Dubai
Dubai history: before and after, economy and more
Dubai is one of those dream places that we would like to visit once in our lives. It is an emirate that, has been able to take advantage of its resources and has worked to continue having the same amount of income in the future, without depending directly on a specific economic activity. Today we will talk a little about the history of Dubai.
Dubai is one of those dream places that we would like to visit once in our lives. It is an emirate that, has been able to take advantage of its resources and has worked to continue having the same amount of income in the future, without depending directly on a specific economic activity. Today we will talk a little about the history of Dubai.
Dubai history
There is no information you will see about the first human settlements in the United Arab Emirates, so it is not known exactly when the human presence happened on those lands. According to archaeological studies, some prehistoric sites and vestiges have been found. Taking into account the results of the findings, it follows that the first establishments were made during the late Stone age, a period in which the climate led to the existence of savannas and grasslands.
It is estimated that since the year 3000 a. C., the climatic conditions of the place were changing until the region acquired the arid characteristics that have been observed since then. The coastline experienced advances towards the sea and at the same time setbacks. In the years 2000 a. C., the coast line was delayed until it reached the surface that Dubai Internet City (a technology park) occupies today. A few hundred years later the coast moved back towards the sea, until it reached the current line.
For the year 5500 a. C., The region was packed with people who already practiced maritime trade and pastoralism.Then, at the end of the Wadi Suq period and the beginning of the so-called Iron Age, agriculture began to take on greater importance in trade, by therefore, the date palm began to be cultivated, in addition to practicing fishing that was emerging as an economic activity of equal importance to agriculture.
Historians suggest that the commercial progress experienced by the region resulted in the establishment of trade relations with the Magan civilization and other tribes located in the regions we now know as Iraq and Pakistan.
Among the most important commercial products were copper and pearls, apart from the crops, and later, several communities were forced to migrate due to desertification, which left their lands sterile, which implied a massive migration by part of the farmers.
The first descriptions of the UAE date back to the years 932 and 948, when the author Abu’l-Fraja Qudama described an itinerary that crossed an area referred to as “al-Sabkha-trad”. which means "the salt flats", which extended from Oman to Basra, passing through Qatar. Although it is not known if this itinerary crossed precisely Dubai.
According to the results of the archaeological finds in Jumeirah (a coastal residential area of Dubai), the Sassanids settled in the region approximately in the fourth century and gradually extended their domain to the current country of Yemen.
However, there lived a tribe with which they had a certain rivalry, the Azd tribe, they were one of the factors that led to their expulsion from the territory in 630, which was when the practice of Islam began to spread. said confrontation between the Azd and the Umayyads, there are no more records of other notable events in the region until the year 750, when the Abbasids occupied the region and faced some factions of the Azd tribe that lived in Oman. In the ninth century the Zanj rebellion broke out
When the first millennium of the common era arrived, the UAE was no longer the kings of commerce, instead Cairo, Egypt, they remained as the main center of trade in the East, although maritime trade remained relevant and several Arab settlements had commercial ports that allowed them to import, for example, silk and porcelain from the Chinese Empire. Due to the decline suffered by the UAE, El Cairose became the main center of commerce in the region.
Due to its prosperous maritime activity the European powers wanted those routes, Portugal was the first European nation to want to take control of those maritime routes established by the Emirates with India and the Far East between 1498 and 1557 the routes, which resulted in brutal clashes between Portuguese and soldiers of the Ottoman Empire and finally the Ottomans won. But two centuries later, in the 1700s, France, the Netherlands and Great Britain imitated the Portuguese initiative.
At the regional level, the territory of Dubai was dominated by two factions that maintained a struggle with each other: the Qasimi, a tribe of pirates who controlled the north, and the Bani Yas, to the south. In their continuous efforts to monopolize the sea routes, the British had to fight the Quasimi.
At the beginning of the 19th century, the top ranking of Dubai was Mohammed bin Hazza, and the region depended directly on Abu Dhabi.On January 8, 1820, Bin Hazza got a meeting with the sheikhs of Ras al-Khaimah, Umm al -Qaywayn, Ajman, Sharjah and Abu Dhabi and the British, who said that these were pirates, said meeting concluded with the signing of the General Peace Treaty, in which the British promised to avoid acts of piracy in the region. This fact marked the beginning of his protectorate in Arab territory
In 1822, Dubai had a total population of 1200 inhabitants and several of its houses were built of mud, according to a report written by English Lieutenant Robert Cogan in the same year.The region was surrounded by a wall of low height and had three watchtowers in order to notify any news. Cogan was one of the first to draw a map of the city of Dubai that included sea level.
