Why is Dubai so Rich?
Dubai’s reputation in the world precedes it. Its extravagant opulence and vibrant lifestyle facilitated through its infrastructure and economy is a testimony to its appeal that transcends global boundaries. The word Dubai in itself has come to be associated with richness. Every year, people from across the world are not only visiting it as part of their vacation but are moving to Dubai with their families.
But have you wondered ever what has contributed to this richness? What has made Dubai the global superpower that it is today? What are some of its strongest pillars that serve as its foundation? We take a look at what has made Dubai so rich in today’s world as we dig deep into its basic core from the inside out.
Major Factors that Have Contributed to Dubai being so Rich
The journey of Dubai to become a global metropolis of epic proportions is nothing short of a fairy tale. It has the perfect rags-to-riches story that is empowered through its relentless dedication to beat all the odds to continue to grow.
In the process, it has shown the world the strength of pushing the boundaries of innovation and imagination. Its growth is contributed by several factors; the primary among them being the following.
Discovery of the Game-changing Oil Mines
Looking at the fine bird’s eye view of Dubai today, it might be hard to imagine, but even a few decades ago, it was just a regular fishing village living in peace. It would be a game-changing twist of fate in the 1960s that would forever change Dubai and would turn the entire world’s attention to it for good. In 1966, oil was first discovered in Dubai at the offshore Fateh field, and the rest was history. This discovery served as the catalyst for the rapid development of the city and made it a source of wealth overnight.
Soon after, the city started exporting oil, and oil drilling exploration began on a massive scale. Over the next few years, more and more oil fields across the city were discovered. It has exponentially increased its worth to the world that is always on the verge of looking for non-renewable sources of energy.
Booming Economy
The economy of Dubai is one of the sturdiest in the Middle East and is what draws significant attention from global investors. By establishing a culture of leadership and dominance in all of its major sectors, the city has strengthened its economy, which, in turn, safeguards the people of the city from an economic standpoint.
It has emerged as a global economic capital that has a huge influence over international trade. It has become a model for economic development that has contributed to its rich lifestyle. Although it initially began its economic dominance with oil reserves, it quickly diversified its economy to gain favors from its tourism, real estate, financial, and other allied sectors.
Striking Real Estate Mogul
The real estate market of Dubai is a bona fide example of what the world of architecture and property development has to offer in its best forms. Truly a city of iconic landmarks and jaw-dropping skyscrapers, the real estate industry of the city has played a major role in generating an immense amount of wealth for it.
Home to some of the biggest property developers who are continuously announcing off-plan properties of luxurious stature, the city is a testament to innovation and excellence. The high rental returns and capital gains further contribute to the supremacy that this city holds in this sector.
The Pioneering Free Zones
Dubai has accentuated its investment appeal in the eyes of international investors owing to its free zones that help companies operate their businesses with minimal restrictions. With complete ownership of companies, investors can participate in facilitating seamless workflows, and save considerable energy, time, and effort for their businesses in the process.
With no customs duties and tax exemptions, these free zones have played a vital role in surging the economic growth of the city through foreign investments. Jebel Ali Free Zone, Dubai Media City, Dubai Knowledge Park, Dubai Internet City, and Dubai Silicon Oasis, are among the many faces of free zones that have embarked the city on a prosperous journey.
A Par Excellence Tourism Destination
The tourism industry of Dubai is one of the most vibrant in the world, drawing heaps of tourists from across the UAE and the world to its borders. Splendid landmarks such as Burj Al Arab, Burj Khalifa, Dubai Fountain, Museum of the Future, and Jumeirah Beach, among others, have become the pictures that foreigners associate the city with and visit the city to witness them.
In the process, an immense amount of wealth is brought into the city, exemplifying its economy. With world-class resorts and hotels, this city has plenty to offer from a historical, adventure, and shopping point of view. It is the face of the Middle East to the world, which explains why it continues to be featured among the list of most visited cities in the world, with millions of people flying to it annually.
