Million dollar question : Why is Dubai so rich?
- The city of Dubai in the United Arab Emirates is famous worldwide.
- The UAE is the third richest country in the world.
- Oil accounts for only one per cent of Dubai’s earnings.
In the world when it comes to luxury with amenities and opulence, it cannot be said that Dubai is not mentioned. Famous among the nobles across the world, Dubai has every big brand and expensive items available. But what is the reason that Dubai is such a rich country, it is very interesting.
If you think that Dubai is rich because of oil, then tell you that oil was discovered in Dubai 50 years ago, but it is only one percent of its earnings.
If you go back in history, from the year 1770 to the late 1930s the main source of income here was the pearl industry, which is the real story behind the present UAE. Residents of the Persian Gulf fishermen villages used to dive into the sea in search of pearls and this was the method of early trade. However, it later set out a different way to do something big.
Dubai established its first free zone in 1985. It was named Jafja i.e. Jebel Ali Free Zone. It is the largest free area in the world, spanning 52 square kilometers (20 sq mi). As a result, it became a major attraction for global businesses. These global businesses today take advantage of the 30 free zones of the Emirate that offer tax rebates, custom duty benefits and lack of restrictions for foreign owners.
Thousands of Jafza companies make 20 per cent foreign investment in Dubai and an estimated 1.44 lakh employees are earning more than $ 80 billion in non-oil businesses. This is 21 percent of the city’s gross domestic product (GDP).
The UAE is the third richest country in the world. Qatar is named first on the list and Luxembourg at number two. Dubai’s per capita GDP is US $ 57,744. Most of its money comes from the production of goods and the provision of services related to petroleum, petrochemical, aluminum and cement.