If you go on to compare Dubai of 1995 to that of 2015, you are going to notice massive development works in a span of less than 20 years. What is the reason of this drastic growth? Read ahead to find out.
Well, to understand the major reason behind the sudden development of Dubai, we will have to go 200 years back in time. It was the time when the India was ruled by the the British Empire. When the British had exploited India extremely, China came in the eyes of the British. China was a huge producer of Tea and Silk, which fascinated the English. So they proposed China to trade in Tea and Silk. But the problem was that the British didn't wanted to pay the Chinese at par. This led to trade conflicts between both the countries. China was not ready to buy English products and demanded payment of Tea and Silk in silver.
Now the Britishers played a trick. They introduced opium in the Chinese population, which is a very intoxicating drug. Slowly, a large part of the Chinese population got very used to opium, due to which they had to purchase it from the Britishers. The Britishers procured opium from the Indian farmers at half price and sold it to China at massive profits. In this way, Britain was able to get Tea and Silk from China at a very low cost. Gradually, China started incurring losses on its trade due to large scale consumption and demand of opium. This consequence forced the Chinese government to ban the consumption of opium in China.
This action of Chinese government led to the declaration of war by the Britishers on China in 1839. This war is popularly known as Opium War. Undoubtedly, the British defeated China in this war and conquered a small part of Chinese territory, presently known as Hong Kong. One more opium war succeeded the first opium war, in 1856, again in which China had to face defeat, giving more territory of Hong Kong to the Britishers.
This annexation of the Britishers was protested in China for a long period of time since 1860 till 1898, in response of which, the Britishers decided to leave the occupied territory of Hong Kong, but now they took Hong Kong on lease from China for a period of 99 years. Now the governments in China and Hong Kong became different due to different rulers. China was ruled by a communist party whereas Hong Kong was democratic.
Now, Hong Kong provided the perfect place to industries and companies to setup their businesses, with its location at the major sea route of the world, and the availability of resources and the democratic government gave a perfect political background for the companies to run smoothly. In this span of 99 years, many companies got based in Hong Kong, leading to large scale development in the country.
The event concerning the well-established companies was that what would happen when the lease period of 99 years will be over. According to the lease agreement, in 1997, Hong Kong would be merged in China and all the rules and regulations of China would be applicable on Hong Kong too. This became a huge matter of concern for the companies as they would have to face the rigid communist government. So now they were in search of a perfect alternative to transfer their entities.
This was the time for other countries to open up their places to let the companies invest in their nation. The country which took the benefit emerged out as United Arab Emirates(UAE). UAE opened up its investment policies and liberalized in order to attract the companies. Also Dubai in UAE was the perfect substitute of Hong Kong, providing one of the busiest sea routes to the companies, and a large amount of unutilised resources for exploitation. As the companies were in too hurry to get out from China, they couldn't reject UAE's proposal and based in Dubai.
The setting up of companies in Dubai at a large scale provided the city a wide scope of development. And the same happened in the upcoming few years. One couldn't identify Dubai if he went to compare the 1995 Dubai with that of 10 years later. Dubai become a business hub and colossal structures were built, including that of the Burj Khalifa, the highest building of the world. Dubai, at present is considered one of the best place in ease of business , as well as tourism. Dubai has given rise to growth in almost every business sector.
Dubai has been a standard of development in the 21st century. No place has developed at the pace at which Dubai took its development process. It was the contribution of all- the Business sector, Government and the Households, due to which Dubai succeeded to achieve the colossal level of development.
Now it's the turn of India to look for such opportunities, which are very sure to arise in the near future. Having all the necessities like great sea routes with world's busiest ports and huge amount of capital and labor resources, India is all set to take on a huge portion of world's business.