Dubai, one of seven emirates that make up the nation of the United Arab Emirates, has witnessed an unprecedented construction boom in recent years that has resulted in a dazzling and magnificent display of majestic skyscrapers, impressive business and trade centers, luxury villas, apartment and condo projects, and innovative tourist attractions complete with manmade islands, luxury hotels and a wide variety of amenities and recreational venues.
Dubai has been transformed from a simple pearling community to a thriving, modern state with one of the fastest growing economies in the world. Oil was discovered in Dubai in 1966 and in other parts of what is now the United Arab Emirates (UAE). The UAE, under the leadership of it’s President Zayed capitalized on oil revenues to build the infrastructure, social services and international relations necessary to become a modern nation. The oil industry brought a huge influx of foreign workers and professionals into the country. Dubai is one of the most ethnically diverse places in the world, with large numbers of Indians, Pakistanis, Egyptians, as well as other Middle Easterners and Westerners from Europe and the United States.
The recent construction boom in Dubai was fueled by two major factors. First, was a change in property laws that allowed foreign-born nationals to purchase land in 1997 and then foreigners in 2002. This led to a huge influx of foreign investment for new construction projects. The other major factor was the rising oil prices that followed the gulf war. These two factors led to an explosion in ambitious construction projects. One other very important factor that led to Dubai’s emphasis on new construction was the realization that Dubai’s oil reserves were estimated to run out in about 20 years. This realization forced Dubai’s government and business community to look for ways to diversity their economy. Today oil and natural gas revenues account for less than 6% of Dubai’s revenues. Today tourism, trade, financial and real estate services make up the bulk of Dubai’s revenue.
Emaar Properties and Nakheel Properties are two major developers who have brought ambitious landmark construction projects to Dubai. Emaar Properties was the first developer to offer properties for sale to non-native nationals and foreigners. The company has been one of the major forces in the Dubai construction boom and has brought such impressive projects as Burj Dubai, the world’s tallest building, Business Bay, a 200-tower project, and the Emirates Living Community project, among many others. Nakheel Properties has truly been an innovative force on the Dubai property development scene, bringing some of the most challenging and impressive landmarks to Dubai and helping to energize Dubai’s tourist industry. Their Palm trilogy project which includes, the Palm Jumeirah, Palm Jebel Ali, and Palm Deira, feature manmade islands, luxury villas and hotels and a wide array of amenities in an innovative and unique design shaped in the form of a palm. The World Islands is a series of high end, exclusive 300 manmade islands. Actress Angelina Jolie and Virgin Chairman Richard Branson are among the purchasers of the islands.
The very recent global financial crisis has slowed the construction boom down. Tightening credit conditions and falling oil prices have put some projects on hold and makes future projects uncertain. However, despite current challenges, the Dubai construction boom has forever changed the landscape of the country, diversified the economy, and brought Dubai worldwide recognition as a hot spot for tourism and commerce.