Will Dubai be an investor’s paradise a decade from now? Looking ahead, the emirate’s economic trajectory is promising, despite lingering challenges in the broader global financial landscape. Dubai’s strong fiscal policies and diversified economy have been key to its resilience, with forecasts from the IMF suggesting steady growth for the UAE as a whole. In fact, the emirates’ GDP is projected to expand by 3.4% in 2025, fuelled by non-oil sectors like tourism, hospitality, real estate, and finance.
There are other important factors at play: The UAE’s business-friendly environment, bolstered by tax incentives such as a 0% tax rate on income and profits for most sectors, continues to draw investors from across the globe. The region’s position as a gateway between East and West only adds to its allure.
So, what will the economic situation be in 2035? No one can say for sure, of course. But to my mind, the first place to look is in Dubai’s ‘evergreen’ programmes, initiatives and policies – things that have been working well in the past and look set to continue well into the future. These pillars make Dubai attractive for investors today and will likely maintain their considerable appeal tomorrow.
But first, let’s look at what’s driving current growth to get an idea of where this all may be headed.
Which sectors are driving growth in Dubai?
So, how is Dubai thinking about the future in terms of drivers of growth?
- Technology and digital transformation: Dubai aims to lead the global digital economy, targeting $140bn in digital revenues by 2031. With a focus on blockchain, AI, and digital currencies, the FID city is also a key player in virtual reality due to the Dubai Metaverse Strategy, which is attracting startups and major tech companies alike.
- Green energy and sustainability: Dubai is advancing in renewable energy, aiming for 25% of its energy mix to come from clean sources by 2030. Rapid growth in solar and green technologies investments reinforces Dubai’s role as a regional leader in sustainability.
- Logistics and trade: Strategically located between Europe, Asia, and Africa, Dubai is a key logistics hub. Initiatives like the Dubai Silk Road economic development plan only increase this focus, aiming to further strengthen its position as a global trade and logistics hub.
- Real estate: This is a key pillar of the UAE economy, with Dubai’s property market thriving despite global challenges. In 2023, property transactions exceeded $136bn, driven by strong demand, foreign investment, and government reforms, including changes to property laws, relaxed visa regulations and tax incentives. The legacy of Expo 2020 has further shaped the city’s landscape, creating vibrant residential and commercial communities. Sustainability and smart technology, seen in eco-friendly developments like Dubai Sustainable City, are also growing in importance.
What has attracted investors in the past?
Let’s now move on to what has traditionally attracted investors in the past and how those elements are likely to remain in the future.
- Political and economic stability: Dubai is politically stable, with the UAE boasting more than 100 diplomatic missions abroad and being a member of major international organisations. It ranks third in the region for peace, ensuring a secure environment for business. In 2023, the UAE’s economic stability was confirmed with an AA rating from S&P and an Aa2 rating from Moody’s. These ratings reflect strong government support, decreasing public debt, and resilient economic policies – factors that have helped the UAE become a top destination for foreign direct investment (FDI), ranking 16th globally for FDI inflows in 2022, according to UNCTAD.
- Major projects: There are over $8.7tr worth of projects planned for the next decade in the UAE. Abu Dhabi and Dubai remain at the heart of this transformation, driving innovation and trade.
- Attraction of global talent: Dubai offers incentives for skilled professionals and entrepreneurs, creating an environment that nurtures innovation. It provides world-class infrastructure, including healthcare, education, and leisure facilities, ensuring a high standard of living in a secure and stable environment.
- Digital economy hub: Dubai is a leader in the digital economy, with strong infrastructure and business-friendly regulations supporting big data, AI and other transformative technologies.
- Sustainability focus: Dubai prioritises sustainability through policies promoting eco-friendly practices and resource preservation for future generations. It invests in global sustainability initiatives and encourages green business practices domestically.
- Robust financial system: Dubai maintains a stable financial system, adhering to international standards of transparency, security, and efficiency. Its innovative banking sector supports global institutions and creates a favourable investment climate.
- Supportive legal framework: Dubai continuously adapts its legislative environment to support business growth. Flexible laws and policies ensure a secure, competitive investment climate.
- Transparency and rule of law: Committed to transparency and the rule of law, Dubai provides access to accurate public data, bolstering investor confidence and facilitating informed decision-making.
- Strong banking sector: Dubai’s banking system is aligned with global best practices, ensuring secure financial transactions and protection for businesses and individuals. It collaborates with international organisations to uphold compliance and security standards.
- Ease of doing business: Consistently ranked at or near the top for ease of doing business, Dubai excels in areas such as construction permits, property registration and seamless business setup in one of the emirate’s many free zones.
- Social stability and tolerance: The wider UAE is known for its cultural diversity and tolerance, ranking 1st in the Arab world for happiness. It has policies supporting vulnerable groups and promoting dialogue on coexistence.
Vision, plans, initiatives
As I’ve mentioned, I believe Dubai will be in great shape for investors in ten years’ time because the rights policies are already in place, and these are set to play out positively in the coming years. This positive outlook applies to Dubai and the wider UAE.
The UAE’s Economic Principles have been laid out to guide the nation’s development. They promote a globally integrated economy, with digital infrastructure, adaptable legislation, and a free-market mindset.
In line with these fundamental principles, Dubai’s Vision 2030 aims to position the emirate as a global tourism and business leader, focusing on sustainable development, innovation, and economic diversification. Its goals include reducing oil dependency, expanding industries, and promoting a competitive business environment while enhancing infrastructure, healthcare, and education. Dubai’s future ambitions are further reinforced by the Dubai Economic Agenda (D33), which aims to position Dubai among the world’s top four financial centres by 2033, focusing on sustainability, innovation, and expanding knowledge-based sectors like technology, finance, and green energy.
The view to 2035
Dubai’s vision for the future, underpinned by strong policies, strategic initiatives, and an unwavering commitment to innovation, positions it as a promising destination for investors well into 2035. The emirate’s diversified economy, emphasis on sustainability, and role as a global digital leader ensure it remains resilient in the face of shifting global trends.
While challenges may arise, Dubai’s consistent focus on economic diversification, transparency, and ease of doing business provides a stable foundation for growth. For investors, the emirate’s appeal lies in its present opportunities and its clear roadmap for the future, a blend of tradition and forward-thinking strategies that continue to make it a unique investment hub.
In a world of uncertainties, Dubai’s ambition and adaptability look likely to keep it an investor’s dream for years to come.