Dubai Economy, Dubai Economic Profile, Economy of Dubai

The economy of Dubai is one of the most unique and unusual in the world. As an entrepôt, (or free port or porto franco) duties and taxes are not imposed on imported goods. Dubai has numerous free zones including Jebel Ali free zone, Dubai Maritime City, Dubai Internet City, and Dubai Media City.

The free zones in Dubai have attracted considerable foreign direct investment (FDI). Combined, the internet and media free zones are called TECOM (Dubai Technology, Electronic Commerce and Media Free Zone Authority). Within them are large multi-national firms sucah as Microsoft, Oracle Corporation, IBM, and EMC Corporation; BBC, CNN, Reuters, Sky News, and the Assoiated Press are in the medai free zone.

This Emirate, or political territory, specifically in the country of the United Arab Emirates, has grown from relative obscurity in the past half-century to one of the largest and most powerful in the Middle East. Originally built on the oil and gas industry, the city's rapid expansion in the 90s brought the construction industry to the forefront of the state's economy.

While many believe Dubai's economy is totally driven by oil and gas, that sector only comprises less than 6% of the economy of Dubai. In fact, Dubai's portion of natural gas revenues in the United Arab Emirates is only about 2%. Dubai's oil production is estimated to be about 240,000 barrels per day.

One of the most famous and largest construction projects in Dubai is the Burj Al Arab, the world's tallest freestanding hotel. This was built in conjunction with a plethora of homes, condos, and other residental developments. At the same time, Dubai's economy was fueled by tourism and considerable private real estate investment.

Other significant developments include Burj Dubai, The Palm Islands, and The World Islands. The construction of many of these high-end housing projects and the subsequent investment drove prices up to 11.2% in 2007, as measured against the Consumer Price Index.

This inflation has impacted the living standards of many of the residents, and all of the foreign unskilled labor force, most from India and Pakistan. Thus, Dubai remains a hub for ultra-high-end tourism, celebrity events, and excesses in luxury lifestyle.