Dubai, one of the seven emirates that form the United Arab Emirates, transformed itself from a poor settlement of 30,000 people in 1940 to a luxurious and major economic hub in less than 60 years. Initially, the discovery of oil in 1996 led to economic growth, but the emirate's leader, Sheikh Rashid, realized that dependence on oil was not sustainable and decided to diversify the economy.
Sheikh Rashid invested in developing a large commercial and maritime center, taking advantage of Dubai's strategic location. He created the Rashid port, the port of Jebel Ali, and invested in air infrastructure, including the creation of Emirates Airlines. These investments proved successful, and the port of Jebel Ali became the largest in the Middle East.
The emirate also created free trade zones, such as the Jebel Ali Free Zone (Jafza), which attracted foreign companies and multinationals. The Dubai government implemented policies to attract foreign investment, including tax exemptions and excellent infrastructure.
Sheikh Mohamed, who succeeded Sheikh Rashid, continued to develop Dubai's economy, creating more free trade zones and investing in the tourism sector, including the creation of luxury hotels and artificial islands.
Today, Dubai's economy is driven by the port, tourism, industrial, and financial sectors, with a GDP that has more than tripled since 2000. The emirate has reduced its dependence on oil from 46% to 1.3% and has become one of the most successful cases of managing oil revenues.
Here are the key facts extracted from the text:
1. In 1940, Dubai was a small settlement with around 30,000 people.
2. Dubai was located in one of the most hostile deserts in the world.
3. In the 1990s, Dubai's economy was mainly based on small local commerce and fishing.
4. In 1996, oil reserves were found in Dubai.
5. The oil reserves found in Dubai were much smaller than those found in Abu Dhabi.
6. The oil in Dubai had a relatively higher cost to extract.
7. By 2010, Dubai's oil reserves were estimated to be almost exhausted.
8. Sheikh Rashid was the ruler of Dubai who realized the need to diversify the economy.
9. Sheikh Rashid invested in developing Dubai's port and air infrastructure.
10. The port of Jebel Ali was created in 1979.
11. Emirates Airlines was founded in 1985.
12. The port of Jebel Ali became the largest port in the Middle East and the third-largest re-export center in the world.
13. Emirates Airlines became one of the most successful airlines in the world.
14. In 2005, Emirates Airlines paid $100 million in dividends to the government of Dubai.
15. Sheikh Mohamed succeeded Sheikh Rashid and continued his development project.
16. The Dubai World Trade Center was established to provide training in public management.
17. Several free trade zones were created in Dubai, including the Jebel Ali Free Zone.
18. The Jebel Ali Free Zone is home to several multinationals and produces around $100 billion annually.
19. The zone represents 25% of Dubai's GDP.
20. Sheikh Mohamed created more free trade zones, including the Internet City neighborhood.
21. The government of Dubai created several other zones, including Dubai Health City and Biotech Land.
22. Dubai's governance is known for its high transparency and agility in executing projects.
23. The government of Dubai adheres to a policy of encouraging immigration.
24. Around 90% of Dubai's population is made up of foreigners.
25. Dubai's population more than tripled from 2000 to 2015.
26. The government of Dubai created the Dubai International Financial Center to attract foreign banks.
27. The financial sector in Dubai gradually grew and took advantage of the emirate's strategic position.
28. The public sector in Dubai is highly relevant to the economy, financing several government projects.
29. State-owned companies in Dubai generate revenue worth 12% of the emirate's GDP.
30. Sheikh Rashid's vision revolutionized Dubai's economy, with GDP more than tripling from 2000 to 2014.
31. Dependence on oil fell from 46% to 1.3% from 1974 to 2014.
32. The port, tourism, industrial, and financial sectors make up the majority of Dubai's economy.