Dubai - A city profile

This article provides an overview of Dubai for those keen to explore the possibility of living and working there. Gathered from open sources, the information presented is not exhaustive or meant to supplement or substitute legal and professional advice.

Key Facts

• Country: United Arab Emirates
• Land area: 4,114 sq km¹
• National language: Arabic²
• Currency: Dirham³

Introduction

Dubai is located on the eastern coast of the Arabian Peninsula in the southwest corner of the Arabian Gulf. Dubai is the second largest emirate in the United Arab Emirates (UAE) sharing borders with Abu Dhabi in the south, Sharjah in the northeast, and the Sultanate of Oman in the southeast.⁴

The emirate of Dubai covers an area of 4,114 square kilometres. Within the emirate, the city of Dubai covers an area of about 35 square kilometres but is expected to double in area with the addition of five man-made islands and the completion of desert construction work.⁵ The emirate has the highest population density in the UAE. According to the 2019 census, the population of Dubai was estimated at 3,295,334.⁶ Expatriates made up around 71 percent of the population.⁷

Economic Profile

Known as the “capital of UAE’s economy,” Dubai is a key financial and trading hub, and one of the fastest growing cities in the world.⁸ Helped by its strategic geographical location and “exceptional infrastructure”, Dubai has emerged as a prominent global trading city connecting markets around the world.⁹

In addition to its efficient infrastructure, Dubai has put in place economic policies and a legislative framework that has made it a conducive environment for over 20,000 international corporations to operate.¹⁰ Additionally, Dubai invested heavily in infrastructure and hospitality projects for the Expo 2020 trade fair, including the expansion of the Al Maktoum International Airport at an estimated cost of US$8 billion.¹¹

Industry

Dubai’s economy is based largely on natural resources. However, in the latter half of the 20th century, Dubai’s fast-growing, knowledge-based and services economy soon matched and almost replaced its revenue from oil. Currently over 90 percent of business activity in Dubai involves trade, logistics, financial services, hospitality and tourism, real estate, construction, and manufacturing.[^12]

Under the Dubai Industrial Strategy 2030, there are plans to strengthen the industrial sector to create more jobs for emiratis. These include 75 key initiatives to generate revenue worth up to US$44 billion, create 27,000 jobs, and boost exports by US$4 billion by 2030. The six priority industry sectors that have been identified are aerospace; aluminium and fabricated metals; food and beverage; machinery and equipment; maritime and pharmaceuticals; and medical equipment.¹²

Tourism

Dubai offers visitors a kaleidoscope of attractions. An example is the Museum of the Future, an exhibition space for innovative and futuristic ideologies, services and products. In addition, visitors can explore its contrasting landscapes, archaeological sites and a natural seawater inlet, known as The Creek, which cuts cross the city centre and is the “focal point of life in Dubai.” Among its top attractions are the Burj Khalifa, Dubai Mall and Palm Jumeirah.¹³

To meet growing demands from the tourism sector, Dubai has developed extensive, world-class hospitality and tourism facilities.¹⁴ Dubai hosted 7.12 million international visitors in the first half of 2022, nearly three times the 2.52 million tourists recorded in the same period in 2021. The surge in visitors is attributed to the momentum generated by Expo 2020 which ended on 31 March 2022, and the emirate’s status as a safe destination. Leisure and business events, including the Dubai Shopping Festival, the World Government Summit and the Arabian Travel Market, also boosted visitor numbers.¹⁵

Singapore and Dubai

A number of Singapore companies and startups have set up businesses in Dubai in sectors such as financial services, logistics, hospitality and urban solutions.¹⁶ For instance, the Bank of Singapore’s branch in Dubai’s International Financial Centre was officially opened on 19 February 2017.¹⁷ As for startups, in 2018, four percent of the more than 300 applications for Dubai’s fintech accelerator programme, FinTech Hive, were from Singapore.¹⁸

The UAE Singapore Business Council conducts talks for members on relevant business issues as well as conduct trade missions to both Dubai and Abu Dhabi.¹⁹ At the government level, the Monetary Authority of Singapore and the Dubai Financial Services Authority signed an agreement on 29 August 2018, that would allow each party to refer fintech companies to each other, as well as facilitate information sharing on innovation in the financial sector. They also agreed to work on joint projects, such as digital and mobile payments, blockchain and distribution ledgers, Big Data and Application Programming interfaces.²⁰

References