Tuesday, 29 November 2016

Why Is The City Of Dubai So Wealthy?

Image result for DUBAIThe kingdom of Dubai, as it stands today is the result of the vision of its founder monarchy, His Highness Hamdan bin Mohammed bin Rashid Al Maktoum, and the current ruler Mohammed bin Rashid Al Maktoum. The Emirate of Dubai was raised to a modern city from the arid Arabian Desert in a span of just last 40/50 years. Out of the seven Emirates, Dubai however progressed faster and evolved into the most modern city of UAE.

Dubai had money, but did not have modern technology, educated men and skilled labour. So, the king invited men and companies from all over the world to build a modern city, work and do business there. He also wisely shared the prosperity of Dubai with all those who migrated there. 
Secondly, he declared Dubai as a Free Port without any Tax of any nature and this triggered an explosion in trading activities by all those international giants in Dubai,

Thirdly, he came up with a massive plan to convert the arid desert to a green pasture, virtually with the help of “Drip watering”. Today one can see the one inch pipe that is laid out in the entire breadth and length of Dubai like the arteries in a human body. Even the water vapour that comes out of the Air conditioners are captured/collected and then used for watering vegetation!

The earlier inhabitants of Dubai were known as “Bedouins” who dwelled in the Desert on their Camels. Today there are no Bedouins in Dubai as all of them have been resettled by the King with free health care and free education. They also hold today several costliest real estate properties across the world!

Dubai is a money spinner. The major revenue streams are Trade, Exports, Tourism, Real estate and they have a mega company called DUBALowned by the king with a turnover of AED 8,670 billion and a net profit of AED 2,219 billion. It is a huge conglomerate. 

Another main source of income is from their Airlines business. Dubai International airport is one of the busiest airports in the world. Built in 1960, today it can handle 80 million passengers annually and 5 million tons of cargo! NatGeo terms it as one of the “mammoth airports” in the world!

The GDP of Dubai was $ 360 billion in 2012 & it ranks third in Middle East -after Saudi & Iran- and 30th in the world. Dubai does not offer citizen ship to foreigners, but it is considered to be a Global Economic Hub. Its inflation is pegged around 1.2%

Dubai is very cosmopolitan; one may find people from India, Pakistan, Bangladesh, USA, Europe, Philippines and Africa. As a matter of fact people all across the globe come to Dubai & live and work there. Just to give one example of UAE‘s international trade, UAE is a major consumer of US goods & services, with $ 8.4 billion worth of imports!

The ability of the UAE to withstand the impact of Global Financial crisis demonstrates the UAE’s financial & monetary stability. Dubai has established a reputation for being a low crime zone. It is said that in the dead of night a lone woman can walk anywhere in Dubai without any fear!

Dubai’s open economic policy, minimal government control and private sector regulations have played an instrumental role in attracting vast foreign direct investment (FDI). It also has the best infrastructure that entice any investor and I found out that the last time they had one minute power break-down was 20 years ago!

Apart from a favorable tax environment, companies in Dubai can obtain significant cost advantage due to absence of foreign exchange fluctuations. There are no trade barriers & quotas in Dubai.

Dubai has the major landmarks of the world, Burj Khalifa, the tallest man-made structure, ultra luxurious Burj Al Arab and Atlantiis hotel and Palm Jumeriah high class residential colony bring high and mighty and rich wanderers. “The World” is another ambitious project Dubai is engaged in building out of the sea. Sheikh Zayed Road of Dubai has more than 200 sky scrapers. It has the finest Malls in the world that attracts millions of people from across the world. It even has an “Academic” city where almost all the best universities have made their base. It also offers eventful nightlife for nocturnal “creatures” of the world!

Well such a country can’t go poor and can’t help, but becoming wealthier than many wealthiest.

ARTICLE WRITTEN BY --Devidasan Chathanadath, An Explorer of Human Refinement.
Written Jun 16, 2015 

ON https://www.quora.com/Why-is-the-city-of-Dubai-so-wealthy

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