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Dubai
- The Commercial Capital of the UAE.
Historically,
Dubai has always been a major entrepot
in the Gulf and it remains the commercial
centre of the UAE.
Since
the beginning of 1970s, Dubai Economy
has been moving systematically towards
reducing its dependence on Oil sector.
Now the Non-oil sector contributes 90
% of Dubai’s GDP due to the initiatives
taken by the proactive Dubai Government
to develop the various non-oil segments
of the economy.
Dubai
has strengthened its distinguished strategic
location by pursuing a free and balanced
economic policy that has given it a good
reputation in the international commercial
and economic communities, which encourages
national and foreign capital to enter
into successful investment ventures in
different commercial, industrial and service
fields.
Government
has successfully encouraged world class
enterprises to invest in the conventional
Free Zones (Jebel Ali Free Zone &
Dubai Airport Free Zone), Tourism projects
and the New Internet Economy initiatives
viz. Dubai Internet City, Dubai Media
City (Free Zone) and Dubai Ideas Oasis
(Business incubator).
Future
Outlook
The
growth rate of UAE economy is related
to the oil prices. During 2001, the UAE
economy shrank by 3 % (after a high growth
rate of 17 % for the year 2000 mainly
fuelled by the record average Oil price
of USD 26.1 per barrel). Average oil price
during 2001 was USD 23 per barrel. The
growth forecast for the year 2002 depends
on the oil prices. If the average oil
prices for 2002 are in the region of USD
20 per barrel, the overall economy will
post a growth of 4 % and the non-oil sector
is likely to post a growth of 6 % .
All
the emirates are vying with each other
to attract investments by trans national
corporations. Massive capital investments
in infrastructure ( ports, freezones,
roads, tourism oriented projects, oil
refineries and petro chemical complexes)
are being made in all the emirates.
A
high level of political stability, a strong
currency, and progressive policies of
the Government assure the UAE of continued
economic progress and growth.
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