Ostentatious, exaggerated, colossal.
It seems that Dubai always aspires to carry out the largest, most luxurious and most eccentric projects in the world.
In this small territory, we can find the tallest building, the most luxurious hotel, and even the largest international airport on the planet.
Located in a strategic enclave at the mouth of the Persian Gulf, the growth process of Dubai is one of the fastest in human history.
In just over 20 years it has gone from being a remote and lost enclave in the desert to become one of the world’s great capitals. In this period of time the emirate of Dubai has multiplied by four its population, by nine the number of visitors, and by eight the size of its economy, But, Having said that, the question is: how has all this development been achieved?
Has it all been just a matter of oil?
Dubai is one of the seven emirates that make up the United Arab Emirates. We could describe its government as an Islamic autocracy that restricts a large part of its people’s civil liberties.
However, if we compare it with its neighboring countries, Dubai is by far the most open place in the Middle East. Want some examples? Well, here women can drive, the veil is not mandatory, you can buy pork at the supermarket,
and even alcohol is not hard to come by.
Yes, things are starting to change, and in a way, I think we could refer to this city as a kind of oasis in the middle of the desert. And, as you can imagine, all of this change has had its reward.
And, well, it might just surprise you…
Did you know that Dubai is already the fourth most visited city in the world (when it comes to international visitors) and that it surpasses epicenters of tourism and global trade such as New York, Hong Kong or Singapore?!
Well, it totally is, and this is something that surprises a lot of people!
Of course, there’s one thing we have to be clear on here, Dubai does not aspire to be the freest place on earth, but they do want to become the richest.
Examples of opulence in this place are so evident that it is not strange to see the Dubai’s police patrol the streets in Ferraris or Lamborghinis. Where else in the world could you possibly see something like this? Maybe at this moment some of you are thinking that all this exuberance has a very easy explanation: oil.
Could it be that Dubai is nothing more than a dream of sheiks that are financed with petrodollars? Well, although we can not deny the influence of black gold, the truth is that the real the key is very different.
The great secret of Dubai is not oil, but its commitment to trade.
Don’t believe me?
Well, let’s dive a little deeper…
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Lets go Deeper
At the end of the 1950s, important oil deposits were discovered in the vicinity of Abu Dhabi, the capital of the Emirates. Be careful here, because we are not talking about a small discovery, but an about a huge amount of oil. To give you an idea, it is estimated that the oil wealth of the Emirates – their proven reserves – is even greater than those of all Russia. However, in the case of Dubai, it was a bit different.
It is true that this territory was also graced with the fortune of black gold … But its authorities soon realized that their reserves were much smaller than those of their compatriots in Abu Dhabi.
In fact, although it may surprise us, oil today accounts for less than 1 in every 100 dollars produced by Dubai’s economy…
You’ve probably heard about how important it is to diversify an economy, right?
Well, that is precisely what Dubai did: overcome dependence and addiction to oil.
Now, this is very easy to say, but, The question is: How did they do it?
What did Dubai do to achieve such development and achieve a higher standard of living even compared to its oil-rich neighbors?
Basically, what it did was attract multinationals and professionals from all around the world. To achieve this, the first thing they did was to bet on a low tax policy. Look, in Dubai, they do not have the income tax, the tax on profits is practically non-existent and currently, purchases are not taxed either – although the latter is about to change.
As a result of a joint agreement of all the member countries of the Persian Gulf Cooperation Council, a tax on purchases will soon be launched. However, the rate will be around 5%, far from the rates of more than 18% so common in developed
And, of course, in case you are wondering, in Dubai there are no taxes on gasoline either. Yes, I know. It almost seems like we are talking about another planet. But do not think that low taxes are the only strategy Dubai has followed, not at all.
Second, and perhaps even more important than taxes, Dubai has resorted to an instrument known as “Special Economic Zones,” although here they are somewhat different from what we can find elsewhere. In Dubai, these special areas, in addition to having tax benefits, even have their own regulations – almost laws – which, as you can imagine, are always focused on promoting business activity.
Precisely, thanks to having specific rules, companies can escape the rigidity of legal systems that are inspired by sharia law, something that applies, of course in the rest of the Emirates.
We can find a good example of this model in the so-called “Dubai International Financial Center”, which is almost a state within another state. Look, this Financial Center has its own judicial system – chaired by the way, by a British
judge, with its own official language, which is not Arabic but English, and has even replaced the local currency with the US dollar.
In this way, a financial institution, a bank, for example, can do business as if it were in Manhattan but benefiting from the tax advantages of Dubai. Not a bad deal, right? So, now we can understand how Dubai has managed to attract the most of the 25 largest banks in the world.
