| Dubai Real Estate Industry
/Dubai Strategic Plan
(DSP) – 2015 |
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| Dubai Strategic Plan (DSP) – 2015: |
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| The DSP is developed along 5 major sectors: |
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1. Economic Development.
2. Social Development.
3. Infrastructure, Land & Environment.
4. Security, Justice and Safety.
5. Government Excellence.
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| The Economic Development has the following guidelines: |
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1. Adoption of Free Market Economy Principals.
2. Innovation in Launching Initiatives.
3. Speed and Accuracy in Project Execution.
4. Unique Relationship and Partnership with the Private
Sector.
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| Economic Development: |
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- Dubai economic growth from 2000-2005
has been remarkable, with double-digit real GDP growth
and a relatively high per capita income despite negligible
dependence on oil.
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- Dubai’s historical economic growth has been truly
impressive. In particular, since the year 2000, real
GDP has been growing at a compounded annual growth
rate of 13%, by far exceeding that of
its GCC countries.
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- The Dubai economy has also been growing faster than
the emerging economies of China and India,
and the developed economies of Ireland, Singapore,
and the US.
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- Dubai’s initiatives to establish specialized zones
& mega projects (e.g., Internet & Media
City, The Palm, Dubai Land, etc.) ensured a leading
role for the Emirate, and helped attract excess regional
liquidity in the form of Foreign Direct Investment
(FDI).
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- Economic growth has also been fueled by Private
Sector participation in developing sectors for
which the Government has set the stage by establishing
a conducive business environment, coupled in many instances
with heavy initial investments to boost private sector
confidence.
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- Dubai’s per capita income today compares very
favorably with that of many developed countries such as
Singapore (US$ 26,836) and Hong
Kong (US$ 25,493), countries which required a
much longer period of time to reach their current levels.
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- Economic performance at the sectoral level has also
been impressive. The non-oil sector played a more prominent
role in 2005 with a 95% contribution
to GDP, as compared to 90% in 2000 (and
as much as 46% in 1975). This was mainly the result of
the reduced dependence on oil as well as a deliberate
policy of diversifying the economy in favor of the non-oil
sectors in which both the overall business environment
and sector-specific programmes have played a vital role.
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- Dubai’s current GDP mix is very favorable, as
its strongest sectors by international standards happen
to be highly conducive to future global growth.
These sectors are:
- Tourism.
- Trade.
- Transportation.
- Financial Services.
- Construction.
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- Dubai’s economic aims for 2015 have been set and
classified into the following categories:
- Sustain a real GDP growth rate of
11% per annum for the next 10 years.
- Increase real GDP per capita to US$ 44,000
in 2015.
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- The following critical elements are addressed concurrently
and in parallel, to insure a rapid and sustainable economic
growth:
- Human Capital.
- Productivity.
- Innovation.
- Cost of Living and Doing Business.
- Quality of Life.
- Economic Policy and Institutional Framework.
- Laws and Regulations.
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- The pursuit of the proposed strategic growth path, will
promote GDP growth to US$ 108 billion by 2015.
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- To achieve target economic growth, it is estimated that
882,000 additional workers are required
to join the workforce by 2015, bringing total employment
to 1.73 million with significant move
towards higher skilled employment.
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- Dubai is considered one of the world’s
fastest growing cities and is a top performer
as measured in terms of economic growth and level of GDP
per capita.
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- International comparisons of the drivers that sustain
economic growth show that only those countries with an
infrastructure supporting effective social development
are able to sustain higher levels of continuous economic
growth.
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- The growing population and the presence of a large number
of different nationalities have resulted from the significant
influx of foreign workforce that has been attracted to
participate and benefit from the unprecedented rapid economic
growth. This has created a unique multicultural
environment with rich opportunities for cultural
interaction and cooperation.
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- For economic success to be sustained, it is absolutely
crucial that the social developer sector infrastructure
be developed. Only by improving performance in key areas
such as Education, Health, Social Assistance and
Working Environment can economic prosperity be
sustained and enhanced.
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- Over the past 10 years, Dubai has positioned itself
as regional business hub, an attractive
tourism destination and a safe and great place to live.
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- The development of a state of the art infrastructure
was one of the main reasons behind this success.
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- Major investments are also being committed to support
the development of the roads and transportation networks.
The investment allocated to the Dubai Metro
project and the current Roads Network
is estimated at US$ 5.9 billion.
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- To insure proper focus on sustainable development with
the context of Dubai’s considerable economic growth,
the Infrastructure, Land and Environment (ILE)
sector plan aims along the following 4 core areas:
- Urban Planning.
- Energy, Electricity and Water.
- Roads & Transportation.
- Environment.
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- The Government aims to provide a sustainable, effective
and balanced infrastructure including all elements such
as Energy, Electricity, Water, Roads, Transportation
and Waste Management, while protecting the Environment.
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