How Dubai Got Rich

Historical Background

• Oil was discovered in Dubai over 50 years ago
• Contributes to less than 1% of GDP
• Now a global business hub and luxury tourist destination
• Hosts the world’s tallest building and a police force with supercars

Maritime Activities

• Dubai began as a small fishing town
• Became an important trading port by the early 20th century
• Strategic location near Iran and the Persian Gulf drew in merchants

Jebel Ali Port and Free Zone

• Jebel Ali is the busiest port in the Middle East
• Jebel Ali Free Zone (Jafza) covers 57 sq km, largest economic free zone globally
• Attracts businesses with tax breaks, customs duty benefits, and no foreign ownership restrictions
• Houses several thousand companies, 20% of UAE’s total foreign investment
• Employs 150,000 people, generating over $80 billion in trade (21% of Dubai’s GDP)

Workforce and Labor Issues

• UAE has the 6th largest migrant population (80% of residents are foreigners)
• Mainly South Asians working in construction under poor conditions
• New labor laws in 2017: 30 days paid vacation, one day off weekly, medical insurance, and contracts
• Cheap labor was crucial for rapid growth

Abu Dhabi: Richest State in UAE

• Dubai is largest and most populous, but Abu Dhabi is the richest
• Abu Dhabi holds 9% of world’s proven oil reserves
• Oil discovery in the 1930s; Dubai faced a deep depression due to lack of oil and decline of the pearl industry

Sheikh Rashid bin Saeed Al Maktoum's Role

• Became ruler in 1958, spurred infrastructure development
• Financed through loans and maritime trade
• Developed electricity, telephone services, ports, and Dubai’s first airport

Relationship with the British Government

• British protectorate deal in late 19th century
• Strong ongoing business relationship
• Dubai-owned DP World operates London Gateway Port

Oil Discovery and Economic Strategy

• First oil field discovered in 1966
• Sheikh Rashid used oil revenue to fund development in trade, tourism, and finance
• Shift away from reliance on oil aligns with global energy trends

Modern Dubai

• World’s busiest airport for international passengers
• Established as a key global destination for business and tourism
• Sheikh Rashid’s infrastructure investments have paid off