DUBAI GDP Construction Oil & natural gas Manufacturing 10% 2% Transport & Comm., 14% 8% Real Estate and Bus. Services 15% Financial services 8% Trade 39% Others 4%It is true that Dubai’s economy was built on the back of Oil Money butDubai’s oil reserves have diminished significantly & are expected to beexhausted in 20 years
FREE ECONOMIC ZONES As of 2011 there are 18 free zones in the region including Dubai Aid and Humanitarian city, Dubai airport free zone, Dubai internet city, Dubai silicon oasis, Jebel Ali free zone and Dubai media city. Jebel Ali free zone (1985) was the first of these economic free zones. Dubai doesn’t levy tax on income, property and capital gains. In the Arab world it is considered Haram or forbidden to take unearned income. Which taxes are considered.
DUBAI IS A HOME TOOne of the biggest airports in the world.The largest man made port in the world.The largest mall in the middle east.The only 7 star hotel in the world (Burj Al Arab).The largest theme parks in the world and is estimatedto be bigger than Disney parks in Florida. (underconstruction)The largest skyscraper in the world (Burj Khalifa).The first man made palm-shaped man made island(Palm Jumeriah).
Shift from trade-based, oil- reliant economy Towards service and tourism oriented Real estate Boom- offered 40%returns and attracted investments
Height : 2,717ftYears : 2004-2010Total Cost :US$1.5billionOriginal name :Burj DubaiMultibillion dollar bailouts from itsoil rich neighbour Abu Dhabi.Hence the name BurjKhalifa, after the Abu Dhabi SheikKhalifa.
What is Dubai Crisis 2008- 09 ? The Dubai Debt Crisis 2009 has been called byeconomists a consequence of real estate bubble burst when on November 26, 2009 Dubai proposed to delay repayment of its debt which includes delay in the payment of $ 59 Billion debt on Dubai World by 6 months, aninvestment company for the Dubai government.
What happened ?Salaried people were given loans which was 10times their salary, which theyinvested in real estate.They earned profits out of it and the rates began increasing. They were givenmore loans when they showed their profits and hence lead to a bubbledeconomy.People began to invest in property developer companies who had dreamprojects worth millions of dollars. People invested in invisible investments.Mistake : Dubai’s decision to invest all his wealth as well as governmentfortunes in real estate markets through a foreign investment propertydeveloper in US which ultimately went bankrupt due to recession.Real estate prices fell to 58% from its peak. Expatriates fled the country.42.5% population in Dubai are Indians.
An artificial archipelago of small islands constructed in the rough shape of a world map. By January 2008, 60% of the islands were sold. On 10 January 2008 ,the final stone on the breakwater was laid, completing development of the archipelago. As of 2010, only a single island(“Greenland’’) has any building on it. The owner of the company which bought Ireland for £24 million, John ODolan, committed suicide, while the manThe Palm Islands are an artificial who bought Britain for £43 million, Safiarchipelago in Dubai on which major Qurashi, is serving seven years in jail incommercial and residential Dubai after being accused of bouncinginfrastructures will be constructed. cheques..The plan was to construct 3 palmislands : Palm Jumeriah ,Palm JebelAli & Palm Deira.As on date, only one Palm has beenconstructed.
Interesting Facts on DubaiLess than 20% of the population are the locals. It’s easy for them to feel strangers intheir own land. They have an extremely low crime rate.America perhaps invented malls, but it was Dubai that has set the standard. Malls inDubai are extremely luxurious affairs.It has the world’s most ambitious, well, everything…In 1968, there were reported only 13 cars in the whole cityAmazingly, you will not see street addresses in Dubai.Monetary unit of Dubai is the Dirham (Dh).1 INR = 0.07 AEDDubai’s average annual precipitation is just 13cm; but at times one forgets it is adesert.The dealings are finalized verbally and the business works, rather than paperdealings unlike other countries.Office working days : Sunday to Thursday
Stock Market ofDubaiDubai Financial Market is a stock exchange founded in 2000.Dubai International Financial Centre It offers benefits suchas zero tax rate on income and profits, 100 percent foreignownership, no restrictions on foreign exchange or capital/profitrepatriation, operational support and business continuityfacilities.NASDAQ Dubai is a privately held financial exchange thatopened in September 2005 as Dubai International FinancialExchange(DIFX) but it was rebranded as NASDAQ Dubai inthe year 2008. Products listed on the DIFX include ordinaryshares listed by DP World along with other Damas and DEPA.DP World is the largest IPOs in the Middle East and raised $4.96 billion. NASDAQ Dubai is regulated by Dubai Financial