Economic and Political Environment of Dubai

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Dubai INTRODUCTION In recent years, Dubai, a city within the United Arab Emirates, or emirates (UAE), has seen significant growth and is continuing to be viewed as a great place to do business. With a population of over 2 million, not only is Dubai booming, but it is a free trade zone, offering 100% foreign ownership and zero taxes for potential investors (CIA Factbook 2012). While the Dubai economy was once almost exclusively about oil, today, Dubai is only directly dependent for around 4% of its gross domestic product (GDP) on oil revenues (Emirates 2012). Dubai is located in the Middle East, bordering the Gulf of Oman and the Persian Gulf, between Oman and Saudi Arabia. The city of Dubai is…show more content…
The diversity of Dubai ranges from its music, religion, cuisine, nightlife, athletic sports, and population. Islamic traditions are the core of its lifestyle, and Dubai is considered a rare and valuable community that has a strong cultural imprint, as it is home to a large variety of ethnic and national groups. However, despite how quickly the country is evolving, the people of Dubai remain conscious of its culture. MAP OF DUBAI Dubai is located south of the Persian Gulf on the Arabian Peninsula. It also has the largest population with the second- largest land territory by area of all the emirates, after Abu Dhabi. Economic Environment While the foundation of Dubai’s economy may have been built with oil revenues, only about 4% of Dubai’s GDP is oil-based. If Dubai had not invested a substantial portion of its oil reserves into developing additional industries and infrastructure, the economy of the emirate would not have grown so exponentially. The oil reserves of Dubai only constitute approximately 2% of the total reserves in the UAE, and they are projected to be depleted before 2020 ( 2012). Dubai has drastically transformed its economy in the last twenty years with the aid of foreign capital and its strategic domestic investments that were initially funded by oil. The majority of Dubai’s largest corporations are state owned, or state backed, entities. The largest of these, Dubai World,
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