A prosperous location driven by technology
The Middle East is trying to lessen its reliance on petrochemical-based earnings as “oil shock” — the significant hole left in Gulf state finances by falling oil revenues — has become a bitter reality. Recently, technology-driven projects have increased in Dubai. Digital technology is leading the way in developing new sources of income.
Growing investment and startup activity
The emirate is concentrating on luring foreign investment from the tech industry. In 2016, startup investments in the UAE exceeded $1 billion, and since the creation of Dubai Internet City, companies there have received over $2 billion in investment, with money going to companies that specialize in robotics, IoT, big data, cyber security, and AI.
Careem, a ride-hailing start-up with headquarters in Dubai, has achieved significant success and, in December 2016, joined the exclusive “Unicorn Club” of billion-dollar startups. It has received finance totaling $71 million, which has enabled it to expand into 26 locations throughout the Middle East, North Africa, and Pakistan.
E-tailer Souq.com is another Dubai success story. In 2017, Amazon acquired the business for an estimated $800 million, making it Dubai’s first high-profile technology startup purchase.
Transforming Dubai into a smart city to live and work in
Dubai has been setting the pace in the development of smart cities, employing tactics that digitize public services and redesign infrastructure generally in order to enhance quality of life, access to data, efficiency, and sustainability. In order to become the smartest city in the world, Dubai announced the Smart Dubai initiative in March 2014. The effort has six main focuses: the economy, environment, people, mobility, living, and government.
Dubai has made significant investments in technology-based healthcare as part of its smart city initiative. By 2020, the healthcare market in the United Arab Emirates (UAE) will be worth about $20 billion overall, and Dubai has emerged as a major hub for medical travel. The emirate also enacted a law requiring health insurance in 2014, and it employs IoT and cloud platforms to manage patient data and perform data analysis. The construction of two specific industrial free zones, Dubai Healthcare City and Dubai Biotechnology and Research Park, demonstrates a commitment to healthcare and medical research.
Dubai won numerous prizes in a variety of categories, include innovative living, smart security for the public, smarter health, intelligent transportation, a sustainable environment, and smart utilities, at the first-ever IDC Smart City Middle East Awards in April 2018. All of these activities are a part of the overarching plan to keep attracting talented, professional employees from all over the world and to keep making Dubai a more desirable destination to live and work.
The expansion of business accelerators and incubators like Turn8, ImpactHub, Astrolabs Dubai, and In5 is at the heart of the effort to make Dubai the next Silicon Valley. Dubai Internet City, the emirate’s chosen technology and innovation zone, plans to host 10 percent more new businesses in 2018 and beyond.
Additionally, the internet behemoth Cisco recently showed its faith in Dubai by opening an Innovation and Experience Centre, and other projects are heavily tech-focused. By 2020, the emirate hopes to build “the first blockchain-powered government in the world” and establish itself as “the world’s 3D printing hub.” The Dubai Roads and Transport Administration has set a goal for the percentage of driverless automobile trips made in Dubai by 2030.
The ruler of Dubai and prime minister of the United Arab Emirates, Sheikh Mohammad Bin Rashid Al Maktoum, has previously stated that he views technology as a facilitator rather than as a primary objective and that digital innovation will support his goal of making Dubai the happiest city on Earth.