Rising from dust to becoming one of the largest metropolitan cities in the world, Dubai has come a long way. From tall buildings to humongous malls, adventures to diners, traditions to fun- Dubai has got it all. The city was not living in milk and honey until it got its first airport in the 1960s after which Dubai started shaping into what we know of it now!
With a reputation of being glitzy and glam, not many people know that the city has emerged as one of the leading global hubs for logistics, financial services, trade, and hospitality, making it the most desirable city to invest, live and work in.
This “fun-city” affords to be so because of the strong Dubai economy. We have rounded up some facts about the economy of Dubai that most of you probably do not know!
1. It kept the city going!
Do you know Dubai was one of the largest producers of pearls before the Japanese pearls came into the market in the 1900s? The pear industry was the main driving force for the city before the discovery of oils in 1966. The Dubai economy depended mostly on small fishing villages and pearl diving. This 7000 years old tradition does not contribute to the Dubai economy in 2020, however, it remains one of the legacies of this great city. The authentic Dubai pearls are now worn by only the rich and affluents as a mark of authenticity and elegance. However, it is noteworthy that the government is making efforts for its comeback.
2. Not just the oils!
Not many people know it but Dubai’s economic situation is not dependent on the oil sector as it was in earlier times. However, the fact that this city established it’s income and revenue from oil can’t be denied. The city produces 84,0000 barrels of crude oil daily. But it’s not the only factor for its great success. Petroleum and natural gas contributes 5% to the GDP which is far less than the contribution of other sectors like tourism that adds up to 20%. Over 90% of the city’s income comes from sectors like real estate, financial services, manufacturing, and construction. Considering oil won’t last forever, the government definitely did not think of relying on oils forever!
3. Got the best Location!
Dubai is bestowed with the best of locations. Strategically located in between developing Europe and tied to eastern culture-it enjoys the best of both the worlds! The city has 120 shipping lines and 85 airline routes, making it a perfect hub for international trade.
4. The Dubai Markets
Dubai has a huge market with almost 1.5 million people coming from America, Europe, Africa, the Middle East, and Asia. It has a phenomenal addition of almost 11% in the city’s economy.
One of the prime secrets for such a humongous market is the city’s location. The diverse nature of the Dubai market also makes it a shopping hub for people from all parts of the world. It is not just the elite shopping malls but the local souks are also one of the biggest currency minting spots for Dubai. Also, the city produces a decent amount of raw materials and agricultural exports that adds to the economy.
5. Top-notch Infrastructure
The exclusive and opulent infrastructure of Dubai contributes much to the Dubai economic situation. The government has worked a day in and day out to build the city the way it is. It is not just the Burj Khalifa that attracts tourists, the real estate of Dubai has also a significant addition in the city’s economy. A handsome income is generated from properties and residential buildings. It is the reason people invest in Dubai so much. The government has invested immensely in various sectors like telecommunication, transportation, industrial infrastructure. One of the world’s top-notch business centers, utility systems, highway systems, art telecommunications resides in Dubai making it one of the best cities to settle in.
6. Best of political environment
A nation prospers in the best of political conditions. If a place strives through political tension how will it manage to focus on other important issues. Fortunately, the political situation works best for the prosperity of the city. The pro-development government has flexible policies and protocols which makes it easier for investors and businessmen to bloom here.
7. Massive Export!
The manufacturing sector in Dubai is increasing rapidly. Many manufacturers of metals, aluminum, clothing, gold, garments, jewelry, consumer goods, textile, electronics, non-metallic minerals being exported out from the city contribute heavily to its economy.
8. Immense talent!
Establishing a business in Dubai is never seen as a problem. The city is abundant in manpower, skills, and professionals coming from all over the world. You will always find the best medical experts, marketing professionals, industry experts, engineers, etc in Dubai that can support the entrepreneurs well. So, skilled or unskilled, the city is never short of talent!
9. Free Zones are a bliss!
The major chunk of Dubai’s GDP is collected from foreign companies and offshore offices. Many companies like Google, SAP, Facebook have set up in Dubai. None of it would have been possible without the relaxation of the Dubai government. The tax free free zones here are one of the biggest spots for an emerging business.
10. The Local Emirati Culture!
The lush and posh life of local emirates in Dubai added with the most amicable conditions make this city a perfect place to live. Plus the modern housing amenities, cosmopolitan lifestyle, cultural diversity, low crime rates make the people wanting to settle down here. So, people from all the corners of the world are looking for opportunities to live here and ultimately grow with this growing city!
Dubai is budding and there’s no going back for this city full of zest, life, and opportunity. The city is making every possible endeavor to grow its economy and rise.
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