But … This is not all.
Along with low taxes and Special Economic Zones, Dubai also opted for a very high degree of immigration freedom.
The result? 96% of its inhabitants have been born abroad. But wait, because there’s more…
To further boost foreign investment, at the beginning of this century the Dubai authorities made an unprecedented decision for this corner of the world.
In 2002 the government of Dubai approved a risky decree that allowed any foreigner, regardless of their religion, to make real estate investments. At that moment the authentic boom began. Dubai was full of buildings and large projects: hundreds of skyscrapers, gigantic shopping centers, and even the famous artificial islands.
Now the demand for Dubai become global.
It’s a fact that since 2002, Dubai has experienced real estate development comparable only to that of Shanghai, a city with 13 times more inhabitants. Because another one of the most surprising things about Dubai is that it has less than
3 million inhabitants…
Despite this, where before there were only a handful of skyscrapers, thanks to this decree there are now hundreds and huge projects are announced one after the other… be its new skyscrapers, Ferris wheels or theme parks.
One of these latest projects, by the way, is known as “The Mall of the World”, a gigantic space destined to become the largest shopping center in the world, and which will even house its own cultural district with dozens of theaters and cinemas, one hundred hotels, and the largest indoor theme park in the world.
The project has been presented as the world’s first city with a temperature controlled environment! Well, all these measures have made Dubai a place where it is easy to do business and have turned this emirate into a commercial, touristic, financial, logistical, and even industrial power. Yes, anyone who thinks that all this Dubai thing is only about banks and hotels is very
Nowadays, Dubai, thanks largely to its modern ports and special zones, is the third largest re-exporting power in the world and its industrial production exceeds 50 billion dollars each year. This is what explains why its neighbors are uneasily watching any fall in the price of oil, while the government of Dubai continues to carry out large projects.
It is true, from a strictly political point of view there are still many reprehensible elements when it comes to its religious, social or human rights issues. There are, for example, the painful conditions suffered by many construction workers from
countries such as India, Bangladesh or Pakistan. Of course, we can not ignore this reality, but we can not paying attention to the achievements of this emirate.
Among other things because thanks to this, Dubai has managed to influence the policies its neighbors are implementing and encouraging them to reduce their dependence on oil. Dubai is, quite simply, a great model.
There is, for example, the new Saudi Arabia of Mohammed Bin Salman, of which we have already spoken about in a previous video. Anyway, I think this case puts a very important question on the table: Is it possible to reconcile the absence of civil rights with sustainable economic growth over time? History and empirical evidence seem to show that it is not the situation, but in a world increasingly pressured by very high taxes and regulations of all kinds, Dubai’s authorities seem intent on demonstrating that this time it will be possible.
At the moment, its commitment to free trade and investment, and its policies aimed at strengthening legal security, ease of doing business and keeping taxes low, have been superlative. If anything, Dubai shows us that competitiveness and trade tend to have better results in terms of development than protectionism or subsidies.
Many rulers should pay attention to the successes of this oasis in the desert. But having said that, now it’s your turn.
Do you think the Dubai model will make the Middle East a freer place? Leave your answer in the comments below.
I really hope you enjoyed reading this Article.
Source: VisualPolitik EN
Why Is America So Rich?
The United States is the world’s most prosperous economy. It’s been that way for so long, over a hundred years. That we take it for granted. But how did it happen? There are many answers, of course.
One is that the United States values the free market over government control of the economy. But here’s a point that is seldom made: It didn’t begin that way. Before the country placed its trust in the free market, it trusted the government to make important business decisions. Or to put it another way, only after the government failed repeatedly to promote economic growth and only after private enterprise succeeded where the government failed, did the United States start to develop a world-beating economy.
Let’s look at three telling examples: In 1808 John Jacob Astor formed the American Fur Company and marketed American furs around the world. Europeans adored beaver hats for their peerless warmth and durability. Astor gave them what they wanted.
Instead of leaving the fur business to capable entrepreneurs like Astor, the government decided it wanted to be in on the action. So, it subsidized its own fur company run by a self-promoting government official named Thomas McKenney. McKenney should have won the competition. After all, he had the federal government backing him. But while Astor employed hundreds of people and still made a tidy profit, McKenney’s company lost money every year.
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Finally, Congress in 1822, came to its senses and ended the subsidies for McKenney and his associates.
A similar situation developed in the 1840’s around the telegraph. The telegraph was the first step toward the instant communication we have today. Invented by Samuel Morse, the telegraph transmitted sound – as dots and dashes representing letters of the alphabet.
Morse, more of an idealist than a businessman, agreed to let the government own and operate the telegraph “in the national interest.” But the government steadily lost money each month it operated the telegraph.
