Dubai

Dubai:

Dubai (in Arabic: دبيّ, Dubayy, /dʊ'baɪ/ in English) can either refer to one of the seven emirates that constitute United Arab Emirates (UAE) in the eastern Arabian Peninsula, or that emirate's main city, sometimes called "Dubai city" to distinguish it from the emirate. The modern emirate of Dubai was created with the formation of the United Arab Emirates in 1971. However, written accounts documenting the existence of the city have existed at least 150 years prior to the formation of the UAE. Dubai shares legal, political, military and economic functions with the other emirates within a federal framework, although each emirate has jurisdiction over some functions such as civic law enforcement and provision and upkeep of local facilities. Dubai has the largest population and is the second largest emirate by area, after Abu Dhabi.[4] As of 2007, 800 new residents were setting up home in Dubai every day.[5] With Abu Dhabi, it is one of only two emirates to possess veto power over critical matters of national importance in the UAE.[6] Dubai has been ruled by the Al Maktoum dynasty since 1833. The city's current ruler, Mohammed bin Rashid Al Maktoum is also the Vice President and Prime Minister of the UAE.
Revenues from petroleum and natural gas contribute less than 3% of Dubai's US$ 46 billion economy (2006).[7] A majority of the emirate's revenues are from the Jebel Ali free zone authority (JAFZA)[8] and, increasingly, from tourism and other service businesses. Dubai has attracted world-wide attention through innovative real estate projects [9] and sports events. This increased attention, coinciding with its emergence as a world business hub, has also highlighted human rights issues concerning its largely foreign workforce.

History:

Very little is known about pre-Islamic culture in the south-east Arabian peninsula, except that many ancient towns in the area were trading centres between the Eastern and Western worlds. The remnants of an ancient mangrove swamp, dated at 7,000 years were discovered during the construction of the Sheikh Zayed Road. The area had been covered with sand about 5,000 years ago as the coastline retreated inland, becoming a part of the city's present coastline.[10] Prior to Islam, the people in this region were idol worshippers, who worshiped Bajar (or Bajir).[11] The Byzantine and Sassanian empires constituted the great powers of the period, with the Sassanians controlling much of the region. After the spread of Islam in the region, the Umayyad Caliph, of the eastern Islamic world, invaded the south-east Arabia and drove out the Sassanians. Excavations undertaken by the Dubai Museum in the region of Al-Jumayra (Jumeirah) indicate the existence of several artifacts from the Umayyad period.[12] The earliest recorded mention of Dubai is in 1095, in the "Book of Geography" by the Spanish-Arab geographer Abu Abdullah al-Bakri. The Venetian pearl merchant Gaspero Balbi visited the area in 1580 and mentioned Dubai (Dibei) for its pearling industry.[12] Documented records of the town of Dubai exist only after 1799.[13]
In the early 18th century, the Al Abu Falasa clan of Bani Yas clan established Dubai, which remained a dependent of Abu Dhabi until 1833.[14] On 8 January 1820, the sheikh of Dubai and other sheikhs in the region signed the "General Maritime Peace Treaty" with the British government.[15] However, in 1833, the Al Maktoum dynasty of the Bani Yas tribe left the settlement of Abu Dhabi and took over Dubai from the Abu Fasala clan without resistance.[14] Dubai came under the protection of the United Kingdom by the "Exclusive Agreement" of 1892, with the latter agreeing to protect Dubai against any attacks from the Ottoman empire.[14] Two catastrophes struck the town during the mid 1800s. First, in 1841, a smallpox epidemic broke out in the Bur Dubai locality, forcing residents to relocate east to Deira. Then, in 1894, fire swept through Deira, burning down most homes.[16] However, the town's geographical location continued to attract traders and merchants from around the region. The emir of Dubai was keen to attract foreign traders and lowered trade tax brackets, which lured traders away from Sharjah and Bandar Lengeh, which were the region's main trade hubs at the time.[17][16]
Dubai's geographical proximity to India made it an important location. The town of Dubai was an important port of call for foreign tradesmen, chiefly those from India, many of whom eventually settled in the town. The town was known for its pearl exports until the 1930s. However, Dubai's pearling industry was damaged irreparably by the events of the First World War, and later on by the Great Depression in the late 1920s. Consequently, the city witnessed a mass migration of people to other parts of the Persian Gulf.[10] Since its inception, Dubai was constantly at odds with Abu Dhabi. In 1947, a border dispute between Dubai and Abu Dhabi on the northern sector of their mutual border, escalated into war between the two states.[18] Arbitration by the British and the creation of a buffer frontier running south eastwards from the coast at Ras Hasian resulted in a temporary cessation of hostilities.[19] However, border disputes between the emirates continued even after the formation of the UAE; it was only in 1979 that a formal compromise was reached that ended hostilities and border disputes between the two states.[20] Electricity, telephone services and an airport were established in Dubai in the 1950s, when the British moved their local administrative offices from Sharjah to Dubai.[21] The town joined the newly independent country of Qatar to set up a new monetary unit, the Qatar/Dubai Riyal, after the deflation of the Gulf rupee.[13] Oil was discovered in Dubai the same year, after which the town granted concessions to international oil companies. The discovery of oil led to a massive influx of foreign workers, mainly Indians and Pakistanis, into the city. As a result, the population of the city from 1968 to 1975 grew by over 300%, by some estimates.[22]
On 2 December 1971 Dubai, together with Abu Dhabi and five other emirates, formed the United Arab Emirates after former protector Britain left the Persian Gulf in 1971.[23] In 1973, Dubai joined the other emirates to adopt a single, uniform currency: the UAE dirham. In the 1970s, Dubai continued to grow from revenues generated from oil and trade even as the city saw an influx of Lebanese immigrants fleeing the civil war in Lebanon.[24] The Jebel Ali Free Zone, comprising the Jebel Ali port (reputedly the world's largest man made port) was established in 1979, which provided foreign companies unrestricted import of labour and export capital.[25].

