Why has Dubai developed so quickly? You might think that the UAE is an autocracy, but it’s a federation. The seven emirates are like states, and they have their rulers and laws. This structure makes the country more stable; so does the fact that they have a president and vice president. All of these factors make Dubai a great place to invest in a business or live in as an expatriate.
Economic policy- liberal economic policy
Liberal economic policy has been the main contributor to Dubai’s success. With few regulations and low taxes, the country has attracted many foreign investors. It is one of the few countries that does not have an income tax or corporate tax. The government also allows 100% foreign ownership in certain types of business, which means anyone can start a business without needing to partner with a local person. These conditions have encouraged people to invest and do business in Dubai, which has led it to become a regional financial center.
Furthermore, Dubai also set up free trade zones where companies are only taxed on their local revenue instead of all their global revenue, making it much easier for them to do profit reallocation by showing their profits in the free trade zone while they make losses elsewhere to avoid paying taxes globally.
Skilled workforce- more than 100 nationalities working for Dubai
One thing that has contributed to the growth of Dubai is the free movement of labor. With so many different nationalities, you will find people from all over the world working in Dubai, especially skilled professionals. This gives it a multicultural society and creates a diverse workforce which is one of the factors behind its success and success and has continued to attract more skilled people, making it a motor for growth.
Free trade zone
Dubai is a forward-thinking Sheikhdom, with plans to become the world’s primary re-export and logistics center. It started in 1932 as an emirate of pearls, sand, and camels, but quickly became one of the most modern cities in all of the Middle East. The city has built up its infrastructure so that it’s home to several airports, including one that’s been renamed after an iconic airplane from World War II.
You may be surprised to learn that Dubai also houses several free trade zones. These special economic zones are designed for multinational corporations (MNCs) who want to set up shop in a small area for tax purposes or extended loan agreements. There are four such zones in Dubai—two on the mainland (Dubai Industrial City and Jebel Ali Free Zone), and two on the islands off its coast (Dhaidhoo Island Free Zone, and Al-Ain Free Zone).
Social safety net- housing, pensions, education
A social safety net is a government program designed to help people who need assistance. It ensures that all citizens have access to things like housing, pensions, education, and public transportation.
The history of the city is important in understanding its social programs. Dubai has had a difficult life as a trading post: in the early 1800’s it was attacked and plundered by the Persian army; in 1820, it was captured by pirates; in 1892, it was burned to the ground by Bedouin raiders. The ruling Maktoum family focused on stability thereafter. This meant creating jobs for local citizens and encouraging foreign investment and immigration. When the oil boom hit in the 1970s and 1980s, Dubai began creating generous social programs to create an atmosphere of security for its citizens and ex-pats alike. These programs included free health care for all residents, free education at public schools through grade 12, subsidized housing for nationals (and later for ex-pats), and pensions for retirees.
also read: Artificial Intelligence in the UAE: How Businesses are Using AI
The UAE has grown from nothing to a global leader in just over half a century.
The UAE has grown from nothing to a global leader in just over half a century. It is an incredible feat, especially when many of the other states in the region have struggled to develop successfully.
There are several reasons why the UAE has fared so much better than its neighbors. These include:
- The discovery of oil reserves which have given it great wealth which it has then used to invest in developing infrastructure, education, and health services
- A small population (only around 5 million) means that prosperity can be spread more easily among individuals.