Dubai is the most happening and energetic city in the United Arab Emirates. Initially, all the wealth that was poured in the United Arab Emirates was basically from the oil oozing out of the desert and this started centuries back.
In 1960, when Sheikh Rashid Bin Saeed Al Maktoum invested in the infrastructure of the United Arab Emirates and built the country’s first ever airport. The struggle pushed many people out of Dubai but in return, many tourists came to the country and this became an open invitation for the foreigners to bring investment in the oil and gas industry of Dubai.
But with the passage of time and the rise in oil demand worldwide, the royal government of United Arab Emirates realized that the Dubai cannot depend on international oil investment completely as it is a natural resource and it can run out. Even though the initial investment started from oil resources but Dubai did not have an industrial sector to run the economy of the country.
Dubai – The Economic Zone
When Dubai declared herself a free economic zone opened doors to different industries and welcomed various and huge investment to the country. Dubai now has 30 free economic zones and offer tax breaks, customs duty compensation and makes foreigners eligible to purchase the property. But instead of giving a freehold of the property, the Dubai government started to give land on a lease which extended to 99 years. It was this land leasing which encouraged landowners to build Burj Khalifa, Dubai Marina, Jumeirah Village, and Burj Al Arab. Burj Al Khalifa is the world’s most expensive hotel and many more such projects are progressing as well.
Considering the market demand and choice of people, Dubai took an initiative for further modern economic investment by investing in tourism, real estate, and finance. This venture helped Dubai in maintaining constant economic growth.
The famous Burj Al Arab has become a symbol of Dubai and people every year fly to Dubai to have a look at the gigantic project. Not only this but beaches, huge water parks, and shopping has become famous landmarks of Dubai and attract tourists from around the globe.
The oil and gas company of Dubai generates up to 7% of total revenue and it is predicted that in the next 20 years, the country might run out of oil reserves.
Though the oil and gas industry still stand tall but the biggest revenue generation contributor has been taken over by the real estate. Real estate industry generates 22.6% of total revenue and contributes hugely to the Dubai economy. Followed by the trade industry which produces 16% revenue. This is not the limit as Finance services contribute 11% revenue towards the country’s economy.
Thousands of Jafza Companies are working in Dubai and have employed approximately 144,000 employees which generate $80 billion and add up to 21% of the Gross Domestic Product (GDP).
Dubai is also famous for being a shopping capital. Not only this but the shopping here is at an expensive side and attracts many rich people. This attraction also helps produce a large percentage of annual revenue. Dubai is also famous for her biggest Dubai shopping mall.
Even though inflation, in 2008 and onwards, badly affected the investors then and in the later years but the city is gaining back its robust style and tourist inflow increases every year. Not only this but advanced technologies like Hyperloop Planning and Drone Taxis are not only making life easier for the citizens and tourists but also adding riches to the city.
Dubai has also been ranked in the top most visited places in 2010 and is also said to be the third richest country of the world after Luxembourg and Qatar.