they incorporated in US Open Skies agreements, making their claims fundamentally wrong.[37] Clark argues that the US has "framed their complaint in terms of their own narrow interests" adding that their Open Skies agreements are favored only when they "work to their financial advantage".[33]

The president of Emirates concludes that "The [US airlines'] white paper is littered with self-serving rhetoric about fair trade, [a] level playing field, and saving jobs, but their mess of legal distortions and factual errors falls apart at the slightest scrutiny”.[33]

The full report published by Emirates in a rebuttal to the US airlines' accusation is a 400-page document, including detailed analysis and exhibits to support their case.