In 1833, eight hundred members of the Al-Maktoum clan of Al Abu Falasa, which belong to the Bani Yas. They left their settlement in the oasis of Liwa, southwest of Abu Dhabi, they went to invade Dubai, with Maktoum bin Butti in command. They ended up conquering Dubai and Maktoum bin Butti established the eponymous dynasty that governs the emirate ever since.
One of the main objectives of Maktoum being in command, was to guarantee the protection of Dubai from the British, who at that time already dominated the trade routes of the East and had some influence on the politics and system of government of several Arab territories .
In 1841, an epidemic outbreak of smallpox happened that caused a large part of the population of southern Dubai to move to the center of the emirate, to Deira. A decade later, the territories of Sharjah, Dubai and Abu Dhabi signed the Perpetual Treaty of peace and friendship with the United Kingdom, which gave a chance to pay attention to the foreign policy of the emirates, then known as Truce States, in exchange for protection against any possible invader.
In 1894, Sheikh Maktoum bin Hasher al-Maktoum Maktoum made the decision to grant a tax exemption to foreigners interested in purchasing products in Dubai, that is, converting it into a free zone. The sheikh saw that the emirate's commercial relations began to be diminished and were decreasing, so he proceeded to make that decision that significantly encouraged trade.
Several Persian merchants moved to Dubai and established the Al Bastakiya neighborhood, named after the Bastak region, south of Persia. That same year a vast fire in Deira caused the destruction of several homes, so the inhabitants began to build with new materials such as coral and plaster.
During the first 30 years of the twentieth century, the economy of Dubai depended directly on the commercial activities they maintained in the Persian Gulf. He was the richest emirate in the territory and Dubai was known as the Venice of the Gulf.
According to the historian G. G. Lorimer, in 1908 Dubai generated revenue of USD 51,400. Its population oscillated in approximately 10 000 inhabitants, and Deira was the sector that had the greater amount of houses and stores of the emirate, between 1600 and 3500, respectively.
In the 1930s urban planning began to have a great boom in the emirate, however, after the international economic crisis of 1929 and World War II, plus the emergence of a new industry in Japan that was dedicated to the creation of synthetic pearls, the economy of Dubai began to diminish and went through a strong crisis that caused the definitive cessation of the pearl trade, by mandate of Sheikh Saeed bin Maktoum.
Thanks to that devastating economic crisis, several of its inhabitants moved to Saudi Arabia and Kuwait between the decades of the 1940s and 1950s. The population level decreased from 38,000 to 20,000 residents between 1940 and 1953. As an alternative to the crisis, the sheikh decreed that the economy of the emirate would have to be redirected to the re-export of goods to other commercial ports.
In those years, the existence of oil deposits on those lands began to be sought and Dubai was no exception, because in 1937 a subsidiary of Iraq Petroleum Company was hired to carry out underground exploration work to see if al´ I had oil.
The search for oil revived disputes among the Emirates in the face of the need to establish border boundaries between their territories; In the year 1940, a military conflict occurred due to the same problem of establishing the rubbers, between Dubai and Sharjah, this problem was solved by the British Government under the warning of ceasing its gunpowder supplies in case of continuing the dispute.
A similar situation occurred in 1947, this time between Dubai and Abu Dhabi on the issue of establishing the border lines between the two regions, and again the English gave solution to the problem by defining a definitive border boundary between the two regions.
In the 1950s, the British Government moved its administrative offices from Sharjah to Dubai. Despite the crisis suffered a few years ago, the government invested in the incorporation of electricity and telephone networks, first-class medical services, new educational models, a local police force and a municipality in charge of projects in development of the capital It was the main reason for the move.
An airport was built in the city and cement was introduced in 1955. The establishment of the Council of Truce States, aimed at developing official meetings and agreements between the different sheiks, would end up being one of the antecedents for the eventual formation of the United Arab Emirates.
Before and after Dubai
The search for oil fields had begun in the 1940s, but in 1960 it had a great boom, a decade in which Dubai also increased its commercial activity with other countries such as India and Pakistan, four years after Abu Dhabi will begin exporting oil, oil fields were found in Dubai in 1966 in an area located 97 km from the capital city.
