Types of markets and economic systems in Dubai:

1- Fund market:

Fund market specialized in issuing and exchange short term financial tools which are able to exchange into financial liquidity and the date of maturity pay ability to these papers which are the most useful during three months or to a whole year.

Fund deposits are a good way for low risks investments to achieve regular income and keep the main value to money.

Fund market in Dubai faces a big crisis during global financial crisis and this request is from international fund to find a quick solution to Dubai national group loans that need to overcome this crisis and re-schedule it.

The connection between the Emirate DH and American dollar offered average stability in Dubai.

2- Capital market:

The stock exchange began more than 100 years ago all over the world. It launched the name of financial companies which is registered in stock table. There are lots of stocks companies in the world such as.

Dubai stock exchange: it began in 2004 in Dubai international capital center the stocks, documents and investments boxes are exchanged in Dubai which uses the liquidity system that is a European stock net.

And Dubai capital market approved it in 21/12/2009 in smarts system to reveal any manipulation.

3- Predial markets:

It makes personal evaluation because there is no central market to predial circulation despite the use of predial conversion. Predial Dubai markets are more attractive to the holders and selling is raised in predial market in Dubai in a rate of %0.7 at the end of 2009. It stabled during the first quarter of 2010, entered 30000 residence units to Dubai market in 2010.

Free zone trade in Dubai:

The Dubai Government worked to establish a free zone in Dubai Airport and other area in Jebel Ali to facilitate the investments in relatively simple procedures.

And opening a business in free zones in Dubai is very suitable for companies that wished to use Dubai as a manufacturing and regional distribution place. As most of the sales in Dubai that will go out of the country. And the most important objective of establishing Dubai's free zones is to contribute to the development and growth process.

The features of Dubai areas:

  1. %100 foreign property.
  2. Exemption from all import duties.
  3. %100 turning the capital and profits abroad.
  4. Free of system taxes which applied in Dubai in addition to guarantee of renewing the renting contract for 15 years.
  5. A plentiful of cheap energy.
  6. The facilities of employment that offer a high labor competition with well experienced people.
  7. To encourage employment and reduce unemployment.

The benefits for investors and projects:

Capital and working projects achieved profits in marketing the product to the neighbor countries.

The benefit of employers, cheap products and the environment that the country supplies with is increasing the profits to the projects by expanding its activities.

Some of the negatives:

  • The possibility to turn some areas from exporting to outside the country is to smuggling products inside the country.
  • The possibility of the dominant of the capitals from certain nationalities in these areas because of the facilities that deprived the national economy from these investments inside it.

Source: Essay UK - http://doghouse.net/free-essays/economics/markets-and-economic-systems-in-dubai.php

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