Cranes dominate the sky over Dubai.Since 2000, Dubai's municipality has initiated a plethora of construction phases and plans across the entire city of Dubai, predominantly in the Mina Seyahi area, located further from Jumeirah, towards Jebel Ali. In many areas, it is not easy to see Dubai's sky without at least one crane in your view; some say 16% of the world's large construction cranes reside in Dubai. Construction in Dubai and the UAE in general is a much faster process than in any Western country. This is partly due to the fact that labourers from the Indian subcontinent accept lower wages than those from other countries.
One of the main reasons for the boom in construction in Dubai is its drive to diversify the economy. The Dubai government does not want to depend on its oil reserves which are largely believed to become exhausted by 2010 and, as such, has diversified its economy to attract revenues in the form of expanding commercial and corporate activity. Tourism is also being promoted at a staggering rate with the construction of Dubailand and other projects that include the making of mammoth shopping malls, theme parks, resorts, stadiums and other various tourist attractions.
One of the other reasons for the boom in construction is the recent reversal of a law in 2002 that allows non-nationals of the UAE to own property (not land) in Dubai (albeit freehold and 99 year leases are actually sold to people with ownership still remaining with private companies). The larger of the property tycoons are Al Nakheel and Emaar Properties. In Dubai, demand is currently outstripping supply by a significant margin and is showing no signs of slowing in the near future. Rents have also skyrocketed with the recent inflow of professionals and companies from around the world who are attracted by Dubai's no-tax benefits although rises have been capped to 15% per annum up to 2006 under a directive from Sheikh Mohammad. This cap demonstrates the realisation that uncontrolled rents can hamper development. Legislation in this area is still sketchy as the property market is a new one and rights of tenants and landowners are based on shaky principles borrowed mainly from European law. Most contracts and tenancy agreements do not stand up to the standards of international law and almost always grossly favour the lessor or the company selling property.
Information courtesy of Wikipedia
 Airports
Construction
Demographics
Education
Entertainment
History
Language and Religion
Modern Dubai
Ports
Real Estate and Property
Transportation
|
Home
