Dubai’s Economic Evolution
It is not a secret that in the last few decades Dubai has rapidly transformed from a regional player to an important business destination with global influence. Much of this is exhibited by Dubai’s real estate market, the value of which increased by 500% in the last 20 years.
Dubai has established itself as the leader in progressive real estate development with such iconic projects as Burj Khalifa (the world’s tallest building) and Palm Jumeirah (the biggest artificial island). According to our sources, in 2022 the government of Dubai reported a record sum of AED 528 million ($130M) in real estate transactions. That means the market has not just recovered from Covid-19 but surpassed its previous profit levels.
The transformation of the real estate sector has made a significant contribution to Dubai's overall development and growth. In the following article you'll learn about the history of Dubai and the development of real estate over time. We will introduce you to the history and development of Dubai, which has become a world leader in real estate.
Dubai's rich history dates back to the early 19th century when it was a small village of fishermen and pearlers. The discovery of oil in the late 20th century made the Emirate a significant player on the global market. Dubai became a hub for trade and tourism in the late twentieth century, and its real estate sector boomed. Dubai transformed from an isolated fishing village to a metropolis of high skyscrapers and world-class facilities over the next few decades.
The city of Dubai is now home to several of the world's most famous architectural buildings, such as the Burj Khalifa Tower, Dubai Opera, Dubai Fountains, etc. With a projected value of $143 billion by 2022, the property sector in Dubai is continuing to grow. The earliest economic development in Dubai was primarily driven by trade and pearl diving. Dubai's commerce began in the early 19th century, with textiles, spices, and gems as the main focus of trade.
In the late 19th century and early 20th century, pearl diving, which is a major contributor to Dubai's economy, also experienced significant growth. The discovery of oil transformed Dubai's economy in the early 1960s, opening up new opportunities for rapid development.
The New Beginning
In 1971 the United Arab Emirates was formed, and Dubai was one of seven emirates to join them. The dependence on fisheries and trade has been the cornerstone of Dubai's early history, with pearl exports as a major source of income.
Rapid economic growth and diversification were triggered when oil was discovered in the 1960s. In real estate, Dubai has begun to progress, building residential and commercial properties. Dubai's real estate sector, which has earned a reputation for its towering skyscrapers and rich real estate developments, has flourished. Today, the property sector accounts for about 22.5% of Dubai's gross domestic product and provides more than 200,000 jobs.
Oil and Gas
Dubai's infrastructure and economy have undergone considerable change, driven mainly by the discovery of oil in 1966 during its early history.
The early emergence of the Emirate was made possible by Dubai's oil and natural gas industry. The first oil well was discovered off the coast of Dubai in 1966, triggering an economic boom and a return to prosperity for many parts of the region. Oil and natural gas made up more than 90 % of Dubai's revenue at the end of the 20th century. The government invested heavily in infrastructure and real estate, developing iconic buildings.
From its very beginnings, Dubai's tourism and hospitality sector has been marked by significant development. The sector has continued its growth, and in 2023 the city of Dubai welcomed over 15 million visitors.
Smart political leadership and wise economic policy allowed Dubai to diversify its economy in order to avoid the effects of the future decline of the use of fossil fuels. Not just the real estate sector and tourism but also finance, insurance, logistics, manufacturing, healthcare, and technology sectors have experienced a rapid rise over the years. The United Arab Emirates is 7th richest country in the world, and its economy continues to grow with no end in sight.
Real Estate Investment Opportunities
We at T.H.E. Capital Dubai aim to provide the best real estate investment opportunities so that you may become a part of Dubai’s economic miracle. How does it work? You invest in off-plan properties by leading developers, then wait. Upon handover, you can get up to 45% ROI because prices constantly increase. Renting out can get you roughly up to 10% annual ROI. This is the reason behind constant property development and an inflow of projects from countless developers, both big and small.
However, investing in Dubai real estate should be planned thoroughly since it might just be your biggest purchase in life. It is important to pick a trusted brokerage agency that will provide you with consultation services and guide you every step of the way from the beginning to the end. We at T.H.E. Capital Dubai strive to provide excellent real estate services, helping you to find the best projects and units on the market in order to increase potential ROI numbers.
All in all, we have covered how Dubai became an internationally recognized business hub and a trading center of a grand scale. Thanks to wise business decisions, clever political guidance, and a lucrative real estate market, The UAE diversified its economy in order not to be dependent on oil and gas industries that are gradually declining, paving the way for renewable energy sources. Without any doubt, Dubai is an attractive destination for your investment. And if it comes to real estate, T.H.E. Capital Dubai is eager to help you establish a passive income source by reselling or renting out purchased property. Connect with us to know which developers, areas, and projects can get you the most profit. Good luck!