International Financial Centre

Twenty years of rigorous and extensive development, Dubai has made a landmark worldwide in attracting more and more investment. Earlier construction and expansion of small trading port created around the mouth of the Creek that progressed in the long run. Before, fishing ports was the only lying ports nearby village and extremely get bigger when a huge man-made port was constructed making it the biggest and largest free-trade zone in Arabia, the Jebel-Ali. Free zones are opened to 2350 companies from 97 countries including Japanese companies.

For the accommodation of the various companies of multinational origins and their bases of warehouses it was formulated that a free working zone would be created. This was the JAFZ or the Jebel Ali Free Zone. This Jebel Ali Free Zone is instrumental in Middle East and the Gulf and served as a harbour for these companies. It should be noted that the government of Dubai looked into the real estate opportunities arising from the technology sector that was coming into prominence in the latter parts of the 1990s and understood the potential of the new media.

This prompted the government to construct the business related free zone and formulated and developed the structure of the media technology and internet based organizations and this approach was epitomized by the establishment of centre like DIC or Dubai Internet and Media Cities. This step was taken to facilitate every aspect of the growing economic environment in the region. It should be stated in this context that the Dubai Internet and Media Cities is a fast growing concern and it is located in the most developing and financially and commercially stable area of the region.

At present there are a number of multinational big names that are associated with the DIC. Few of them are CNN, McGraw-Hill, Canon, Oracle and Microsoft. Another huge industrial landmark that links the outside world is the Jebel-Ali International Airport and now named as Dubai World Central International Airport which amounted to US$8 billion. Industry-related is based fundamentally from petroleum product.

Petroleum is the central point of economy of the United Arab Emirates and is concentrated in Abu Dhabi and Dubai. They are still seeking help from the outside since industrial development is limited by a lack of trained persons who can divert the industry into a modern and high-technology oil-producing manufactures. Also, sources of raw materials are still lacking to sustain its production. Dubai is the current supplier to up-and-coming markets such as Central Asia, the CIS, South Africa and India (Lowtax Library).

DIFC or the Dubai International Financial Centre chalked out a schedule and laid a plan for financial development of the region in 2002 in terms of real estate. In accordance to the policies implemented by the Dubai International Financial Centre it was formulated that different big financial sectors like banks would be involved in the scheme. As a result it was found that various investors came into the equation and among them Standard Chartered Bank, HSBC and the Deutsche Bank signed treaty to support the issue.

It should also be noted that these partners became the initial resident of the Dubai International Financial Centre scheme. The DIFC have made a mark in protecting the investors and create a freedom for single, logical framework which is recent and in contrast to older-established jurisdictions. It could be stated that according to financial assumptions the DIFC is likely to supersede the contribution in the parameters of financial sector by about 100% percent in the region of UAE’s GDP.

In terms of real estate it can be stated that High rise buildings and shopping malls are now visible and hotel industry is now entering the hotspots of the country since more and more tourists are arriving. Although a small country with a small population, in the year 2004, the total non-oil imports made a spot of Dh 149,046 million and Dubai is the major re-export centre for the United Arab Emirates. The gross domestic product of Dubai grew up to 64. 5bn Dirham, about 15% between 1999 and 2001 and its non-oil foreign trade grew by 30%, about 111.

6bn Dirham in the same two years (Foreign Direct Investment, 2003). Many of the economies of the United Arab Emirates development, consequently there are a lot of long term potentials for the development and growth in the long term. Accordingly it should be noted in this context that the UAE became the founder member of  GCC or the Gulf Cooperation Council and was responsible for assemble a very important summit meeting back in 1981 in Abu Dhabi. Here a number of Arab states participated as members.

Among the states apart from UAE there were Oman sultanates, Qatar, Bahrain, Kuwait and Saudi Arabia. Though past political issues were inclined with the Arabian nations, they are now open to agreements on free trade. As per as the latest news it was reported that Yemen is showing interest in joining the league and is assumed to be a full time member by 2016. Economic boom and gloom is coming all the way for Dubai, its ambition is brilliant and any tourists or visitors will be struck by the pace of progress across the emirate.

But re-export remains the major source of economic progress of Dubai despite its Muslim traditions and uncontrollably transforming the regional headquarters for technology, banking, media, aviation and shipping. Unlimited opportunity is still expanding and rapidly growing; Dubai’s advantage becomes positive and long withstanding since free zones are offering absence of ownership restrictions. The government still not open to foreign ownership and unwilling to move on the ownership issue which makes the free zone remains in place.