Given the news of the discovery of oil in the region, Sheikh Rashin bin Saeed al Maktum referred to the area as a Fateh oilfield, whose meaning in Spanish is “good fortune.” Next, Bin Saeed granted concessions to several companies foreign for the extraction of crude oil; in 1968, the Continental Oil Company announced the construction of an underwater storage facility in Fateh, with a capacity of 79,000 cubic meters, the objective was to replace the manual transport of oil by cisterns.
With the discovery of oil in Dubai, the problems also came because the British government suggested that it would dissolve the agreement of the Truce States, on the other hand, the Sheikhs of Dubai and Abu Dhabi were discussing the possibilities of establishing a new nation. After the completion of the submarine station run by Continental Oil company in 1969, Dubai began exporting its oil to the rest of the world.
On December 2, 1971, the sheikhs of the Truce States met and agreed on the formation of a federation called United Arab Emirates, an idea that was approved and incorporated almost instantly into the Arab League. Zayed ibn Sultan Al Nahayan, Sheikh of Abu Dhabi, was elected as the first president of the UAE, while Rashid, of Dubai, served as vice president.
As of this event, Dubai became one of the most stable city-states, in terms of its political situation, in the Arab world, which gave it prestige among the other emirates. they allowed the Government of Dubai to invest in several infrastructure projects that included buildings, highways and pipelines.
Due to the economic success that Dubai was having, the population level increased by more than 300% between 1968 and 1975, which led it to be the second most populous emirate in the UAE, only surpassed by Abu Dhabi with almost 30,000 more inhabitants.
In 1979, the port city of Jebel Ali was inaugurated, which is considered to be the largest artificial port in the world and with a great influence in the Persian Gulf, at the same time as the construction of the World Trade Center Dubai began, Dubai International Airport and Jebel Ali Free Zone.
After the war between Iran and Iraq, in the 1980s, in which the UAE supported Iraq economically, domestic policy focused on the search for economic alternatives to generate higher revenues and avoid direct dependence on oil.
Dubai had to look for economic alternatives because they knew that their oil reserves were more limited than those of other emirates of the federation.In 1990, Maktum bin Rashid Al Maktum replaced his late father as Sheikh of Dubai and vice president of the UAE.
Five years later, his brother, Mohamed bin Rashid Al Maktum, was elected as crown prince, becoming the new de facto ruler of the emirate. In the 1990s, tourism began to appear on the economic scale, becoming an important economic activity, following the organization of events such as the Dubai Shopping Festival and the Dubai World Cup, in addition to the construction of the luxury hotel Burj Al Arab known for its candle-shaped design.
In the early 2000s, the price of oil decreased to critical levels, decreasing the economy of the emirates, then the UAE implemented a series of economic strategies for subsistence based on tourism, telecommunications, aviation and aluminum exports, among others areas.
Architectural projects continued to expand and several free zones such as Dubai Media City, Dubai Internet City Technology Park and Dubai Knowledge Village were inaugurated. On the other hand, the works of the artificial islands The Palm Islands, the Burj Khalifa skyscraper and the Dubai Mall also began, until in 2008 an economic crisis arrived that caused the paralysis of numerous projects due to lack of profitability.
In 2012, after a long four years of economic recovery, the economy reactivated again after the issuance of bonds as a solution to an event that unleashed a storm in the stock markets for several days.
At the beginning of 2013, Dubai was chosen as the venue for the International Exhibition of 2020, being the first time this event will be held in the Middle East, which gives Dubai even more reputation. Its strategic program for the exhibition is based on sustainability and the promise of financing innovative solar energy and drinking water projects that allow these basic services to be extended to the communities that need them.
According to a report prepared by The Big 5, which is a construction consortium in the Middle East, by mid-2016 there were 3,700 construction sites in Dubai, with an investment of approximately USD 400 billion.
Among these works we can find the IMG Worlds of Adventure, considered as the largest covered theme park in the world, Bluewaters Island, an island with squares, hotels and a 260-meter-high ferris wheel called Dubai Eye; The Tower, a skyscraper more elevated than the Burj Khalifa; as well as the Mohammed Bin Rashid Al Maktoum City - District One and Dubai World Central demarcations.
