Dubai Economic FAQ's
Dubai Economic Overview
Dubai does not depend on oil for its income: oil revenues total only 6% of GDP. Dubai has built on its importance as a port and trade centre and has succeeded in attracting western business. It has a thriving banking and financial centre in the port area.
Today, Dubai has engraved a niche for itself as a luxury tourist destination and continuing development of ever more impressive and luxurious resorts and accommodation is likely to make this an ongoing trend. High tech and media companies have been attracted by industry-specific free zones in the city, which now play host to international giants such as IBM, Reuters, Oracle Corporation, CNN and Microsoft.
Dubai has a booming real estate market, backed by the government's strategy of diversification into the tourist and service industries. Vast projects, such as the Palm Jumeirah and The World developments, created entirely on man-made islands, are recognisable worldwide. Building is not limited only to expanding outwards; Dubai has some of the world's tallest sky-scrapers, including the world's tallest hotel, the Burj Al-Arab. Scheduled for completion in 2008, the new Burj Dubai will be the tallest building in the world. Work is underway on a new business district, which will include 500 sky-scrapers.
Dubai's economy grew around 16 per cent in 2005 to be worth an estimated $37 billion according to a statement from the Dubai Department of Economic Development (DED). This rate of growth is expected to beat that of China, acknowledged to be one of the fastest growing economies in the world today with a growth rate of 8.5 per cent.
Emphasizing that 2005 had witnessed a consolidation of Dubai's meteoric growth, Mr. Mohamed Ali Alabbar, Director General, Department of Economic Development (DED), reiterated that the Dubai's economy is sustainable over the long term. He anticipated that backed by business friendly governmental policies, the Emirate's economic growth would continue its steady pace and is expected to grow by at least 10 percent in 2004.
When compared to $17 billion in 2000, this puts the accumulated annual growth of Dubai's economy in the last decade at among the highest rate of growth in the world," Mr. Alabbar underlined the remarkable success of the diversification policy, which has been consistently adopted by the Emirate in the 80's and has been supported by the DED first developed strategic plan in 1997. "The non-oil GDP grew by 14.92 per cent in 2005. This shows a record rise of 236 per cent in the last decade."
The contribution of the non-oil sector to Dubais GDP was 94 per cent in 2005, underlining the success it has witnessed in economic diversification.
He added: "Dubai's economy has continued to grow at a significant pace in the last few years as a result of the innovative and forward looking strategies of the government. The establishment of transparent policies that support and encourage private enterprise has generated greater confidence in the economy."
"In formulating these policies, the Government of Dubai has always received extensive support from the private sector, which has come forward with innovative initiatives and suggestions, to further develop the business environment in the Emirate," said Mr. Alabbar acknowledging the contribution of the private sector to Dubai's economic growth.
Mr. Alabbar added that in addition to the constant growth of non-oil sectors, high oil prices have also contributed to Dubai achieving steady growth rates. Mr. Alabbar noted that the government initiatives had enabled a continuous inflow of foreign capital a trend that is expected to be maintained with the prevailing lucrative return on investment in key sectors. He pointed out that the Department, in addition to main economic sectors, will focus towards setting up a viable industrial sector, which is the real evidence of true economic growth, through the establishment of industrial incubators.
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