Dubai - a growth pole

Growth Pole? What's that?

A growth pole is an area of economic growth – i.e. it is becoming richer. It is a place where lots of industries and businesses choose to base themselves, often because they want to be near other industries and businesses that are also there. Governments often try to stimulate growth poles with low tax and other incentives.

Places on the coast have lots of advantages that make them possible growth poles. They may be ports, which attract lots of other industries, they have lots of flat land, which is good for development and they are attractive places to live, which makes it easier for industries to attract the most talented people to live there.

Dubai - a growth pole

Dubai is an excellent example of a growth pole. It has had massive economic growth, lots of businesses and industries have set up there and the government has done lots to stimulate (encourage) this growth.

Where is Dubai? 

Dubai is one of the seven emirates that makes up the UAE (United Arab Emirates). The UAE is located in the Middle East.

The UAE

Source: By Ksamahi (Own work) [CC-BY-SA-3.0 (http://creativecommons.org/licenses/by-sa/3.0)], via Wikimedia Commons

The Middle East

Source: By Cacahuate, amendments by Globe-trotter and Joelf (Own work based on the blank world map) [CC-BY-SA-3.0-2.5-2.0-1.0 (http://creativecommons.org/licenses/by-sa/3.0)], via Wikimedia Commons

Is Dubai a site of major economic growth?

Dubai was originally a small fishing settlement. Its economy first started to grow in the 1930s with the pearl industry. Then in the late 1950s, the country began to develop its port in an attempt to become a trading hub. When oil was found in the region in the 1960s, it really kickstarted economic growth as the oil was exported, bringing in income, which could be invested in developing the area further.

Dubai Creek in 1964

Source: By Noor Ali ([1]) [Public domain], via Wikimedia Commons

By the 1980s, much of the oil was running out, so Dubai set about finding other ways to generate money. It invested in developing infrastructure, and attacting trade, tourism and industry. This move away from oil has meant that Dubai's economy has kept growing when some of the countries around it have stagnated (slowed down). Today, the UAE has become one of the most developed and wealthiest countries in the world, with a GDP pc of over $64,000.

What evidence is there that Dubai is a growth pole?

So, what has Dubai got?

Infrastructure

• Port Rashid, developed as a major commercial port and now being transformed into a cruise terminal, due for completion in 2018.
• Port Jebel Ali, a massive industrial port, surrounded by a tax-free industrial zone, which attracts international businesses.
• In 1959, the then ruler of Dubai, Sheikh Rashid bin Saeed Al Maktoum, ordered the construction of Dubai International Airport, which has now become the number one airport for international travellers, with nearly 6.5 million passengers passing through it every year.
• From the 60s and 70s, Dubai's rulers invested money from in desalination plants. These remove salt from seawater so it can be used for drinking water and agriculture. It is estimated that over 98% of Dubai's water now comes from desalination.
• A transport system that has had over $20 billion dollars invested in it, as is described as 'a key driver in Dubai's Growth.'

Tourism and Real Estate

• Dubai went from having less than 50 hotels in 1985 to more than 600 in 2014.
• The '7 star' Burj el Arab, built in 1999
• Dubailand - a themepark
• The Palm Island - two man-made islands shaped like palm trees with 3,000 homes and 40 luxury hotels
• The World - 300 little islands laid out to resemble a map of the world
• The Burj Dubai - the World's tallest building
• Dubai attracted 11 million tourists in 2013.

The Burj el Arab

Source: "Burj Al Arab, Dubai, by Joi Ito Dec2007" by Joi Ito  

Shopping

• Dubai is home to numerous malls, home to brands like Prada, Versace, and Dolce & Gabbana.
• The Dubai Shopping Festival, held every January and attracting 2 million visitors since 2002.

A Mall in Dubai

Source: By Jagermesh (Own work) [CC BY-SA 3.0 (http://creativecommons.org/licenses/by-sa/3.0)], via Wikimedia Commons

Industry and Business

• Free trade zones, like Media City and Internet City, that allow businesses to set up with little regulation or taxation. 
• Internet city has attracted companies such as Hewlett Packard, Dell, IBM, and Sony.

Dubai Media City

Source: Imre Solt [GFDL (http://www.gnu.org/copyleft/fdl.html) or CC-BY-SA-3.0 (http://creativecommons.org/licenses/by-sa/3.0/)], via Wikimedia Commons

How has the government helped Dubai grow? 

As well its major investments in infrastructure, and the creation of tax and employment laws which encourage investment from abroad, the government tolerates western culture such as western dress and alcohol consumption, which attracts people from the US and Europe to live there.