Home » From Oil & Gold to Block Chain: A Brief History of Dubai

From Oil & Gold to Block Chain: A Brief History of Dubai

by Nathan Zachary

The name Dubai inspires visions of luxurious hotels, enticing nightlife, magnificent architectural marvels, and enormous shopping centers. However, the city is more than merely a playground for the rich.

Dubai is at the vanguard of the UAE’s efforts to diversify its economy and redefine itself as a worldwide center for technology and innovation. The abundance of natural resources like oil and gas paved the road to turning the desert backwater into the smartest city in the world. However, since the resources are predicted to last only for a decade or two, Dubai had to set up new sustainable sources to shore up its growth.

Let’s have a quick look at how Dubai progressed over the last couple of decades.

Oil & Gold

Dubai served as the epicenter of the escalating gold trade in the 1960s. Before there was oil, the city’s rulers used its advantageous Gulf coast location and turned it into a trading metropolis. The city’s infrastructural development accelerated after oil was eventually discovered.

The city thrived during the late 1970s due to gold and oil revenues. However, as the oil started showing signs of vanishing, the leadership of Dubai turned their focus toward building sustainable economic pillars that would outlast it.

Tourism & Trade

The Dubai World Trade Centre, the biggest skyscraper in the vicinity, the largest artificial harbor in the world, and an updated airport helped Dubai position itself as a major commercial and transportation hub throughout the 1980s.

By the time the 1990s arrived, the groundwork for economic diversification had already been laid for shifting away from oil and into other sectors, with trade and tourism being the most important ones. 

The Dubai government unveiled its 2020 Tourism Strategy in 2013, intending to attract 20 million tourists annually. Since then, it has been upgraded to reach its 2025 target of 23–25 million tourists.

The Pandemic

Although the city had a sizable debt to its wealthier neighbor, the 2010s marked a time of financial peace for the city. The city kept growing due to the booming tourism industry, becoming the glamorous, neon-lit tourist spot it is today. However, when the Covid-19 epidemic arrived in 2020, Dubai was severely impacted. When the tourists stopped showing up, rumors of a potential bailout started to spread, although this apparently never happened.

The country’s tourist industry is beginning to recover, but the epidemic exposed the vulnerability of an economy that is very dependent on overseas travel. Sheikh Mohammed bin Rashid al-Maktoum, the city’s current ruler, and his administration are determined to make the city a major global innovation center.

Legislative Reforms

The government enacted new laws in honor of Dubai’s 50th birthday, reflecting the city’s dedication to being a hub for global technology. Aside from effective plans for technological investment, it also brought about changes to existing laws that strengthened women’s rights, loosened restrictions on drugs and alcohol, eliminated taxes on foreign investments, and much more.

The city wants to reinvent itself by attracting entrepreneurs to Dubai’s quickly expanding digital industry. The emphasis on women’s rights is appealing to both local and foreign audiences, particularly in the renownedly diverse IT industry that is aiming to court investments from foreign countries.

Why Invest in Dubai?

Dubai has proven to be resilient to changes in the world economy over the years, winning the trust of foreign investors and solidifying its position as one of the top destinations for tourism and business.

Dubai is a perfect place for entrepreneurs and technology startups to invest. Here’s why:

·         Geographical Location

Dubai’s advantageous position enables business owners to expand their operations and reach all corners of the globe. Due to its political neutrality, businesses and B2B groups may reach a wider audience.

Furthermore, the city has solid ties with the world’s leading economies, including China, Russia, India, Saudi Arabia, and others.

·         The Block Chain City

The “Smart Dubai” initiative demonstrates Dubai’s commitment to becoming a world leader in the seamless integration of technology into all facets of daily life. By firmly integrating blockchain technology into its foundations, this program seeks to transform Dubai into the most inventive city on the whole globe.

All governmental functions are to be migrated to blockchain technology as part of “Smart Dubai,” which promises to streamline the administrative process and make all activities secure, transparent, and verifiable.

·         Business Friendly Tax Policies

The very reason why every innovation-driven startup wants to make Dubai their business headquarter is its startup-friendly policies – especially in the technology sector.

Dubai’s tax-free status is tempting for entrepreneurs. It allows them to scale their businesses by reinvesting the amount they would be giving in taxes otherwise. And since Dubai is all set for the new Web 3.0, now is the time to start a blockchain mobile app development company in Dubai.

Wrapping Up…

Dubai’s dramatic transformation from a desert backwater to the world’s largest trading hub in just twenty years is simply beyond belief. Now it has set its eyes on becoming the global technology hub, aiming to dethrone Silicon Valley and other tech cities of the world.  

Related Posts

Techcrams logo file

TechCrams is an online webpage that provides business news, tech, telecom, digital marketing, auto news, and website reviews around World.

Contact us: info@techcrams.com

@2022 – TechCrams. All Right Reserved. Designed by Techager Team