As much as the history of Dubai’s economy has been engrossed in its dependence on oil, Dubai currently is less dependent on oil than many may think.
Oil, a fossil fuel, has been an integral part of UAE’s economy. This is seen as one of the main causes for UAE’s high ecological footprint – an indication of the lack of sustainability that bears hold in Dubai.
However, this is changing. More so for Dubai than most other Gulf states. Not only is Dubai taking more measures to promote renewable energy by harnessing the energy from what Dubai has most – sunlight, but also through the diversification of business in Dubai.
Revolution in technology, intense competition, and globalization in Dubai are all consequences of Dubai’s business friendly environment. And these have helped Dubai’s non-oil private sector. In fact, indices tracked by ENBD Economy tracker suggests a surge in the non-oil private sector with wholesale and retail serving the best performing.
Furthermore, Dubai’s non-oil trade is rapidly increasing above Dhs1.28 trillion biting out larger parts of the trade sector from oil. These recent developments have not only helped Dubai’s economy become more sustainable but have also boosted other previously smaller industries such as real estate. These expansions are becoming more visible with the growth of the REIT (Real Estate Investment Trust) which allow investors to access real estate portfolios without owning its underlying assets.
What does this mean for your business?
As a result of the recent oil concerns globally, companies all over the world, and Dubai are taking measures to cover their concerns over the future of energy costs, and environmental sustainability is the main consideration.
Although oil may still be cheap currently in Dubai, for a long-term growth for your business in Dubai, sustainability is key as Dubai continues to reduce its reliance on oil.
Further, the promotion of non-oil based private sectors in Dubai has only meant a greater ease of businesses in UAE. This is especially true for technology-based firms, start-ups, SME’s and real estate companies, the latter having seen the greatest chunk of growth in the recent years.
So how do you manage your business to move along with Dubai’s economy, while ensuring that it maintains its sustainable track?
We, at MSI Alnoman and Ravi, are specialized in helping you start and manage your company grow in a sustainable fashion with professionals who have several years of experience. Each company needs to follow its own path to sustainable growth, and we understand this. Our personalized consultancy services aid your company to grow in the most suited method.