Tabreed 06 Prospectus - London Stock Exchange

The growth of Dubai began in the early part of the 19th century when members of the Bani Yas
tribe, led by Sheikh Maktoum Bin Butti, left Abu Dhabi and migrated north to found an
independent Sheikhdom in the area now known as Dubai.
As the 19th century unfolded, Dubai, split by a 14 kilometre long creek, which led into a natural
harbour, established itself as a flourishing centre for the import and re-export of merchandise (the
‘‘entrepôt trade’’). If entrepôt trade was the first and most important pillar of Dubai’s economic
activity, the second was pearling. Offshore from Dubai and Abu Dhabi, the waters were rich with
pearl beds. However, the Great Depression of the 1930s and the emergence of artificial pearls in 1929
dented Dubai’s prosperity.
To counter the loss of economic activity from the decline in pearling, Dubai enticed traders from
India and Iran to establish their business. Traders, attracted by Dubai’s liberal policies, especially its
lower taxes on foreigners compared to its neighbours, made it their base and Dubai was quickly
established as a trading centre for trade in gold bullion, textiles and consumer durables.
In the 1930s and 1940s, oil was discovered in Kuwait, Qatar and Saudi Arabia – adding to that
already found in Iran, Iraq and Bahrain. In 1958, oil was found off the shore of Abu Dhabi and, in
1966, oil was first discovered by the Dubai Petroleum Company at Fateh, which lies 92 kilometres off
the coast of Dubai. As the primary regional trading hub, Dubai was well placed to capitalise on the
upswing in Middle East business activity that came with oil exports. Over the years, oil revenues have
been used to create and develop the economic and social infrastructure of Dubai.
Dubai is, after the Emirate of Abu Dhabi, the largest emirate in the UAE, and is situated on the
west coast of the UAE in the south western part of the Arabian Gulf. It covers an area of 3,885 sq.
kilometres and lies approximately at longitude 55 degrees East and latitude 25 degrees North. Except
for a tiny enclave in the Hajar Mountains at Hatta, the emirate of Dubai comprises one contiguous
block of territory.
Dubai’s strategic position at the crossroads between the East and West has helped establish it as a
leading trading and services hub between the Far East and Europe.
Dubai’s economy is more diversified and dynamic than that of Abu Dhabi and it is one of the most
important commercial centres in the Middle East, with growing banking, tourism and real estate
sectors. However, with only a fraction of the fossil fuel reserves of Abu Dhabi, it has gradually
reduced its dependency on oil and gas revenues. The Government of Dubai continues to invest
heavily in the infrastructure of the emirate and its economic development.
All powers of government in Dubai are vested in the Ruler. The various departments and other arms
of the government and their respective executives operate under the powers and responsibilities
specifically delegated to them from time to time by the Ruler. Laws of Dubai are passed by decree of
the Ruler. The present Ruler is H.H. General Sheikh Mohammed bin Rashid Al Maktoum, who is
also chairman of Dubai’s Executive Council.
In Dubai, there are various local government bodies charged with regulating and administering local
law and policy, including the Dubai Department of Economic Development, Dubai Municipality and
the Department of Civil Aviation.
The population of Dubai was estimated at 1,204,000 at the end of 2003. There are no figures
currently available for 2004 or 2005. Approximately 80 per cent. of the population is estimated to be
non-UAE nationals, mainly drawn from the Indian subcontinent, Europe and other Arab countries.
Approximately 70 per cent. of the population is estimated to be male and 30 per cent. female,
reflecting the large male expatriate workforce.
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