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The world’s tallest building is proudly located in Dubai. The government spent approximately $1.5 billion on the project; some of this financing came from neighboring emirates, such as Abu Dhabi. Results from this enormous project have been mixed. Currently, the building is 80% occupied as affirmed by the main shareholder, which is the Dubai government (McGinley 2012). However, these occupancy rates were rather low in the first year of business.
Many investors frowned upon the 10,000 Dirham rate for one-bedroom apartments. These rates have reduced dramatically to 6,666 AED owing to the global financial crisis and internal factors in the Emirati real estate market. Numerous landlords are thinking about selling their property within the building because of its high service charges. Therefore, this building may not have led to failure or success in the UAE economy, because its effects have been mixed.
Jebel Ali Free Zone
This free zone has contributed to the success of the UAE economy owing to a number of reasons. First, it sends a message to potential investors that the government is committed to their success. Furthermore, it has about 6,500 companies that belong to the free zone. These firms have been profitable and led to the growth of the country’s GDP substantially. The free zone was created in order to have transit points that allow businesses to store and transport their goods before distributing them. It works for those who need to export their commodities without payment of customs duties. Furthermore, the Jebel Ali Free Zone has also enabled foreign investors to retain majority ownership in companies (Gilligan 2010).
Burj Al Arab
In the hotel industry, it always helps to have a unique selling point. In this case, Burj Al Arab has gained a reputation as the world’s tallest hotel. This fact has attracted a number of tourists and visitors to the establishment. Furthermore, because it possesses a large mall, numerous visitors frequent the building. The hotel is also known as the first seven-star luxury hotel, and thus gives an identity to Dubai (Stack 2010).
The UAE regards tourism as one of the most crucial sectors of the economy. In order to have robust earnings in this industry, the country needs to have exceptional hotels as well as attractive landmarks. The Burj Al Arab possesses most of these qualities, and unlike the Burj Khalifa, which is largely residential; the former building is a commercial enterprise. Its market is more dynamic and less susceptible to residential real estate fluctuations. Consequently, it has a positive effect on the UAE economy.
The above landmark has built Dubai’s reputation as one of the most formidable entertainment centers in the world. First, it hosted a Formula One competition in 2009. Between 2011 and 2012, the Island has also hosted prominent international artists like Prince, Beyonce, and Elton John. Additionally, the Island also possesses the Yas Hotel, which is a critically acclaimed hospitality center (Gerrity 2012).
Most government officials use the facility for conferences and other meetings. Yas Island has a Golf Course that has international acclaim. Ferrari World is an indoor theme park that attracts a number of individuals to the location. A long public beach on the Island also provides tourists with numerous options. Because of the diversity of the businesses in this location, Yas Island had contributed to the success of the UAE economy.
This is also another landmark in the country. Palm Jumeirah is home to several hotels, which boast of 80% occupation rates (Lawless 2011). Many visitors also target Palm Jumeirah for its attractiveness. Therefore, one may assert that the landmark has boosted UAE’s economy owing to its positive results recently. However, this fact was not true a few years ago owing to the challenges in the country’s financial situation, which depends mostly on foreign investment.
Gerrity, M 2012, ‘Despite economic headwinds, Abu Dhabi continues to promote Yas Island destination’, World Property, p. 6.
Gilligan, M 2010, The butterfly effect: changes to UAE’s company law and Dubai’s free zones. Web.
Lawless, G 2011, ‘UAE’S Jumeirah Group eyes Europe expansion’, The Economic Times, p. 15.
McGinley, S 2012, Dubai’s Burj Khalifa is 80% occupied. Web.
Stack, M 2010, ‘In Dubai, the Sky’s no limit’, Los Angeles Times, p. 8.