Dubai has been revealed as one of the fastest-growing cities in the world, claiming a population boom of over 500% in recent decades. Here’s how a small fishing village on the edge of the desert became the most populous city in the United Arab Emirates (UAE).
“Around 50 years ago, oil was discovered in Dubai and helped build it to what it has become today,” says Tom Chitty of CNBC. This might not come as a surprise, but that only tells part of the story. Oil reserves have been found in many countries around the Middle East, so why has Dubai in particular seen such a boom?
The port city that grew from the desert
Dubai was once a fishing village that first began to grow thanks to its proximity to Iran, evolving into an important trade route to the Persian Gulf. This initial economic boom was dramatically cut short in 1929 when the Great Depression saw the collapse the pearl export industry. Residents left Dubai in huge numbers for other parts of the country, and investment in infrastructure slowed to a crawl. Other areas in the United Arab Emirates were expanding from the profits of vast oil field reserves found underground, but it wasn’t until a chance discovery of offshore oil in 1966 that fortunes began to change for Dubai, too. From 1968 to 1975, the population of Dubai skyrocketed by 300%.
Dubai’s ongoing success
The last 30 years have seen the population of Dubai grow to 2,785,000. That’s a remarkable growth of 569%, although oil only accounts for 1% of the GDP (Gross Domestic Product) here.
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“One of its main sources of income, and arguably the UAE’s most valuable commercial assets, stem from Dubai’s maritime activities. It’s an important trading port thanks to being positioned at the entrance/exit of the Persian Gulf, and as a result currently hosts the busiest port in the Middle East,” Chitty explains.
Dubai is now a global business hub, with many companies locating offices here due to tax breaks, custom duty benefits and no restrictions of foreign ownership. Thanks to its warm climate and easy accessibility from Europe, Dubai is also a luxury tourist destination popular year-round.
Other global success stories from the last 30 years
According to My Tool Shed, a number of the fastest-growing cities in the world are in the Middle East.
Bahrain’s capital, Manama, has seen a population growth of 359%. Its expansion is similar to that of Dubai; oil playing a crucial role, but a strong heritage as a trade route also helping to establish it as a financial hub for business today.
Doha is the most populous city in Qatar. Sports fans have flocked to Doha thanks to a number of high-profile events being held here. Many of the matches for the 2022 world cup will be held in the city, with new stadiums being built specifically for the football tournament.
Once hailed as the entertainment capital of the world, Las Vegas continues to have a reputation as a playground for the rich. Another desert city, Nevada’s home of nightlife, casinos, hotels and partying has expanded beyond the Strip to become a favoured retirement destination for many Americans. In the next 30 years, Las Vegas is expected to be near the top of the list on current projections.
The future
This data is based on the last 30 years, but the current picture tells a very different story. Delhi and Shanghai are showing the biggest rates of growth at the moment, with Dhaka, Cairo and Beijing not far behind.
Cities in India and China will make up the majority of the list in the future, with Tokyo’s status as the world’s biggest city coming under serious threat from Jakarta. Africa is also set to have its own megacities, with Lagos and Kinshasa continuing to see rapid growth in the west and centre of the continent, respectively.
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As a seasoned expert in urban development and economic growth, I can attest to the fascinating transformation of Dubai from a modest fishing village to one of the fastest-growing cities globally. The evidence supporting this phenomenal growth lies not only in historical records but also in the intricate interplay of economic, geographical, and strategic factors that have propelled Dubai into a thriving metropolis.
The story begins around 50 years ago when oil was discovered in Dubai, setting the stage for unprecedented development. While it's true that oil reserves are abundant in the Middle East, Dubai's trajectory diverged due to a fortuitous offshore oil discovery in 1966. This discovery marked a turning point, leading to a staggering 300% population increase from 1968 to 1975, and laying the foundation for Dubai's ongoing success.
Dubai's strategic location played a crucial role in its economic ascent. Initially a fishing village, it evolved into a vital trade route to the Persian Gulf, gaining economic significance. The Great Depression in 1929 dealt a blow to Dubai's prosperity with the collapse of the pearl export industry, causing a mass exodus. However, the chance discovery of offshore oil revived Dubai's fortunes, leading to its current status as the most populous city in the United Arab Emirates.
What sets Dubai apart from other oil-rich regions is its diversified economy. Contrary to expectations, oil contributes only 1% to Dubai's GDP. Instead, the city has capitalized on its maritime activities, hosting the busiest port in the Middle East. Moreover, Dubai has become a global business hub, attracting companies with tax breaks, custom duty benefits, and no restrictions on foreign ownership. Its allure as a luxury tourist destination, coupled with a warm climate and easy accessibility from Europe, has further fueled its growth.
The success of Dubai isn't an isolated case. Similar patterns of growth are observed in other Middle Eastern cities like Manama, Bahrain, and Doha, Qatar, where oil has played a pivotal role in economic expansion. Even cities like Las Vegas, with a different economic foundation, have experienced substantial growth.
Looking to the future, the global landscape of rapidly growing cities is shifting. Current projections indicate that Delhi and Shanghai are leading in growth rates, with Dhaka, Cairo, and Beijing closely following. The dominance of Indian and Chinese cities is anticipated, with Tokyo facing competition from Jakarta. Africa is also poised to have its megacities, with Lagos and Kinshasa experiencing rapid growth in the west and center of the continent.
In summary, Dubai's evolution into a bustling metropolis is a testament to its adaptive economic strategies, strategic geographical positioning, and a diversified approach beyond oil dependency. As we explore the world's urban dynamics, it's clear that the future will witness new players emerging on the global stage, reshaping the list of fastest-growing cities.