During 1845, expenditures for the telegraph exceeded revenue by six-to-one and sometimes by ten-to-one. Seeing no value in the invention, Congress turned the money-loser over to private enterprise. In the hands of entrepreneurs, the business took off.
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Telegraph promoters showed the press how it could instantly report stories occurring hundreds of miles away. Bankers, stock brokers, and insurance companies saw how they could instantly monitor investments near and far. As the quality of service improved, telegraph lines were strung across the country – from 40 miles of wire in 1846 to 23,000 miles in 1852.
By the 1860s, the U.S. had a transcontinental telegraph wire. And by the end of that decade entrepreneurs had strung a telegraph cable across the Atlantic Ocean. Why didn’t the US government profitably use what Morse had invented?
Part of the answer is that the incentives for bureaucrats differ sharply from those of entrepreneurs. When the government operated the telegraph, Washington bureaucrats received no profits from the messages they sent, and the cash they lost was the taxpayers’, not their own. So government officials had no incentive to improve service, to find new customers, or to expand to more cities.
But entrepreneurs like Ezra Cornell, the founder of Western Union, did. Cheaper, better service meant more customers and more profits. Just fifteen years after Congress privatized the telegraph, both the costs of construction and the rates for service linking the major cities were as little as one-tenth of the original rates established by Washington. In the steamship business, we see the story repeated yet again.
During the 1840s, regular steamship travel began between New York and England. The government placed its bets on shipowner Edward Collins, a man more skilled at political lobbying than at business. While Congress funded Collins, Cornelius Vanderbilt started his own steamship company. Vanderbilt cut the costs of travel, filled his ships with eager passengers, and built a fabulously successful business, soon leaving Collins in his wake.
Collins failed because he didn’t feel a need to improve, or even provide safe and regular service (for example, two of his four ships sank, killing hundreds of passengers). If he lost money, there was always another politician to appeal to.
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Vanderbilt, in contrast, had to serve his customers or he would have lost his company. You’d think we would have learned our lesson by now: economic prosperity comes from free enterprise, not from government subsidies. But it’s a lesson we have to learn every generation.
So, this was all about how America became Rich. Comment your thoughts on America (United States).
Story of Alibaba
What is Alibaba?
“When I have a competitor like Google or eBay, as a Chinese local company, we can learn a lot, we can improve ourselves. They should be careful of us.”
Alibaba set the record for the biggest IPO in history, which took place at the New York Stock Exchange in 2014.
And the year 2017, Alibaba was the first company in Asia to exceed the $400 billion valuation mark, an honor that had previously only been held by American companies. Alibaba is amongst other global eCommerce giants transforming the marketplace from Physical Market Places to Online Market Places.
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The company is made up of three main sites, Taobao, Tmall, and Alibaba.com. Combined, they have hundreds of millions of users and host millions of merchants and businesses. Which means they can pretty much be used by anyone, anywhere, for anything.
So how does it even work? Meet our fictional character, John, she lives in Beijing. John wants to buy a new blender, so he logs onto Taobao. He finds one he likes, being sold by, let’s say, Chris. He lives in Shanghai and sells the blenders to individuals at a competitive price. When John goes to check out, he doesn’t use his credit card. He uses AliPay to purchase the item. Think of it like using PayPal. Chris then accepts the AliPay payment from John.
So where did the supplier, Chris, get the blenders from? Well, he bought a supply of 1,000 units on 1688.com, the popular Chinese version of Alibaba.com. It sells bulk orders to suppliers like himself.
He bought his batch from a manufacturer named Keith on TMall which allows businesses to sell wholesale. Keith owns a blender company and production facility in Shenzhen which produces the items and other kitchen appliances. Previously, Chris only sold to individual buyers in China. But recently, he’s listed his blenders on AliExpress, which sells to customers outside of China.
So now, Laura, who’s living in California and found the blender on AliExpress, can also buy it from Chris. And yes, she can even use Alipay too.
Of course, importing products from China into the U.S. is nothing new. The difference? Now, anyone in the world can do it on their mobile device and all through the same company. But it’s not the only eCommerce. Chris has been selling so many blenders lately that he wants to grow his business faster. But he doesn’t have the money to buy more units from Keith. So Chris uses AntFinancial, to get financing. The loan helps him order an extra 10,000 units.
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So, for buying, selling, digital payments, and even financing, you’ve done it all in Alibaba’s platforms. And Alibaba now includes a shipping company, a messaging app, a movie studio named Alibaba Pictures, and more. Alibaba’s growth is primarily fueled by China’s massive population and rising middle class, but Jack Ma wants world domination for the company.
