Dubai has transitioned from an oil-reliant economy to one focused on services and tourism. While oil still accounts for 2% of GDP, trade makes up 39% and real estate and business services account for 15% and 8% respectively. Dubai established several free economic zones to attract foreign investment and diversify its economy. During a real estate bubble in the late 2000s, Dubai took on large debts that led to a crisis when the bubble burst. It has since recovered through investments in large infrastructure projects like the Burj Khalifa, Palm Islands, and Dubai International Airport to establish itself as a global hub.

1. Dubai : A Short Story
Submitted by :
Sindhu.C

4. DUBAI GDP
Construction Oil & natural gas
Manufacturing
10% 2%
Transport & Comm., 14%
8%
Real Estate and Bus.
Services
15%
Financial services
8%
Trade
39%
Others
4%
It is true that Dubai’s economy was built on the back of Oil Money but
Dubai’s oil reserves have diminished significantly & are expected to be
exhausted in 20 years

6. FREE ECONOMIC ZONES
As of 2011 there are 18 free zones in the region
including Dubai Aid and Humanitarian city, Dubai
airport free zone, Dubai internet city, Dubai silicon
oasis, Jebel Ali free zone and Dubai media city.
Jebel Ali free zone (1985) was the first of these
economic free zones.
Dubai doesn’t levy tax on income, property and capital
gains.
In the Arab world it is considered Haram or forbidden
to take unearned income. Which taxes are considered.

7. DUBAI IS A HOME TO
One of the biggest airports in the world.
The largest man made port in the world.
The largest mall in the middle east.
The only 7 star hotel in the world (Burj Al Arab).
The largest theme parks in the world and is estimated
to be bigger than Disney parks in Florida. (under
construction)
The largest skyscraper in the world (Burj Khalifa).
The first man made palm-shaped man made island
(Palm Jumeriah).

8. Shift from trade-based, oil- reliant
economy
Towards service and tourism
oriented
Real estate Boom- offered 40%
returns and attracted investments

10. Height : 2,717ft
Years : 2004-2010
Total Cost :US$1.5billion
Original name :Burj Dubai
Multibillion dollar bailouts from its
oil rich neighbour Abu Dhabi.
Hence the name Burj
Khalifa, after the Abu Dhabi Sheik
Khalifa.

11. What is Dubai Crisis 2008-
09 ?
The Dubai Debt Crisis 2009 has been called by
economists a consequence of real estate bubble
burst when on November 26, 2009 Dubai
proposed to delay repayment of its debt which
includes delay in the payment of $ 59 Billion
debt on Dubai World by 6 months, an
investment company for the Dubai government.

12. What happened ?
Salaried people were given loans which was 10times their salary, which they
invested in real estate.
They earned profits out of it and the rates began increasing. They were given
more loans when they showed their profits and hence lead to a bubbled
economy.
People began to invest in property developer companies who had dream
projects worth millions of dollars. People invested in invisible investments.
Mistake : Dubai’s decision to invest all his wealth as well as government
fortunes in real estate markets through a foreign investment property
developer in US which ultimately went bankrupt due to recession.
Real estate prices fell to 58% from its peak. Expatriates fled the country.
42.5% population in Dubai are Indians.

13. An artificial archipelago of
small islands constructed in the rough
shape of a world map.
By January 2008, 60% of the islands were
sold.
On 10 January 2008 ,the final stone on the
breakwater was laid, completing
development of the archipelago.
As of 2010, only a single
island(“Greenland’’) has any building on it.
The owner of the company which bought
Ireland for £24 million, John
O'Dolan, committed suicide, while the man
The Palm Islands are an artificial who bought Britain for £43 million, Safi
archipelago in Dubai on which major Qurashi, is serving seven years in jail in
commercial and residential Dubai after being accused of bouncing
infrastructures will be constructed. cheques..
The plan was to construct 3 palm
islands : Palm Jumeriah ,Palm Jebel
Ali & Palm Deira.
As on date, only one Palm has been
constructed.

16. Interesting Facts on Dubai
Less than 20% of the population are the locals. It’s easy for them to feel strangers in
their own land. They have an extremely low crime rate.
America perhaps invented malls, but it was Dubai that has set the standard. Malls in
Dubai are extremely luxurious affairs.
It has the world’s most ambitious, well, everything…
In 1968, there were reported only 13 cars in the whole city
Amazingly, you will not see street addresses in Dubai.
Monetary unit of Dubai is the Dirham (Dh).
1 INR = 0.07 AED
Dubai’s average annual precipitation is just 13cm; but at times one forgets it is a
desert.
The dealings are finalized verbally and the business works, rather than paper
dealings unlike other countries.
Office working days : Sunday to Thursday

17. Stock Market of
Dubai
Dubai Financial Market is a stock exchange founded in 2000.
Dubai International Financial Centre It offers benefits such
as zero tax rate on income and profits, 100 percent foreign
ownership, no restrictions on foreign exchange or capital/profit
repatriation, operational support and business continuity
facilities.
NASDAQ Dubai is a privately held financial exchange that
opened in September 2005 as Dubai International Financial
Exchange(DIFX) but it was rebranded as NASDAQ Dubai in
the year 2008. Products listed on the DIFX include ordinary
shares listed by DP World along with other Damas and DEPA.
DP World is the largest IPOs in the Middle East and raised $
4.96 billion. NASDAQ Dubai is regulated by Dubai Financial

18. Thank you…!
No questions please…!!!