The economy of the United Arab Emirates is a very developed and totally diversifying as it does not only depend on its revenue from oil reserves only, but also from the other businesses like construction, manufacturing, tourism and services as well. Though its oil sector plays a crucial role to make its economy stronger, but Dubai’s economy is not 100% depending on these natural resources now for the reason that it does not have many natural resources as compared to the other six emirates of the UAE. Dubai earns more revenue from its construction firms and tourism industry working there. It invests more on its construction projects nationwide. In Dubai, there is a record of more construction projects in pipe line as compared to the construction projects in the whole world. The construction firms in UAE complete the construction projects earlier as compared to other western countries and they have certainly work in diverse directions as museum construction in UAE, amusement park, shopping malls, hospitals construction in UAE, etc.
The construction firms in UAE hire labors from the Asian countries and because of it they can complete the work early due to large number of laborers on work. The UAE construction projects also attract the tourists from other countries, especially from the western countries. In Dubai, its big shopping malls, skyscraper buildings, architectural designs of buildings, resorts, parks and broad clean roads have become the focus of its tourists.
Dubai has invested a lot for its construction projects; there could be two reasons for such an action by Dubai government. One reason is its government is concerned that they do not have many natural resources and they will end one day and they will be left with no revenues to run the economy. The other reason is amendment in the law of the real estate that has boomed the construction companies in Dubai. Earlier, there was a limitation imposed by government that no foreigner could own the property in Dubai, but now from the year 2002, this limitation had been removed and now foreigners can buy the property, but not the land and the property will be on lease for 99 years and the ownership will be retained by the companies.
In 2009, when global financial crisis hit Dubai economy, it suffered from the loss because construction companies prospered on account of foreign investments. When crisis badly hit other countries, the investors became unable to invest more and resultantly Dubai also suffered from this crisis. Due to man ongoing construction projects, the construction companies suffered losses as well other areas also got affected. Dubai found itself unable to pay its due debts and eventually Dubai’s economy fell down at a rapid pace.
Now the economy of Dubai is recovering from its financial crisis and is expected to be completely recovered in the year 2012. The other six emirates of UAE stayed safe because they are rich in natural resources and don’t wholly depend on construction projects and tourism. The construction firms in UAE are again active and the project of museum construction in UAE and Dubai, amusement park construction, hospitals construction in UAE and Dubai is again working in full swing, and the investors have started investing back.
By Barescar90 from Pixabay