The Persian Gulf War of 1990 had a huge impact on the city. Economically, Dubai banks experienced a massive withdrawal of funds due to uncertain political conditions in the region. During the course of the 1990s, however, many foreign trading communities — first from Kuwait, during the Persian Gulf War, and later from Bahrain, during the Shia unrest, moved their businesses to Dubai.[17] Dubai provided refueling bases to allied forces at the Jebel Ali free zone during the Persian Gulf war, and again, during the 2003 Invasion of Iraq. Exponential increases in oil prices after the Persian Gulf war encouraged Dubai to continue to focus on free trade and tourism.[26] The success of the Jebel Ali free zone allowed the city to replicate its model to develop clusters of new free zones, including Dubai Internet City, Dubai Media City and Dubai Maritime City. The construction of Burj Al Arab, the world's tallest freestanding hotel, as well as the creation of new residential developments, were used to market Dubai for purposes of tourism. Since 2002, the city has seen an increase in private real estate investment in recreating Dubai's skyline[26] with such projects as The Palm Islands and Burj Dubai. However, robust economic growth in recent years has been accompanied by rising inflation rates (at 6.2% as of 2006 when measured against Consumer Price Index) which is attributed in part due to the near doubling of commercial and residential rental costs, resulting in a substantial increase in the cost of living for residents.[27]

Demographics:

According to the census conducted by the Statistics Center of Dubai, the population of the emirate was 1,422,000 as of 2006, which included 1,073,000 males and 349,000 females.[32] As of 1998, 17% of the population of the emirate was made up of UAE nationals. Approximately 85% of the expatriate population (and 71% of the emirate's total population) was Asian, chiefly Indian (51%), Pakistani (16%), Bangladeshi (9%) and Filipino (3%).[33] About 3% of the total population of Dubai was categorized as "Western". A quarter of the population however reportedly traces their origins to neighboring Iran.[34] In addition, 16% of the population (or 288,000 persons) lived in collective labour accommodation were not identified by ethnicity or nationality, but were thought to be primarily Asian.[35] The median age in the emirate was about 27 years. The crude birth rate, as of 2005, was 13.6%, while the crude death rate was about 1%.[36]
Although Arabic is the official language of Dubai, Tamil,Malayalam, English, Hindi, Urdu, Bengali, and Tagalog are widely spoken. Article 7 of the UAE's Provisional Constitution declares Islam the official state religion of the UAE. The government subsidizes almost 95 percent of Sunni mosques and employs all Sunni imams; approximately 5 percent of Sunni mosques are entirely private, and several large mosques have large private endowments.[37]
Dubai has large expatriate Hindu, Sikh, and Christian communities. Non-Muslim groups can own their own houses of worship, where they can practice their religion freely, by requesting a land grant and permission to build a compound. Groups that do not have their own buildings must use the facilities of other religious organizations or worship in private homes. Non-Muslim religious groups are permitted to openly advertise group functions; however, proselytizing or distributing religious literature is strictly prohibited under penalty of criminal prosecution, imprisonment, and deportation for engaging in behaviour offensive to Islam.[37] There are no Buddhist temples or Jewish synagogues in Dubai. The U.A.E does not recognize Israeli passports and so Nationals of Israel may not enter Dubai.

Economy:

Dubai's gross domestic product as of 2006 was US$46 billion. Although Dubai's economy was built on the back of the oil industry,[38] revenues from oil and natural gas currently account for less than 3% of the emirate's revenues. It is estimated that Dubai produces 240,000 barrels of oil a day and substantial quantities of gas from offshore fields. The emirate's share in UAE's gas revenues is about 2%. Dubai's oil reserves have diminished significantly and are expected to be exhausted in 20 years.[39]
Historically, Dubai and its twin across the Dubai creek, Deira (independent of Dubai City at that time), became important ports of call for Western manufacturers. Most of the new city's banking and financial centres were headquartered in the port area. Dubai maintained its importance as a trade route through the 1970s and 1980s. The city of Dubai has a free trade in gold and until the 1990s was the hub of a "brisk smuggling trade" of gold ingots to India, where gold import was restricted.
Dubai is an important tourist destination and its port, Jebel Ali, constructed in the 1970s, has the largest man-made harbour in the world. Dubai is also increasingly developing as a hub for service industries such as IT and finance, with the establishment of a new Dubai International Financial Centre (DIFC). The government has set up industry-specific free zones throughout the city. Dubai Internet City, combined with Dubai Media City as part of TECOM (Dubai Technology, Electronic Commerce and Media Free Zone Authority) is one such enclave whose members include IT firms such as EMC Corporation, Oracle Corporation, Microsoft, and IBM, and media organisations such as MBC, CNN, Reuters and AP.
The Dubai Financial Market (DFM) was established in March 2000 as a secondary market for trading securities and bonds, both local and foreign. As of Q4 2006, its trading volume stood at about 400 billion shares worth US$ 95 billion. The DFM had a market capitalization of about US$ 87 billion.[36]
The government's decision to diversify from a trade-based but oil-reliant economy to one that is service and tourism-oriented has made real estate more valuable, resulting in the property appreciation from 2004–2006. Large scale real estate development projects, undertaken by firms such as Emaar Properties, have led to the construction of some of the tallest skyscrapers in the world such as the Emirates Towers, the Pentominium and the world's tallest hotel, the Burj Al Arab.[40] As of July 2007, Burj Dubai -also being constructed by Emaar Properties- is already the world's tallest structure and is expected to be taller by several hundred feet, once construction is complete.[41]
Recently, the Land Department set up the Real Estate Regulatory Authority (RERA) to regulate developers and safeguard consumers from errant parties. All developers are required to register with the RERA, provide documents and verifiable facts about their properties, and setup escrow accounts to protect consumers' money. KM Properties, a member of KM Holding, was the first company to register with the Land Department.
Organisations within Dubai have expressed an intention to invest in medical tourism, including the Emaar group's plans in India [1]. Within Dubai, there is considerable interest in developing this market, and the Dubai Healthcare City is scheduled to open by 2010. [2]. There will be a corresponding increasing need for attention to quality and to quality control in healthcare within Dubai, including international healthcare accreditation.