Dubai economic history
Thanks to its strategic geographical location, its flexible fiscal policies for foreign investment, its economic stability and the numerous infrastructure projects, Dubai has established itself as a cosmopolitan business emirate.
Its Gross Domestic Product has maintained an annual growth of more than 3% since 2010, however, between 1975 and 2008 it maintained an increase of between 6 and 9%, similar to the boom experienced by Hong Kong and Singapore.
In 2017, its Gross Domestic Product was about 410.56 billion AED, which is equivalent to 111.79 billion USD and represents about one third of that of the entire country, estimated in that same year at 1.4 billion AED, equivalent to 382.57 billion USD. Dubai's revenues from oil have declined since the 2000s and currently represents 1% of revenues from its economic range, despite having the second largest crude oil reserve in the UAE.
The construction and real estate industry have a considerable economic impact on the emirate and concentrate most of the government investments.The economic crisis that Dubai went through in 2008 was mainly due to the granting of financing credits for infrastructure and construction works. to the constant increase in property prices, leading to the formation of a financial bubble that, when it burst, had a negative impact on foreign direct investment.
The Dubai Marina district has been listed as one of the main real estate axes of the emirate, with a fluid economic activity, while the organization of the 2020 World Exhibition, to be held in Dubai, has attracted national and foreign investment, especially the Asian market, which continues to place Dubai as one of the main cities in which you can invest, as well as having a good holiday.
A significant part of the government's investments in infrastructure have been destined to hotels as well as to commercial and recreational establishments, with the aim of attracting national and international tourists, and of course, leaving them good economic income.
It is important to mention that another of the important sectors in the economy is that of aviation, which contributes around 30% to the Gross Domestic Product. There is also a group of aeronautical services, established by the Dubai Aerospace Enterprise, which aims to become the most innovative and successful in the aeronautical industry worldwide.
In the emirate there are several free trade areas, such as Dubai Media City, Dubai Knowledge Village and Dubai Maritime City, which together with the emirate's fiscal policies, aim to promote international trade, as well as being vitally important to achieve the economic stability in the emirate.
In these free trade zones, international law applies, there are no taxes applicable to the income of companies or entrepreneurs in the private sector, nor are they required to pay any fees for the exchange of products. In addition, the total repatriation of capital or profits is allowed.
The first free trade zone in the UAE was Jebel Ali, which began operations in 1980. Some of the main countries to which Dubai exports merchandise are Saudi Arabia, India and Switzerland, while India, Iran and Iraq are the main nations to which it re-exports its merchandise. Its main suppliers are India, China, the United States and Germany.
We can say that historically, Dubai has always been one of the main gold and jewelry markets in the world; and in 2016 Dubai Gold & Commodities Exchange got 19.7 million contracts in the market, which meant a remarkable 36% increase over the previous year.
The financial market in Dubai began operating in March 2000 as a securities and bond trading system, applied to both locals and foreigners. It has another headquarters for the dubaiti stock exchange with the NASDAQ indicator, which makes it the most international market of all countries in the area.
These measures, which have been mentioned before, are those that have allowed small and medium-sized companies in the UAE to have the possibility of maintaining commercial exchanges, as well as representing easy access for local and foreign investors.
In 2004 the service industry covered most of the financial market, although almost a decade later its place has been taken by construction and real estate. Dubai is also recognized as an international financial center; in September 2017 the Think tank Z / Yen placed it in the eighteenth world position, first if we only focus on the Middle East
There is no information you will see about the first human settlements in the United Arab Emirates, so it is not known exactly when the human presence happened on those lands. According to archaeological studies, some prehistoric sites and vestiges have been found. Taking into account the results of the findings, it follows that the first establishments were made during the late Stone age, a period in which the climate led to the existence of savannas and grasslands.
It is estimated that since the year 3000 a. C., the climatic conditions of the place were changing until the region acquired the arid characteristics that have been observed since then. The coastline experienced advances towards the sea and at the same time setbacks. In the years 2000 a. C., the coast line was delayed until it reached the surface that Dubai Internet City (a technology park) occupies today. A few hundred years later the coast moved back towards the sea, until it reached the current line.
For the year 5500 a. C., The region was packed with people who already practiced maritime trade and pastoralism.Then, at the end of the Wadi Suq period and the beginning of the so-called Iron Age, agriculture began to take on greater importance in trade, by therefore, the date palm began to be cultivated, in addition to practicing fishing that was emerging as an economic activity of equal importance to agriculture.
