Dubai History Politics and Business
Since 1833 the reigning Al Maktoum family have ruled Dubai. Under their wise and progressive leadership, Dubai has prospered and it is now the business and tourism hub for a region that stretches from Egypt to the Indian sub-continent, and from South Africa to the CIS countries.
The eighth ruler from the Al Maktoum family, the late His Highness Sheikh Rashid bin Saeed Al Maktoum, ruler of Dubai from 1958 – 1990, guided the Emirate with compassion and understanding. He realized what was necessary to transform Dubai into the cosmopolitan, prosperous city it is today. Sheikh Rashid along with Dubai History :
Sheikh Zayed bin Sultan Al Nahyan is credited with playing a key role in establishing the Federation of the United Arab Emirates.
Following the death of Sheikh Rashid in November 1990, Sheikh Maktoum Bin Rashid Al Maktoum became Ruler of Dubai and Vice President and Prime Minister of the UAE, positions he held until he passed away in January 2006.
On January 4th 2006, His Highness Sheikh Mohammed bin Rashid Al Maktoum became the Ruler of Dubai following the death of Sheikh Maktoum bin Rashid Al Maktoum. Under his leadership, Dubai is fast becoming one of the major cities in the world. His Highness Sheikh Mohammed is also the Vice-President and Prime Minister of the UAE.
On 1st February 2008, HH Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum has proclaimed Crown Prince of Dubai. He is also Chairman of Dubai’s Executive Council. The Deputy Rulers of Dubai are HH Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum and HH Sheikh Hamdan bin Rashid Al Maktoum. HH Sheikh Hamdan bin Rashid Al Maktoum is also the UAE’s Minister of Finance.
Dubai has changed dramatically over the last three decades, becoming a major business centre with a more dynamic and diversified economy. Dubai enjoys a strategic location and serves as the biggest re-exporting centre in the Middle East.
It’s low logistical and operational costs and excellent infrastructure, international outlook and liberal government policies are attracting investors in a big way. Activities such as trade, transport, tourism, industry and finance have shown steady growth and helped the economy to achieve a high degree of expansion and diversification.
In order to assist those interested in obtaining further details about the Dubai economy, pages have been provided below with the latest data for key socio-economic indicators. They contain tables on Dubai Economic Statistics extracted from the “Dubai Socio-Economic Development Indicators” including a wide range of current data on the Dubai economy and society. Also, other pages contain the Quarterly Indicators as well as information about Investment in Dubai, industrial projects and commercial/ business centres.
The Dubai economy enjoys a competitive combination of cost, market and environmental advantages that create an ideal and attractive investment climate for local and expatriate businesses alike. In fact, these advantages not only rank Dubai as the Arabian Gulf’s leading multi-purpose business centre and regional hub city, but they place it at the forefront of the globe’s, dynamic and emerging market economies.
Dubai, with its ancient commercial and seafaring traditions, has long been recognized as the Middle East region’s leading trading hub and has emerged as its key re-export centre. In more recent years, the Emirate has become a major venue for a number of growing, profitable industries and activities:
• Corporate regional headquarters
• Regional transport, distribution and logistics centre
• Banking, finance and insurance
• The Business and industrial consulting
• Information and Communications Technology
• Light and medium manufacturing
This all became possible due to Dubai’s warm, welcoming people, world-class facilities and infrastructure and farsighted, open and liberal economic policies. Finally, committed to a progressive vision of itself, keen to diversify its economy and diminish its reliance upon shrinking oil revenues, Dubai has begun to develop into the Arabian Gulf’s premier international business centre. Consider the factors that contribute to this ongoing success story.
I. Strategic Location: Dubai is a time zone bridge between the Far East and Europe on the East-West axis and the CIS and Africa on the north-south axis. It is a gateway to a market that can be characterized as:
• Large – well-established trading links exist with the greater than 1.5 billion people in the neighbouring region covering the Gulf, the Middle East/Eastern Mediterranean, CIS, Central Asia, Africa and the Asian sub-continent;
• Growing – Dubai’s total international trade has grown on average by over 11% per year since 1988 and regional economic growth and liberalization should boost demand further;
• Prosperous – a buoyant local economy strategically located in the midst of one of the world’s richest regions and well endowed with ample supplies of cheap energy and primary aluminium; also adjacent to major regional suppliers of vital agro-export commodities;
• Diversified – varied and significant import requirements generate opportunities for product suppliers and re-exporters;
• Accessible – served by over 120 shipping lines and linked via 85 airlines to over 130 global destinations;
• Open – no exchange controls, quotas or trade barriers.
