CosmeSurge international headquarters is located in the UAE at the Dubai Marina. The seven Emirates created a federation in 1971 with its capital in Abu Dhabi. UAE had in 2011; 8.25 million people 19% of them or some 900,000 are local Emirates. The UAE population is expected to double by 2020. Dubai Gross Domestic Product or GDP recorded a recession in 2010 and the Dubai government budget has been slashed by 15% for 2011 as many infrastructure projects have been completed and the government switches to higher usery fees to balnce its budget and meet its debt obligations.The Dubai economy has started to grow again this year aided by high oil prices and government spending on infrastructure, stabilization of the debt and banking crisis and increased tourism.
Abu Dhabi is the largest Emirate with two million people while its capital, the city of Abu Dhabi, has about one million people. The city has a majority of Arabs and some 350,000 locals and is much more conservative than Dubai making it an ideal city to raise a family. The downtown area is much greener than Dubai due to the millions of trees that were planted. The newer areas such as Khalifa city and Reem island are still missing the expected landscaping and green zones. The traffic is getting worse as Abu Dhabi starts to catch up with Dubai.
Abu Dhabi has 10% of the world oil reserves and 92% of the UAE oil and thus is a very rich state. It represents 60% of UAE’s economy. Nevertheless spending cuts were inacted in 2010 and government. Abu Dhabi currently depends on oil and hydrocarbon for 60% of its GDP, manufacturing represents 9.5%, construction 5.1%, services 3.6% and trade 3.3%. At the current production rate, Abu Dhabi can keep pumping oil for the next 100 year without discovering any new oil fields. It is embarking on an ambitious plan to catch up with its sister city Dubai including building entertainment parks, new hotels, and a 25 billion Derhams new airport, an expanding airline (Ettihad), a new convention center, with more than a dozen new private hospitals, a new medical city, the Louvre Museum in Abu Dhabi, a Disney like park, several international schools and newly constructed cities in the suburbs of old Abu Dhabi.
Dubai city is home to 1.6 million people and Sharjah which is connected to Dubai through three bridges and two tunnels has 750.000 people. The combined market in Dubai and Sharjah compromise a market of 2.3 million people made up of about 10% Emiratis, 23% Arabs and Iranians, 55% Asians mostly Indians and Pakistanis, 12% Westerners including 60.000 British (out of 100.000 living in UAE), 30.000 Russians and 14.500 Americans. Ajman is the city next to Sharjah and is only 45 min-90 min drive from our Hospital depending on traffic. Ajman has about 150.000 people. Ras Al Kheima has about 100.000. Al Ain is a beautiful small city because it is less humid and has some 400.000 people with the same population mix as Abu Dhabi. It is 135 km from Dubai and equally far from Abu Dhabi.
- A US Dollar equals 3.67 Derhams. A Derham which is pegged to the US Dollar equals 100 Fils. You are free to exchange money and transfer money. Inflation is rising high due to increased oil prices and gradual withdrawal of fuel subsidies, increased regulations and government fees.
Demographics. Dubai was the third fastest growing city in the world after Las Vegas, Nevada and Dublin, Ireland until the recent global recession. Speculators and marginal businesses closed or are closing with an estimated 10-15% shrinkage in the expatriate population. New companies are starting to come back, as Dubai becomes more competitive with cheaper housing, cheaper office space, better infrastructure and reduced traffic congestion. Dubai is an open pro-business city.
There is no personal or corportae income tax, although there are hidden taxes such as sponsor fees, road fees, tax on employees residential lease contracts, visa fees and licensing fees. Only 7% of GDP depends on Dubai’s dwindling oil reserves. Trade,toursim and services account for the majority of the local economy while manufacturing and contsructionrepresent a smaller contribution to Dubai’s GDP. Dubai is the third largest re-export center in the world which explains why trade represents 40% of Dubai’s GDP, in contrast, the the whole UAE’ derives 60% of its GDP from oil.
About 900.000 UAE nationals live in UAE, some 200.000 of them in Dubai and Sharjah. Sharjah is only 20 Km from Dubai, traffic can be bad at rush hour (forty minute commute) but is improving every day with new bridges and roads. UAE has a very high birth rate and a per capita income of 29.600 US Dollars per year, second highest in the Middle East after Qatar.
UAE’s GDP of 5.7 million people is 60% that of Saudi Arabia which has 18 million Saudis. The UAE has the third largest oil reserves in the world and has invested billions to expand capacity. As a comparision, according to the 2010 World Bank statistics, the Saudi economy represent 44% of the economies of the Gulf states, UAE 26%, Kuwait 12%, Qatar, Oman and Bahrain each is 11%. The Abu Dhabi Investment Fund exceeds 800 billion Dollars and is a cushion against bad times. With the US needing more oil every year for its vehicles for at least the next twenty years and the explosive needs of China and India; the current recession has bottomed out and the economy grew in 2010 at 2.3 per cent with oil prices at a two year peak and the future is certainly bright.