Historians suggest that the commercial progress experienced by the region resulted in the establishment of trade relations with the Magan civilization and other tribes located in the regions we now know as Iraq and Pakistan.
Among the most important commercial products were copper and pearls, apart from the crops, and later, several communities were forced to migrate due to desertification, which left their lands sterile, which implied a massive migration by part of the farmers.
The first descriptions of the UAE date back to the years 932 and 948, when the author Abu’l-Fraja Qudama described an itinerary that crossed an area referred to as “al-Sabkha-trad”. which means "the salt flats", which extended from Oman to Basra, passing through Qatar. Although it is not known if this itinerary crossed precisely Dubai.
According to the results of the archaeological finds in Jumeirah (a coastal residential area of Dubai), the Sassanids settled in the region approximately in the fourth century and gradually extended their domain to the current country of Yemen.
When the first millennium of the common era arrived, the UAE was no longer the kings of commerce, instead Cairo, Egypt, they remained as the main center of trade in the East, although maritime trade remained relevant and several Arab settlements had commercial ports that allowed them to import, for example, silk and porcelain from the Chinese Empire. Due to the decline suffered by the UAE, El Cairose became the main center of commerce in the region.
Due to its prosperous maritime activity the European powers wanted those routes, Portugal was the first European nation to want to take control of those maritime routes established by the Emirates with India and the Far East between 1498 and 1557 the routes, which resulted in brutal clashes between Portuguese and soldiers of the Ottoman Empire and finally the Ottomans won. But two centuries later, in the 1700s, France, the Netherlands and Great Britain imitated the Portuguese initiative.
At the regional level, the territory of Dubai was dominated by two factions that maintained a struggle with each other: the Qasimi, a tribe of pirates who controlled the north, and the Bani Yas, to the south. In their continuous efforts to monopolize the sea routes, the British had to fight the Quasimi.
At the beginning of the 19th century, the top ranking of Dubai was Mohammed bin Hazza, and the region depended directly on Abu Dhabi.On January 8, 1820, Bin Hazza got a meeting with the sheikhs of Ras al-Khaimah, Umm al -Qaywayn, Ajman, Sharjah and Abu Dhabi and the British, who said that these were pirates, said meeting concluded with the signing of the General Peace Treaty, in which the British promised to avoid acts of piracy in the region. This fact marked the beginning of his protectorate in Arab territory
In 1833, eight hundred members of the Al-Maktoum clan of Al Abu Falasa, which belong to the Bani Yas. They left their settlement in the oasis of Liwa, southwest of Abu Dhabi, they went to invade Dubai, with Maktoum bin Butti in command. They ended up conquering Dubai and Maktoum bin Butti established the eponymous dynasty that governs the emirate ever since.
One of the main objectives of Maktoum being in command, was to guarantee the protection of Dubai from the British, who at that time already dominated the trade routes of the East and had some influence on the politics and system of government of several Arab territories .
In 1841, an epidemic outbreak of smallpox happened that caused a large part of the population of southern Dubai to move to the center of the emirate, to Deira. A decade later, the territories of Sharjah, Dubai and Abu Dhabi signed the Perpetual Treaty of peace and friendship with the United Kingdom, which gave a chance to pay attention to the foreign policy of the emirates, then known as Truce States, in exchange for protection against any possible invader.
Several Persian merchants moved to Dubai and established the Al Bastakiya neighborhood, named after the Bastak region, south of Persia. That same year a vast fire in Deira caused the destruction of several homes, so the inhabitants began to build with new materials such as coral and plaster.
During the first 30 years of the twentieth century, the economy of Dubai depended directly on the commercial activities they maintained in the Persian Gulf. He was the richest emirate in the territory and Dubai was known as the Venice of the Gulf.
According to the historian G. G. Lorimer, in 1908 Dubai generated revenue of USD 51,400. Its population oscillated in approximately 10 000 inhabitants, and Deira was the sector that had the greater amount of houses and stores of the emirate, between 1600 and 3500, respectively.
In the 1930s urban planning began to have a great boom in the emirate, however, after the international economic crisis of 1929 and World War II, plus the emergence of a new industry in Japan that was dedicated to the creation of synthetic pearls, the economy of Dubai began to diminish and went through a strong crisis that caused the definitive cessation of the pearl trade, by mandate of Sheikh Saeed bin Maktoum.
