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Dubai, the most populous city in the United Arab Emirates, has an estimated population of around 3.6 million as of 2022, with more than 90% of its inhabitants being expatriates. Rising on the Persian Gulf coast, this energetic city has evolved from a small fishing community in the 19th century to a worldwide center of business, luxury, and invention.
Early in the 20th century, the city started to grow into a major regional and international trade hub, so setting off its amazing journey. Dubai’s rise as a major worldwide transportation hub for both goods and passengers has been much aided by its strategic position on the eastern Arabian Peninsula. Originally mostly dependent on oil earnings, the city’s economy has changed dramatically over time. Trade, tourism, aviation, real estate, and financial services now predominate in Dubai’s economic scene.
With the Burj Khalifa, the tallest building in the world at an amazing 828 meters (2,717 feet), Dubai’s skyline is evidence of its modernism and ambition. Only one of the several wonders that have driven Dubai to rank third most visited city in the world as of 2023. With so many five-star hotels, second-highest number of such establishments worldwide, the emirate clearly values luxury and hospitality.
Geographically, Dubai spans 1,588 square miles (4,110 square kilometers), a notable increase from its original 1,500 square miles (3,900 square kilometers) brought on by large land reclamation projects. To the south, the city borders Abu Dhabi; to the northeast, Sharjah; to the southeast, the Sultanate of Oman. Surrounded by Oman and the emirates of Ajman and Ras Al Khaimah, Hatta, a minor exclave of Dubai, highlights even more the convoluted geopolitical scene of the area.
The tropical and hot desert climate of Dubai is typified by exceptionally hot, protracted, windy, humid summers. With overnight lows hardly falling below 30°C (86°F), average highs in the hottest month, August, can reach about 40°C (104°F). The city gets generally sunny days all year long; winters are mild to warm. The coolest month, January boasts average highs of 24°C (75°F) and lows of 14°C (57°F).
Rapid development of the city and ambitious projects have not been without difficulties. Human rights abuses by Dubai have drawn criticism, especially with relation to the treatment of foreign workers. Though the Dubai government has regularly denied these claims and stressed its dedication to workers’ rights, reports on living circumstances and labor practices have raised questions.
Notwithstanding these obstacles, Dubai’s economy keeps growing. With a growth rate of 6.1% recorded in 2014, the gross domestic product of the city was expected to top US$177 billion in 2021. Given that income from oil and natural gas now makes less than 5% of the emirate’s whole income, this economic success is especially remarkable. The expected depletion of Dubai’s oil reserves over the next two decades emphasizes the need of a diversified economy for this city.
With 22.6% of Dubai’s GDP going toward the real estate and construction industries, they are the main drivers of its economy. Trade (16%), entrepôt activities (15%), and financial services (11%), come next. The strategic emphasis of the city on these industries has helped it to keep a strong and expanding economy even as its reliance on oil reduces.
Dubai’s economic plan depends much on tourism, which also provides a major source of foreign cash flow into the emirate. Beyond its reputation as a shopping heaven, the city appeals to visitors for both historic and contemporary attractions. Dubai welcomed 14.9 million overnight guests in 2016; ambitious targets for 20 million visitors by 2020 Standing as the tallest building in the world, the Burj Khalifa is a shining illustration of the city’s capacity to produce famous sites attracting tourists from all around.
Unmatched shopping scene of Dubai makes it known as “shopping capital of the Middle East.” With more than 70 shopping centers—including the second-largest mall in the world—The Dubai Mall presents a unique retail experience. In June 2024, plans for additional growth of this retail behemoth were revealed; a 1.5 billion dirham (US$408 million) project is scheduled to add 240 luxury stores and new dining venues.
Beyond contemporary malls, Dubai’s traditional souk areas, on both sides of its creek, provide a window into the city’s trade past. Once humming with dhows from East Asia, China, Sri Lanka, and India, these markets remain very important in the commercial and cultural scene of the city. Proposed as a UNESCO World Heritage Site, the Dubai Creek still symbolizes the historical significance of the city as a trading station.
With almost 250 gold retail stores housed in the Gold Souk in Deira, the city’s reputation as “the City of Gold,” is well-earned. This concentration of jewelry not only draws visitors but also emphasizes Dubai’s global role as the gold trade hub.
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