Oil has traditionally been the major industrial sector of Dubai. In the last few decades, Dubai has expanded its non-oil sectors to maintain the flow of foreign exchange. For instance, the government of Dubai is diversifying from being a trade-based economy to services and tourism on a large extent.
Dubai Industry Sectors: Major Industries
The major industries of Dubai are as follows:
Oil: Dubai built its economy leveraging its large oil industry. However, petroleum and natural gas generated less than 6% revenues in 2006. According to the estimates, 240,000 barrels of oil are produced in a day in Dubai. A considerable amount of gas is also produced from offshore fields. It is worth noting that the oil reserves of the country have shrunk drastically. There are speculations that these will be exhausted before 2030.
Real Estate and Property: Dubai has made significant investments in its property sector, leading to appreciation in property value during 2004-2006. The country boasts some of the most magnificent skyscraper, such as the Burj Khalifa, the Burj Al Arab, the Emirates Towers and the Palm Islands. However, the global economic recession of 2008-09 took a toll on Dubai’s property market, leading to mass lay-offs and impeding construction to a large extent. A longer-term assessment revealed that the property market of Dubai depreciated remarkably, with some properties losing over 60% of their value between 2001 and 2008.
Tourism: This sector is one of the biggest foreign exchange earners. The government of Dubai relies heavily on tourism to keep its economy afloat after its oil reserves get over. The major tourist attractions are the shopping festivals, such as the DSF (Dubai Shopping Festival) and DSS (Dubai Summer Surprises), and ancient and modern construction marvels. Dubai was the world’s eighth most visited city in 2007 and is expected to accommodate more than 15 million visitors by 2015. By 2020, Dubai is expected to be visited by 68 million tourists.
Retail: Dubai is world renowned for its souk districts. With over 70 shopping malls, the city is called the “Shopping Capital of the Middle East”. Retailers from across the city actively participate in the DSF and DSS. The Dubai Shipping Festival 2009 attracted 3.35 million visitors, who spent Dh9.8 billion in 32 days, despite the recession.