In those years, the existence of oil deposits on those lands began to be sought and Dubai was no exception, because in 1937 a subsidiary of Iraq Petroleum Company was hired to carry out underground exploration work to see if al´ I had oil.
The search for oil revived disputes among the Emirates in the face of the need to establish border boundaries between their territories; In the year 1940, a military conflict occurred due to the same problem of establishing the rubbers, between Dubai and Sharjah, this problem was solved by the British Government under the warning of ceasing its gunpowder supplies in case of continuing the dispute.
A similar situation occurred in 1947, this time between Dubai and Abu Dhabi on the issue of establishing the border lines between the two regions, and again the English gave solution to the problem by defining a definitive border boundary between the two regions.
In the 1950s, the British Government moved its administrative offices from Sharjah to Dubai. Despite the crisis suffered a few years ago, the government invested in the incorporation of electricity and telephone networks, first-class medical services, new educational models, a local police force and a municipality in charge of projects in development of the capital It was the main reason for the move.
An airport was built in the city and cement was introduced in 1955. The establishment of the Council of Truce States, aimed at developing official meetings and agreements between the different sheiks, would end up being one of the antecedents for the eventual formation of the United Arab Emirates.
Before and after Dubai
The search for oil fields had begun in the 1940s, but in 1960 it had a great boom, a decade in which Dubai also increased its commercial activity with other countries such as India and Pakistan, four years after Abu Dhabi will begin exporting oil, oil fields were found in Dubai in 1966 in an area located 97 km from the capital city.
Given the news of the discovery of oil in the region, Sheikh Rashin bin Saeed al Maktum referred to the area as a Fateh oilfield, whose meaning in Spanish is “good fortune.” Next, Bin Saeed granted concessions to several companies foreign for the extraction of crude oil; in 1968, the Continental Oil Company announced the construction of an underwater storage facility in Fateh, with a capacity of 79,000 cubic meters, the objective was to replace the manual transport of oil by cisterns.
With the discovery of oil in Dubai, the problems also came because the British government suggested that it would dissolve the agreement of the Truce States, on the other hand, the Sheikhs of Dubai and Abu Dhabi were discussing the possibilities of establishing a new nation. After the completion of the submarine station run by Continental Oil company in 1969, Dubai began exporting its oil to the rest of the world.
On December 2, 1971, the sheikhs of the Truce States met and agreed on the formation of a federation called United Arab Emirates, an idea that was approved and incorporated almost instantly into the Arab League. Zayed ibn Sultan Al Nahayan, Sheikh of Abu Dhabi, was elected as the first president of the UAE, while Rashid, of Dubai, served as vice president.
As of this event, Dubai became one of the most stable city-states, in terms of its political situation, in the Arab world, which gave it prestige among the other emirates. they allowed the Government of Dubai to invest in several infrastructure projects that included buildings, highways and pipelines.
Due to the economic success that Dubai was having, the population level increased by more than 300% between 1968 and 1975, which led it to be the second most populous emirate in the UAE, only surpassed by Abu Dhabi with almost 30,000 more inhabitants.
In 1979, the port city of Jebel Ali was inaugurated, which is considered to be the largest artificial port in the world and with a great influence in the Persian Gulf, at the same time as the construction of the World Trade Center Dubai began, Dubai International Airport and Jebel Ali Free Zone.
After the war between Iran and Iraq, in the 1980s, in which the UAE supported Iraq economically, domestic policy focused on the search for economic alternatives to generate higher revenues and avoid direct dependence on oil.
Dubai had to look for economic alternatives because they knew that their oil reserves were more limited than those of other emirates of the federation.In 1990, Maktum bin Rashid Al Maktum replaced his late father as Sheikh of Dubai and vice president of the UAE.
Five years later, his brother, Mohamed bin Rashid Al Maktum, was elected as crown prince, becoming the new de facto ruler of the emirate. In the 1990s, tourism began to appear on the economic scale, becoming an important economic activity, following the organization of events such as the Dubai Shopping Festival and the Dubai World Cup, in addition to the construction of the luxury hotel Burj Al Arab known for its candle-shaped design.
In the early 2000s, the price of oil decreased to critical levels, decreasing the economy of the emirates, then the UAE implemented a series of economic strategies for subsistence based on tourism, telecommunications, aviation and aluminum exports, among others areas.
