Recruitment Dubai

ECONOMY IN DUBAI

Oil was discovered here more than thirty years ago and since then the United Arab Emirates (UAE) has been transformed from a poor area of small desert towns to a modern state with an open economy and a large annual trade surplus with one of the highest incomes in the world. GDP growth was 6.4% in 2004, reaching 6.5% by the end of 2005. Dubai has its own stock exchange and financial market which opened in the year 2000.

Petroleum is the dominant force here with the immense wealth it has generated being invested in capital improvements and social services in all seven of the emirates. Petroleum production mainly takes place in Abu Dhabi and Dubai, where there are also thriving manufacturing, finance, information technology and tourism sectors. The manufacturing sector includes industries supplying beverages, chemicals, paper, pharmaceuticals and rubber. The financial services industry grew 12% per annum during the 1990s with the trend seeming set to continue.

With transport communication links of more than 170 shipping lines and 86 different airlines flying to over 100 cities worldwide, Dubai has a rapidly developing manufacturing sector with an infrastructure and services of the highest international standards. Dubai is rapidly becoming a major supplier to emerging markets in India, Central Asia and South Africa.

Dubai has a relatively small population but because it is the major re-export centre for the region, its imports last year exceeded $16 billion. Most of the economies are still in embryonic stages of development so there is unlimited scope for the future.

The country has no foreign exchange controls or trade barriers and has very low import duties. The UAE dirham is linked to the US dollar which is the currency in which all oil revenues are paid.

Dubai has its own Internet City which has been set up inside a free trade zone which allows 100% foreign ownership and sales with company earnings and private income exempt from taxation. It is home to hundreds companies including Compaq, Hewlett Packard, IBM, Microsoft and Oracle.

Dubai is a popular tourist destination with the number of visitors increasing rapidly every year. The government hopes to attract ten million tourists a year by 2010 and is making a huge investment in the hotel and leisure industries.