Dubai is the first country in the United Arab Emirates that ventured away from oil as its main source of income. Today oil contributes only 6% of the nation’s GDP. Dubai has steadily and determinedly worked on transforming itself from an oil rich country into an important trade center and business port. It has done several things to attract western investors, both individuals and corporations, to set up shop there. Dubai is also the biggest banking and financial market in that area.

Besides business, Dubai has also worked hard to attract tourists and continues to develop on the theme to provide increasing number of options in terms of accommodations and also activities. There are some truly stunning resorts that have been and are being built in Dubai to attract tourists and business visitors. There are specific zones free zones in the city that have been set up to attract specific industries. Many international conglomerates like IBM, Oracle, CNN, Reuters, and Microsoft have substantial presence in Dubai.

The Real Estate market in Dubai is flourishing due to the efforts of the government to diversify in the tourist and service industry. Huge projects like the Palm Jumerirah and The World are being created on manmade islands and have caught the world’s attention even though some of them are still under construction. Inside the city you will find the world’s tallest skyscrapers and also Burj Aj-Arab, the world’s tallest hotel. The Burj Dubai is currently under construction and once it is finished it will be the tallest building in the whole world. Another project underway covers a new business district and will comprise of 500 skyscrapers.

Dubai’s economy reported a 16% growth in 2005. According to the Dubai Department of Economic Development (DED) its estimated worth was around $37 billion back then. It is expected that Dubai’s economic growth will surpass that of China, which is considered to be among the fastest growing economies today. China’s current growth rate is 8.5% According to the DED Director General Mohammed Ali Alabbar, Dubai’s economy is quite sustainable in the long run. He stated that the business friendly government policies will help to keep the economy growing at a steady pace.

Considering that Dubai’s economy was only $17 billion in 2000 the accumulated yearly growth of Dubai’s economy is the highest in the world for the last decade. Mr. Alabbar also pointed out that this growth was a direct result of the government decision to diversify the economy and move it away from reliance on the oil industry.

In 2005 the non-oil industries in Dubai contributed to nearly 94% of Dubai’s GDP. This is the clearest evidence that the government did the right thing by moving away from oil and focusing on other industries like business, tourism, hospitality, and others. For the past few years the economy of Dubai has shown some truly remarkable growth patterns and the continuing focus of the government on making newer policies in the same vein is going to ensure that the growth does not slow down any time soon.

Dubai real estate property prices fall by 50% due to lower demand frm buyers.According to reports,

the real estate market in Dubai is falling from 20% to 50%.It is predicted by experts that aparment prices

will fall by an average of 20% .Individual decline between 10% to 50%.Some how it depends on development.

Villa prices will remain stable with an average drop of 10%.United Arab Emirates capital Abu Dhabi suffered a fall of 20% prices since last summer.Qatar suffered a fall of 10%.It has now become a Buyer’s market rather than a Seller’s market.Buyers have more advantage in negotiating prices.

The property prices will continue to fall for 9 to nine months which resembles a situation in hong kong 11 years ago.The values fell ranging from 20% to 50%.Expert predicted that investors would come back if property becomes more affordable as the asking price now is unsustainable.From international News, projects worth $72.35 billion are in a dilemma causing great lose to pakistani investors.Although there is no official annoucement about projects development on hold from developers,reporters stated that over 50 building projects can be seen in standstill.Real Estate projects worth $3.275billion has confirmed to to be cancelled.If this crisis continues,job losses will increase in constrution field which will worsen the situation.Following day,news said that the real extent of the halt in developments in Dubai has been revealed by an international bank which estimates that projects worth £53 billion have now been put on hold.According to HSBC 59 projects have been severely affected by the global downturn and of these eight have been cancelled and the rest put on hold.In a report note the banks says that high end residential projects and commercial developments are those at most risk in the current economic conditions.Hopefully good news will come in coming months.

 

Yours sincerely,

http://donnieproperties.blogspot.com

 

Dubai is emerging as the one of the most important cities of the world. The city’s gross domestic product was calculated at $46 billion in 2006. Dubai’s economy is backed by rich oil deposits, which was discovered in 1960’s. Since then the city is making its mark and making considerable progress in other sectors as well. According to recent reports, oil constitutes only 10% of the city’s total GDP, which shows the increasing shares of other sectors too. Areas including manufacturing, tourism, finance, and information technology are also developed rapidly in the recent years.

Manufacturing has been a significant role in Dubai’s economy. It homes some of the major industries including rubber, beverages, chemicals, paper and pharmaceuticals. Multinational corporations including Sony, Heinz, IBM, Shell, General Motors and AT&T have their corporate offices in Dubai. Major financial institutions and firms establish their working office Dubai. It is estimated that the growth rate of the financial market is around 12 percent per annum and likely to continue at the same pace. Moreover, banking sector also looks promising and showing positive growth rate in Dubai.

Tourism sector has a pivotal role to play in Dubai’s economy. The increasing attractions and activities have encouraged millions of people around the world to visit the city. Growing number of luxurious hotels, skyscrapers, shopping malls, water parks and museum have given a competitive edge to the city.

Dubai Information Technology market has grown rapidly in the last few years. The government has built the Dubai Internet City to give priority to information technology companies. The government has also provided tax exemption and 100% foreign ownership to many multinationals to attract foreign investment in Property Dubai.