Dubai's market is very open and easy to enter, and there is no foreign exchange control. The import tax here is generally 4%, and the telecommunications facilities are first-class, providing services for the booming financial industry and service industry. Energy is also abundant. Even tap water, a long-standing problem that troubled the Arab world in the past, is now solved by desalination.
The transportation infrastructure can be compared with any developed place in the world. Dubai International Airport, as the hub of sea-air conversion, takes off and lands nearly 300 flights every day, reaching about 130 destinations. 1985 this country has established its own international airline, Emirates, which has maintained impressive performance since its establishment.
In terms of shipping, the world's major routes exceeding 125 include Rashid Port and Jebel Ali Port in Dubai. Jebel Ali Port is the largest artificial port in the world, with 65 berths and a span of 15km. There is a tax-free zone around the port, and foreign-funded enterprises in the zone can own 100% of the ownership, and are exempt from corporate tax and personal tax. In addition, there are no restrictions on the repatriation of profits. There is also the only Lloyd's certified cold storage in the Middle East.
There are many famous brands here, such as Aiwa, Brother, Casio, Nokia and Sony. 15 Hong Kong-funded companies have started to operate here. At Dubai International Airport, a new duty-free zone for light industry has been put into use. Dubai's retail, entertainment and tourism industries are growing strongly, and its image has been enhanced through ambitious promotional activities. Amazing gifts such as luxury cars and gold bars, as well as city-wide discount promotions, are the characteristics of Dubai's annual shopping festival. The shopping festival turned the whole city into a theme park. 1998 alone, its great success attracted more than 2 million tourists and brought more than 10 billion dollars in consumption.
70% of Dubai's imports are re-exported to other countries, usually neighboring Islamic countries. Iran is the largest export destination, with Afghanistan and Azerbaijan ranking fourth and sixth respectively. People may prefer to see these markets still under the control of Dubai's business community.
On1October 24th, 2009 local time, 165438, Dubai World, the largest enterprise in the emirate of Dubai, announced that it would postpone its debt repayment for six months, which shocked the global financial market.
First, the stock market. The three major stock indexes in the United States fell by 1.48%- 1.73% respectively, and the Asia-Pacific stock index was even more bleak. Japan fell by 3.22%, Hong Kong fell by 4.84%, South Korea fell by 4.69%, and the Shanghai Composite Index fell by 2.36%. Then the resource market. Gold and oil prices plunged 1. 1% and 2.4% respectively, while silver fell by 2.5%. On the contrary, the exchange rate of the US dollar rebounded, and US Treasury bonds turned from stagnation to prosperity. The exuberant speculative sentiment originally inspired by the optimism that "the economy has bottomed out and rebounded" seems to have disappeared in an instant.
Dubai crisis is a new embodiment of the old crisis.
"The Dubai debt crisis is not a new crisis, but it may be the final manifestation of the international financial crisis." Chen Bingcai, a researcher at the Decision Consulting Department of the National School of Administration, said. Dubai's debt crisis is caused by the collapse of real estate prices, the break of the capital chain and the suspension of construction projects. It should be synchronized with the sharp drop in real estate prices in Europe and the United States caused by the shrinking value of financial derivatives. However, during the financial crisis, the debt did not expire, and a large amount of international capital flowed to Dubai. Therefore, the debt problem in the past year has been hidden. Dubai's debt crisis usually has a time lag, so this is just a new reflection of the old crisis.
Dubai is the entrepot trade center in the Middle East, and its non-oil trade accounts for 70% of UAE countries. By establishing a free trade zone and attracting foreign businessmen without tax, its tourism industry is developed, which in turn drives a lot of real estate investment. Therefore, experts believe that Dubai's non-oil economy such as trade, port economy, leisure and tourism is relatively stable, and Dubai's debt crisis is expected to be resolved in the next two or three years.