Dubai has small oil reserves and has taken bold steps to diversify its economy. It contributes to about 1/4th of UAE’s economy, grossing at USD 102.67 billion as of 2018. Dubai has been a thriving hub for western manufacturers and attracts various businesses worldwide, with a lot of them moving their functional headquarters to the ports of Dubai.
Even though Dubai’s economy was built on revenues from the oil industry, today, oil revenue holds a meagre 5% in Dubai’s economy. In the past decades, Dubai embarked its journey into other sources of income, namely Tourism, International Finance and Real Estate. A significant emphasis on Dubai’s economy is on tourism, which is enabled by building hotels and developing real estate.
The Emirate towers, Burj-al-Arab Hotel, located on its artificial island, is the world’s fifth tallest and the most expensive. At the time of construction, Dubai Mall was the largest mall in the world. The tallest structure in the world, the Burj Khalifa. These wonders have enabled Dubai to boost the growth of tourism in the city. The rate of construction has helped Dubai to become one of the fastest developing cities in the world.
Dubai | A Business Hub
Business Bay consists of as much as 500 skyscrapers built around an artificial tower. Dubai International Financial Centre was opened, which used the policies and laws derived from excelling financial districts like New York, Singapore, London, and so on, from attracting businesses. Dubai is also the 3rd largest hub that trades diamonds. Being in a very central location geographically, lying between Africa, and cutting centres like India and China, it’s worth was nearly USD 50 billion as of 2018.
Economy and Growth
If you take into account the sector-wise economy of UAE, 49.2% of it is from the services sector, in which Dubai plays a significant role. Dubai has also been successfully conducting expos, which has a significant impact on the economy and trade.
In the upcoming Dubai Expo 2020, delegates from about 190 countries will be visiting UAE. In these 6 months, millions of influential people get linked to commercial opportunities in Dubai and UAE. This also gives a massive push to the tourism sector as millions of visitors will be in Dubai, causing a long-term shift. It is projected that the travel and tourism revenues will increase two-folds by 2027, with 2020 having a massive impact on that.
Investors from abroad will seize this opportunity as Dubai is ready with the infrastructure to accommodate various business opportunities, and this also helps the local businesses in Dubai gain a massive boost in revenue.
Almost 100,000 new jobs will be added to the economy due to the Expo 2020. According to Dubai’s Department of Economic Development’s chief economist, Raed Safadi, the sectors of tourism, hospitality and food will get a substantial boost thanks to Expo 2020.
AED 38.5 billion in foreign direct investment was made in Dubai, as of 2018, which was 41% more than a year before that. And as of Q1 of 2019, around 7000 new businesses were registered, close to a 29 per cent increase than the last year. The financial market also secured Dh 680 million as foreign investment.
A study by EY also predicts that Dubai Expo will contribute to about AED 122.6 billion to the UAE’s economy between 2013 and 2030. Many businesses in Dubai are very successful as a sector. The rate of construction of high-rise buildings and skyscrapers are increasing exponentially year after year. As a result, enormous opportunities for professionals like engineers, construction firms, architectural firms, and so on are there for avail.
Increase in Demand and Opportunities
The services of a handyman are also in much demand as agencies and individuals are always looking for people to work small jobs for their clients. It can range from a plumber to a driver and a mechanic. The population of Dubai is growing at a fast rate, and this directly affects the health care, tourism and real estate sectors. Agencies are enabling access to properties, apartments, and lands, and the process of buying, selling and renting of those is endless.
There has been a tremendous expansion in entertainment opportunities, and Dubai keeps coming up with more and more ways to let people enjoy and experience their culture, food and way of life. The tourism industry in Dubai is booming.
There is also a high request for skilled doctors and healthcare specialists to take care of the people. The treatment in the UAE is cheaper as compared to Europe and the USA; as a result, a lot of people are visiting Dubai for their healthcare purposes as well.
Since Dubai is a well-fertilized place to plant a business, another booming industry is that of Business Consultancy Services wherein, agencies help to smooth out the process of setting up new companies or even moving existing ones to Dubai and get them up and running. There are experts who focus solely on this and help new people aboard.
Planning to globalize your business? This is the right time to get started. UAE is a leading trading and commercial hub, and is the best location for excellent opportunities for growing businesses. We at Commitbiz can assist and guide you on how to set up business in UAE, and manage your business operations. Contact us today!