Dubai's economic strategy is based on a policy to decrease dependence on oil as the major source of income. This is reflected in the increasing development of the trade sector, agricultural reform, national industry and national and international investment. (http://www.cityscape-online.com/page.cfm/link=26) 1)Trade: Trade has always been an important contributor to Dubai's economy and the emirate has done its best to take advantage of its position at the crossroads of East and West.
Decades ago, Dubai established itself as a trading centre. In those early days businessmen from Iran and India came to Dubai to buy goods for sale in their own countries. Now a great variety of goods are exported from Dubai daily by land, sea and air. Oil & Gas Communications and technology :Telecommunications technology is another area in which Dubai leads the charge. Etisalat, which is the UAE's provider of telecoms services, offers the latest in technology. A groundbreaker in terms of new products, Etisalat is working to implement third generation mobile telephony networks by 2004.
Dubai International Financial Centre Located at the crossroads of the major international capital markets of New York and London (in the West) and Hong Kong (in the East), Dubai is the complementary hub connecting the region with the 24 hour/7 days a week global financial network. The Dubai International Financial Centre was conceived by the Government of Dubai for the benefit of the UAE and the region as a whole. Its remit is to create a regional capital market, offering investors and issuers of capital world-class regulations and standards. Its hallmarks are: integrity, transparency and simplicity. (http://www.difc.ae/about_difc.asp)
The DIFC Development Authority is the holding company for the DIFC. It is responsible for the entire development of the Centre. Its remit extends from the development of the financial district (a multi-billion dollar construction project) and supporting infrastructure (including technology) to the marketing of the DIFC and the negotiation of licences to operate in the Centre. The DIFC Development Authority is employing the latest applications in information and communication technology to make the financial district a cost effective, secure and functional place to operate. In the Dubai International Financial Exchange, DIFC Development Authority will provide a fully electronic, multi-class securities exchange that will facilitate trading activities for its licensees, ensuring full integration with their front and back-office operations. (http://www.difc.ae/about_drx.asp)
"With the establishment of the Dubai International Financial Centre (DIFC) and by hosting the Annual Meetings, we will be able to tap these funds in future and help Dubai put this back into our economy. "From South-east Asia to Europe – there is no financial centre in between. With the establishment of the DIFC, we will be able to serve the global regional financial institutions which will help us to attract investment into the region. according to Ahmed Al Banna, assistant general coordinator of Dubai 2003 (http://www.gulf-news.com/Articles/news)
As a new global jurisdiction for financial institutions, the DIFC offers its participants a highly attractive investment environment, including: -100 percent foreign ownership -zero rate tax -freedom to repatriate capital and profits without restrictions. The Dubai International Financial Exchange (DIFX) has been created to provide investors and issuers with a larger and more liquid securities market than exists in any of the region's national exchanges. Based on state-of-the-art technology, this fully electronic marketplace will be capable of trading a wide range of securities, including : -equities -bonds -funds (index funds and unit investment trusts)
-Islamic compliant (Sharia) structured products -derivatives (futures, options etc) -commodities (including oil, gold and other precious metals) -indices -alternative risk products As the DIFX develops, we anticipate that companies from outside the region will want to have their shares dual listed on the exchange and will use their listings to tap the large pool of investment assets in the region through equity and/or bond financings. At the same time, global investors will be attracted by the opportunity to strategically invest in securities listed on a transparent, liquid, efficient and well regulated exchange such as the DIFX. (http://www.difc.ae/about_drx.asp)
Trade Finance – Dubai has emerged as a major centre for international trade, as the third largest re-export centre in the world (after Hong Kong and Singapore) and with over 3,000 multinational and regional corporations located in its free zones requiring trade finance. The region's combined exports equate to those of China. The DIFC offers enormous opportunities for providers of trade finance. (http://www.difc.ae)
2) Tourism The tourism sector's contribution to Dubai's GDP is reaching 18 per cent, higher than that of the sector which contributes about 17 per cent, according to Ahmed Al Banna, assistant general coordination of Dubai 2003 – The Annual Meeting of the Boards of the Governors of the World Bank Group and the International Monetary Fund ( IMF) ). Article "Tourism to outshine oil in Dubai's GDP" Dubai: Tuesday, August 12, 2003) (http://www.gulfnews.com/)