Dubai has established itself as one of the world's leading business and tourism hubs over the last few decades. While other cities in the United Arab Emirates (UAE) such as Abu Dhabi and neighboring countries such as Qatar, Bahrain and Kuwait are also major economic hubs, Dubai stands out with some key advantages. In this article, we look at Dubai's unique advantages and why it is often chosen as a preferred location for businesses, tourists and expats compared to these cities.

1. Economic diversity and innovation

Dubai has evolved over time from an oil-based economy to one of the most diversified economies in the world. While Abu Dhabi, Qatar and Kuwait are still heavily dependent on the oil and gas sector, Dubai has been an early investor in a variety of sectors, including:

• Tourism
• Finances and banks
• Real estate
• Technology
• Logistics and trade

This approach to economic diversification has made Dubai a dynamic and crisis-resistant business center that offers international companies a variety of investment opportunities. The city encourages innovation and digital transformation, making it an attractive location for start-ups and technology companies. Compared to Dubai, Qatar and Kuwait are even more focused on their traditional sectors and have a less diversified economy.

2. Free trade zones and business friendliness

Dubai offers over 30 free zones where companies can benefit from full tax exemption, 100 % of foreign ownership and ease of incorporation. This makes the city particularly attractive for international companies looking to expand into the Middle East.

Abu Dhabi and other cities in the region offer similar free zones, but on a smaller scale and often with stricter regulatory requirements. Compared to Dubai, it generally takes longer to set up a company in these cities.

Bahrain and Qatar also have free zones, but the flexibility and variety of options available in Dubai, as well as Dubai's business friendliness, make it the first choice for many international investors.

3. Tourism and lifestyle

Dubai is known worldwide as one of the leading tourist destinations and offers a variety of attractions that set it apart from other cities in the region. The mix of ultra-modern architecture, luxurious resorts, top-class restaurants and exclusive shopping makes Dubai a magnet for millions of visitors every year. Major attractions such as the Burj Khalifa, the Dubai Mall, the Palm Islands and the desert safaris offer unique experiences that cannot be found in other cities in the region.

Abu Dhabi offers cultural attractions such as the Louvre Abu Dhabi and the Sheikh Zayed Mosque, but the leisure and tourism offer is less extensive and dynamic than in Dubai. Qatar and Kuwait have also developed as tourist destinations in recent years, but cannot compete with Dubai's broad spectrum in terms of variety and luxury offerings.

4. Expats and the international community

Dubai is one of the most multicultural cities in the world, and over 85 % of the population is made up of expats from over 200 different nations. This international community offers a unique living and working environment. Everyday life in Dubai is characterized by openness towards other cultures, and there is a wide range of international schools, hospitals and leisure activities.

Although Abu Dhabi also has a strong expat community, Dubai is far more cosmopolitan. Qatar, Bahrain and Kuwait have smaller expat communities in comparison and tend to have stricter regulations for international workers and companies.

5. Real estate and investment opportunities

The real estate sector in Dubai offers excellent investment opportunities for both companies and private individuals. With large infrastructure projects, exclusive residential complexes and first-class office buildings, Dubai has established itself as a leading market for real estate investments. The real estate market is particularly attractive to foreign investors as they can own 100 % of property in many areas.

Abu Dhabi and Qatar also offer real estate investments, but the property regulations there are often more restrictive and demand is less dynamic than in Dubai. In Bahrain and Kuwait, the real estate sector is significantly smaller and less developed.

6. Infrastructure and transportation

Dubai has a first-class infrastructure that meets international standards. Dubai International Airport (DXB) is one of the busiest airports in the world, connecting Dubai to over 240 destinations worldwide. The city's metro and road network is also state-of-the-art and facilitates both tourism and the movement of goods.

In comparison, the infrastructure in Abu Dhabi is also well developed, but less internationally oriented. Cities such as Doha in Qatar and Kuwait City have made progress in improving their infrastructure in recent years, but have not yet reached the level of Dubai.

7. Freedom and social life

Dubai offers a tolerant and cosmopolitan living environment, which makes it particularly attractive for expats and tourists. While traditional Islamic values and laws are respected, there is a relatively high degree of social freedom, especially compared to Qatar or Kuwait, where regulations are stricter. Alcohol is permitted in licensed establishments in Dubai, and there are a variety of entertainment and leisure options that make life in the city dynamic and diverse.

Although Abu Dhabi is also tolerant, it offers less social freedom and a quieter living environment than Dubai. In Qatar and Kuwait, the social rules are much stricter and there are fewer Western-oriented leisure activities.

Why Dubai is the first choice

While cities such as Abu Dhabi, Qatar, Bahrain and Kuwait offer their own advantages, Dubai's economic diversification, large number of free zones, thriving tourism, international community and excellent infrastructure give it a distinct edge. The city has established itself as a global hub for businesses, investors and tourists and offers a unique living and working environment.

For the self-employed, entrepreneurs and expats, Dubai is the first choice in the region due to its flexibility, cosmopolitanism and economic opportunities. Not only does it offer the best conditions for entrepreneurial success, but also a luxurious and versatile lifestyle that is second to none.