Dubai, the beautiful capital of the United Arab Emirates, is also one of the world’s wealthiest cities. It is also popular among nobles all over the world. Dubai is home to every high-end item and well-known brand on the planet. The lovely city has some of the most popular tourist attractions, well-kept infrastructure, welcoming hospitality, and so on.
After Abu Dhabi, the capital state, Dubai is the second wealthiest emirate in the UAE. The city is a significant trade and tourist destination, and its port (Jebel Ali) is at the heart of Middle Eastern export trade. Dubai became a global hub for service industries such as IT and finance after establishing the Dubai International Financial Centre (DIFC) in 2004.
Most tourists believe Dubai’s revenue is primarily derived from oil. Still, only a tiny portion of the country’s oil reserves was used to build the necessary infrastructure for trade, manufacturing, and tourism. The non-oil sector accounts for over 95 percent of Dubai’s GDP. So far, oil has contributed less than 1% of Dubai’s GDP, with tourism accounting for 20% of the total. These figures explain why Dubai has become a more dynamic and diverse economy to survive the decline of fossil fuels.
Why is the City of Dubai so Rich?
Dubai and Abu Dhabi are two of the world’s oil-rich Emirates. This city is the hub of the Gulf and African trade. Despite its small oil reserves, Dubai has become wealthy due to black gold. Due to its strong economy, Dubai has become one of the world’s wealthiest countries in less than 50 years.
The pearl industry has long been the primary source of revenue in Dubai. This industry exploded from 1770 to the 1930s, bringing enormous country wealth. Residents of Persian Gulf fishing villages were thought to have dived into the sea in search of pearls.
The city created its first free economic zone, Jafza or Jebel Ali Free Zone, in 1985. It is the world’s largest free economic zone, covering 52 square kilometers. The location became a major draw for international companies. These companies now take advantage of the Emirate’s thirty free zones, which offer customs duty exemptions, tax rebates, and a lack of restrictions for foreign investors. Thousands of these businesses invest 20% of their profits in the city. 1.44 lakh employees earn more than $80 billion, contributing to Dubai’s GDP by 21%.
Dubai’s marine operations are another source of revenue for the city-state. Previously known as a little fishing hamlet, the city has grown into a massive commercial port. It is at a prime location for the marine business, which draws merchants worldwide.
All of these industries and fields contribute significantly to Dubai’s prosperity. As a result, both inhabitants and visitors enjoy a high standard of living. However, it is essential to note that while Dubai is wealthy, it is not the wealthiest state in the UAE. The UAE’s capital, Abu Dhabi, is the wealthiest state in the country, thanks to its oil reserves. The manufacture of items and provision of services connected to petroleum, petrochemicals, aluminum, and cement account for most of its revenue.
Dubai’s Purposes for the Wealthiest Economy are:
In the early 1990s, only a few hotels were open to tourists, and Dubai never had the same oil revenues as Abu Dhabi, so something had to change. In 1994, the Burj Al Project (Burj Al Arab Hotel) gave the economy hope as a long-term strategy to make Dubai the world’s most popular tourist destination. Dubai, one of the UAE’s most prominent tourist destinations, has seen tremendous economic change over the past 50 years or more.
The recent global economic slump has substantially influenced some of Dubai’s major projects. Even though Dubai’s economy is based on oil, the city’s banking and financial centers in the port region and service sectors were severely hurt when the global economic recession hit Dubai’s property market in 2008-2009. As a result, the bulk of the company’s ongoing projects and expatriate positions have been disrupted. Emaar had roughly $70 billion in credit, with an additional $10 billion from the state of Dubai, for a total real estate asset worth $350 billion.
Dubai has also established itself as a global technological center, catering to industries such as banking and information technology. The TECOM (Dubai Technology, Electronic Commerce and Media Free Zone Authority), which includes Dubai Internet City and Dubai Media City, is an enclave that is home to well-known IT companies such as EMC Corporation, Microsoft, Hewlett-Packard, Dell, Oracle Corporation, and IBM, as well as media companies such as BBC, MBC, CNN, Reuters, and Sky News.
With a promising growth rate of 6.1 percent in 2014, Dubai is on its way to becoming one of the fastest-growing economies in the Middle East. Several countries have substantial commercial relations with Dubai. In 2014, China was Dubai’s most important commercial partner, followed by India and the United States.