Economics is a funny beast, as much about human perceptions and emotions as it is about facts and figures.
So it’s understandable that financial ministers around the world want to promote a positive impression of their domestic economies, but figures seems to show that the positive talk about Dubai’s economic position are not all hot air.
According to Farid Karmostaji, director of Entrepreneur Development Division of Sheikh Mohammed Bin Rashid Establishment for SME Development (Dubai SME), Dubai is at the start of a new cycle of boom.
Dubai boomed quite considerably at the start of last decade up until the global financial crash and since then it has been fire fighting in an attempt to keep their economic vision on track.
As the risk factor in holding Dubai debt is receding, it seems that Dubai’s fire fighting and consolidation period is over and they are looking to get the fire back into their economy. Karmostaji speaking at the inauguration of Franchise UAE 2015, said:
“We can feel the new frenzy in the number of new shops opening and malls expanding.”
“There is certainly room for more franchisees. Earlier, the concept of franchising was not very clear to some entrepreneurs, but today many local companies are keen to take the franchising route.”
Not only are local emirate businessmen keen to get into the franchising business within the UAE, but there are a good many domestic brands that are now ready to go global, like fast food outlet Just Falafel that towards the end of last year signed a master franchise agreement to roll out 200+ stores across the UK. This signals a paradigm shift and demonstrates a maturity that did not exist a decade ago.
Dubai SME is ready to play a larger role in the development of small businesses by opening the doors to non-Emiratis, offering courses on entrepreneurial and business skills. Consolidating Dubai positions as a go to destination for budding pioneers, helping to boost employment and drive growth.
Away from the SME sector Dubai’s behemoth airline Emirates reported its 24th consecutive year of profit. Emirates acquired a staggering 22 new aircraft last year and are considered to be the world’s fastest growing airline, carrying a record breaking 34 million passengers on flights to Dubai and 115 other destination in 2014-12, up eight percent on the previous year.
For an idea about the staggering growth that Dubai has witnessed over the last decade check out this time lapse video taken from satellite images:
What are your thoughts on the return of a cycle of boom for the Dubai economy? Let us know in the comments below.
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May 11, 2023
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