Dubai: 5 Secrets to City Prosperity

Far from civilization


The first mention of Dubai dates back to 1799. Then 1200 people lived in it. In 1833, the city came under the leadership of the Al Maktoum dynasty, which rules to this day. Dubai lived off the pearl industry and gradually entered the international market. In 1894, the city authorities exempted foreigners from taxes. Many workers from Pakistan and India appeared in Dubai, who expanded the city's trade links.

After 50 years, the city's economic position was in jeopardy. The Japanese created artificial pearls, so fishing for the real has become less relevant. However, in 1966 a miracle happened: oil fields were discovered on the territory of the city.

Black gold - the beginning of development


Oil has brought decent capital to the treasury of Dubai. Sheikh Rashid took up the construction of urban infrastructure. There were created: transport interchange - port Rashid, World Trade Center, the largest dry dock, Jebel Ali artificial harbor.

In 1971, Dubai became part of the new independent state - the United Arab Emirates. The Sheikh understood that sooner or later the oil would run out, so it was necessary to look for other options for the development of the city. In 1995, Mohammed bin Rashid Al Maktoum became the Emir of Dubai. He announced an ambitious plan for the prosperity of the region and said it was time to attract global investment. It was hard to believe then, but now the experience of Dubai can only be envied.

 

1. Financial oasis


The Dubai authorities have offered foreign investors the most favorable conditions:

- exemption from taxes on assets and profits. The only exception was oil and banking businesses, where corporate income tax was required;

- the ability to register a business even with a tourist visa;

- Dubai Internet City - a free economic zone and strategic base for firms focused on the Dubai market;

- construction of an international-class hotel in the form of a Burj al Arab sail and expansion of the airport to 15 million tourists a year.

2. Tourist gem


Tourism was chosen as the second direction of development. After Burj al Arab, they began to build first-class hotels on the seaside with excellent service and facilities. The authorities have introduced a ban on drinking alcohol in public places so that tourists can only buy alcohol in restaurants or Duty Free. After the 70 km coastline ended, artificial islands began to be created in Dubai.

3. The state is the main businessman


At the moment, oil brings to the budget no more than 6%, and most of the revenues (74%) are replenished through government services. Among them:

- expensive visa;

- the share of the state in all projects and companies: hotels, shopping centers, cafes and restaurants, real estate, etc. Including foreign ones;

- strict but fair fines.

4. "Star" events


Every year in Dubai, prestigious sports competitions are held, which bring good profits. These include:

- the most expensive horse racing in the world - Dubai World Cup, where the prize fund is $ 4 million;

 

- one of the stages of the World Auto Racing Championship - Abu Dhabi Formula 1 Grand Prix;

- championships in golf, rugby, triathlon;

- original competitions like desert race, falconry and electric racing.

5. Development of aviation


Today, traffic at Dubai Airport reaches 57 million passengers a year. People from all over the world fly to the UAE or transfer to the next flights, for which the treasury receives income. Dubai is famous for its air shows and the Emirates airline, which offers the most comfortable conditions for flying anywhere in the world.

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