Dubai has got numerous collections of structures and buildings designed in different architectural designs by the architectural boom from the Arab world. The structures are of modern Islamic architectural designs which have currently rated Dubai as having the tallest ever building in the world that is the Burj Khalifa. The nation has developed infrastructural superstructures that have enhanced the transport sector such as construction of fly over’s, bridges, enlargement and widening of carriageways etc. In addition to the transport sector there are huge construction of tunnels and highways for instance over, 4000 road projects have been completed since early 80s. There has been also large airports stunnels which have been developed through application of fine art thus placing Dubai being a nation with among the busiest airports in the world, and without affecting the traffic and aircraft taking off and landing.
Dubai has been a great capitalist nation which was developed initially from slave trade, though located in the hottest and driest parts in the world. Through its good leadership the nation presented itself as a capitalist variation focusing on capitalist enterprise and transforming it to reality of economic development and growth.
Foreign investment. Wickham $ Dewayne (p18) UAE government enacted a foreign investment law which was meant to encourage and inspire more foreign investors into the country. The law allowed increased and better cash inflows of foreign capital into the Dubai economy. It also focuses on protecting the rights and properties of foreign inventors in the economy. Such law also allows imports of labor experts and intelligent personnel who have great productive thoughts on how to improve the infrastructure and business in the economy which eventually will lead to economic development and growth.
Dubai real estate sector is greatly controlled by foreign investment, with companies and individuals from foreign companies consisting of 65 % holders of freehold units. Two out four of all new established freehold properties in Dubai are of foreign companies and investors who live outside the city. A recent research carried out in Dubai reviewed that foreign property and infrastructure developers have $150 billion worth of new property and projects undergoing construction.
An foreign investment company in Dubai known as Magi group team property developers, who are highly looking to grow their investment portfolio of new projects and properties to a value 0f $3.4 billion by the year 2012, says that final property owners in Dubai accounts for 30 % of whole market where only 5 % are UAE citizens while other are foreign investors companies. The reason for this increase in foreign investment is because Dubai is considered to be a safe and rewarding place of foreign investment. Despite of the fact that their is an increasing cost of investing in Dubai , real estate investment has remained to be among the most important area of investment due to the boost from the foreign investors.
Foreign individual and companies investors have been seen to focus upon developing eco-friendly projects and in search of expert’s advice on how to preserve energy over the so called energy management services (EMS), a Dubai energy supervision company. These great developments by foreign investors have boosted to economic growth and development of Dubai.
Decline of Dubai. Dubai was too determined as they gambled billions of dollars to construct superficial buildings that are attractive to tourists. But due to the economic downturn experienced in the world it has resulted too a big loss to the whole Dubai. Recently in Dubai, airports and hotels had gone almost half empty (Wharte $ Ken, p8) Consequently prices of real estate in Dubai have gone down by a margin of about 50%, the ongoing projects have been stopped which has led to ten thousand of workers losing their jobs.
The real estate projects such as Palm Island were constructed to attract foreign investors and tourists so as to boost the economy. But due to the economic downturn the real estates projects have not been able to generate enough revenues that are required to pay their loans to the bank. This has also lead to a greater loss to the financial institution and banks in Dubai (Medley, p34)
They are many reasons behind decline of real estate sector in Dubai. One reason is the massive migration of workers that took place during the start of property and infrastructure downturn (Melvin Stokes, p4). Almost with a short period thousands of workers started losing their jobs, managers of various projects could fire workers through phone communication. This is one of the most horrible ways to disperse worker, also referred to be an unethical conduct of the Human Resources Department. This reason led to many of the rental properties becoming vacant in Dubai (David , P26).The property owners had to become accustomed to the new situation and in result they had to rent the houses at low rates. The reduced rates of rents eventually led to decline in the rates of hotel accommodation, some hotels cut their rates by a 60 % margin which was great loss to the tourist industry. This economic downturn of Dubai has greatly caused the general economy to decline at a fast rate.
Dubai World Company, whose its total debt have reached 60 billion dollars, has urged their lenders to extend the debt payment time until June 2012.Dubai economy is now seriously affected by worldwide credit crises and this has led them to hire a auditing firm called Dolomite which will assist in financial restructuring.
Hannaford (p27) states that Dubai has a hoard $ 70 billion of foreign debt, which is an evident to show that things are getting bad each and every day. Additionally, Dubai announced that they could not meet $ 25 billion financial obligation that the own the World Bank. Economic analysts now fear that the economic problem in Dubai will result to a serious consequence in the nearing regions and in general world at large.
The economic growth and development of Dubai has been increasingly been at a high rate for the last 10 years. This has resulted to a high population growth especially due to many foreigners migration, the foreign population is about half the total population of Dubai. This population has resulted to economic growth rate since the foreigners combine with the indigenous people thus increasing the labor force employed in various sectors of the economy. Through this, Dubai has been able to gather benefits from foreign both unskilled and skilled sectors.. In catering for these populations, the nation has been urbanized in order to attribute to clustering of public services such as transportation, financial markets, communication, and service based industries in urban areas.
Much of Dubai’s present achievement has been an outcome of its valiant and farsighted leadership and inventive human resources, mainly motivated by good government policies which aim is to increase and improve the level of investment. Other factors that have boosted the Dubai economy is the efforts which have been embraced in the performance of agriculture, more land has been devoted for agriculture and application for incentives has been adopted. This has greatly boosted the economy of Dubai.