In recent years, Dubai and Abu Dhabi have been at the forefront of the Middle East's growth and development. The UAE’s efforts are paying off – the two cities have ranked among the most desirable destinations for foreign workers and hubs for tourism and business, as well as for those who call them home.
In the ‘Cities of Choice’ study by Boston Consulting Group, cities including Abu Dhabi, Doha, Dubai, Kuwait City, Riyadh, and Mecca are found to share several similarities in terms of their strengths and weaknesses. While the Middle East cities assessed vary in terms of overall ranking, most have managed to grow their scores over the past year, demonstrating the growing quality of city life in the region.
For its study, the researchers surveyed over 50,000 people from 79 cities, asking them to assess more than 150 economic, social, and political metrics across five dimensions: economic opportunities, quality of life, social capital, interactions with authorities, and speed of change.
Of the five Middle East cities indexed, Dubai and Abu Dhabi both made the top 10 in their respective ranking categories. In Boston Consulting Group’s classification of cities, Dubai is classified as a ‘cruiser weight’ city, with a population of more than 3 million people but below 10 million (these cities are billed as ‘megacenters’).
In the ‘Economic Opportunities’ dimension, Dubai scores relatively well (71 out of 100), indicating that the city provides a highly conducive environment for businesses and entrepreneurs to thrive. The city is among the fastest growing cities in the world, and has over the years significantly diversified its economy by investing in sectors such as tourism, real estate, finance and transportation.
Dubai’s economic score is underpinned by a strong built environment and digital infrastructure, which helps facilitate a highly efficient and dynamic business landscape. Dubai is also well known for its innovative projects, including the Burj Khalifa, the world's tallest building, and the Palm Jumeirah, one of the largest man-made islands in the world. More recently, Dubai is positioning itself to become a world leading hub for web3 and blockchain – one of the most highly anticipated technologies for the coming decade.
The ‘Quality of Life dimension’ is a crucial factor in measuring the liveability of a city for its residents. With a score of 51, Dubai faces significant room for improvement, according to Boston Consulting Group.
In the study, the UAE’s capital city Abu Dhabi is classified in the middleweight city in terms of its economic standing and population. Abu Dhabi is home to around 1.5 million people and has an above-average income due to its thriving oil-based sector and broader economy.
In terms of the ‘Economic Opportunities’ dimension, Abu Dhabi’s high score of 73 reflects the city’s proactive measures to create a business-friendly environment that fosters innovation and entrepreneurship. In recent years, Abu Dhabi has made substantial investments in sectors such as technology, renewable energy, and tourism, which has attracted local and foreign investors alike.
Abu Dhabi’s economy has been experiencing rapid growth and development over the past few decades, with major infrastructure projects and modern architecture becoming a defining characteristic of the city’s landscape. Despite its relatively small population, the Emirati state has emerged as a global player and a hub for innovation and entrepreneurship.
The significantly lower score of 43 in the ‘Quality of Life’ dimension indicates that Abu Dhabi needs to address certain shortcomings in its social and physical infrastructure. While the city has made significant progress in terms of economic development, its efforts to provide its residents with access to high-quality healthcare, affordable housing, and a sustainable environment still requires improvement. To achieve a higher quality of life for its citizens, the study suggests more investments are needed in areas such as public transport, green spaces, and social services.
The solid score in ‘Interactions with Authorities’ recognised Abu Dhabi’s well-developed system of governance, where the government is responsive to the needs of its citizens and actively involves them in decision-making processes. This can be seen in initiatives such as the Abu Dhabi Government's Customer Happiness Index, which measures public satisfaction with government services and aims to improve customer experience.
In particular, Abu Dhabi is a frontrunner in smart city strategies, using smart technologies and data to deliver creative ways in which the city delivers its services, and interacts with inhabitants.
