MythBusting - Dubai

1.) Dubai has a lot of oil - FALSE

This is the most grossly overstated myth I hear about Dubai. Yes, they do have oil revenues, but as a percentage of total GDP they make up only 6% of the US$80 Billion UAE economy in 2006. Taranjeet Chawla of the IBS Research Centre states “In the early 1990s, it was estimated that Dubai’s known oil reserves, which [at the time] generated a major part of the GDP of the state, would be depleted by 2016. With a view to reducing its reliance on oil, Dubai decided to transform itself from an oil-based economy to an economy with a broader focus,” including destination tourism, transport, and other business activities.

2.) The UAE is oppressive of its women - FALSE

In the 2007/2008 United Nations Development Programme report, the UAE ranked 29th among 177 countries in the Gender Empowerment Measures, the best rating received in the Arab World. The UAE constitution guarantees equality between men and women in areas including legal status, claiming of titles, and access to education. Some women of power in the UAE listed below:

HH Sheikha Fatima bint Mubarak – Founder of The General Women's Union (GWU)

Hassa Al Otaiba – Ambassador to Spain

Sheikha Najla Al Qasimi – Ambassador to Sweden

Kholoud Ahmed Juoan Al Dhaheri – Federal Judge

Sheikha Lubna Al Qasimi – UAE Minister of Economy (listed as #99 most powerful woman in the world by Forbes magazine)

3.) Dubai is in financial trouble – FALSE

A lot has been made in the news about the financial troubles of Dubai. The reality is, one company within Dubai World, Nakheel, asked investors to “stand-still” in receiving bond payments, which would be deferred to the next quarter. Subsequently, Dubai World received US$10 Billion in aid from Abu Dhabi, the capital of the UAE, of which US$4.1 Billion will be used to pay back investors. These troubles resulted from the global recession, and more importantly the downturn in Real Estate values. Dubai, the Emirate, will be fine moving forward.

4.) The UAE is home to Islamic extremists – FALSE

This couldn’t be further from the truth. In fact, the United Arab Emirates is very much reliant on the United States of America in regard to attracting businesses to the area. Over 750 US Firms are currently operating in UAE because of its strategic location in the Middle East, the Free Trade Zones, and its progressive lifestyle. Additionally, the US is very much reliant on the UAE in that its America’s largest Arab exports market. I would argue that you will never see an Emirati national terrorist, as the lifestyle they enjoy is not conducive to extremist views. The Per Capita Income in the UAE is US$44,600 versus US$3,200 in Iraq and US$12,800 in Iran. In the United States of America the Per Capita Income is US$40,200.