Pace of Dubai Development

Dubai 1991


Now..!!

Since 2000, Dubai's municipality has initiated a plethora of
construction phases and plans across the entire city of Dubai,
predominantly in the Mina Seyahi area, located further from
Jumeirah, towards Jebel Ali. In many areas, it is not easy to see
Dubai's sky without at least one crane in your view; Industry experts
cautiously estimate that 15% to 25% of the world's cranes are in
Dubai.^[7] Construction in Dubai and the UAE in general is a much
faster process than in any Western country. This is partly because
Dubai construction companies hire more labourers for a given
job than is typical in the West

One of the main reasons for the boom in construction in Dubai
is its drive to diversify the economy. The Dubai government
does not want to depend on its oil reserves which are largely
believed to become exhausted by 2010 and, as such, has
diversified its economy to attract revenues in the form of
expanding commercial and corporate activity. Tourism is also
being promoted at a staggering rate with the construction of
Dubailand and other projects that include the making of
mammoth shopping malls, theme parks, resorts, stadiums
and various other tourist attractions.

Another reason for the construction boom is the recent reversal
of a law in 2002 that allows non-nationals of the UAE to own
property (not land) in Dubai (albeit freehold and 99 year
leases are actually sold to people with ownership still remaining
with private companies). The larger of the property tycoons are
Nakheel Properties and Emaar Properties. In Dubai, demand is
currently outstripping supply by a significant margin and is
showing no signs of slowing in the near future. Rents have
skyrocketed with the recent inflow of professionals and companies
from around the world who are attracted by Dubai's no-tax
benefits although rises have recently been capped to 7% per
annum up to 2007 under a directive from Mohammed bin
Rashid Al Maktoum. Legislation in this area is still developing as
the property market for foreigners is relatively new.