Dubai is a major financial and commercial center, solidifying its status as one of the world’s fast-changing and diverse cities. As one of the seven emirates that make up the United Arab Emirates, Dubai has positioned itself as an important player globally. It is a well-developed and high-income region in many ways. However, global organizations usually categorize the UAE that is including Dubai, as a high human-development or emerging economy, rather than a conventional ‘developed country’ in the strictest sense. Therefore, is Dubai a developed country? According to the facts, Dubai is not a developed country but a developed city. Let Indubaimall explain more about this fact in this blog.
What does “developed country” actually mean?
A country is usually seen as developed if it fulfills specific socioeconomic standards. Sometimes, this can be as straightforward as having a well-developed economy. When that is not enough, other criteria may include, but are not limited to, a nation’s GDP/GNI per capita, its degree of industrialization, its overall living standards, and/or the extent of its technological infrastructure. These elements are often linked with for example, the level of technology available can influence the GDP a country can produce, etc. The UN reported that in 2023, 36 countries were classified as developed. Developed countries, also known as an industrialized nation, features well-established and complex economy, often assessed by gross domestic product (GDP) and/or average income per person. These countries possess advanced technological infrastructure and a variety of industrial and service sectors. Generally, their citizens have access to quality healthcare and higher education.
Common criteria used by economists and institutions
Any talk about economic growth – whether directly or indirectly – involves the difference between developed nations and developing (or less developed) nations. There are numerous theories regarding what fosters development and the best ways to achieve it, but the ultimate aim is for a nation to become ‘developed’. The World Bank classifies any nation with a Gross National Income (GNI) per capita of $12,536 or more as high-income, thus developed. The remaining nations are labeled as developing – since they have not yet met this benchmark – and are further categorized into low-income (under $1,035), lower middle-income ($1,036 to $4,045), and upper middle-income countries ($4,046 to $12,535). Dubai showcases a varied and vibrant economy. According to World Bank Atlas Method data for 2022, the UAE’s GNI per capita, that include Dubai economy ranking, is about $48,950, placing it around 23rd in the world among all countries by this measure. Is everyone in Dubai rich?
Country vs city vs emirates — why wording matters?
In developed countries or those aiming for development, the choice of wording country vs city vs emirates is usually intentional and it influences how power, legitimacy, and modernity are viewed. The terms country, city, and emirates are important because each one indicates a different level of political power, identity, and development story. This distinction often leads people to ask questions such as is Dubai a country or city, while it is highlighting how terminology shapes global perception. In general, a country is a recognized area that has its own government and defined borders.
An emirate, however, is a particular kind of political entity usually linked to the Arabian Peninsula. An emirate is a region governed by an emir, who acts as a monarch or prince. Lastly, cities drive economic growth and development. They are where the majority of GDP is produced and most private sector jobs are formed. As cities expand, they contribute to the prosperity and productivity of entire regions and even nations. However, the fast pace and scale of urbanization also present major challenges. As a result, Dubai can be considered as developed city because of its GDP. Dubai is in which country?
Is the UAE classified as a developed country?
Is UAE a developed country or developing country? The UAE is frequently seen as developed based on economic and human development criteria, yet it is not always labeled as “developed” in official international classifications. The UAE consistently scores very high on the United Nations Human Development Index (HDI), often ranking in the top 15–20 worldwide and first in the Arab region in recent assessments, aligning it with many developed nations in terms of human development. The World Bank categorizes the UAE as a high-income economy, a designation usually linked to developed countries. Although many high-income economies are indeed developed, this classification alone does not guarantee that a country is considered developed across all international classification frameworks.
Income level and global indexes
The United Arab Emirates is a wealthy nation, ranking as the 19th richest economy per person out of 145 analyzed. Its 10.7 million residents have a GDP per capita of $48,140 ($74,713 PPP; 2023). Over the last five years, GDP per capita growth has averaged -0.4%, which is higher than regional averages.
The UAE is ranked as the 35th most complex country in the Economic Complexity Index (ECI). Compared to ten years ago, the UAE’s economy has become more intricate, improving 28 positions in the ECI ranking. The UAE’s increasing complexity has been fueled by diversifying its exports. Looking ahead, the UAE is well-positioned in order to seize numerous opportunities to diversify its production using its current expertise.
Dubai’s economy and diversification beyond oil
In reality, petroleum makes up about 30% of Dubai’s GDP and almost all of its exports. However, there are many reasons why it is essential to diversify the economy beyond oil and gas. To begin with, depending on just one resource puts Dubai at risk of price fluctuations in global markets. Crude oil prices are known to be unstable, and factors such as geopolitics, changes in demand, or oversupply can cause significant disruptions in the economy. Investing in other sectors not only mitigates risks but also opens up new revenue opportunities that can promote sustainable economic growth. Investors aiming to benefit from Dubai’s varied economic prospects have numerous choices. With a thriving tourism sector and an advanced technology industry, there are several fields that are ready for investment.
