Economy of Dubai

Finance and other services

In the 21st century, activities meant to attract foreign investment have increased. Several free zones, like Jebel Ali, have been established that allow foreign companies to operate from Dubai without needing a local partner. These have been phenomenally successful, with the largest being home to more than 6,400 companies, many of which are European or North American. In the 1990s the city began positioning itself as a luxury tourist destination, spending a significant percentage of its GDP on grandiose resorts and attractions.

By 1998 Dubai had begun to permit foreign investors to purchase 99-year leases on properties, allowing the real estate sector to flourish. The Dubai International Financial Centre, which opened in 2006, is set aside in the UAE constitution as an independent legal jurisdiction; it operates under a separate commercial and civil framework based on English common law. This arrangement caters to international financial companies seeking to establish a presence in the Middle East. These companies can use Dubai’s geographic location as a means to bridge the time zones between major financial hubs in Europe and East Asia. In 2009 the real estate and financial sectors crashed in the wake of the international credit crisis. A loan of $10 billion from Abu Dhabi helped Dubai avoid defaulting on its obligations, and the real estate market soon recovered.

Transportation

With wide highways, a hot climate, and a year-round reliance on air-conditioning, Dubai is not a welcoming city for pedestrians, so vehicle traffic can be extremely intense. However, in the early 21st century, new bridges, roads, and a fully automated, driverless metro rail system have eased the frustrations of moving around the city. Tourism has been greatly enhanced by the Dubai-owned airline, Emirates, which operates a large and modern fleet of aircraft.

Government

Dubai Municipality is one of the largest government institutions in the country. It is managed by a director general who in turn is accountable to the chairman of Dubai Municipality, a member of the ruling family. The director general oversees six sectors and 34 departments, which employ about 11,000 people. The municipality not only manages services in the city but is a key driver of economic growth in the emirate.

Municipal services

Dubai’s electricity and water provisions have largely kept up with the city’s population growth, though a number of other services such as waste collection have been criticized for falling behind. Parks and public spaces have been extensively developed and maintained; the city increased its number of green areas substantially in the 2010s.

Health

For those residents with private medical insurance, health care in Dubai is generally of a high standard, with several private hospitals, including the American Hospital Dubai. For those without insurance, the government operates a number of additional hospitals.

Education

Education is divided between the private and public sectors. Public school is generally taught in Arabic, while most private schools and all universities teach in English. Two universities, the American University in Dubai (1995) and Zayed University (1998), enjoy good reputations locally. Most of the staff are expatriates, with a significant proportion being from North America.