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Friday, June 26, 2020, 13:00
A tale of two cities that share the spirit of business
By Azam Khan in Shenzhen
Friday, June 26, 2020, 13:00 By Azam Khan in Shenzhen

Towers rise up into the sky in this view of Shenzhen's central business district, June 7, 2019. (PHOTO / VCG)

Dubai, as a global city, is the crown jewel of the Arab world, and Shenzhen is a socioeconomic success story reflecting the potential China can realize. Both the cities were nothing more than fishing villages four decades ago. But guided by visionary governance, they achieved economic miracles in an unprecedentedly short time; now both dominate their respective parts of the world in practically every sector.

Shenzhen and Dubai both take pride in being smart cities and both are high on global economic rankings. They have plentiful mechanisms in place for smart entrepreneurs to set up shop.

Shenzhen and Dubai both take pride in being smart cities and both are high on global economic rankings. They have plentiful mechanisms in place for smart entrepreneurs to set up shop

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Sheikh Mohammed, ruler of Dubai, recently announced the launch of Dubai Future District, a new space dedicated to the development of "future economy", as well as 1 billion Arab Emirate dirham (US$272 million) fund to support entrepreneurs who can power Dubai's future growth-another initiative to go along with the many existing start-up incubators, hubs and funding for entrepreneurs-such as the Dubai Smart City Accelerator, and the Dubai Silicon Oasis Authority. The city's vibrant and diverse start-up culture is partly responsible for Dubai winning the bid to host the 2020 World Expo, in which new cutting-edge innovative companies from hundreds of countries will be a major theme.

Shenzhen is frequently dubbed the "Silicon Valley of Asia" for good reason. It not only gets massive incentives and funds from the government, it has also laid the foundation for tech manufacturing decades ago. Now, thanks to a thriving entrepreneurial culture and a massive migrant workforce, the city is tailor-made for high-tech initiatives, be it in artificial intelligence or financial technology. The entire city functions in a "smart" space, from financial transactions to electric taxis. Start-up incubators, such as HAX Accelerator, are copious, and the government continues to incentivize entrepreneurs for start-ups, arrange for training their workforce, and provide funding and facilities for them.

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Although Dubai enjoys an unmatched diverse population and workforce (more than 80 percent foreigners), its strict residency and visa laws may not be conducive to retaining foreign talents. Perhaps Dubai could learn from Shenzhen to grant long-term residency to migrant workers and talents, which would help attract more longterm investment to the city.

Like Shenzhen, Dubai's strict laws make it mandatory for foreign start-ups to have a local partner, with the latter holding majority share. But Dubai is relaxing such laws by establishing zones that allow entrepreneurs 100 percent ownership, but more reform is needed to turn Dubai into a high-tech hub like Shenzhen. Dubai could also learn from Shenzhen how to build a financial technology system by synchronizing its hardware and software hubs. Dubai has ambitious plans to expand its entrepreneurial space, for which it needs to upgrade its banking and fintech sectors, making them more efficient and cost-effective.

On the other hand, Shenzhen could learn from Dubai how to make its entrepreneurial community more diversified and cosmopolitan. After all, diversity enhances creativity and helps to better meet global needs. By focusing on branding Shenzhen more as a global city-in the way Dubai has branded itself-and creating a foreigner-friendly atmosphere (for example, enabling the use of foreign bank accounts for WeChat pay), Shenzhen can boost its already high potential and become a truly global city.

azamkhan@chinadailyhk.com


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