Dubai – The City of Skyscrapers and Ports
Dubai is a city of skyscrapers and ports, where big business goes hand-in-hand with sun-seeking tourism. Its relative safety and administrative efficiency have encouraged astounding growth.
Oil and gas exports remain the core of the economy, but steps are being taken to diversify into aerospace, petrochemical and clean technology industries. The city has a growing reputation for luxury and sports, especially since its donation of fire trucks to help with Australia’s bushfire response.
The emirate of Dubai
In the 1970s Dubai built Jebel Ali port, the largest manmade harbor in the world. It also spawned industry-specific free zones, including Dubai International Financial Center and Dubai Media City (combined under the name TECOM). Its government does not collect personal, corporate or sales taxes, which has attracted foreign investment. The emirate is known for its luxury hotels and malls.
In recent years, the emirate has focused on developing infrastructure and promoting trade and tourism. It has been a regional leader in oil and gas exploration, and its leaders have diversified into real estate and other sectors of the economy.
The emirate shares many political and military functions with the other emirates in the UAE, though it retains jurisdiction over some civic law enforcement and municipal services. It is bordered by the emirate of Sharjah to the northeast, the emirate of Ajman to the south and west, Oman’s inland exclave of Musandam to the north, and the emirate of Ras Al Khaimah to the east.
The city of Dubai
Dubai is a business hub and one of the fastest growing cities in the world. Its economy is driven by service industries and is characterized by its diversified economic base. It is a leading center for regional and international trade, and its cultural identity is reflected in the city’s skyline of modern high-rise buildings and traditional stunning Arabic structures.
The city’s diverse economic structure includes finance, real estate, and services, and its government encourages foreign investment with special taxation advantages, overseas condition, expert open market zones, and more. The city is also home to numerous media and information technology companies, including Reuters, APTN, MBC, and CNN.
The city is located on the southeast coast of the Persian Gulf. It is a major transport hub for passengers and cargo. Dubai is a member of the Gulf Cooperation Council and has its own unique culture. Its official language is Arabic, but English is widely spoken. The city has a hot climate year-round and is reliant on air conditioning.
The United Arab Emirates
The United Arab Emirates (also known as the UAE) is a federation of seven emirates that has grown from a quiet backwater into one of the Middle East’s most important trading, tourism and finance centres. Its immense wealth, derived from oil and gas exports, has transformed its society and created a modern infrastructure.
Its Islamic culture has influenced the country, though many aspects of life are more liberal than in neighboring Saudi Arabia. It is a member of the Gulf Cooperation Council and has a broadly pro-Western foreign policy.
The UAE has a hot, dry climate with high humidity in summer. Its winter is moderate. Public education is free and is available for both men and women, with female students making up the majority at universities. It is possible to have a private education in the UAE, although it is expensive. It is a member of the Organization of Petroleum Exporting Countries and the Arab League.
The emirate is one of the most competitive economies in the Middle East, according to several global indexes. Its luxury real estate and financial sectors are booming, but the government’s debt is high.
Foreign investment is a key driver of growth and the government is working to reduce its debt burden. The cost of insuring Dubai’s debt against default has fallen to a low 66 basis points, well below the peak of 361 during the height of the COVID-19 pandemic last year.
Dubai’s economy relies on its strategic location near the Gulf’s shipping lanes and its reputation as a trade, services and tourism hub. It has built up its luxury hotel and real estate sectors, expanded its re-export business and established large port facilities such as Jebel Ali. It also has a number of free-trade zones that encourage manufacturing, offering foreign investors full ownership and zero taxes. It is a member of the World Trade Organization and has a highly skilled workforce.