Dubai is a city of wealth and luxury, but how did it become so rich? Free trade, a low tax rate and zero income tax have made Dubai a popular business hub and a wealthy state. It's a world-renowned destination for all travelers, including the rich and famous. According to a recent estimate, Dubai has nearly 3,200 billionaires and almost 70,000 people with high net worth. To understand the source of Dubai's wealth, it is important to look at the city's thriving maritime activities.
GDP measures domestic income and production, and the figures clearly show that Dubai is no richer than the United States of America. Today, there are more than 30 free trade zones in Dubai, representing more than 20% of total foreign investment in the United Arab Emirates. The oil industry and forward-looking commercial strategies have allowed Dubai to become a global economic power. Hydrocarbons have played an important role in the development of Dubai, but today they represent only a small part of the state's GDP.
It is true that Dubai is part of the United Arab Emirates, which is one of the ten richest countries in the world, but not all the inhabitants of the emirate are rich. Dubai is the only city with a police force that drives Ferraris, Bugattis and Lamborghinis instead of boring sedans. The various industry-specific free zones located around Dubai attract companies for multiple reasons.The free trade zones offer companies tax exemptions and other incentives such as access to world-class infrastructure and facilities. This has made it easier for businesses to set up shop in Dubai and take advantage of its strategic location between Europe, Africa and Asia.
Additionally, Dubai has invested heavily in its infrastructure, making it an attractive destination for businesses looking to expand their operations.Dubai's success can also be attributed to its forward-thinking leadership. The government has implemented policies that encourage foreign investment and promote economic growth. This has resulted in an influx of capital into the city, which has helped fuel its growth. Additionally, Dubai has become a hub for international finance and banking.Dubai's success can be attributed to its strategic location, forward-thinking leadership and attractive incentives for businesses.
The city's thriving maritime activities, free trade zones and investment in infrastructure have all contributed to its wealth. With its low tax rate and zero income tax, it is no wonder why so many people are drawn to this luxurious city.