A Brief History: Dubai
The most famous of the seven Emirates in the United Arab Emirates (UAE), Dubai is a world-class destination.
The story of ‘modern’ Dubai is relatively short. The Emirate has been established for thousands of years, yet within the last few decades, Dubai has transformed itself into the ambitious, dynamic Emirate we experience today.
In 1894, the introduction of full tax exemption invited traders around the world to take advantage of the Emirate’s unique benefits. In the 1940’s and 50’s, Dubai prospered in the gold trade, providing a strong economy for its 40,000 population. This was just the start as the mid 1960’s unveiled the discovery of oil and Dubai’s economy went into overdrive, leading to an influx of foreign workers.
In 1973, Dubai joined the other Emirates to adopt a single, uniform currency: the UAE dirham. In the late 70s, the Jebel Ali Free Zone was created, comprising the world’s largest port and providing foreign countries and businesses unrestricted import and export.
As oil prices increased, Dubai focused closely on developing free-trade and tourism. In 2000, the Dubai Financial Market was established and by 2006 had made a net profit of approx AED 797.5 million. The Emirate also invested into developing the Jebel Ali Free Zone, which soon became a success and contributed 26% towards Dubai’s total GDP in 2007.
In addition to Jebel Ali, Dubai Internet City and Media City were two of the original free-zones, offering foreign companies the tax free commercial space so highly sought after. With thousands of companies moving offices to Dubai, the demand for residential real estate was unprecedented. The world’s eyes turned on Dubai, with investors looking to invest in Dubai property before construction even began.
In 2002, The Crown Prince of Dubai made a commitment to allow foreign nationals to own a property freehold within the Emirate. This was followed in 2006 with the publication of the lands law allowing foreign nationals the right to register their freehold property.
Despite the recent global economic conditions, Dubai retains the fundamentals which excelled it to become an investors dream, a place like no other and one of the most thriving destinations for real estate in the world. While there has been an adjustment in demand, the market is now returning and prices have bottomed out. Now, some of the best property deals ever witnessed are available on the market. Some desirable areas such as Dubai Marina have in fact experienced a rise in rental prices.