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Due to
its strategic location on the Arabian Gulf, maritime trade
has been a feature of the region for thousands of years
and Dubai’s port infrastructure is constantly being
upgraded and expanded to maintain the Emirate’s
preeminence as a regional trading hub. Dubai’s ports
export oil, raw materials and finished goods worldwide,
import goods and raw materials for local industry and
consumers, as well as channeling the country’s re-export
and redistribution trade to other economies around the
Gulf, East Africa and the Indian subcontinent.
Dubai’s
policy of investing heavily in transport, telecommunications,
energy and industrial infrastructure has enabled it to
have one of the best infrastructure facilities in the
world. It has also contributed significantly both to its
ongoing prosperity and attractiveness to international
businesses involved in trade and logistics.
Dubai
has also avoided heavy industry where it has no comparative
advantage except cheap energy, except for selected areas
like Aluminium production which require a comparatively
small workforce. Instead state policy has favored higher
value – added industries that take account of the
comparatively small population. Initially these were mainly
in textiles and garments, but the emphasis is now on the
ICT sector as the driving force of value – added
manufacturing in Dubai.
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