This tiny emirate has emerged from the desert seemingly overnight and developed into an increasingly more powerful global economic player—as well as one of the world’s most popular destinations.

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“A nation’s glory is measured by its past and present and its civilized development—perpetuating the memory of the past, the construction of the present, and the planning of the future.” —H. H. General Sheikh Mohammed bin Rashid Al Maktoum, Ruler of Dubai and Vice President of the United Arab Emirates (UAE)

Tiny Dubai, one of the seven emirates of the United Arab Emirates, found itself in the harsh glare of the media spotlight as the Dubai Ports World controversy played out across every headline show for weeks last March. All of this intense scrutiny had many Americans asking, “Where is Dubai?” Members of the business community however already knew where Dubai is because for the past 10 years they have carefully watched this small sheikhdom emerge from the desert seemingly overnight and grow into a powerful global player. From its modest beginnings as a seaside trading village, Dubai has become possibly the fastest growing metropolitan area on the planet today and the most stunning economic development story in the region, perhaps the world.

It was Sheikh Mohammed’s visionary development of the Burj al Arab Hotel in 1999 that first thrust Dubai into the international spotlight. Media outlets from around the world revealed this state-of-the-art hotel shaped like a sail off the Dubai coastline not only as the world’s tallest luxury seven-star hotel but also as being so remarkable that no other hotel was even remotely comparable. This media darling became the first of many current and planned high-profile mega-developments that continue to draw the world’s attention—and money—to Dubai.

An estimated $100 billion in projects are currently under way in the emirate, according to the Dubai Department of Economic Development. The skyline changes daily due to improvements in roads and infrastructure as well as the construction of a new airport, hotels, and housing. It is widely reported that more than 20 percent of the world’s tower cranes are operating in Dubai, at this time—but one look across the skyline would suggest that the actual number may be even higher.

Contrary to what many people think, oil was not the catalyst for the rapid expansion and growth that has occurred in Dubai over the past 50 years as it rose from a seaside village to become the Persian Gulf’s leading port. While oil and gas production form its foundation, the emirate is increasingly broadening its economic activity to include real estate, tourism, trading, and manufacturing. In fact Dubai has significantly decreased its dependence on oil revenues due to momentous gains in non-oil sectors. The government’s use of tax-free zones like Dubai Internet City, its version of Silicon Valley, and the new Aviation City encourages international companies to use Dubai as their gateway to the millions of consumers across the Middle East, India, and Africa completely tax free. The economy of Dubai—considered the trade and commerce center for the entire Gulf region—has achieved a standard growth rate estimated at close to 17 percent, registering the highest growth in the world for 2004.

This monumental growth is attributed to the government’s support of the private sector and the continuous flow of foreign capital, plus stabilized, low interest rates continue to encourage international investments. That, coupled with the fact that oil has risen to more than $70 a barrel, means that the cash-flush Gulf region has plenty of money to invest. Politically and financially secure in a region filled with volatility and religious turmoil, Dubai is the place many have chosen to put their money to work.

Likewise, the promotion and marketing of Dubai as a destination plays a key role in the emirate’s overall grand plan. Officials have developed entire holidays around shopping and entertainment. The “Destination Dubai” campaign is working according to plan—the famous Dubai Shopping Festival, where new cars and cash prizes are awarded daily, draws in millions from around the globe; the Dubai World Cup is now the richest horse race in the world with a $6-million purse; and a multitude of international sporting events like the Dubai Tennis Championship and the Dubai PGA Desert Classic are bringing sports enthusiasts and tourists to Dubai. In addition, photo opportunities with Tiger Woods, Andre Agassi, Roger Federer, and other celebrity athletes at the latest glittering Dubai development are making sure that the world sees what is happening in Dubai. For instance, this year prior to the Dubai Tennis Championships, Federer and Agassi volleyed across a net set up on the Burj al Arab’s helipad, an event broadcast on every major news and sports network worldwide.

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