Dubai, the largest city in the United Arab Emirates, is well known for its riches that seem to attract people from all walks of life. The food, culture, and way of life all reflect a level of wealth that is unmatched in the rest of the world. But why is Dubai considered such a rich country?
Many people would assume since Dubai lies in the gulf region, then most of its riches come from oil. This is actually not the case. Only about 7% of Dubai’s revenue comes from oil. So where does Dubai get its riches? Here are five reasons that Dubai is considered the richest country in the world.
Unlike other middle eastern states, which depend heavily on oil for the growth of their economy, Dubai has a very diverse and vibrant economy. While a decline in oil prices would be very devastating to many nations, Dubai, on the other hand, wouldn’t feel too much of an effect. Tourism, transport, trade and commerce, finance, and accounting are some of the major players in the economy of this vibrant city.
There is nothing that scares investors like a high tax on investments and income. Dubai is well known as one of the few places globally with a low tax on trade and zero income tax on both local and foreign investors. It is for this reason that investors from all over the world stream in to Dubai to make huge investments, with the expectation of high returns.
Technological innovations from all over the world
While it would have seemed almost impossible to find tech companies setting up shop in Dubai a while back, Dubai is now proving to be a force to reckon with in the tech world. In return, this gives Dubai the revenue generated from the sale of the various products manufactured. Another factor that led to Dubai becoming a major tech player is the cheap transport through its ports to the rest of the world.
It is estimated that for every native in the city of Dubai, there are nine immigrants. Like anywhere else in the world, immigrants are often quite skilled and even more entrepreneurial than the native population. This drives up growth, with the city benefiting from the skills and revenue generated through trade.
Dubai is strategically positioned geographically. It is for this reason that it is considered the busiest airport in the world after snatching this title from Heathrow airport in the UK. Connecting flights to Asia, Africa, and the Middle East have to make stops here first before continuing to their destinations. Apart from transport, these destinations are also very crucial trade markets with economies growing very fast compared to the developed countries. The only way to tap into these markets is through Dubai.
While Dubai is a city, it has the wealth and popularity of an entire nation. In fact, many people do confuse it for a country and even envy those living or working there for their luxurious lifestyles.