Dubai is part of the UAE which is a low-crime and politically-stable country. Also, the UAE enjoys financial and monetary stability. It’s well-developed, sophisticated banking system features extensive credit facilities and ample liquidity. Emirate’s emerging capital markets are built on the basis of leading-edge technologies and sound regulatory systems. The government has a long, consistent commitment to pro-business, liberal economic policies including the protection of intellectual property rights.
The UAE benefits from stable and harmonious industrial relations. Finally, there is a well defined, sound legal framework for business and a clear set of ownership rules. Foreigners are permitted ownership rights of up to 49% for limited liability companies established within the Emirate of Dubai and up to 100% for professional companies, branches and representative offices of foreign companies and free zones enterprises. All of these factors reflect positively in Dubai’s being assigned an investment grade rating for fixed income investment by Moody’s Investors Service.
Dubai’s economy has been kept open and free to attract investors and business. Government control and regulation of private sector activities have been kept to a minimum. There are no direct taxes on corporate profits or personal income (except for oil companies that pay a flat rate of 55% and branches of foreign banks that pay a flat rate of 20% on net profit generated within Dubai). Customs duties are low at 4% with many exemptions, 100% repatriation of capital and profits is permitted, there are no foreign exchange controls, trade quotas or barriers and a stable exchange rate exist between the US Dollar and the UAE Dirham (US$1.00=AED 3.678). Liberal visa policies permit easy importation of expatriate labour of various skill levels from almost all over the world.
Dubai’s deliberate policy of investing heavily in transport, telecommunications, energy and industrial infrastructure has enabled it to have one of the best infrastructure facilities in the world; it also contributed significantly both to its ongoing prosperity and attractiveness to international business. The Emirate features a network of seven industrial areas, one business park and three highly successful, specialized free zones of international distinction, two world-class seaports, a major international airport and cargo village, a modern highway network, state-of-the-art telecommunications and reliable power and utilities all of which deliver efficiency, flexibility, reliability, reasonable cost and size.
Complementing its world-class infrastructure is a sophisticated service sector that features leading regional and international freight forwarders, shipping companies, insurers plus major international hotels, banks and financial service firms, lawyers, accounting firms, consultants, advertising agencies, top international exhibition and conference facilities, high quality office and residential accommodation, first-class hospitals, schools, shopping centers and recreational facilities. Free Zones Websites: Dubai Airport Free Zone Jebel Ali Free Zone Dubai Media City Dubai Internet City
Dubai’s private sector has invested heavily in real estate such as hotels, residential and commercial properties, recreational and leisure facilities. In addition, a number of factors have contributed to the Emirate’s high quality of life and superior living conditions making it a model location for many to emulate. Those factors include excellent infrastructural facilities, low crime, clean environment, tolerance and cultural diversity, cosmopolitan lifestyle, modern public administration, availability of a wide range of consumer goods and services, mild winters and clean, palm-fringed beaches.
The local business class has a long tradition of trading activity and wide exposure to international business practices and state-of-the-art technologies. Local entrepreneurs have already gained successful experience with international partnerships in franchising, licensing, joint ventures, etc, in various sectors of the economy.
Dubai boasts an extensive foreign trade network extending to 179 states thus offering the investor an extensive choice of potential global marketing outlets for a diverse portfolio of goods and services. As a member of the UAE federation, Dubai is also part of the world’s third-largest export and re-export centre after Hong Kong and Singapore.
Producing a Wide Range of High Quality, Competitive Export Products: Major gains have already been made in the profitable manufacture and export of aluminium ingots, fabricated metal products, textiles and ready-made garments, gold and jewellery, prepared foodstuffs, consumer electronics, refined petroleum, chemical and non-metallic mineral products. Supportive commercial, industrial, political and economic factors are currently in place that makes possible the extension of these gains to other manufacturing sub-sectors.