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Economic History of Dubai

Some 800 members of the Bani Yas tribe, led by the Maktoum Family, settled at the mouth of the creek in 1833. The creek was a natural harbour and Dubai soon became a center for the fishing, pearling and sea trade.

By the turn of the 20th century Dubai was a successful sea port. The souk (Arabic for market) on the Deira side of the creek was the largest on the coast with 350 shops and a steady throng of visitors and businessmen. By the 1930s Dubai's population was nearly 20,000, a quarter of whom were expatriates.

In the 1950s the creek began to silt, a result perhaps of the increasing number of ships that used it. The late Ruler of Dubai, His Highness Sheikh Rashid bin Saeed Al Maktoum, decided to have the waterway dredged. It was an ambitious, costly, and visionary project. The move resulted in increased volumes of cargo handling in Dubai. Ultimately it strengthened Dubai's position as a major trading and re-export hub.

When oil was discovered in 1966, Sheikh Rashid utilized the oil revenues to spur infrastructure development in Dubai. Schools, hospitals, roads, a modern telecommunications network. A new port and terminal building were built at Dubai International Airport. A runway extension that could accommodate any type of aircraft was implemented. The largest man-made harbor in the world was constructed at Jebel Ali, and a free zone was created around the port.

Dubai's formula for development was becoming evident to everyone – visionary leadership, high-quality infrastructure, an expatriate-friendly environment, zero tax on personal and corporate income and low import duties. The result was that Dubai quickly became a business and tourism hub for a region that stretches from Egypt to the Indian sub-continent and from South Africa to what are now called the CIS countries.

In the 1980s and early 1990s, Dubai took a strategic decision to emerge as a major international-quality tourism destination. Investments in tourism infrastructure have paid off handsomely over the years.

Dubai is now a city that boasts unmatchable hotels, remarkable architecture and world-class entertainment and sporting events. The beautiful Burj Al Arab hotel presiding over the coastline of Jumeira beach is the world's only hotel with a seven star rating. The Emirates Towers are one of the many structures that remind us of the commercial confidence in a city that expands at a remarkable rate. Standing 350 meters high, the office tower is the tallest building in the Middle East and Europe.

Dubai also hosts major international sporting events. The Dubai Desert Classic is a major stop on the Professional Golf Association tour. The Dubai Open, an ATP tennis tournament, and the Dubai World Cup, the world's richest horse race, draw thousands every year.

Dubai has been ranked the top FDI destination in 2008 as per the FDI Intelligence magazine of London based Financial Times.

In its position as the top destination city for FDI for 2008, Dubai attracted a total of 342 projects, had $21 billion (Dh77.3 billion) of capital investment and created over 58,000 new jobs. The number of FDI projects set up in Dubai grew by 59% on 2007 figures and capital investment soared from $9bn to $21bn between 2007 and 2008, a growth of 123%.

Dubai has for the first time been classified as the top destination city in the world surpassing the likes of London and Shanghai. Through FDI during 2008, Dubai has attracted 35% of total projects, 14% of capital investment and 25% of the jobs created in the MENA region.

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DED Agencies

	Dubai Export Development Corporation
	Foreign Direct Investment
	Mohammed Bin Rashid Establishment for SME Development