Many years ago, Dubai was an ancient fishing village with seafaring tradition. As the time goes by, this region underwent significant transformation and changed identity.Today, Dubai is known as a part of the United Arab Emirates with prominent economy and stupendous infrastructure. This, however, leads Dubai into a city hub in the UAE according to market research Dubai.
Within few decades, the country has become a metropolis city-state. Dubai is now a gateway to North Africa and Middle East. It is not a surprise that the region is considered a lucrative arena for foreign investors to run their business. Dubai opens wide opportunity to enjoy the financial stability of the United Arab Emirates. Get to know more about Dubai and its economy condition below.
Dubai Key Business
Like the other regions in Arabian Gulf, oil becomes one of revenue sources for the government. Whatsoever, the city-state is far less dependent to oil compared to the other countries. Oil takes less contribution to state revenue than it used to. As alternatives, it finds other sources such as property and trade.
When it comes to oil, the production gradually decreases. Back then in 1991, the production was 410,000 barrel per day, it has fallen to 50,000 barrel per day. Today, the production is amounted to 4 percent of GDP. The oil reserves are predicted to be exhausted within 20 years from this moment. This also becomes a triggering factor for the country to find diversification for its economy.
Based on market research Dubai, the city-state has diversified the economy through several sectors including tourism, property, and trade. The second mentioned, however, makes this country a fast developing region with awesome infrastructure and facilities. In addition, Dubai has become a shopping heaven of the Middle East.
Dubai Trade and Market
Trade has become a major source of state revenue in Dubai. The country’s strategic location makes it a business hub for the region, and also a gateway. This is surely an advantage for its economy and western countries consider Dubai as a potential investment location.
No less than 200 firms from UK have representatives in Dubai and many British expatriates are now living in the city-state. Dubai and UK seems to have a good relationship, particularly in trade. Annual trade among the two countries is worth £9 billion, meanwhile the UEA itself is one of biggest overseas market for Britain.
According to market research Dubai, Britain main exports to Dubai include power generation equipment, telecommunications, transport equipment, electrical goods, office machinery, and consumer goods. Meanwhile these goods are going to be re-exported to Iran and Saudi Arabia.
To attract more foreign investors, Dubai develops free zones. There are some benefits offered by this zone such as full foreign ownership, zero taxes for import and export, and 100% repatriation.
Surprisingly, over 85 per cent of Dubai inhabitants are non-indigenous. Dubai itself is inhabited by around 2.5 million with English becomes one of mostly speaking language in the region particularly in business. Around 120,000 of the residents are British expatriates who live and work in Dubai.