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S P Jain in News
Events at S P Jain
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| Mr. Omar Abdul Aziz Khan |
It was a valuable session for the participants of S P Jain, Dubai. The session was conducted by Mr. Omar Abdul Aziz Khan who helped the participants understand the economic growth United Arab Emirates (UAE) has experienced over the last fifty years. Mr. Khan has been associated with Dubai chamber of commerce and industry for almost 5 years. He has served on several committees and task-forces in the Chamber. He has now taken on a new role as the Director of Membership & Documentation Services Department which aims at serving the business community in Dubai.
The session with him Mr. Khan described the stages of development of the economy. The emirates were supported by the pearl diving era before 1956. In the Oil dependence era between the years 1956-1971, the importance of oil increased thereby reducing the dependency on pearl diving. The infrastructure era after 1971, saw the development of trade, education, health and communication. The contemporary emirates have seen the emergence of trade and tourism.
The GDP of the United Arab Emirates was $358 Billion in 2011, behind Iran and Saudi Arabia among the other Middle Eastern countries. The emirates have been trading over the last one hundred years. The total non-oil foreign trade of UAE in 2010 was US $205 billion. Dubai’s non-oil trade accounted for more than 76% of the UAE’s total non-oil trade.
In 2010, Dubai contributed 27% of UAE’s GDP. Dubai has become an international hub as well as a tourist destination. Geographically Dubai is strategically located. Dubai serves as a trade hub to the Middle East, the Indian sub-continent and Africa as well.
The session focused on potential business opportunities in Dubai. The Tax and Customs Policies support international trade. New and existing businesses are facilitated by the exclusion of income/corporation tax and VAT. These make Dubai a very lucrative place for new businesses and start-ups.
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| Mr. Khan highlighting the key points |
Dubai gains competitive advantage from thriving industries like trade, logistics, finance and tourism. These are the pillars that support the economy of Dubai. The aftermath of the recession in 2009 saw Dubai struggling to get back on its feet. Dubai’s exports and imports took a direct hit. However, through the various measures taken by the Government, the economy sprung back in 2010, much to the world’s surprise. The occupancy of the Dubai’s lavish hotels rose back to 75% from a mere 56% in 2009, with people willing to pay high prices for the quality of service.
Dubai boasts of the finest infrastructure in the world. It has the world’s 4th busiest airport in terms of international passenger traffic volumes. It is connected to over 220 destinations across 6 continents through a network of over 150 airlines. In 2010, Dubai Airports launched cargo operations at Dubai World Central (DWC).
Dubai is ranked amongst the top 10 container ports worldwide with 60 terminals across 6 continents and 11 new developments across 10 countries. In 2011 DP World handled over 54.7 million twenty foot equivalent container units across its portfolio from the Americans to Asia.
This segment also focused on the free zones in Dubai. These areas within the emirates are excluded from common custom regulations. The zones offer 100% foreign ownership, free repatriation of capital, flexibility to trade in any currency. These zones are tax free, providing relaxed terms for business. They help to issue business licenses and assist in the procurement of visas for expatriates.
Dubai chamber of commerce and industry supports and protects the interests of the business community in Dubai. Dubai is promoted as an international hub for businesses. Dubai is expanding its business by giving value added services to other Middle Eastern countries.
In conclusion, the students of S P Jain received valuable insight into the evolving economy of the emirates and outlook of Dubai. The interest of the students was evident from the highly interactive Q&A session which spanned several topics such as the taxation system, the infrastructure, the dependence on oil etc.
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