What Made Dubai Rich?
Have you ever wondered how wealthy Dubai is? I also did. I initially believed that their wealth was derived from their oil, but boy was I mistaken. Just 1% of Dubai’s income comes from oil, which was discovered there only 50 years ago. What makes Dubai so wealthy, then? Wondering how Dubai amassed all of its wealth? Continue reading to learn more about this.
How did It start?
The Trucial Coast of what is now the UAE was home to a thriving pearl industry from the 1770s until the late 1930s. For the people of the Persian Gulf, pearl diving was supposed to be a modest beginning in trade, but it laid the groundwork for something much more significant later on.
Reason Behind What Made Dubai Rich
After competing with Abu Dhabi for oil in the late 1950s, Dubai struggled and did not have significant oil income, in contrast to Abu Dhabi, which prospered. Shaikh Rashid bin Saeed Al Maktoum, the ruler of Dubai, decided then that something needed to change. He began making investments in infrastructure as a result, and in 1960 he built Dubai’s first airport.
Tourism And Infrastructure
This also made it possible for the development of a number of further infrastructure projects, which helped them see that investing in infrastructure is a long-term plan and provided their economy with some optimism. As a result, tourism increased, and the little oil they did find was used to create modern Dubai. Due to its cutting-edge infrastructure, Dubai has developed into one of the top tourist destinations in the world. Up to 20% of Dubai’s GDP comes from travel and tourism.
The trade industry expanded as a result of the infrastructure. In 1985, Dubai created Jafza, the biggest free zone in the world, as its first free zone. This also resulted in the creation of 30 additional free zones that give foreigners tax savings, custom duty advantages, and exemptions. As a result, additional international enterprises were drawn in. A significant portion of these Jafza businesses accounts for 20% of Dubai’s foreign investment. Moreover, 144,000 workers are responsible for $80 billion in non-oil revenue. 11% of the city’s GDP is represented by it (GDP).
With income from various sources, Dubai’s economy has remained vibrant and varied. Contrary to popular misconception, the city’s GDP is primarily not oil-based. The majority of its income is generated through the manufacture of goods, the delivery of services, and tourism. That must be the solution to all of our inquiries about what makes Dubai so wealthy.
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