Dubai has made its mark as one the fastest growing cities in the region, owing to its carefully honed environment of investor-friendliness and business efficiency. After decades of successfully wooing foreign investment, the city has evolved from an oil-focused economy to a dynamic and diverse business hub.
Let’s look at how Dubai has evolved with this transition.
A vibrant business sector
Dubai has come a long way since its oil-dependent days prior to the 1970s. Where once more than half of its GDP was derived from the oil industry, this percentage has now declined to less than 1%.
Today, Dubai owes its growing GDP to a number of different industries, including wholesale and retail sector (25.5%), real estate (7.4%), manufacturing activity (9.5%), hospitality and restaurant sector (5.1%). Agriculture, electricity, gas, water, waste management, information and communication activities, as well as financial and insurance, collectively contributed 17% of the GDP.
This economic diversity is on full display through the sophisticated free zones located throughout the city.
Foreign professionals flock to Dubai
Successful entrepreneurship has made Dubai the fastest growing city in UAE.
Dubai’s population has grown rapidly along with its economic diversification. Once in the modest range of 35,000 or so (in the pre-1960 era), its number of inhabitants has surged to 3.3 million today. A major factor of this growth is the influx of foreign professionals meeting the needs of the flourishing private sector.
About 40,000 new jobs were created in the second quarter of 2019, a consequence of the ongoing real estate boom and growth in other sectors such as agriculture, hospitality, restaurants, brokerage, education and health. According to the latest reports, the total number of people employed in the private sector rose to 5.1 million in the second quarter from 5.06 million in the first quarter of 2019.
Exceptional business support in Dubai
Innovative entrepreneurs have played a major role in modernising life in Dubai.
Dubai offers comprehensive support to startup founders, ranging from mentorship and networking opportunities to government support and platforms for pitching to investors. It is no surprise then that many startups have taken off in the city.
A positive consequence of the city’s healthy startup culture is that it tends to improve the quality of life of its residents. Successful startups, such as ride-hailing app Careem, have revolutionised travel within and beyond Dubai, with the company now serving as a major driving force behind the government’s initiative to convert the city’s taxis into eco-friendly models.
Another successful app, Derq, is intervening in the transportation sector in a completely different but equally essential way. The app uses artificial intelligence and vehicle communication technology to monitor vehicle driver behaviour and predict traffic accidents. It warns its users of potentially dangerous drivers and thus works to prevent vehicle collisions. Its information is also useful for traffic planners for improving highway design and management.
Are you an innovative entrepreneur looking to start a business in Dubai? Contact experts at Decisive Zone for more information, they will guide you through the process.
Decisive Zone is a business setup company helping you find the best-suited solution when establishing a company in UAE. Decisive Zone will advise you on the corporate structure and jurisdiction to choose from, while covering all technical, administrative and financial aspects of UAE business setup.