Gulf:

thE land
of
Oil in Dubai
It could have been a curse.
Resource curse:
“the tendency of countries with high levels of natural
resources to exhibit worse economic and political
outcomes”
(Morrison, 2008)

“A paradoxical situation in which countries with an

abundance of non-renewable resources experience
stagnant growth or even economic contraction.”
 Dutch disease
A nation finds ample natural resource reserves.
Economic focus begins to target this high-income
industry.
Skilled workers from other sectors transfer to the
resource sector.
Higher wages make the national currency less
competitive.
Other industries, especially the manufacturing sector,
begin to suffer.
Dutch disease in Columbia
Booming coffee sector
 Dubai and Economic Time-line
1990- Persian Gulf war and its effect
on Dubai.
1985- Dubai starts Emirates airlines.
1979- Modernisation of Dubai.

1979- Construction of worlds largest

man made port.
1971- Dubai becomes part of UAE.
1966- Discovery of oil in Dubai.
1966- Dubai sets up new currency.

1947- War between Dubai and Abu

Dhabi
1920-Dubai’s economic depression

http://www.xtimeline.com/timeline/dubai
 Dubai and Economic Time-line
2006- Oil revenues in Dubai dropped to
7% of GDP as economic development
expanded to transport, tourism and
business.
2002- Started creating a world-class
financial centre as part of its
diversification into service industries
before running out of oil and gas.
1994- Symbol of Dubai’s urbanisation.
2007- The Gulf emirate of Dubai
announced it had bought the Queen
Elizabeth 2.
2005- It was reported that Dubai
Holding, bought 21,000 rental
apartments in the US Sunbelt for $1
billion.
2002- Started $5.5 billion Palm Island
resort project.
2002- The $4.9 billion Dubai Land
tourist city
http://www.xtimeline.com/timeline/dubai
 So what did they do...
“Our infrastructure has expanded to
become one of the best in the world,
....... We are also witnessing the
continued excellence of the
logistics, retail, trade and tourism
sectors, which power the dynamics
of Dubai’s economy, and reiterate
their legacy as the chief engines and
enablers of growth.”
Shaikh Ahmed,
Chairman of the Dubai Economic Sector
Committee
Into the following sectors:
 Travel and Tourism

 Retail and Trade is staple to the diet of Dubai's

economy
 Oil

 Real estate and infrastructure

Travel and tourism
Travel and tourism now accounts for 30% of the annual

GDP.
In 2010, there were nearly 15 million visitors to Dubai and

the figure may touch 40 million mark by 2015.

Hotel’s construction has seen a growth of 15 % annually.

Hydropolis, the world's first underwater hotel.

Entirely built in Germany and then assembled in Dubai.

 Travel and Tourism

Dubai land is an entertainment complex, which includes

45 mega-projects and 200 sub-projects, once completed
will attract 200,000 visitors daily
Real estate and infrastructure
Currently Dubai is said to have 15-20% of world’s cranes.

Dubai’s waterfront will be largest waterfront in the

world when completed.

Palm Island built in just 5 years, it will shelter nearly

500 apartments, 2 000 villas, 25 hotels and 200 shops of

luxury.
Dubai in 90’s
Dubai last year
The World-nearly 300 artificial islands, seen
sky will form a planes sphere.

The Burj Al Arab(Tower of the Arabs) is a 7 star

luxury hotel in Dubai ,was built to resemble the
sail of a dhow.

Hydropolis Underwater Hotel, Dubai, the

world's first luxury underwater hotel.
 Burj Khalifa (Khalifa Tower), is a skyscraper in Dubai
and is currently the tallest man-made structure ever
built, at 828 m (2,717 ft).

Dubai Marina(Canal City), When

the entire development is complete, it
will accommodate more than 120,000
people in residential towers and
villas.
Retail and Trade
Trading and retail sector contribute 60% to Dubai's

GDP and 16% of the economy activities of the Emirate.

Mr. E Kazim, Director General of the Dubai Financial Market and (DSES).

Dubai’s Gross Domestic Product reached £28 billion

in 2007, with Retail and Trade contributing upto 31%

Oil
In the early 1960's oil was discovered 75 miles off the
coast of the United Arab Emirates transforming the
economy of Dubai and its six neighboring federated
states. (Angela Murray, 2007)
In 2006, the contribution of oil towards Dubai’s GDP was
less then 6%
Sustained growth experts view
Thank You
 Refrences
 Andersen, Christine H.. (2004). Trading and retail sector contribute 60 per cent
to Dubai's GDP. Available: http://www.ameinfo.com/50060.html. Last accessed
1st April 2011.
 Basit, Abdul. (2011). Stronger public-private alliance to drive growth. Available:
http://www.khaleejtimes.com/DisplayArticleNew.asp?
section=business&xfile=data/business/2011/march/business_march563.xml.
Last accessed 29th March 2011.
 Shilpa. (2007). Dubai. Available: http://www.xtimeline.com/timeline/dubai.
Last accessed 1st April 2011.
 Davidson, Christopher M. (2008). Dubai: The Vulnerability of Success. New
York/ Chichester : Columbia University Press . Pg 99-136.