Dubai Economy

Seven states or emirates make up the United Arab Emirates, and all of them have oil as their main source of income. However, the United Arab Emiratesí 2nd largest emirate, Dubai, decided to change things. From being known as a country overflowing with oil, Dubai evolved into becoming one of the fastest growing tourist centres and business centres in the world, and, indeed, it looks like the decision proved to be a wise one.

Reportedly, Dubaiís economy grew by 16% in 2005. The Dubai Department of Economic Development or DED estimated Dubaiís worth to be $37 billion, almost double from its worth in 2000 which is just somewhere around $17 billion. Dubai is growing at such a fast rate that it is very likely that it will surpass the economic growth of China, which is only 8.5%, and China has already been known as the fastest growing economies in these modern times. It has been said that Dubai may be able to sustain this economic growth rate because Dubaiís government policies are business-friendly.

Dubai is capitalizing much on its tourism. Dubai has a number of beautiful resorts that have attracted millions of tourists and businessmen, and because of such, investments are pouring in. Everyone from everywhere seems to want to have a piece of Dubai, and Dubaiís free zones are making trading easier. Even big business guns such as IBM, Oracle, CNN, Reuters, and Microsoft, have offices in Dubai. Business, indeed, is flourishing in Dubai.

Consequently, the real estate industry is booming as well. Tall buildings are being construction, and big construction projects such as Palm Jumerirah and the World have already begun. Dubai is home to the worldís tallest skyscrapers, as well as the worldís tallest hotel, the Burj Aj-Arab. Very soon, Dubai will house the tallest building in the world, the Burj Dubai. There is another project going on, and it will involve some 500 skyscrapers. With all these developments, it is understandable why business is fast in Dubai. People are naturally drawn to these beautiful man-made structures, and tourists are growing by the thousands every year.

The economy is indicative of a nationís financial status. In Dubai, the economy is flourishing, and this only goes to show that Dubai is doing well financially. Interestingly, it is not oil that contributes much to the economy of Dubai. In fact, only 6% of the GDP of Dubai comes from oil; the rest comes from non-oil industries. Dubaiís tourist attractions and the presence of international business companies are factors that led to Dubaiís flourishing economy. If you have a little extra money, investing in Dubai may be a good idea.

It looks like Dubaiís financial situation is very stable and solid, and its financial performance may still continue to improve. With such a solid financial situation, the future for Dubai seems very bright. Living, working and doing business in Dubai becomes very ideal. Clearly, there are more and more reasons why you should invest in Dubai, and perhaps even live there.