Dubai is a cheap place to live when compared to Western Europe, allowing many people to save while experiencing a great quality of life. Petrol is sold at give away prices, food inexpensive and loan rates reasonable.
Dubai has experienced extraordinary economic growth. More then any place in the Middle East it has benifited from instability in other countries by creating a stable society that is welcoming to all nationalities and tolerant of thier cultural norms. It was the first city in the region to form free trade zones two decades ago, and foreign investors have not been shy in setting up their regional operations here. Beyond trade and manufacturing, this now extends to the free trade zones of Dubai Internet and Media Cities (and shortly Medical City), giving the emirate a cutting edge technological advantage. Meanwhile investment in tourism has grown by leaps and bounds. With over 50 four and five star hotels in the city, tourism revenue overtook oil revenue as a part of Dubai's gross domestic product (GDP) for the first time in 2003 was 18% of GDP against 17% GDP for oil. Dubai's GDP increases an average 7.5% a year.
There are no income or property related taxes of any kind. There are no business taxes except in the banking industry.
Each emirate in the United Arab Emirates enjoys considerable autonomy in managing its own affairs. In business, the government of Dubai is committed to liberal, free market policies and to the creation of a business environment conducive to commercial activity. This approach is well illustrated by incentives available to investors in the Jebel Ali and Airport Free Zones and by the continuing high level of public sector investment in the infrastructure.