Is Dubai a Poor Country?

By Alice Nichols

Dubai is a city that has gained worldwide acclaim for its luxurious lifestyle, extravagant architecture, and booming economy. However, many people wonder if this prosperity extends to the general population or if Dubai is a poor country. Let us delve deeper into this subject.

Understanding Dubai’s Economy

Dubai’s economy is largely driven by tourism, trade, and oil exports. The city has become a global hub for business and leisure travel, attracting millions of visitors every year. In addition, Dubai has a strategic location between Europe and Asia, making it an ideal trading center.

Despite the economic growth, poverty still exists in Dubai. According to the World Bank report of 2015, 19.5% of the population in the United Arab Emirates (UAE) lives below the poverty line. This figure includes citizens and expatriates living in Dubai.

The Gap Between Rich and Poor

One of the reasons why people may perceive Dubai as a wealthy city is because of the stark contrast between rich and poor. The city has some of the most expensive hotels, restaurants, and shopping centers in the world. It is not uncommon to see Lamborghinis or Ferraris driving on its streets.

However, at the same time, there are laborers from developing countries who work long hours under difficult conditions for minimal wages. They often live in cramped accommodations with limited access to basic amenities such as healthcare and education.

The Kafala System

The Kafala system is a sponsorship-based employment system prevalent in Gulf countries such as UAE. Under this system, migrant workers are tied to their employers for their visas and residency permits. This means that they cannot change jobs or leave without their employer’s permission.

This system has been criticized for putting workers at risk of exploitation and abuse by their employers. Some workers have reported being subjected to long working hours without rest breaks, non-payment of wages, and physical abuse.

The Government’s Efforts to Combat Poverty

The UAE government has implemented various measures to address poverty in the country. It has introduced a minimum wage policy for domestic workers and set up a social welfare system to provide assistance to those in need.

In addition, Dubai has several charitable organizations that work towards providing aid and support to the underprivileged. These organizations run programs aimed at improving access to education, healthcare, and housing for low-income families.

Conclusion

In conclusion, Dubai is not a poor country in the traditional sense. It has a thriving economy that attracts people from all over the world. However, poverty still exists in the city, with many low-income workers struggling to make ends meet.

It is important to acknowledge the gap between rich and poor in Dubai and work towards creating a more equitable society. This can only be achieved through efforts by both the government and private sector to ensure that everyone has access to basic needs such as education, healthcare, and decent living conditions.