Dubai economy is under the powerful impact of financial markets. Several episodes of temporary financial downtime or recession in America forced businessmen in Dubai to change their old strategies to fight with the crunch in the economy. However, it doesn’t mean that Dubai economy has been fully crashed to level with the ground. Gradually, this emirate has restored its strength to upgrade the financial condition by implementing more flexible business improvement plans.
The severe recession dating back to 2008 in the US jolted the Dubai economy to some extent. UAE is still reliant on US dollars. Therefore, any fluctuation in the face value of the dollar will definitely affect the national economy. Bose, eminent economist, once said that stock market is an important place for investors to raise fund for the faster growth of the economy. So, obviously, the role of stock market in Dubai must be meticulously evaluated. Financial market operators and investors must be educated with ability to understand the complicated rules and regulations modified by higher authority. Well, right now, Dubai is very busy of upgrading the financial infrastructure and corporate offices including stock market by installing cross device compatible computers with faster broad band connection. So, investors in stock markets in Dubai are able to keep in touch with global trend. They get updates if there is any abrupt downfall in the appreciation value of foreign currencies and properties.
Dubai Launched DIFX and DIFC for Better Transactions
Dubai has reestablished its identity dynamically by renovating as well as changing the facelift of the financial market by launching DIFX and DIFC. These two organizations in the financial industry in Dubai have awe- inspiring roles to play in the case of the development of the economy in such a wealthy city of the UAE. DIFX incorporates different stock markets of east and west to promote the business. In this way, Image of Dubai seems to be made livelier with good credibility. International investors start rushing towards UAE with many lucrative dollar investment packages to power the national economic infrastructure of Dubai. New rules have been formatted for enforcement to tempt global clients and business partners to traverse their eyes towards Dubai. Tax free business running, little obligation to buy real estate property and flexibility in foreign policies boost up rich investors to choose Dubai for business growth. So, economy of this emirate is now booming with scope for earning more foreign revenues to reinforce the financial market of the country.
FDI Spearheads the Dubai Economy Increasing the Flow of Foreign Currencies
FDI in Dubai assists foreign companies and investors to find the best niche in this emirate for investing their money. FDI (foreign direct investment) enables international investors to draw plans, upgrade strategies and implement million dollars worth projects to open new business operating units for developing the economy of Dubai without uncertainty. Survey reports confirmed the investment of Dhs28.6 billion through FDI to overtake the provisional financial impasse in UAE. From another dependable source, it has been confirmed that approximately $14.4 billion was invested in FDI to rejuvenate the economy of this important emirate of the UAE.
Smooth Progression in Dubai Economy
There is smooth progression in Dubai as many investors coming from other sectors excluding oil industry show interest in investing money with expectation of flourishing GDP growth in Dubai. So, it is a good starting phase for the growth of the Dubai economy after the cessation of the recession. Stock exchange is spoon fed by foreign investors. DIFC or Dubai International Financial Centre is one of the best places for international clients and investors to make the longer tie-up with local traders. So, new companies and financial institutes have been established to operate the large scale financial market in Dubai. So, it is definitely a new sunrise with lot of opportunities to remove the pecuniary crunch. Dubai economy is reinforced and mobilized faster. The economic growth rates skyrocket comparing to the progression rates dating back to 2008.
Good GDP Growth after Financial Downtime
There is another aspect to analyze to assess the GDP growth in this emirate of the UAE. Gulf war and the destruction of world trade center discouraged foreign investors to go to any Gulf country. However, comparatively, Dubai is considered to be the safe place to expatriates and immigrants. The administration in this emirate is powerful with good life security. Investors can buy land and houses in Dubai and stay for over years peacefully. That‘s why, international financial companies and financers select Dubai for more constructive business expansion. However, unlike business pattern in America, in Dubai about 90 percent business are small or medium sized. Family run business is popular in Dubai. Therefore, they don’t need more foreign investment to expand their business.
Conclusion
The recession in America didn’t affect small or medium scale businessmen severely. However, foreign investment is needed to mobilize the small scale industry and nestle the large corporate sectors bringing more advanced technology to improve the business management system. Last but not the least, Dubai economy must need some dynamic strategies and compact plans to gain speed. Improvement rates in financial market must be higher to fuel the economy of Dubai in a new way. Therefore, domestic investors, and banks in Dubai should be assiduous to engineer more innovative business growth projects for successful implementation. Financial market needs much attention and care to ensure the proper reconstruction of the overall economy of Dubai in the long run.
