03-18-2009, 02:22 AM
Dears,
My post was an explanation of CFANerd's comments which I could deduce.
Further, the industry that exists at Dubai could be sufficient for its own population but when we look at the huge number of non-resident consumers it has (which you state are still there) it may not be sufficient. This results in imports which are considered the major burden on an economy. Further, industry does not only mean for population. It's the earning tool which provides for the inflow of all the foreign exchange (that is not an investment flow owned by some one else) through a value addition process applied on locally available or imported raw materials.
I wonder if Dubai has all the diversified isolated or inter-related industrial setups in textiles, silk, made ups, plastic, leather, sugar, pottery, sports, hi-tech, electronics, computers, softwares, transportation, steel, ceramics (except Ras-al-Khaima), engineering, food, edible oil, flour, jute, and other such sectors. Further, what would be the concept of downstream industries and cottage industries at Dubai, is a question to be asked. Sustainable growth comes from this whole vertically integrated industrial setup when it produces beyond the local requirements thus causing an inflow of resources to the nation from the pockets of those who are not its residents or citizens. I must remind we are talking about sustainable growth and not merely what is needed for consumption by local residents.
Some industries relating to consumer/food products or refineries or power projects that support the local consumption, do reduce the import bill but cannot provide impetus to long term growth and earning potential of foreign exchange.
The investment that has been made on hotels, plazas and buildings contributes in making Dubai dependent upon non-residents. Had these funds been invested on industrial sectors and other sustainable revenue generating infrastructure, it might have been proved far better for the future of Dubai.
These are my personal ideas which may not be precised since I am not an economist.
Regards,
KAMRAN.
My post was an explanation of CFANerd's comments which I could deduce.
Further, the industry that exists at Dubai could be sufficient for its own population but when we look at the huge number of non-resident consumers it has (which you state are still there) it may not be sufficient. This results in imports which are considered the major burden on an economy. Further, industry does not only mean for population. It's the earning tool which provides for the inflow of all the foreign exchange (that is not an investment flow owned by some one else) through a value addition process applied on locally available or imported raw materials.
I wonder if Dubai has all the diversified isolated or inter-related industrial setups in textiles, silk, made ups, plastic, leather, sugar, pottery, sports, hi-tech, electronics, computers, softwares, transportation, steel, ceramics (except Ras-al-Khaima), engineering, food, edible oil, flour, jute, and other such sectors. Further, what would be the concept of downstream industries and cottage industries at Dubai, is a question to be asked. Sustainable growth comes from this whole vertically integrated industrial setup when it produces beyond the local requirements thus causing an inflow of resources to the nation from the pockets of those who are not its residents or citizens. I must remind we are talking about sustainable growth and not merely what is needed for consumption by local residents.
Some industries relating to consumer/food products or refineries or power projects that support the local consumption, do reduce the import bill but cannot provide impetus to long term growth and earning potential of foreign exchange.
The investment that has been made on hotels, plazas and buildings contributes in making Dubai dependent upon non-residents. Had these funds been invested on industrial sectors and other sustainable revenue generating infrastructure, it might have been proved far better for the future of Dubai.
These are my personal ideas which may not be precised since I am not an economist.
Regards,
KAMRAN.