Over the last 2 decades, Dubai has grown at an unforeseen rate to evolve from an oil-driven economy to an innovation-led business hub. And there’s a good rationale behind it. Because of the government’s business-friendly policies and the city’s progressive approach, business setup in Dubai has flourished, making it one of the leading commercial regions in the world.
This growth in Dubai is expected to continue progressively in the next 2 years, impelled by the rising domestic demand and a cyclical recovery in the global economy. The effect of this is that the GDP growth rate of the city is being predicted to reach 3.7% by 2019, up from 3.2% this year. As of now, oil contributes to not more than 4% of the city’s GDP. The sectors acing in Dubai’s GDP contribution are retail (27%), transportation (15%), real estate (14%), manufacturing (13%), banking and finance (13%), and construction (9%). This industry diversification may be attributed largely to the burgeoning of sector-oriented free zones in Dubai.
Dubai’s adaptability to trade, capital and resource inflows have bode well for its economy. The emirate has developed a modern infrastructure and instituted a business-friendly milieu and regulations to promote the city as a trade and finance hub in the region, especially after the announcement of Expo 2020. It has launched projects in metallurgy, construction, trade, and tourism.
The development model of Dubai is a benchmark for other countries in the region. The integral components of this model include:
- Government-supported development
- Skipping industrialization to create a service economy
- Welcoming diversity in labor force by easing the influx of expatriates
- Developing in collaboration with international partners
- Building investment opportunities
- Fast-tracking development
At the heart of this development lies the terminal aim of sustainability, led by innovation. Dubai has gone from strength to strength, keeping productivity of capital and labor, ease of doing business, and business diversity epicenters. The UAE government has slated Vision 2021 to surge towards sustainable development. Under this, the following initiatives would be undertaken:
- Creation of a fertile ground for trade and investment, particularly in the new economic sectors such as aerospace and technology
- Diversification of income sources, investments in the non-oil sector, and expansion in trade infrastructure
- Development and promotion of commercial diplomacy with other countries
Collaborative efforts to foster creativity and innovation will make Dubai a global platform for innovative industries and a preferred investment destination for international companies looking for an integrated environment conducive to growth and sustainability. The city is a kernel of commercial development. It is riding on the wave of the future to grow as a favorable foreign direct investment (FDI) destination hand in hand with sustainable progress. Should you decide to open a business in Dubai, do contact us, even if it’s just for a friendly advice. We at Commitbiz have our team of experts to help you with company formation, registration, and counseling.