"But what makes Abu Dhabi unlike not just its sister and competitor emirates but pretty much everywhere in the Arab world is its peculiar devotion to manufacturing.
Much of its oil wealth is being used to start industries from scratch: in cars and aerospace, components and chips. As well as Daimler, it has invested in companies such as GE, Rolls-Royce, EADS and Advanced Micro Devices. This may look quixotic, yet invariably these stakes come with local training and manufacturing commitments.
Along with reform of local education, the goal is to use manufacturing to create skills and a culture of innovation – much more than to establish new branches of old industries. This at least tries to offer an alternative to the usual model in the Gulf – where the public sector employs the bulk of nationals – or the trading company model common in most other Arab countries.
Some 40 years ago, the Syrian philosopher Sadek al-Azm wrote a famous critique of the mind-set underlying serial Arab defeats. Arabs, he said, have become removed from the social and economic processes that make innovation and scientific breakthroughs possible. Abu Dhabi, it seems, wants to create, not just consume."
If you have the cash and a taste for risk, this is a great time to mop up depressed stocks in companies that are fundamentally sound or have a great body of unique know-how. I'm still curious to see exactly how Abu Dhabi is convincing these companies to set up manufacturing centers in the emirates, and whether that makes sense (in trade logistics terms, it just might...)