That’s why Alibaba is investing heavily in companies in other markets as well. Most of which are also being pursued by Amazon. The marketplace as we know it has changed forever. And it’s likely going to be companies like Alibaba which continue to lead its evolution.
So this was all about Alibaba. Hope you enjoyed reading the Article also visit our other articles and stay tuned for more interesting articles like this.
Todays News: Rs. 40 Crore Microscope, Silk Hair, Warren Buffett
Hello, welcome to newsbooklet for today’s big news headlines. Without any more wasting of your time, let’s start.
Rs. 40 Crore microscope to view atoms
IIT Madras has accomplished its task in making world’s first remotely operated Local Electrode Atom Probe also known as LEAP, which is capable of providing 3D images of the atoms present side by side of any material. This expensive instrument which cost around Rs. 40 Crore is being funded by Department of Science and Technology along with India’s top eight research institute which comprises of IIT Bombay, IIT Delhi, and IIT Kanpur. LEAP can be taken in use in many departments of Automobile and energy-related industries.
App Store revenue is double to that of Play Store
Many of us pay on the App Store and Play Store for our favorite games, movies, and Books. And so this creates a revenue for the companies. Apple’s App Store had generated about $22.6 billion worldwide whereas the Play store managed to drive $11.8 billion according to the Sensor Tower. This is during the first half of the year. Taking a look at previous years revenue, App Store managed to make $38.5 billion compared to Google Play Stores $20.8 billion. So according to Thai statics, it looks they will be able to make a record-breaking revenue as compared to the year 2017.
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Silk-based hair follicles made
IIT Delhi is being successful in developing silk-based hair follicles which will be helpful in testing the new medicine which is for the treatment of hair loss. For this earlier, the animals were used but if we believe to researcher Sourabh Ghosh, physiological differences in animal and human hair are very high which makes the success rate very less. This was the reason that a 3D in vitro novel of human hair was needed which is now possible.
Charity of $3.4 billion by Warren Buffet
Warren Buffet who is amongst the richest person on the world has donated $3.4 billion to charity institutions. This was the stocks of Berkshire Hathaway which are now for the Bills and Melinda Gates Foundation and other four charity institute which tie up with the Buffet family. In his 87 years of life, he has donated $30.9 billion counting since 2006.
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Golden Temples entrances to be gold plated
Entrances of Golden Temple has golden domes which symbolize that the shrine’s door are always open for everyone. And to keep this dome golden, they are to be plated with 160 kg of gold which will be donated by the devotees. According to the officials, most of the devotes donate their jewelry, but they also donate cash for the gold.
Russian woman charged for spying
A 29 years old Russian woman is being charged by US government under the act as signifying her as Russian Government agent when she was developing some ties with an American citizen and trying to infiltrate the political groups of US. Maria Butina has developed close relations with the Republican Party of US and was successful in securing a place of an advocate for gun rights.
Publicly drinking in Goa is finable
Goa Chief Minister Manohar Parrikar has said that drinking alcohol in public will now be an offensive act which is to bring in fine of Rs. 2500 which will be started from August 15. The government is yet to issue an official letter but Parrikar said it will be released before August. This step is to prevent the littering of alcohol bottles in the state and making it a cleaner place.
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Hawaiian tour boat hit by Lava Bomb
A Hawaiian tour boat was hit by a Lava Bomb in which 23 people were injured due to the breaking to vessel’s roof and the air coming in. According to the officials, this tour boat was outside the US coastguard safety zone. Many be wondering about the Lava Bomb, so it is a natural phenomenon in which a huge cloud of smoke rises due to the mixing of lava and water.
2 Indians in the ‘Worlds Highest Paid Celebs’ list
Very much loved actors Akshay Kumar and Salman Khan have made their way to the list of Worlds Highest Paid Celebrities list of Forbes. Akshay Kumar with the earning of $40.5 million (Rs.276 crore) was ranked 76th whereas Salman Khan with earning of $37.7 million (Rs. 256 crores) was ranked 82nd amongst the top 100 highest paid celebrities. Boxer Floyd Mayweather has topped the list of highest paid celebrity with the earning of $275 million.
Our Daily news Series: DAY IN SHORT
Hope you enjoyed reading this news.
Why Is America So Rich?
Story of Alibaba
Todays News: Harvard Robot Arm, Mumbai potholes, Indian TT Team
Todays News: Facebook’s Internet Satellite, iPhone users may face Problem
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Todays News: Dwayne Rock Salary, Instagram New Feature
Todays News: Rs. 40 Crore Microscope, Silk Hair, Warren Buffett
Todays News: Flying Taxi, OnePlus 6 Red, 2.5 Crore Cyber attack (FIFA WC)
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