How Does Dubai Affect The Economy

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As a “modern day Babylon,” named by Jonathon West, a journalist for Management Today, Dubai has grown at an unprecedented rate since the turn of the century. With a population of 183,187 in 1975, this number has increased tenfold in thirty years – a rate never before seen. Not only has population increased, but Samer Bagaeen wrote in International Planning Studies that its income from oil has increased by as much as five times since 2006, bringing in $305 billion. Using this instant source of money, Dubai invested in the tourism industry. Erecting ideas and designs never seen before, Dubai has taken the first step towards creating a futuristic tourism industry. With man-made islands, seven-star hotels, and an expanding cultural hub, Dubai …show more content…
Dubai’s tourism-dependent economy developed over a span of two decades, growing from a barren desert city to a global metropolis, but the methods that established Dubai as a cultural hot spot were only successful because of Dubai’s particular political and geographical …show more content…
More money is being set aside for tourism, causing the standard of living to decrease and the cost of living to rise, in turn creating a recession. Dubai has given power to the people in a way not done before, allowing mass freehold real estate. By taking the power of building and developing away from the government, the constitutional monarchy cannot control the growth. Unfortunately, Dubai’s reliance on tourism is a dependent upon this freehold development, and without it, thousands of buildings will be left unfinished. Unfinished buildings mean unfinished work that in turn leads to debt. Money will have to be given back to the buyer and all commissions will be lost, causing a leakage in the economy that is detrimental to the standard of living. This would force the government to step in and stimulate the economy with money it doesn’t have, increasing national

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