Dubai
- The Commercial capital of the U.A.E.:
Historically,
Dubai has rcial centre of the UAE.Historically, Dubai has always
been a major entrepot in the Gulf and it remains the commercial
centre
of the .
Since
the beginning of 1970s, Dubai Economy has been moving systematically
towards reducing its dependence on Oil sector. Now the Non-oil
sector contributes 90 % of Dubai’s GDP due to the initiatives
taken by the proactive Dubai Government to develop the various
non-oil segments of the economy.
Dubai
has strengthened its distinguished strategic location by pursuing
a free and balanced economic policy that has given it a good
reputation in the international commercial and economic communities,
which encourages national and foreign capital to enter into
successful investment ventures in different commercial, industrial
and service fields.
Government
has successfully encouraged world class enterprises to invest
in the conventional Free Zones ( Jebel Ali Free Zone & Dubai
Airport Free Zone), Tourism projects and the New Internet Economy
initiatives viz. Dubai Internet City, Dubai Media City (Free
Zone) and Dubai Ideas Oasis (Business incubator).
Future
Outlook
The
growth rate of UAE economy is related to the oil prices. During
2001, the UAE economy shrank by 3 % (after a high growth rate
of 17 % for the year 2000 mainly fuelled by the record average
Oil price of USD 26.1 per barrel). Average oil price during
2001 was USD 23 per barrel. The growth forecast for the year
2002 depends on the oil prices. If the average oil prices for
2002 are in the region of USD 20 per barrel, the overall economy
will post a growth of 4 % and the non-oil sector is likely to
post a growth of 6 %.
All the emirates are vying with each other to attract investments by trans national orporations. Massive capital investments in infrastructure ( ports, freezones, roads, tourism oriented projects, oil refineries and petro chemical complexes) are being made in all the emirates.
A high level of political stability, a strong currency, and progressive policies of the Government assure the UAE of continued economic progress and growth.
