Function
Global service centres have been identified by Beaverstock according to their capabilities in accountancy, advertising, banking/finance and law21. According to the GaWC Inventory of World Cities20, Dubai does show some evidence of world city formation. The location of Dubai is ideal in bridging communications between Europe, North-East Africa and Asia. Dubai is the portal for Middle Eastern countries such as Saudi Arabia, Iran, Bahrain and Oman. The strong alliance in place with the United States and Dubai helps security and international relations. Dubai is often used as a base for the US navy’s Middle Eastern missions1.
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| Graphic: GaWC inventory of world cities including Dubai as a gamma world city |
Trade
Through the establishment of the Jabel Ali Free Zone, Dubai is placing itself in the ideal position of being a premier location for the exchange of goods. Jabel Ali is a port that does not tax goods being transported in and out much like an airport’s duty free. Dubai’s main exports are crude oil, natural gas, reexports, dried fish and dates2. The 2006 GDP of Dubai is already similar to Toronto’s 2005 GDP at $189.24 million3. The rate of growth is 8.5% which is more than twice that of Toronto.
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| Graph: Dubai's GDP According to Sector and Employment |
Financial Services
A goal of Sheikh Ahmed bin Saeed Al Maktoum (president of the Dubai Department of Civil Aviation and Chairman of Emirates Group) is for Dubai to match New York and London as a global financial services hub by 2015. Dubai currently hosts 38 local banks, 48 foreign banks, 2 investment banks, 24 representative offices, and one specialized bank4. In terms of accountancy firms, Dubai is host to about 9 international accountancy firms15 – most of which have head offices in London, England.
Cost of Living
According to a 2006 survey by Mercer Human Resource Consulting, Dubai placed 25th for cost of living. Toronto placed only 47th and is reported to be the most expensive city in Canada to live in5. Comparable rental costs for Toronto and Dubai in US dollars show Dubai is 9.7% higher. To keep rental costs from getting out of hand, the Dubai's Vice President ordered a 15% cap on rent increases. This was a response to a 38% average increase in 1 and 2 bedroom apartments6.
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| Sources: 13 / 14 |
The high cost of living has driven the working class to outer regions of Dubai such as Al Qusais and out of the city to neighbouring Sharjah and Ajman. Both Sharjah and Ajman are also seeing rental increases, but the cost of living is much lower. Living outside of Dubai requires commuting which results the reliance on cars and taxis since public transportation is limited and time lost due to traffic jams.
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| Source: CIA Factbook |
