If you take a quick survey of people in your circle, most of them will have only good things to say about Dubai. It’s no surprise that Dubai has turned into a go-to; be it for the sake of solo travel, couples on a honeymoon, or even families travelling together.
Did you know that Dubai has much more to it than just travel? Dubai is one of the wealthiest cities in the UAE. In fact, the UAE is the third-richest country in the world!
Going by facts, Dubai is the 12th wealthiest city in the world, where over a quarter of a million people earn more than $250,000!
This city already possesses high-end infrastructure, security, capital, and an open market to thrive on which is the reason why so many expats also flock to the UAE hot-spot.
It’s said that if you are willing to take action and tap on the available opportunities on time, then you can sit peacefully and wait for the results to flow in.
Dubai is both famous and rich. Today, we will be looking into the different aspects that go on to make Dubai the apple of everyone’s eyes.
6 Pillars Behind Dubai’s Fame and Wealth
1. Oil Reserves
Facts suggest that Dubai has around 4 billion barrels of oil in reserve. This has led to Dubai grabbing the second spot among all the cities in the UAE.
Going back into history, oil was discovered in Dubai about 50 years ago. Over the years, Dubai has turned into a leading oil-trading hub for both the Gulf as well as the African continent.
Dubai has a substantial role to play in the UAE earning nearly $308 billion from crude exports right from 1962 to date. The surprising part is that the average oil price per barrel was nominally priced at $14.50.
However, over the years there has been a change in the statistics. For instance, there was a time when Dubai’s gross domestic product was a result of 50 percent contribution from oil production. When compared with today’s times, this figure stands at a meagre contribution of less than 1 percent to the GDP.
What has replaced much of that GDP you ask? Tourism!
In spite of this development, it cannot be ruled out that it is because of these oil reserves that Dubai was able to create a standing for itself in the world market. The rich tag that Dubai carries today certainly goes back to those years when Dubai was drawing a handsome sum out of its reserves.
Let us say, tourism needs no introduction in Dubai. A look around you and you will bump into multiple individuals who have already travelled to Dubai or are scheduled to do so in the near future.
When experts have gone on record to claim that in today’s date, Dubai’s income is more non-oil-based (above 95%), the tourism is what they are indirectly referring to.
With a goal to boost tourism and back its economy, the Dubai city has laid immense focus on backing the real estate and hotel industry. Moreover, the air-carrier Emirates Airline, which is owned by the Government of Dubai’s, Investment Corporation of Dubai has an equal contribution to make. This airline carries multiple passengers in and out of the city, only to act as another major contribution to Dubai’s income generation.
Going back to 2018, Dubai was the fourth most-visited city in the world basis the number of international visitors, who paid a visit to the city. Since then the numbers have only witnessed an upward trend.
As per the stats released by Dubai’s Department of Economy and Tourism (DET) it was found that, the Emirate welcomed around 4.88 million visitors between January and October 2021. The astonishing part is that October alone touched the 1 million mark.
Tourism has had a major role to play in employment creation as well. Moreover, around 48% of Dubai’s total employment comes out of tourism.
Apart from this, growth in Dubai’s tourism sector has also led to considerable progress in areas like standard of living of people, as also economic empowerment.
The city of Dubai has been home to many novel and cutting-edge innovations. No doubt, Dubai has come to be seen as a global pioneer in the area of new age technologies.
Going by the annual global innovation index 2019, UAE had maintained its top position of being the most innovative country in the Arab World. Dubai certainly has a major contribution to make to this achievement.
In fact, innovation is a vital part of the “United in Knowledge” of Vision 2021. The idea is for every Emirate to work in the direction of imbibing innovativeness across different verticals purely to come out as a competitive economy as a whole. No doubt, the city of Dubai is taking consistent steps in this direction.
Dubai has successfully found a place for itself in the list of top 30 most innovative cities in the world. This Emirate has been using technology extensively to bring the city closer together.
Some of the technological breakthroughs that Dubai has brought to the table include the driverless metro and the recent prototypes related to the robot policemen. In the days to come, these developments are likely to make Dubai, both famous and rich.
There is no surprise that Dubai has come to be known as the “City of Innovation”. In this Emirate, a dedicated research and development centre has been dedicated to introduce innovation across emerging industries.
The idea is to tap on upcoming technologies such as artificial intelligence, blockchain, 3D printing, and Internet of Things (IoT). The culture of innovation has been established in Dubai, all thanks to the support by the Government.
