Dubai - A 21^st Century City State

The United Arab Emirates sit in southwest Asia, bordered by Oman, Saudi Arabia and the cobalt waters of the Persian Gulf. Once known as the Trucial States, they now consist of seven emirates, of which Dubai is the second largest. However, in spite of being eclipsed by Abu Dhabi in terms of size, Dubai is by far and away the superstar of the emirates.

'Dubai' actually refers to both the name of the emirate and its main city, which is occasionally referred to as 'Dubai City'. It sits on Dubai Creek, which runs northeast to southwest through the city, separating the Deira area from Bur Dubai and Jumeirah. The two sides are linked by the Al Shindagha Tunnel, the Floating Bridge, the Al Maktoum Bridge, the Al Garhoud Bridge and the Business Bay Crossing.

Today, the city is a futuristic leisure and business metropolis and predominantly westernised, however several areas still retain their traditional charms and a trip the Margham desert and dunes to the south of the city is like entering a whole different world.

Vibrant Economy attracts investment

Until around 30 years ago, Dubai, like the rest of the UAE, was little more than an arid wasteland and then came the discovery of oil which brought with it huge quantities of money. However, Sheikh Maktoum bin Rashid al Maktoum - Dubai's leader from 1990 till 2006 - realised that the oil reserves would run out by 2030 at best and, therefore, he masterminded a vision that would secure his emirate's long-term future.

Dubai's economy may have been built on oil, but it is no longer dependent on it. In 2006, the emirate's GDP was US$46b; just 3% of the total revenue came from oil and natural gas. The diversification has been duel pronged: commerce and tourism.

Some of the most amazing and state-of-the-art tourist attractions ever created, such as the world's biggest indoor ski slope, the giant Mall of the Emirates and wonderful water parks have attracted millions of tourists, who stay in hotels that are often no less spectacular than the attractions themselves.

Meanwhile, the government has created industry-specific 'free zones' throughout the city, such as Dubai Internet City, Dubai Media City and Dubai Sports City, the tax free advantages of which have attracted many multinational firms to the emirate. Dubai Healthcare City is also on the cards, which it is hoped will encourage an increase in medical tourism.

With a population that has grown by 50% to 1.5m and that figure set to contribute soaring, property in Dubai is now also a driving force behind the economy.

Stable and Forward Looking Government

Dubai's current ruler is Sheikh Mohammed bin Rashid al Maktoum and the al Maktoum family have ruled over the emirate for almost 170 years. While Dubai enjoys individual jurisdiction over certain aspects such as local facilities and law enforcement, many of the larger functions are decided through the emirates' federal framework.

More times than not, however, Dubai gets its own way as, along with just Abu Dhabi, it has the power to veto any decisions of national importance and, handily, Sheikh Mohammed is also the Prime Minister and Vice President of the UAE.