Some highlights  of the current sizzling market in the commercial oasis of the Middle East.

Oil & Gas - Whereas 20 years ago oil revenues accounted for around half of Dubai's GDP, in 2004 the oil sector contributed just 6%. It is expected that by 2010 oil will account for less than 1% of total GDP. Dubai's rulers have known for many years though that the oil would run out, and so embarked on ambitious projects to diversify the emirate's economy. Today, trade, manufacturing, transport, construction, and real estate are the main contributors to Dubai's strong, growing economy. Indeed, the latest figures show that the construction and real estate sectors between them account for almost a quarter of total GDP. In 2004, Dubai's GDP was in excess of Dhs.110 billion, an increase of 13.3% on the previous year's figure.

One concern that is accompanying the economy's growth is rising inflation. It reached 6.5% in 2005 but was expected to drop back to 5% for 2006.

Trade - A long trading tradition, which earned Dubai the reputation of 'the city of merchants' in the Middle East, continues to be an important consideration for foreign companies looking at opportunities in the region today. It is reflected not just in a regulatory environment that is open and liberal, but also in the local business community's familiarity with international commercial practices and the city's cosmopolitan lifestyle. Strategically located between Europe and the Far East, Dubai attracts both multinational and private companies wishing to tap the lucrative Middle Eastern, Indian and African markets (which have a combined population of 1.4 billion people). Annual domestic imports exceed US$17 billion and Dubai is the gateway to over US$150 billion (annual) in trade.

Tourism - The development of high-end tourist developments and visitor attractions, in conjunction with an aggressive overseas marketing campaign, means that Dubai is swiftly becoming a favorite holiday destination. The city is also attracting a lot of business in the MICE market – Meetings, Incentives, Conferences and Exhibitions. The government's plan is to attract 15 million visitors a year by 2010, and 40 million a year by 2015.

Construction Boom - Construction is an important part of the development process of the economy of any nation and same is the case with UAE in the last decade the world has witnessed a substantial increase in the number of construction process in the gulf and this increases all the more visible in UAE. Due to this substantial boom there is a lot of importance that is being given to the construction law in UAE so that the investors have a transparent system to work in. Dubai has always been a city that has witnessed growth, but the recent growth in Dubai is absolutely mind boggling.

The main reason why there is an up spurt of construction job in Dubai in particular and the UAE in general is that the construction work gets completed quite early here. The reason is that Dubai construction companies hire more laborers than what the western companies hire. In Dubai there is no dearth of human capital, you can easily find laborers, engineers and architects.

Since the year 2000, the Dubai's municipality has started off a great number of plans across the entire city of Dubai; the major areas which have witnessed this growth are Mina Seyahi area, which is located toward the Jebel Ali and as further away from Jumeirah.

Dubai has about 16% of the world's cranes. Not only is construction in the UAE and particularly Dubai a faster process, but it is also a much cheaper process compared to other western country. The reason why work gets completed at a cheap rate is that Dubai has access to laborers from the Indian subcontinent who accept lower wages as compared to other countries.

The main reason why the Dubai government is trying to focus on its construction business is because it does not want to solely rely on its oil reserves. The pi reserves of UAE are expected to get exhausted by the end of 2010 and as such in order to attract revenues it is trying to expand its commercial and corporate activity.

Tourism is also being promoted on a large scale with the construction of Dubai land, and other projects that include the making of huge shopping malls, park resorts and other major tourist attractions


Growth - The pace of economic growth in Dubai over the past 20 years has been incredible – trade alone has grown at more than 9% per annum over the past ten years. Looking to the future, Dubai stands poised for further growth with the development of many multi-billion dollar coastal extension projects (ie, the three Palm Islands projects, The World, and Dubai Waterfront) plus new business and financial ventures.