A Flourishing Global Trade Hub
The geographical location of Dubai gives it a strategic edge that makes it a global hub of trade. Its proximity to three major continents – Asia, Africa, and Europe – ensures a seamless flow of trade. It is the gateway to the Middle East, which earns it major revenues as the bridge and connector. The high-end ports and logistics of the city contribute to its economy, further contributing to its wealth.
The international trade, facilitated by the export and import of a varied number of goods, has served as the cornerstone of the city’s growth. The advanced ecosystem of its supply chain has made it the home to some of the world’s leading businesses and corporations and it is nowhere near to stopping anytime soon.
Access to Vigorous Healthcare and Education
With a huge foreign settlement and the promise of a better life in terms of employment, the infrastructure of the city’s healthcare, as well as education sectors, is of sheer admiration. The manufacturing capabilities and clinical research of the city are among the best in the world. The Dubai Health Authority (DHA) has left no stone unturned in providing the most technologically advanced healthcare system along with medical personnel to the people of the city.
The educational system of the city is extremely detailed and a result of meticulous study and research. The diversity of the settlement has led to a wide array of educational curricula being available at ease. From British to American, from Indian to Pakistani, and of course, the very local Emirati education systems can be found throughout the city for easier access. The availability of a prominent healthcare and education system further encourages more settlement, especially from high-net-worth families, which ultimately brings in more capital to the city and leads to its richness.
A Thriving Financial Force
You can’t talk about the richness of Dubai without mentioning the unparalleled success achieved by the city’s leading global financial center – Dubai International Financial Centre (DIFC). Consistently recognized by the Global Financial Centres Index (GFCI), its achievement across the Middle East, Africa, and South Asia (MEASA) region in the fields of infrastructure, business environment, financial sector development, and human capital has given stability to the economy of the city.
The capital market of the city is a robust and powerful one that never ceases to embrace the best international practices to meet the needs of investors. The prudent regulatory oversight and the innovative technologies adopted by the financial and banking sector in the city have helped to maintain a transparent and secure financial landscape that encourages more foreign investment, leading to a profitable and growing market.
The Epitome of Glamour
Glamour is synonymous with Dubai’s lifestyle. Home to some of the most sought-after and leading clothing, accessories, electronics, and houseware brands, the city is known for its high-end retail industry and luxurious shopping malls. Whether it is the charming souks of Old Dubai taking you to lanes and lanes of spices and crafts or the new-edge shopping malls opening the gates of high-end brands, shopping is integral to the city’s economy and generates enormous wealth.
The aspect of tax-free shopping on luxury items is enticing enough for thousands of people traveling to the city just to browse and shop from their wish list. Not only does this encourage global brands to set up their enterprises in the city but it also directly contributes to the continual rise in the city’s tourism, ultimately bringing in more profit and adding to its richness.
A Cultural Melting Point
Dubai is one of the most diverse cities in the world that never shies away from opening its arms to people of varied cultures, religions, and beliefs. The advanced infrastructure and employment opportunities in the city bring people to it from across the world. In many cases, it turns from their secondary home to their primary home. With a diverse population, it becomes even more encouraging for foreigners and expats to choose it as their workplace or place of residence.
With more acceptance among the diversified population, there is a continuous flow of settlement. This is a healthy sign for the overall economy as it brings in foreign talent across varied fields who work in tandem to strengthen the economy of the city, and the nation, at large.
To Conclude
The journey of Dubai to becoming one of the richest cities in the world is not a smooth one. It is a story of resilience that has embarked from tales of innovation, strategic planning, and vision. With its sheer determination to always strive for the best and breaking the walls of hurdles, it has laid down a blueprint of success that is being now emoted by cities around the world.
Right from the discovery of the oil mines to its striking real estate industry today, Dubai has experienced success in every facet of opportunities it has found. All these have contributed to a successful economy that has resulted in it being rich in every sense of its meaning. Its story of transformation is an inspiring one, and it is continuing to lead itself to a path of victory, not only financially but to overall growth.
FAQs
Commonly Asked Questions about Richness of Dubai
Why is Dubai so wealthy?
