How Dubai Became One of the Richest Cities in the World (2024)

FAQs

How Dubai Became One of the Richest Cities in the World? ›

In fact, until the 1960s, Dubai was a small fishing village with a modest pearl industry. The discovery of oil in 1966 changed everything and transformed Dubai into a wealthy city almost overnight.

Dubai and the UAE have zero income tax for individuals and low rates of taxes for businesses, which attracts people who have high net worth and people who are business owners or entrepreneurs. The business-friendly environment, in general, has been a key driver of its success as a wealth hub in general.

The oil and the creation of the Riyal, a new currency with the newly independent state of Qatar, enabled Dubai to expand and develop fast. Dubai invested the oil revenues in building the city's infrastructure, which contributed to the tourism boom and economic diversification.

Key Takeaway: Dubai's largest single source of income is oil and gas exports, followed by tourism, real estate, trade and logistics, and financial services. Strategic economic planning by government entities has been crucial for elevating Dubai into a globally competitive hub for business and leisure.

Rashid al Maktoum is widely regarded as the driving force behind the expansion of Dubai, causing its massive expansion, with the aid of the discovery of oil.

How does the Dubai government make money without tax? The Dubai government generates revenue primarily from sources other than direct taxation. This includes fees from licenses and services, real estate transactions, and customs duties.

The average salary in Dubai, according to SalaryExplorer.com, stands at approximately 15,700 AED ( 189,000 AED yearly) which is 4274.43 USD as per exchange rates in November 2023.

The primary source of freshwater in Dubai is desalinated seawater from the Arabian Gulf. It accounts for 89.9% of the city's water supply needs. The remainder of the water demand is mainly serviced by underground water.

The average monthly cost of living in Dubai for one person is USD $1,975. The average monthly cost of living for a family in Dubai is USD $4,546. Expats should know Dubai ranks in the top 17% most expensive cities in the world and is considered the most expensive city in the United Arab Emirates.

This group has only gotten richer and more powerful, according to Bloomberg, which reveals what it takes to make the exclusive cut in various countries. In the United Arab Emirates, for example, $922,000 is the annual pretax income required to bump you into the 1%.

Which country supplies water to Dubai? ›

The primary source of freshwater in Dubai is desalinated seawater from the Arabian Gulf. It accounts for 89.9% of the city's water supply needs.

Dubai is a good place to live because it offers low violent crime rates, a family-friendly atmosphere, and modernized accommodations and infrastructure. Americans and other expats headed to Dubai should be aware of some of the adjustments to living, such as unfamiliar government restrictions.

Of the emirates, Abu Dhabi has most of the oil with 92 billion barrels (14.6×10⁹ m³) while Dubai has 4 billion barrels (640×10⁶ m³) and Sharjah has 1.5 billion barrels (240×10⁶ m³). Most of the oil is in the Zakum field which is the third largest in the Middle East with an estimated 66 billion barrels (10.5×10⁹ m³).

People love to visit Dubai, especially during events or holidays because it holds the paramount celebration for its tourists. Tourists and people visiting Dubai are amazed by its incredible architecture, great hotels, best festivals, high skylines, huge skyscrapers and amazing shopping malls.

Established in the 19th century as a small fishing village, Dubai grew into a regional trading hub in the early 20th century and grew rapidly in the late 20th and early 21st centuries with a focus on tourism and luxury.

Dubai is the world's second-most visited city

The UAE owes a lot of its economic success to international travel. Over the past 25 years, Dubai has made strides to be attractive to foreign visitors, loosening rules around alcohol and investing in flashy infrastructure.

Dubai was also named the world's No. 2 city destination in Euromonitor International's Top 100 City Destinations Index 2023 and ranked one of the top 10 cities in the Global Power City Index, in a report issued by the Mori Memorial Foundation's Institute for Urban Strategies in Japan.

The average monthly cost of living in Dubai for one person is USD $1,975. The average monthly cost of living for a family in Dubai is USD $4,546. Expats should know Dubai ranks in the top 17% most expensive cities in the world and is considered the most expensive city in the United Arab Emirates.

SHARIA LAW AND PROHIBITIONS

Dubai adheres closely to Sharia (traditional Islamic religious) law. There is little tolerance for same-sex relations and multiple common actions are illegal, including: PDA (including same-sex PDA) Public drunkenness.