Dubai Economy- An Insight

Economists have often said that Dubai's Economy is very unique and also extraordinary. There are no duties and taxes imposed on imported goods since this country has a free port. There are quite a few free zones also in this region such as Dubai Maritime City, Jebel Ali free zone, Dubai Media City and Dubai Internet City.

Over the past few years, these free zones in Dubai, have been successful in attracting foreign direct investment or more popularly known as FDI. When the media free zones are combined with Internet free zones, they are more popularly known as called TECOM (Dubai Technology, Electronic Commerce and Media Free Zone Authority). There are quite a few large scale multinational firms present here like Oracle Corporation, Microsoft, EMC Corporation, IBM. The media free zones consists of Reuters, CNN, BBC, Associated press and even Sky news.

The political dominion of this emirate has grown from obscurity in more than half century. It has now become one of the most biggest and most powerful in the whole of Middle east. This region was originally created on the oil and gas industry. The rapid growth happened in the 1990's when the construction industry became prominent in the state's economy.

Today, there is a large section of the population which believes that the economy of Dubai is completely dependent on the gas and oil sector. But in reality, this sector of oil and gas only comprises less than 6 percent of the total economy. In fact, this reality became later known that this country's portion of the natural gas revenues in the UAE is nearly 2 percent. The total oil production is calculated to be around 240,000 barrels per day in Dubai.

The most popular and biggest construction project in the entire city of Dubai is the Burj Al Arab, which is also the world's tallest detached hotel. This was created along with a large number of other projects such as condos, residential developments and even homes. When these buildings were built, the economy of Dubai was at the same time also helped by the tourism sector and private real estate investment.

There were quite a few other important improvements that took place such as the Palm Islands, Burj Dubai and the World Islands. In the time period of 2007, construction of the numerous elite housing projects drove the prices up by almost 11.2 percent. This was measured against the consumer price index.

It is found out that inflation or economic recession has effected the living standards of the citizens and residents of this nation. It has also effected the unskilled labour from foreign countries, mostly from Pakistan and India. And therefore, Dubai is the perfect place for tourists and also for celebrity events.