DUBAI - The Economic Base.

In late 1996, Dubai announced an ambitious strategic development plan called "Into the 21st Century" under which it had $12 bn worth of projects, mostly to be in place by 2000, to boost non-oil productivity per capita to rates rivalling those in the developed nations. Non-petroleum sectors' contribution to GDP was to rise from 81.2% in 1996 to 88.7% in 2000, 97.5% in 2010 and 100% in 2015. Total GDP was to grow 5% per annum and the non-petroleum sectors were to grow 6.9%

The Dubai Financial Market (DFM) at the World Trade Centre was opened on March 26, 2000, as the first official stock exchange in the UAE well ahead of Abu Dhabi's. But its management said the DFM was one of several trading floors to be established in the UAE with the union to have one exchange under a 49-article law for the Emirates Securities & Commodities Market Authority issued at end-April 2000.

On Jan. 27, 2000, Dubai's Crown Prince and UAE Defence Minister Shaikh Mohammed Bin Rashid Al Maktoum issued an order granting all GCC nationals "the same rights and obligations to practice trade activities in Dubai as those being enjoyed by UAE citizens". Previously no non-UAE person could hold a general trade licence and GCC nationals were limited to owning one commercial and one residential property. The edict implied regulations covering company ownership could be changed. At present non-UAE persons are not allowed to own more than 49% in limited liability companies.

A centrepiece of Dubai's economic success is the Jebel Ali Free Zone (JAFZ). It is the main free trade centre west of Singapore. Established in 1980, about $5 bn in investments have been made in the zone by almost 1,000 companies operating there from all parts of the world. Businesses are constantly being set up to take advantage of state-of-the-art infrastructure facilities, tax incentives and abundant supplies of power, water and various industrial feedstocks. Jebel Ali boasts the largest man-made harbour in the world. It has boosted Dubai's role as a transshipment centre for non-oil products en route to other destinations. The deepwater port at Jebel Ali can handle vessels of 400,000 dwt. The other deepwater harbour in Dubai, Port Rashid, can handle vessels of 100,000 dwt with its main berth capable of taking vessels up to 260 metres long, with a depth of 11.6 metres. State-owned Dubai Drydocks Co. (DDC) operates the world's largest dry dock. Gulf Marine Maintenance and Offshore Services Co. has a repair yard in Jebel Ali catering for ships of up to 140 metres in length.

A 1,350 hectare industrial estate set up east of JAFZ is to be a base for heavy industry, connected to JAFZ by a bridge. Industrial diversification is a focus of the emirate's planners. Other major projects have included the $540m expansion of Dubai International Airport and the Magic World theme park and related facilities. The theme park, to open in 2001, will cost $500m. With Dubai now hosting some of the world's most luxurious hotels, the huge Burj Al Arab is by far the most luxurious and expensive hotel having a 321-metre-high tower and a structure in the shape of a billowing sail. It contains 202 duplex suits which vary in size form 170 sq metres to 780 sq m. The Dubai Municipality is having a children's city built to educate 5-12 year olds through play.

Dubai's well-managed companies include Dubai Aluminium (Dubal) whose $740m expansion to 536,000 t/y in March 2000 made it the biggest smelter in the Middle East, Emirates Airlines which has been voted best airline for a number of years, Dubai Cable Co. (Ducab) among others.

Dubai depends heavily on a huge expatriate workforce, as in the case of most of the other UAE emirates. The expatriates are mainly from India (almost 500,000, nearly 20% of the total population), Pakistan (350,000), Bangladesh (150,000), Sri Lanka (105,000) and the Philippines (90,000).

Sharjah is the only member of the UAE to have ports on both sides of the Straits of Hormuz. This makes it attractive as an industrial, trading and shipping centre. Already being the main manufacturing centre in the UAE, this emirate has converted most of its territory into a free zone. In view of the relatively rapid growth of industry and investment flows in the 1980s and 1990s, the Sharjah government has announced plans to create a second industrial zone. The first zone is located near Sajaa, about 25 km from Sharjah City.

Infrastructure development is a top priority of the local government, with a programme started in the 1970s as revenues flowed in from gas exports. The opening of sea and air ports in 1979 paved the way for industry and trading. Since then, Sharjah has emerged as the centre of small and medium scale industries in the UAE, accounting for over a third of the federation's total manufacturing output.

One of the big projects in the emirate is the Sharjah trade centre. Close to completion, this is a 309-metre high, 42-storey tower which is to cost about $125m. The centre is located at Al Khan Lagoon on the Sharjah-Dubai road. It covers a total area of 60,000 sq m. Among facilities at the complex would be a five-star hotel, a conference hall to seat 1,500 and other commercial buildings.

The two ports of Sharjah, at Mina Khaled and Khor Fakkan, have managed to withstand competition from Dubai's Jebel Ali and Port Rashid. Mina Khaled on the west coast is a deep-water harbour located inside the Gulf. The east coast port of Khor Fakkan is situated on the Gulf of Oman. Both are being expanded, having benefited from the growth in container traffic in recent years and developed a strong customer base of their own, mainly in trade with East Africa.

The busiest free zones are the ones at Hamriyah and Sharjah International Airport. At the Hamriyah free zone, the local National Oil Storage Co. (Nosco) is having a major oil storage terminal. Initially, this will handle gasoil, fuel oil and bitumen. It will be expanded in future to take in gasoline and jet fuel.

With the project being built in phases and the $5.5m phase one to have six tanks with a total capacity of 50,000 cubic metres, the terminal will in late 2000 begin to receive tankers. The first phase will have a jetty capable of handling vessels of up to 60,000 dwt. The project occupied a 350,000 sq metre plot of land and will eventually have the capacity to store 865,000 cubic metres of petroleum products. The local Emarat oil distribution company will use the terminal, together with Abu Dhabi's ADNOC and Dubai's ENOC.