Friday, 22 February 2008

Real Estate Investment Spurs Economic Growth in the United Arab Emirates

The federal governments of United Arab Emirates are continually seeking to promote a progressive economic agenda, built around economic diversification and enhancing the role of the private sector. Similarly, the federal governments are taking steps to further promote foreign investment, including the abolition of the sole agency law and regulations that restrict foreigners to minority stakes in local firms. According to reports from Global Investment House-UAE Economic & Strategic Outlook, GDP is estimated to have grown by 14% to AED553.4bn while in real terms the economy is estimated to have recorded growth rate.

Although the oil sector in United Arab Emirates is expected to record a high growth of up to 3.5mn b/d by 2011, the diversification strategy is expected to play a greater role in economic growth through sectors such as trade, manufacturing, real estate, tourism and financial services. The United Arab Emirates has undergone a magnanimous economic transformation and currently observes an open economic policy with a high per capita income. The United Arab Emirates is made up of seven emirates that include: Abu Dhabi, Dubai, Sharjah, Ajman, Fujairah, Ras al Khaimar and Umm al-Quwain.

United Arab Emirates: Selected Economic Indicators, 2003-06
2003 2004 2005 2006
(Annual percent change)
Real GDP (at factor cost) 11.9 9.7 8.2 9.4
Real oil and gas GDP 13.6 2.9 1.6 6.5
Real non-oil GDP 11.2 12.6 10.8 10.4
CPI inflation (average) 3.2 5.0 6.2 9.3
Source: IMF External Relations Department

According to a 2007 survey conducted by, the economy of the United Arab Emirates is 60.4 percent free, which makes it the world's 74th freest economy. Its overall score is 0.7 percentage point higher than last year, partially reflecting new methodological detail. The United Arab Emirates is ranked 8th out of 17 countries in the Middle East/North Africa region, and its overall score is higher than the regional average.

On the competition front, the United Arab Emirates continues to rank favorably when gauged by various indices of competitiveness and business climate indicators. This is reflected as per latest rankings contained in the Global Competitiveness Report 2006-07 issued by the World Economic Forum (WEF). According to the report the United Arab Emirates is among the most competitive countries in the world and a haven for businesses as it has consolidated its international and regional position in the Growth Competitiveness Index (GCI) for 2006. Out of 125 countries, United Arab Emirates ranked 32nd in the world as per GCI. Regionally, the United Arab Emirates enjoys the second rank in the MENA countries as well as, it is the highest ranked in the gulf region.

Economic Diversification in Dubai

Just like the rest of the United Arab Emirates, the Emirate of Dubai has been experiencing an upward trend in economic growth. The main factor that has enabled the Emirate of Dubai to register greater economic growth is the implementation of the Dubai Strategic plan that aims at diversifying development resources in Dubai and reducing over reliance on Oil resources. The Emirate of Dubai remains at the forefront of most new initiatives as it seeks to accelerate its diversification process, compensating for the decline of its small oil industry by building on its emerging position as the region's services hub. Within this plan, Dubai is developing high-class tourism and international finance sectors. In line with this commitment, the Dubai International Financial Centre was established, offering 100% foreign ownership, no tax, freehold land and office space. The Emirate of Dubai has also developed internet and media free zones, offering 100% foreign ownership, no tax office space for the worlds leading information, communication and media companies. The Emirate of Dubai has also been embracing open market policies that encourage foreign investment. The enactment of new laws lifting limits on foreign property ownership has seen increased participation of private sector in Dubai's economy. One of the sectors displaying tremendous and consistent growth and development in Dubai is the Real estate property sector. The opening up of the Dubai Property to foreign investors has seen property investors flock into the Emirate to purchase both residential and commercial real estate investment properties. In a move aimed at diversifying further and creating more opportunities, the Dubai government commissioned and is sponsoring the Dubai Sports City.

What is Dubai Sports City?

Dubai Sports City is the world's first purpose-built and integrated city themed on sports and leisure. Dubai Sports City covers 50 million square feet and is a cornerstone project of Dubailand. The 2.7bn project is one of the most exciting construction projects in the world today, which will further propel Dubai onto the world stage as a global leisure destination. Dubai Sports City is in partnership with the world's most advanced designers and developers in the construction of the pioneering project. The hi-tech infrastructure of Dubai Sports city comprises of Victory Heights projects of 50 kilometers of roads, 70.5 kilometers of portable water piping, 120 kilometers of telecommunications multiple ducts, 54 kilometers of sewerage mains, 29 kilometers of storm water drainage, 87 kilometers of electrical cable and 41.5 kilometers of irrigation ducts. Dubai Sports City consists of numerous sports and leisure facilities that include: Sports Stadiums, Golf Course, Sports Academies, Sports Residences, and Commercial Sports facilities.

Sports Stadiums in Dubai Sports City

The sports stadiums in Dubai Sports City include: a 60,000 capacity multi-purpose outdoor stadium for football, rugby, track and field and other sports and non-sports events, a 10,000 seat multi-purpose indoor arena suitable for all hard court sports as well as concerts and other events and also including a removable ice rink, a 25,000 capacity dedicated cricket stadium and a 5,000 seat field hockey stadium.

Sports Academies in Dubai Sports City

Sports Academies in Dubai Sports City include: the first purpose-built Manchester United Soccer School anywhere in the world, a David Lloyd Tennis Academy, a Butch Harmon School of Golf, the first such facility outside the United States, the International Cricket Council's own ICC global cricket academy, top class multi-sport training facilities including gymnasium and a 50 meter swimming pool as well as a world renowned sports rehabilitation centre.

World Class Golf Course in Dubai Sports City

Dubai Sports City hosts the Dunes, the Ernie Els designed 18-hole Golf Course.

Sports Residence in Dubai Sports City

Dubai Sports city boasts numerous high profile waterfront residential properties and high-rise buildings offering spectacular views of the surrounding golf course and stadiums. The sports city also has numerous mid-rise housing complexes set along the banks of a canal.

Commercial Sports facilities in Dubai Sports City

Commercial Sports facilities in Dubai Sports City constitute of the multi-trillion dollar global sports industry, a community of unrivalled opportunities for trade, retail, merchandising, and entrepreneurship. The sports city is a commercial and retail hub for hotels, multiplex cinemas, malls and retail outlets.