Gulf Tiger
Encyclopedia
The Gulf Tiger or Arab Gulf Tiger is a nickname used to describe the period of rapid economic growth in the city of Dubai
. The boom that Dubai has been experiencing since the 1990s is still going on, transforming the city from a desert village to a world class economic hub.
, after Abu Dhabi
, and with a cosmopolitan population of 1.6 million, is consolidating its preeminent role as a regional hub while aspiring to be a global city.
Dubai shares a range of characteristics with other tiger economies
including a sustained double-digit GDP growth rate since 1994. In 2004 Dubai's GDP grew at a healthy 17% rate, mostly in the non-oil sectors.
oil production dropped steadily from an all-time high of 450,000 barrels per day in 1995 to less than 100,000 in 2005. But as the contribution of oil to GDP dwindled, the economy expanded exponentially. It almost doubled in size during the 1991-2000 period. Dubai's economy is now fully diversified.
. FDI has been growing with an annual rate of 11% in recent years. 90 companies of the Fortune 100 list have already located their regional offices in the city.
The question is, however, how long this economic boom will continue. Pessimists have been harping on the Dubai bubble for the past decades, but the city miraculously defied them. And even if the boom continues the question remains ,'At what price?'. The demographics
of the city have changed dramatically making the Emiratis a 12% minority in Dubai
. And estimates indicate the share dropping to 1% in 2020.
Dubai
Dubai is a city and emirate in the United Arab Emirates . The emirate is located south of the Persian Gulf on the Arabian Peninsula and has the largest population with the second-largest land territory by area of all the emirates, after Abu Dhabi...
. The boom that Dubai has been experiencing since the 1990s is still going on, transforming the city from a desert village to a world class economic hub.
Characteristics
The city of Dubai is the second most prosperous emirate of the United Arab EmiratesUnited Arab Emirates
The United Arab Emirates, abbreviated as the UAE, or shortened to "the Emirates", is a state situated in the southeast of the Arabian Peninsula in Western Asia on the Persian Gulf, bordering Oman, and Saudi Arabia, and sharing sea borders with Iraq, Kuwait, Bahrain, Qatar, and Iran.The UAE is a...
, after Abu Dhabi
Abu Dhabi
Abu Dhabi , literally Father of Gazelle, is the capital and the second largest city of the United Arab Emirates in terms of population and the largest of the seven member emirates of the United Arab Emirates. Abu Dhabi lies on a T-shaped island jutting into the Persian Gulf from the central western...
, and with a cosmopolitan population of 1.6 million, is consolidating its preeminent role as a regional hub while aspiring to be a global city.
Dubai shares a range of characteristics with other tiger economies
Tiger Economy
A tiger economy is the economy of a country which undergoes rapid economic growth, usually accompanied by an increase in the standard of living. The term was initially used for Japan, South Korea, Singapore, Hong Kong, and Taiwan , and in the 1990s it was applied to the Republic of Ireland...
including a sustained double-digit GDP growth rate since 1994. In 2004 Dubai's GDP grew at a healthy 17% rate, mostly in the non-oil sectors.
Diversification
Oil is becoming increasingly irrelevant and Dubai'sDubai
Dubai is a city and emirate in the United Arab Emirates . The emirate is located south of the Persian Gulf on the Arabian Peninsula and has the largest population with the second-largest land territory by area of all the emirates, after Abu Dhabi...
oil production dropped steadily from an all-time high of 450,000 barrels per day in 1995 to less than 100,000 in 2005. But as the contribution of oil to GDP dwindled, the economy expanded exponentially. It almost doubled in size during the 1991-2000 period. Dubai's economy is now fully diversified.
Economic development
But this conservative reading does not truly reflect the inner dynamism of the city, nor the fact that Dubai has become a hip city. This image of commercialism and great potential attracts a lot of foreign direct investmentForeign direct investment
Foreign direct investment or foreign investment refers to the net inflows of investment to acquire a lasting management interest in an enterprise operating in an economy other than that of the investor.. It is the sum of equity capital,other long-term capital, and short-term capital as shown in...
. FDI has been growing with an annual rate of 11% in recent years. 90 companies of the Fortune 100 list have already located their regional offices in the city.
The question is, however, how long this economic boom will continue. Pessimists have been harping on the Dubai bubble for the past decades, but the city miraculously defied them. And even if the boom continues the question remains ,'At what price?'. The demographics
Demographics of Dubai
According to the census conducted by the Dubai Statistics Center, the population of the emirate was 1,422,000 , which included 1,073,000 males and 349,000 females. As of 1998, 17% of the population of the emirate was made up of UAE nationals...
of the city have changed dramatically making the Emiratis a 12% minority in Dubai
Dubai
Dubai is a city and emirate in the United Arab Emirates . The emirate is located south of the Persian Gulf on the Arabian Peninsula and has the largest population with the second-largest land territory by area of all the emirates, after Abu Dhabi...
. And estimates indicate the share dropping to 1% in 2020.
See also
- Economy of DubaiEconomy of DubaiThe economy of Dubai was valued at US$ 46 billion as of 2006. The Late-2000s recession slowed the construction boom.The International Herald Tribune has described it as "centrally-planned free-market capitalism." Although Dubai's economy was built on the back of the oil industry, revenue from...
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