Why Dubai is Having Property Explosion? Dubai After Oil Boom!

Dubai's gross domestic product as of 2006 wasQ4 2006, its trading volume stood at about 400
US$46 billion. Although Dubai's economy was builtbillion shares worth US$ 95 billion. The DFM had a
on the back of the oil industry, revenues from oilmarket capitalization of about US$ 87 billion. The
and natural gas currently account for less thangovernment's decision to diversify from a
3% of the emirate's revenues.trade-based but oil-reliant economy to one that is
It is estimated that Dubai produces 240,000service and tourism-oriented has made real estate
barrels of oil a day and substantial quantities ofmore valuable, resulting in the property
gas from offshore fields. The emirate's share inappreciation from 2004–2006. Large scale
UAE's gas revenues is about 2%. Dubai's oilreal estate development projects, undertaken by
reserves have diminished significantly and arefirms such as Emaarskyscrapers in the world such
expected to be exhausted in 20 years. Historically,as the Emirates Towers, the Pentominium and
Dubai and its twin across the Dubai creek, Deirathe world's tallest hotel, the Burj Al Arab. As of
(independent of Dubai City at that time), becameJuly 2007, Burj Dubai -also being constructed by
important ports of call for WesternEmaar Properties- is already the world's tallest
manufacturers. Most of the new city's bankingstructure and is expected to be taller by several
and financial centres were headquartered in thehundred feet, once construction is complete.
port area. Dubai maintained its importance as aProperties, have led to the construction of some
trade route through the 1970s and 1980s. Theof the tallest Recently, the Land Department set
city of Dubai has a free trade in gold and until theup the Real Estate Regulatory Authority (RERA)
1990s was the hub of a "brisk smuggling trade" ofto regulate developers and safeguard consumers
gold ingots to India, where gold import wasfrom errant parties. All developers are required to
restricted. Dubai is an important tourist destinationregister with the RERA, provide documents and
and its port, Jebel Ali, constructed in the 1970s,verifiable facts about their properties, and setup
has the largest man-made harbor in the world.escrow accounts to protect consumers' money.
Dubai is also increasingly developing as a hub forKM Properties, a member of KM Holding, was the
service industries such as IT and finance, with thefirst company to register with the Land
establishment of a new Dubai InternationalDepartment. Organizations within Dubai have
Financial Centre (DIFC). The government has setexpressed an intention to invest in medical
up industry-specific free zones throughout thetourism, including the Emaar group's plans in India.
city. Dubai Internet City, combined with DubaiWithin Dubai, there is considerable interest in
Media City as part of TECOM (Dubai Technology,developing this market, and the Dubai Healthcare
Electronic Commerce and Media Free ZoneCity is scheduled to open by 2010.. There will be a
Authority) is one such enclave whose memberscorresponding increasing need for attention to
include IT firms such as EMC Corporation, Oraclequality and to quality control in healthcare within
Corporation, Microsoft, and IBM, and mediaDubai, including international healthcare
organisations such as MBC, CNN, Reuters and AP.accreditation.Moving to dubai consult 1Dubai
The Dubai Financial Market (DFM) was establishedpropertyLeading neutral advice when considering
in March 2000 as a secondary market for tradingproperty.
securities and bonds, both local and foreign. As of