The lack of growth in the American economy is worrisome. We always complain about the state of our economy. Even though it is doing okay at the moment, especially after the 2008 recession, we are all worried about the future of the US economy. China and India, once considered as 3rd world countries, are fast developing. In fact, China has already overtaken the US. In that case, we are looking for inspiration wherever we can find. Let’s take a look at the Middle Eastern city Dubai. The kind of growth Dubai has witnessed in the last few decades is nothing short of magic. We can learn a lot from them. We have to fight the lazy bureaucracy, rabid regulators, crony capitalists and growing dependent class. We can see that Dubai doesn’t have these challenges. Learning more about the growth of Dubai will teach us some important lessons as how to approach our economy. After all, some 25 years ago, this was a plain desert! People have already started doubting the Longevity Of The US Economy. To Learn More, Click Here.
The US economy badly needs a role model. What about the Dubai economy?
Dubai as we know today
As we all know, Dubai is one of the richest global cities in the world. It attracts millions of tourists every year. Also, the kind of infrastructure, we see in Dubai is really amazing. There are several things going in the favor of this Middle Eastern city. However, one cannot overlook the influence of oil on the economy of Dubai. Ever since they discovered oil in 1966, Dubai has witnessed the large scale urban development, which was unprecedented. They spend the profit from oil on the infrastructure projects. However, they knew that relying too much on the limited oil reserves wasn’t a very good idea. As a result, they focused their energy on diversification of the economy. They ventured into other fields as well. As a result, oil contributes only less than 3% to the overall economy of Dubai today.
The gateway of Middle East
As we can see, they had capable leaders leading their country. Their leaders have been visionary and they took charge of their economy and did the right things at the right time.
- To make advantage of their strategic location, they built a large harbor named Jebel Ali, which was inaugurated in 1979.
- And in 1985, they created Jebel Ali Free Zone. This has definitely helped Dubai as it started competing with Hong Kong and Singapore ports in no time. It became a very popular re-export center very soon.
- Liberal civil laws also helped their economy. As a result, Dubai became an attractive location for many multinational companies to do their business. Many companies opened their offices and warehouses in the country. All these helped the economy to grow in a new direction.
A business magnet
Without any doubt, Dubai is known as a business magnet. Dubai soon became a trade hub for the entire Middle East. They invested their resources in creating infrastructure and facilities. Also, they modified the laws to make sure that companies find Dubai an attractive destination to do business. This resulted in many global companies to head to Dubai. Soon, the World Trade Center was opened in Dubai in 1979. And many other business oriented facilities like Dubai Internet City, Dubai World Center Dubai Investment Park etc. came to the fore.