The Dubai economy
With the eyes of the world increasingly looking in Dubai’s direction, it’s amazing to think how quickly the city has made its mark. The incredible Dubai economy has helped it emerge as the place where many of the globe’s leading business people have chosen to make their regional, or even worldwide, home.
Back in the early days, the Dubai economy was almost exclusively about oil. Today, however, Dubai is only directly dependent for around 4% of its GDP on oil revenues. Nowadays, visitors to the city are met with ample proof of the booming Dubai economy. Everywhere you look you’ll find evidence of a huge amount of infrastructure spending – roads, airports, residential areas, hotels, attractions. The spend is estimated at almost US$ 21 trillion dollars over the next five years across the GCC, much of it in Dubai.
The future of the Dubai economy
The economy of Dubai today is largely based on trading. The Government’s vision for 2015, set out in the Dubai Strategic Plan emphasises how diversification of the economy is the major strategic objective. Hence the diversification towards a more knowledge- and service-based economy in Dubai, securing its position as a leading tourism, financial and business hub, as well as real estate player.
The objectives include sustaining real economic growth at a rate of 11% pa to reach a GDP of US$ 108 billion by 2015 and to increase real GDP per capita to US$44,000, by focusing on tourism, transport, trade, construction and financial services. What’s interesting is that in the last six months, financial heavyweights like the big banks are relocating to Dubai, despite the global financial crisis, so the Plan is clearly working well.