Dubai’s journey of wealthy started with the discovery of oil mines. Additionally, the real estate and tourism industry flourish here rapidly owing to the immense availability of employment opportunities resulting in huge foreign investments. Essentially, the economic diversification of the city has paved the way for sustainable growth and the generation of wealth.
What is the source of income of Dubai?
The economy of Dubai is driven by several sources of income, the primary among them being real estate, tourism, oil and gas exports, aviation, trade, and financial services.
Why are the world's wealthy people investing in Dubai?
Dubai offers a myriad of opportunities and a land of endless possibilities for investors from across the world. It has no income tax, which means there is an immense chance to save money. Foreign residents and expats can get long-term residency easily in Dubai with the availability of a wide range of visa programs such as the UAE Golden Visa, UAE Green Visa, and UAE Blue Visa.
The strategic location of the city helps in facilitating international trade, which is a bonus point for people in businesses and trade. The high rental yields bring in huge profits for real estate investors. The economic stability resulting from profitable industries of trade, logistics, real estate, and tourism makes investment in this city smart and worthwhile. Moreover, the availability of world-class amenities ensures you have the best luxury lifestyle in front of you.
How have free trade zones helped the economy of Dubai?
The free trade zones have vehemently helped in the growth of the economy of Dubai, and by extension, the UAE. By attracting Foreign Direct Investment (FDI), these free trade zones have shown the world the potential Dubai holds for conducting and operating businesses. They have also diversified the economy of the city beyond the traditional oil reserves and hydrocarbon sectors.
Through various incentives of tax exemptions, complete foreign ownership, and simplified set-up procedures for businesses, they strengthen the backbone of the city’s economy. By contributing to more exports, fostering entrepreneurship, and facilitating a healthy environment for businesses, the free trade zones have exponentially improved the business climate of Dubai.
How does the real estate boom impact Dubai's economy?
The rise of the real estate sector in Dubai directly leads to the growth of the Gross Domestic Product (GDP), which, in turn, attracts more investors to invest in the various sectors of the city, ultimately expanding and benefiting the overall economy of the city.
What makes Dubai a business hub?
Dubai's prominent and successful business hub results from several factors. First of all, the geographic location of Dubai gives it a strategic advantage as it is at the forefront of Asia, Africa, and Europe. This makes conducting international trade highly feasible in the city.
Additionally, the favorable tax regime, low-risk environment, stable economy, and progressive visa facilities contribute to the business-friendliness of Dubai’s environment. The city is also a leading example of innovation in technology and business and continuously adapts itself to enhance its efficiency. The free trade zones and the healthy financial sector add to its appeal further.
What is the role of innovation and technology in shaping Dubai's future?
Innovation and technology are at the forefront of Dubai’s backbone. It has continuously been contributing to a smart transportation system by investing in driverless metro lines, self-driving vehicles, and smart robots. It has also been working hard to eliminate paper transactions by encouraging digitization.
Dubai has been adaptive to emerging technologies which is evident from the fact that it embraces cryptocurrency and also plans to employ Artificial intelligence (AI) to strengthen its center economy.
Why is Dubai so safe?
Dubai is a comparatively safer place to reside and visit as it has shown a low crime rate over the past several years. This stems from stricter laws that are put in place to safeguard the citizens and people of the city. There is a strong presence of a police force that patrols the streets and public spaces to provide tight-net security.
The Government of Dubai has also made huge investments in enhancing the security of the city. The stable political environment further adds to the safety of the city.
Is Dubai a good place to live with family?
Yes, Dubai is a good place to live with your family as it is known for its family-friendly and safe environment that promotes a high quality of life. Be it the low crime rate or the political stability, the access to top-notch educational systems and healthcare facilities or the myriad of housing options, the city checks all the boxes for promoting a healthy and wholesome life.
Not to mention, the job-friendly business environment of the city generates employment, which makes it a perfect place to further your career. The city also has an efficient transportation system through the metro, tram, bus, and marine services that make navigation seamless. The diverse population of the city is welcoming of people of varied cultures as well. Essentially, it is the ultimate place to enjoy an urban luxurious life.