Architectural projects continued to expand and several free zones such as Dubai Media City, Dubai Internet City Technology Park and Dubai Knowledge Village were inaugurated. On the other hand, the works of the artificial islands The Palm Islands, the Burj Khalifa skyscraper and the Dubai Mall also began, until in 2008 an economic crisis arrived that caused the paralysis of numerous projects due to lack of profitability.
In 2012, after a long four years of economic recovery, the economy reactivated again after the issuance of bonds as a solution to an event that unleashed a storm in the stock markets for several days.
At the beginning of 2013, Dubai was chosen as the venue for the International Exhibition of 2020, being the first time this event will be held in the Middle East, which gives Dubai even more reputation. Its strategic program for the exhibition is based on sustainability and the promise of financing innovative solar energy and drinking water projects that allow these basic services to be extended to the communities that need them.
According to a report prepared by The Big 5, which is a construction consortium in the Middle East, by mid-2016 there were 3,700 construction sites in Dubai, with an investment of approximately USD 400 billion.
Among these works we can find the IMG Worlds of Adventure, considered as the largest covered theme park in the world, Bluewaters Island, an island with squares, hotels and a 260-meter-high ferris wheel called Dubai Eye; The Tower, a skyscraper more elevated than the Burj Khalifa; as well as the Mohammed Bin Rashid Al Maktoum City - District One and Dubai World Central demarcations.
Dubai economic history
Thanks to its strategic geographical location, its flexible fiscal policies for foreign investment, its economic stability and the numerous infrastructure projects, Dubai has established itself as a cosmopolitan business emirate.
Its Gross Domestic Product has maintained an annual growth of more than 3% since 2010, however, between 1975 and 2008 it maintained an increase of between 6 and 9%, similar to the boom experienced by Hong Kong and Singapore.
In 2017, its Gross Domestic Product was about 410.56 billion AED, which is equivalent to 111.79 billion USD and represents about one third of that of the entire country, estimated in that same year at 1.4 billion AED, equivalent to 382.57 billion USD. Dubai's revenues from oil have declined since the 2000s and currently represents 1% of revenues from its economic range, despite having the second largest crude oil reserve in the UAE.
The Dubai Marina district has been listed as one of the main real estate axes of the emirate, with a fluid economic activity, while the organization of the 2020 World Exhibition, to be held in Dubai, has attracted national and foreign investment, especially the Asian market, which continues to place Dubai as one of the main cities in which you can invest, as well as having a good holiday.
A significant part of the government's investments in infrastructure have been destined to hotels as well as to commercial and recreational establishments, with the aim of attracting national and international tourists, and of course, leaving them good economic income.
It is important to mention that another of the important sectors in the economy is that of aviation, which contributes around 30% to the Gross Domestic Product. There is also a group of aeronautical services, established by the Dubai Aerospace Enterprise, which aims to become the most innovative and successful in the aeronautical industry worldwide.
In these free trade zones, international law applies, there are no taxes applicable to the income of companies or entrepreneurs in the private sector, nor are they required to pay any fees for the exchange of products. In addition, the total repatriation of capital or profits is allowed.
The first free trade zone in the UAE was Jebel Ali, which began operations in 1980. Some of the main countries to which Dubai exports merchandise are Saudi Arabia, India and Switzerland, while India, Iran and Iraq are the main nations to which it re-exports its merchandise. Its main suppliers are India, China, the United States and Germany.
We can say that historically, Dubai has always been one of the main gold and jewelry markets in the world; and in 2016 Dubai Gold & Commodities Exchange got 19.7 million contracts in the market, which meant a remarkable 36% increase over the previous year.
The financial market in Dubai began operating in March 2000 as a securities and bond trading system, applied to both locals and foreigners. It has another headquarters for the dubaiti stock exchange with the NASDAQ indicator, which makes it the most international market of all countries in the area.
These measures, which have been mentioned before, are those that have allowed small and medium-sized companies in the UAE to have the possibility of maintaining commercial exchanges, as well as representing easy access for local and foreign investors.
In 2004 the service industry covered most of the financial market, although almost a decade later its place has been taken by construction and real estate. Dubai is also recognized as an international financial center; in September 2017 the Think tank Z / Yen placed it in the eighteenth world position, first if we only focus on the Middle East
Comments
Post a Comment