Dubai and other emirates in the UAE have become magnets for hedge fund managers and bankers worldwide in recent years, thanks to their low-tax laws and amenities catering to the affluent.
The UAE does not levy personal income, capital gains, inheritance, or property taxes. It also boasts one of the world’s lowest corporate tax rates at 9% for companies earning annual profits exceeding AED 375,000 ($102,000).
The country has recently expanded eligibility for long-term residence visas, including entrepreneurs and engineers, enhancing its appeal as a global business hub.
However, Dubai’s popularity has led to skyrocketing real estate prices, making it prohibitively expensive for many.
Additionally, the high demand has resulted in long waiting lists for international schools and exclusive clubs for residents’ children.
This influx of high-net-worth individuals and businesses is part of the UAE’s broader strategy to diversify its economy beyond oil revenues and establish itself as a leading international financial centre.
The country’s strategic location, state-of-the-art infrastructure, and business-friendly environment contribute to its attractiveness.
However, the rising cost of living and the impact on local services and infrastructure pose challenges that the UAE must address to maintain its appeal to global professionals and investors.
In 2003, nterTelz, an Indian website, highlighted Dubai’s proactive adoption of artificial intelligence (AI) as a leading example for other cities across the globe. The website praised Dubai for launching innovative initiatives to advance technology and establish a digital ecosystem.
According to the website, “Dubai is at the forefront of the AI revolution, with both start-ups and established companies benefiting from AI capabilities to foster innovation and growth across industries. This is changing Dubai’s smart city landscape, shaping its entertainment industry, and enhancing the overall urban experience through AI-driven custom content and improved infrastructure.”
