The economic foundations are established for each social environment, based on the available data and circumstances, its geopolitical reality, the significance of its location, and the nature of its population diversity. The strategies of these rules are adopted according to the community’s priorities and its need to keep pace with development across various sectors. These strategies are built on specific systems to ensure that one sector doesn’t grow at the expense of another, with the development in one sector serving as a catalyst for the growth of other sectors in an atmosphere of positive competition. The state’s structure oversees these systems, enacting laws, setting goals, and planning to achieve them according to the requirements of each stage.

Dubai is considered as a unique model for developing economic systems and strategies that aim to enhance sustainable growth and diversify income sources through a forward-looking vision and well-structured strategies. The emirate has achieved significant economic accomplishments, supported by documented statistics that reflect the success of these policies across various sectors. We will focus on the three key sectors that form the backbone of the economies of developed countries: tourism, industry, and agriculture.

Tourism Sector:

The tourism sector in Dubai has experienced significant growth over the past decade, establishing the city as a prestigious global destination. Based on visitor statistics, economic contributions, and major exporting markets from reliable sources, including the Dubai Department of Economy and Tourism and global economic platforms, we can gain a comprehensive overview of the sector’s performance leading up to 2024. Dubai has strategically positioned itself as a leading tourist destination, leveraging its modern infrastructure, unique offerings, and strategic location. In the first half of 2024, the tourism sector in Dubai achieved record growth, welcoming 9.31 million visitors, an increase of 8.9% compared to the same period in 2023, demonstrating the ongoing momentum of growth.

Tourism has made a significant contribution to Dubai’s GDP. In 2003, tourism revenues exceeded one billion dollars, accounting for more than 17% of the GDP. By 2018, Dubai ranked first in MasterCard’s Global Destination Cities Index in terms of visitor spending, with tourists spending a total of 30.82 billion dollars, averaging $553 per day. 

We note that Dubai International Airport is well-positioned to handle a record number of passengers in 2024, with an 8% increase in the first half of the year, reaching 44.9 million passengers. This increase is driven by strong demand from key markets such as India and travelers from China. CEO Paul Griffiths anticipates 91.8 million passengers for 2024, which may surpass the previous record of 89.1 million set in 2018. 

The Industrial Sector in Dubai:
Dubai is characterized by its strategic location, advanced infrastructure that supports industrial projects, and investor-friendly policies, making it a promising industrial hub in the Middle East. The industrial sector encompasses manufacturing, logistics, and storage, playing a crucial role in the emirate’s economic landscape. In 2022, manufacturing accounted for approximately 8.7% of Dubai’s gross domestic product (GDP), slightly lower than the UAE’s overall figure of 10%. This positions manufacturing as the third largest sector in terms of GDP contribution, following mining and quarrying, and wholesale and retail trade, and the industrial gross domestic product grew modestly by 0.26% annually in 2022. It is noteworthy that the average annual growth rate decreased to 1.2% from 2014 to 2022, compared to 5.8% from 2010 to 2013.

In the first half of 2023, an unprecedented demand for industrial and logistics spaces in Dubai was observed, marking the strongest demand ever recorded. This increase is attributed to:

– Many companies relocating their operations to Dubai from other Emirates.
– Companies adopting production strategies close to end-users or the consumer market.
– A rise in local manufacturing driven by the UAE’s “300 billion industrial strategy”.

In celebration of two decades since its establishment, Dubai Industrial City has achieved remarkable milestones:

– Hosting over 1,100 local, regional, and international companies, reflecting an 11.5% expansion by the end of September 2024.
– A 16% increase in the number of factories in the first nine months of 2024, bringing the total to over 350.
– A 13% year-on-year growth in the workforce, surpassing 17,000 skilled workers.