Credit needs to be given to Dubai’s infrastructural development for making this Emirate rich and famous. In the late 1950s, after the oil clash between Dubai and Abu Dhabi, the then ruler of Dubai, Sheikh Rashid bin Saeed Al Maktoum made up his mind to do something different, which is when the decision to invest in infrastructure was made.
As a part of the infrastructural development agenda in Dubai, Dubai’s first airport was built in 1960. In fact, the tourism industry in Dubai has received a much needed boost as a result of its start of the art infrastructure. Hence, it is safe to state that Dubai’s tourism and infrastructure go hand-in-hand.
Dubai is home to world-class infrastructures, which is best depicted by its well-maintained roads, excellent connectivity, and of course smooth sailing public transport. In fact, it is Dubai’s infrastructure, which has ended up making Dubai a global trade centre.
Authorities in both Dubai and Abu Dhabi have been working collectively towards upgrading the Abu Dhabi-Dubai Highway. Moreover, as a part of infrastructural development, the focus remains on widening the existing roads to support land transportation and bring about better networking among main cities.
It is a known fact that the transport sector strongly backs the economic growth of Dubai. In fact, around 3 years back it was found that the transport and storage economy had about 11.2% contribution to make to Dubai’s economy.
Infrastructural upgradations are easily possible in Dubai mainly because of lower labour costs. Labour is supplied to Dubai from overseas locations especially South Asia. There is no dearth of labour, which fastens the processes and ultimately contributes towards making Dubai both rich and famous.
5. Free Trade
What many of you may not know is that one of the reasons behind Dubai gathering all the wealth is a result of free trade being permitted in the city.
Over the years, Dubai has come to be seen as a popular and advantageous business hub. One of the central reasons being the low tax rate, and even zero income tax for that matter.
You should not be surprised to witness corporations and investors flocking into Dubai purely with the objective of investing in the Emirate or building their very own companies.
In Dubai, there are about 30 Free Trade Zones, each of which is governed under a special framework of rules and regulations. The idea behind setting up these special economic zones is to offer tax concessions and custom duty benefits to investors. Additionally, Dubai does not serve any restrictions for foreign ownership.
Over the years, Dubai has been able to create a standing for itself as a successful trading port. The first seeds for this kind of development were sown as early as 1971.
It is believed that credit needs to be given to Dubai for making UAE, the Gulf’s most diversified economy.
Dubai has been doing well on the exports front as well. Dubai has steady export relations with countries like Japan, India, Iran, South Korea and Thailand. Some of the primary commodities that are being exported by Dubai include natural gas, crude oil, and food products. Certain products are re-exported as well.
Apart from this, Dubai is also a leading exporter of metals such as copper, and aluminium. All this put together has ended up making Dubai, UAE’s most valuable commercial asset.
When sectors like transport, storage, and hotels were hit, wholesale and retail trade in Dubai grew at 2.8% year on year. Hence, it can be confidently stated that trade has a major role to play in making Dubai’s economy both famous and rich.
6. World Class Hotels
One of the first things which comes to mind when you mention Dubai to anyone is the world class hotels.
The city prides itself on providing luxury stays all across the city. From Dubai Marina to Downtown Centre to Jumeirah Beach. One thing is certain here; visitors of Dubai will be blown away by the standard and choice of hotels.
Hotel occupancy as well as new hotel development numbers are growing year on year and there is no wonder why. With the class of service offered in Dubai, plus the incredible amount of things to do and experience, coupled with the year round sun; Dubai is going nowhere but up on worldwide travellers lists for the best place to visit for a vacation in the world!
Dubai – A Rich & Famous Emirate
A look through the above write-up puts all questions related to Dubai’s economic position to rest. In general, Dubai is a famous and wealthy Emirate in the UAE. However, it is because of certain evolvements that Dubai has been able to reach where it is today.
Credit needs to be given to the Government of Dubai as well. It is said that whatever the Government has earned out of its oil reserves has been successfully directed to other sectors; namely infrastructure, tourism, education, and businesses.
Some people are of the opinion that Dubai has reached the peak as far as its tourism business goes, primarily because there is no major competition around. No competition in the adjoining areas also means negligible chances of competitive businesses coming up in the vicinity. However, visitor numbers into Dubai is increasing year on year, so we very much doubt there will be a slow down of developments any time soon!
After weighing different alternatives and looking into areas that lay the successful economic foundation of Dubai, it is very clear that Dubai is indeed one rich and famous Emirate in the whole of the UAE, and actually the whole world!