Living Costs Dubai is a cheap place to live when compared to Western Europe, allowing many people to save while experiencing a great quality of life.

Growth Dubai has experienced extraordinary economic growth. It was the first city in the region to form free trade zones two decades ago, and foreign investors have not been shy in setting up their regional operations here. Beyond trade and manufacturing, this now extends to the free trade zones of Dubai Internet and Media cities (and shortly Medical City), giving the Emirate a cutting edge technological advantage.

Meanwhile investment in tourism has grown by leaps and bounds. With over 80 four and five star hotels in the city, tourism revenue overtook oil revenue as a part of Dubai’s gross domestic product (GDP) for the first time in 2003 – 18% of GDP against 17% GDP for oil. Dubai’s GDP increases an average 7.5% a year.

Taxes There are currently no income or property related taxes of any kind. There are no business taxes except in the banking industry.

Policy Each of the seven Emirates within the United Arab Emirates enjoys considerable autonomy in managing its own affairs. In business, the government of Dubai is committed to liberal, free market policies and to the creation of a business environment conducive to commercial activity. This approach best illustrated by incentives available to investors in the Jebel Ali and Airport Free Zones and by the continuing high level of public sector investment in the infrastructure.

Where will Dubai be in 10 years time? In February 2007, Sheikh Mohammed Bin Rashid Al Maktoum, Ruler of Dubai and Prime Minister of the United Arab Emirates made some very bold statements about the future of Dubai. He announced the Dubai Strategic Plan 2015, a framework to consolidate the phenomenal growth the Emirate has undergone in recent years.

Sheikh Mohammed projects Dubai will achieve 11% annual growth to the year 2015. GDP will increase to $108 billion and the Emirate’s average per capita income will rise from $31,000 to $44,000 per annum. An impressive and ambitious forecast.

The reason Sheikh Mohammed was able to state these figures with such certainty is simple: Dubai had already met the targets set by the previous strategic plan in half the expected time. In 2000, the Dubai Government estimated that it would be able to increase GDP to $30 billion by 2010. But by 2005, GDP had reached $37 billion. Average income per capita was expected to reach $23,000 by 2010. But in 2005 it had already reached $31,000. According to the International Monetary Fund, Dubai has experienced an average of 14% annual GDP growth since 2000, compared with a high of 3% in most developed countries.