Agriculture and Food Security Sector:
Dubai, characterized by its desert climate and limited agricultural land, faces fundamental challenges in traditional agriculture. In spite of these challenges, the emirate has placed great importance on food security and invested in advanced agricultural technologies and sustainable practices to reduce reliance on imports and enhance local production.
The value of the agriculture market in the UAE, including Dubai, was estimated at approximately 3.31 billion USD in 2024, with forecasts predicting growth to 4.09 billion USD by 2029, reflecting a compound annual growth rate of 4.30%.

Dubai has adopted advanced agricultural technologies such as:
Vertical farming: facilities like Bustanica, the world’s largest vertical farm located in Dubai, cover over 330,000 square feet and have the capacity to produce 2 million pounds of fresh, organic vegetables annually. These farms use hydroponics and closed irrigation systems, reducing water consumption by 95% compared to traditional farming methods.

Future Strategies:
Dubai’s Creative Economy Strategy
Dubai has launched the “Dubai Creative Economy Strategy” to double the contribution of the creative sector to the GDP from 2.6% at the end of 2020 to 5% by 2025. This strategy includes developing infrastructure and providing a supportive environment for creators and entrepreneurs in fields such as arts, design, and media.

Dubai Economic Agenda D33
The “Dubai Economic Agenda D33” aims to double the strength of Dubai’s economy over the next decade by enhancing competitive advantages, diversity, and sustainability in the emirate, while solidifying its position among the top three economic cities in the world. Dubai seeks to attract more global talent and investments to become a leading destination for digital economy projects, with a focus on innovation, artificial intelligence, and technology. 

The “Dubai Urban Plan 2040”:

The “Dubai Urban Plan 2040” aims to create a comprehensive roadmap for sustainable urban development in the emirate through 2040, focusing on the development of urban centers and meeting residents’ needs with suitable housing options and flexible, sustainable transportation. The plan seeks to improve the quality of life and position Dubai as one of the best cities to live and work in.

The growth of foreign direct investment
the estimated value of total capital flows for foreign direct investment projects exceeded 26 billion AED in 2021, with a growth rate of 5.5% compared to 2020, from a total of 618 projects announced in 2021. This growth reflects the increasing confidence of foreign investors in Dubai’s economy and the attractive investment environment offered by the emirate. 

Dubai’s Green Economy Strategy
Dubai has embraced a green economy approach and launched the “UAE Green Development Strategy” aimed at achieving sustainability across economic, social, and environmental sectors, reducing dependence on oil resources. Dubai aspires to be a global leader in the green economy and to establish itself as a hub for the export and re-export of green products and technologies, while fostering a sustainable environment that supports long-term economic growth.

Development of Health Sector Governance
In the context of enhancing quality of life, Dubai has restructured the organization of the health sector in the emirate by redistributing the responsibilities and tasks of the Dubai Health Authority and establishing the Dubai Health Academic Institution. This development aims to improve health services and ensure the provision of advanced healthcare for residents and visitors.

Investment in Technology and Innovation
Dubai is continuing its investments in the fields of technology and innovation, having launched programs such as the “Dubai Sandbox” to promote innovation and test new products and technologies for marketing. The city also includes the Dubai International Financial Centre, which is regarded as a world-class ecosystem supporting innovation in the field of financial technology. The “FinTech Hive” program has played a pioneering role in launching several platforms, including “Mamo,” “Beehive,” and “Sarwa.”

Finally, we note that development in Dubai is not limited to specific sectors alone; rather, it relies on an integrative approach to developing the infrastructure of the emirate’s economy, within a competitive atmosphere among various government and private sectors. This system was established by H.H Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, and he emphasized it when he said:

“The future does not come to us; instead, we are the ones who anticipate it, shape it, and take the initiative to innovate its technologies and utilize them for development and progress, building a knowledge-based economy. We do not stand as spectators; we are active participants and influencers in the progression of the future through accelerators, innovation, and the application of science and technology across various fields. We adopt models for change and build capacities for generations passionate about knowledge and looking forward to the future”