Gulf Tiger: Difference between revisions
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[[Category:Economy of Dubai]] |
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Revision as of 14:05, 28 July 2013
The Gulf Tiger or Arab Gulf Tiger is a nickname used to describe the period of rapid economic growth in the city of Dubai. The boom that Dubai has been experiencing since the 1990s is still going on, transforming the city from a desert village to a world class economic hub.
Characteristics
The city of Dubai is the second most prosperous emirate of the United Arab Emirates, after Abu Dhabi, and with a cosmopolitan population of 1.6 million, is consolidating its preeminent role as a regional hub while aspiring to be a global city.
Dubai shares a range of characteristics with other tiger economies including a sustained double-digit GDP growth rate since 1994. In 2004 Dubai's GDP grew at a healthy 17% rate, mostly in the non-oil sectors.[1]
Diversification
Oil is becoming increasingly irrelevant and Dubai's oil production dropped steadily from an all-time high of 450,000 barrels per day in 1995 to less than 100,000 in 2005. But as the contribution of oil to GDP dwindled, the economy expanded exponentially. It almost doubled in size during the 1991-2000 period. Dubai's economy is now fully diversified.
Economic development
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But this conservative reading does not truly reflect the inner dynamism of the city, nor the fact that Dubai has become a hip city. This image of commercialism and great potential attracts a lot of foreign direct investment. FDI has been growing with an annual rate of 11% in recent years. 90 companies of the Fortune 100 list have already located their regional offices in the city.
The question is, however, how long this economic boom will continue. Pessimists have been harping on the Dubai bubble for the past decades, but the city miraculously defied them. And even if the boom continues the question remains, 'At what price?'. The demographics of the city have changed dramatically making the Emiratis a 12% minority in Dubai. And estimates indicate the share dropping to 1% in 2020.[1]