Why is Dubai a strategic guide for the growth of the entire Gulf region

Dubai leads the growth of the entire economy of the GCC countries, thanks to economic diversification, development of technology and the sector of transport and infrastructure

February 8, 2023

Elizabeth Smith

Dubai leads the growth of the entire economy of the GCC (Gulf Cooperation Council) countries, thanks to economic diversification, development of technology and the sector of transport and infrastructure.

Table of Contents

Dubai, a city in the first position and an excellent location

Thanks to its geographical location, ambitious leadership and ability to attract brilliant talent, Dubai has long implemented diversification strategies. Which are now active in the GCC countries and the Middle East.

Dubai is just a four-hour flight away for over 2.5 billion people and an eight-hour flight away for a total of 5 billion. Its geographical position makes it easily accessible for over half of the world’s population and, consequently, transforms it into a strategic center for trade.

Dubai, priority to commercial infrastructure

Thanks to the efforts aimed at strengthening its infrastructure, the emirate has promoted the logistics sector which today represents 14% of GDP and boasts ports and airports among the largest and busiest in the world.

Given the massive investment in infrastructure, other emirates and neighboring countries have taken similar steps. For example, Abu Dhabi Ports has announced an investment of over US$1 billion for the expansion of its flagship port Khalifa Port.

Leading airlines in the world and evolution of national transport

Dubai’s commercial success story is known around the world. And, it is also one of the most influential city in terms of brands. Formed in 1985, Emirates Airline has grown to become the fourth largest airline in the world by passenger numbers. In addition, today it operates the largest fleet of Airbus A380s in the world.

Together with Dubai’s low-cost airline, FlyDubai, they cover over 200 destinations worldwide and have been a trailblazer for other regional airlines.

Today, at least three-quarters of the region’s operators are among the top twenty companies for quality, efficiency and service, according to Skytrax data.

The movement of individuals is essential to foster businesses and tourism. For this reason, Dubai is committed to developing an efficient mass transport system. Which ensures the movement of workers and tourists within the emirate all year round.

An interconnected population

Currently, Dubai hosts the world’s largest automated metro, totaling 52.1km, with an additional 15km to be added to facilitate travel to the Expo 2020 site.

The metro is also complemented by 1,500 buses and over 5,000 Taxi. However, Dubai is also committed to the future of transportation, aiming to have 25% automated transportation by 2030.

Since the opening and tremendous success of the Dubai Metro, nearly all GCC countries have developed, are carrying out feasibility or building their own mass transit system.

A diverse and multicultural city

Looking at the evolution of Dubai, the element that more than any other has consolidated its influence on the entire region has been the creation of a socio-economic environment that honors and embraces all cultures, regardless of origin or race.

The city is home to over 200 different nationalities. It has a low crime rate and is one of the happiest cities in the world. For this reason, today, it is the most attractive city to live in the Middle East.

Thanks to this result, an ever-increasing number of people decide to take root in the city. And, to invest in the economy. This, through property, education, leisure activities and entertainment, contributing to national diversification and the evolution of the tourism sector.

Dubai as leading city of the GCC countries

Undoubtedly, each of the GCC countries has its own strengths and programs for economic diversification. Still, it is clear that Dubai’s approach has captured the attention of neighboring countries.

Indeed, there are likely to be other countries in the future with similar ease of access, openness and diversified development before 2030. This is a regionally important date for the adoption of macroeconomic reforms in the Middle East.