Economy of Dubai
[4] In 2018, wholesale and retail trade represented 26% of the total GDP; transport and logistics, 12%; banking, insurance activities and capital markets, 10%; manufacturing, 9%; real estate, 7%; construction, 6%; tourism, 5%.
Port Jebel Ali, constructed in the 1970s, has the largest man-made harbor in the world, but is also increasingly developing as a hub for service industries such as IT and finance, with the new Dubai International Financial Centre (DIFC).
Emirates Airline was founded by the government in 1985 and is still state-owned; based at Dubai International Airport, it carried over 49.7 million passengers in 2015.
[7] The government has set up industry-specific free zones throughout the city in hopes of giving a boost to Dubai property.
Internet access is restricted in most areas of Dubai with a proxy server filtering out sites deemed to be against cultural and religious values of the UAE.
[22][23] Since the Abraham Accords peace agreement was signed on Sept. 15, 2020, over 50,000 Israelis visited the UAE as daily direct flights between Tel Aviv and Dubai were operated even during the COVID-19 pandemic as the two countries declared each other ‘green zones,’ sparing travellers the quarantine periods.
[24][25][26][27][28][29][30] On Dec. 26, 2020, an order signed by Israel's Health Ministry Director-General Chezy Levy went into effect, requiring all returnees from Dubai to enter a 14-day quarantine.
[31][32] The government's decision to diversify from a trade-based but oil-reliant economy[33] to one that is service- and tourism-oriented resulted in the property boom from 2004 to 2008.
This is a new business park to be targeted at biotechnology companies working in pharmaceuticals, medical fields, genetic research and biodefense.
In May 2006 the Bawadi was announced, with a planned 27 billion US-dollar investment intended to increase Dubai's number of hotel rooms by 29,000, doubling it from the current figure offers now.
2013 was a stellar year with prices accelerating significantly, however, the government and industry players began putting in place measures that would safeguard against another bubble developing.
In 2018, Ellington Properties signed a partnership with Beike, one of the major China real estate listing portals.
[44] JLL predicted at the time that "further declines in performance are expected over the next 12 months before the hotel market recovers on the back of strong visitor arrivals growth associated with Expo 2020.
Waves of Russian nationals were said to have flooded Dubai to reside and invest their capital into the Emirates property market, safeguarding it from international sanctions.
[48] Property prices in Dubai increased following the February 2022 Ukraine invasion, as wealthy Russian nationals started making high investments in the Emirati real estate.
[50] Since 2000, Dubai's municipality has initiated construction phases in the city, predominantly in the Mina Seyahi area, located further from Jumeirah, towards Jebel Ali.
[55][56] In 2002 a change was made to the law allowing non-nationals of the UAE to own property (not land) in Dubai as fee simple, and 99-year leases are sold to people with ownership remaining with private companies.
Rent rises were capped at 7% per annum up to 2007 under a directive from Mohammed bin Rashid Al Maktoum.
[67] The emirate has been able to leverage off its geographical position between major supplies of mined diamonds in Africa, to the main cutting centres in India and further east in China.
[68][69][70] The diamond trading takes on an exchange managed by the Dubai Multi Commodities Centre, with many of the industry participants housed in office space in the Almas Tower in the JLT business cluster.
[71] Facilities there include Kimberley Process Certification offices and access to secure transportation agencies such as Brinks and Transguard, in addition to networking and meeting rooms.
[80] A Reuters investigation in 2019 revealed that billions of dollars’ worth of gold were smuggled from Africa to Dubai.
[83] While the letter did not specify a center, four people involved in drafting it said its main focus was the gold industry in Dubai.
[83] The UAE became a major trade hub for Russian gold, following the international sanctions affecting Moscow’s export routes.
The largest handlers of Russian Gold exports to the UAE was a Dubai subsidiary of French Logistics, Temis Luxury Middle East.
In 2002, Dubai allowed foreigners to own real estate, and the global real estate consulting firm Jones Lang LaSalle named Dubai, along with Dublin and Las Vegas, its “World Winning City,” a research program aimed at identifying the future’s most attractive property markets.
[87] Dubai’s Department of Economic Development issued on June 3, 2021 guidelines stating that it was no longer compulsory for foreign investors to have Emirati partners or specify a quota ratio for them, which means that foreigners have been allowed full ownership of businesses in Dubai, in order to speed up the country’s economic recovery following the coronavirus (COVID-19) pandemic.
[91] The coronavirus crisis added to several years of declining revenues for a number of Dubai’s most important sectors.
[92] Expo 2020, which was expected to attract 25 million visitors to Dubai, stimulate the economy, and mark the start of 50 years of achievements, was postponed to Oct. 1, 2021 due to the pandemic and associated travel restrictions.
