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Abstract Transportation Sector as a Major Driver of Economic Development in Dubai Dr. Radi Al Atoom 2009 Background: From economic point of view, transportation sector has a wide interlinks with almost all other sectors in the economy; it experiences a strong forward and backward linkages to other sectors, also by providing construction infrastructure, as the case of RTA, transportation acts as a pioneering sector in the economy. Moreover, this sector sets the platform for all sectors’ set up, and supports their taking off. The construction of roads, tunnels, bridges, ports, railways, and airways connect neighbor areas and facilitate transportation modes to move smoothly, safely, efficiently, less polluted, quick connected inside the country and outside, and also enforce the development of remote areas through reducing migration between villages, Badia, rural areas in one side, and the big cities in the urban areas on the other side. On the other hand, the availability of multimodal means of transportation underpin the effectiveness and efficiency of traveling from one place to another to facilitate trade –import and export, agriculture, industry, tourism, service’s sub-sectors, insurances, banking services, and smoothing any other related aspects of quality of life and socio-economic development. RTA is the unique player in providing transportation means and modes in Dubai; thereby, it underpins the infrastructure of the Emirates’ economic growth and sustainable development. Methodology: This paper covers transportation infrastructure and, its modes: rails network; marine; public buses; and control systems and safety means. Therefore, the paper will utilize macroeconomic data concerning the components of the national economy, as well as specialized information and data concerning investment in transportation sector at the Emirate level and to RTA level: construction of transportation infrastructure and, expenses on modes of transportation (vehicles, systems and, interrelated multimodal means). Analyzing information and data will be done through utilizing mathematical economic formulas and, analytical statistical tools where is required. To fulfill the paper theme, calculations of economic growth, Economic Multiplier, and their impact on development were done. Conclusions: The paper concludes the followings: 1. Transportation sector drives economic growth in Dubai; this sector paved the way to prosperity and development. Transportation sector has been expected to participate in generating 56.0 b. Dh (15.2 b. US $) in Dubai Economy in 2008 and beyond; which is amounted to 23.6 % of the GDP. 2. Strategically well connected marine, bus, rapid transit, and commuter rail systems reduce hours wasted in traffic congestion; curb road parking facility costs; reduce petrol consumption; lower pollution levels; and also create access to education, jobs, tourism, financial and non-financial services, real state revitalization, and curb migration and thereby, stabilize sustainable socio-economic development and support balancing growth to almost all areas. RTA has estimated the traffic congestion cost in Dubai to 4.8 b. Dh in 2007; which amounted to 2.4% of Dubai GDP. 3. Smooth and safe transportation help people move their goods at the lowest cost; which will at the end reduce its economic cost, and hence reduce inflation rates. Moreover, it will strengthen supply chains; provide just-in-time goods and services delivery and; create a shorter time shifting these goods from certain place to its destination. 4. The availability of a developed transportation sector will boost property values, sparks business activities, generate jobs and, increase tax revenues. RTA is creating around 12,600 job opportunities in Dubai economy in 2009 through Transportation sector’s investment. 5. Transportation boom development in Dubai, not only, leaves the emirate out of falling behind the most developed cities in the world, but also, stands Dubai as one of the world cities’ Benchmarks. It’s clear that, transportation as well as construction sectors have a major role in minimizing the per capita income gap between Dubai and the developed countries; as has been shown that, Dubai per capita income needs 4 years to catch US per capita income, ceteris paribus. 6. Our primary estimations show that RTA’s transportation network’ supplies (infrastructure and modes) produces around Dh 30 in direct benefits for each Dh 1 cost paid by residents, for the period 2006-2008. Recommendation: It’s clear that expenses on transportation sector have a wide range of socio-economic benefits at both emirate and country levels, and also at the international levels. It’s of great important to deal with transportation sector as a pioneer sector that plays critical roles in Dubai’s economy, for the reason that, the economic boom, demographic structure, and the challenges of its strategic plans should be competing amongst the most developed world cities and also, to sustain bridging the income and development gaps between Dubai and the most developed countries. This vision leads us to view budget expenditures on this sector, taking into consideration the efficiency in executing RTA’s Projects, as an investment for the future of Dubai and the country as a whole.