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In recent years, Dubai and Abu Dhabi have been at the forefront of growth and development in the Middle East. The UAE’s efforts are paying off – the two cities have been ranked among the most desirable destinations for foreign workers and tourism and business hubs and those who call them home.
In the Select City study Boston Consulting Group, cities including Abu Dhabi, Doha, Dubai, Kuwait City, Riyadh and Mecca were found to share some similarities in strengths and weaknesses. While the assessed Middle East cities vary in their overall rankings, most cities have improved their scores over the past year, indicating a growing quality of urban life in the region.
For the study, researchers surveyed more than 50,000 people in 79 cities and asked them to assess more than 150 economic, social, and political indicators along five dimensions: economic opportunity, quality of life, social capital, and relationship with authorities. interaction and speed of change.
Of the five Middle Eastern cities included in the list, Dubai and Abu Dhabi both feature in the top 10 in their respective ranking categories.
dubai
In the Boston Consulting Group’s classification of cities, Dubai is classified as a “light” city with a population of more than 3 million but less than 10 million (these cities are called “megacenters”).
For ‘economic opportunity’, Dubai scores relatively well (71 out of 100), indicating that the city offers a highly conducive environment for businesses and entrepreneurs to thrive. The city is one of the fastest growing in the world and has diversified its economy over the years by investing in industries such as tourism, real estate, finance and transportation.
Dubai’s economic score is underpinned by a strong built environment and digital infrastructure, which help foster an efficient and vibrant business environment.
Dubai is also known for its innovative projects, including the world’s tallest building, the Burj Khalifa, and the Palm Jumeirah, one of the world’s largest man-made islands. More recently, Dubai has positioned itself as the world’s leading hub for web3 and blockchain – one of the most anticipated technologies of the next decade.
The “quality of life dimension” is a key factor in measuring the livability of city dwellers. With a score of 51, Dubai faces a lot of room for improvement, according to Boston Consulting Group.
On the plus side, Dubai offers a cosmopolitan lifestyle to its residents, where people from different nationalities and cultures come together, making it a melting pot of different traditions and ways of life.For those who can afford to make a good living in Dubai, the city tops the list (in fact, the main resident market is one of the hottest in the world).
But for those living on low incomes, the quality of life in Dubai is considered poor. The housing sector lacks affordable options for low-income residents. High income-related costs of living mean poor quality of life, and the city’s educational institutions need to improve in terms of accessibility and affordability.
The “social capital” dimension measures the strength of social relationships and community engagement within a city. In the case of Dubai, the city scored 74 out of 100, indicating that residents have a strong sense of belonging and attachment to the city and maintain meaningful social relationships.
This score builds on the city’s rich culture, entertainment and arts. At the same time, Dubai’s diverse cultural and resident backgrounds create ample opportunities for social interaction and participation. Dubai is also considered a place with a strong social fabric, which is an important aspect of the city’s overall health and wellbeing.
In the dimension of ‘interaction with authorities’, Dubai scores higher than places like Sydney and Barcelona, indicating that the overall experience between residents and the city’s authorities is positive. According to the Boston Consulting Group, this is critical to creating a sense of trust, security and cooperation between the government and the people.
The score is a testament to Dubai’s growing digital government capabilities and demonstrates that the authorities have put in place policies and measures that promote citizen participation in governance and decision-making processes, ensuring residents have a say in shaping the city’s future.
However, Dubai scored below average for ‘Speed of Change’, suggesting that the city needs to improve its ability to adapt quickly to a changing environment, especially in a rapidly changing global environment. For example, Riyadh and Kuwait City scored higher in this regard.
This aspect of speed is particularly important as it can have a significant impact on a city’s ability to remain competitive and relevant over the long term. To overcome this, Boston Consulting Group suggests that Dubai needs to invest more in innovation strategies and technologies to stay at the forefront of innovation and improve its overall agility and responsiveness to emerging challenges and opportunities.
Abu Dhabi
In the study, Abu Dhabi, the capital of the UAE, was classified as a medium-sized city in terms of economic status and population. Abu Dhabi has a population of approximately 1.5 million people with above-average incomes thanks to its thriving oil industry and wider economy.
Abu Dhabi’s high score of 73 on the ‘Economic Opportunity’ dimension reflects the city’s proactive efforts to create a business environment conducive to innovation and entrepreneurship. In recent years, Abu Dhabi has invested heavily in areas such as technology, renewable energy and tourism, attracting local and foreign investors.
Abu Dhabi’s economy has experienced rapid growth and development over the past few decades, with large infrastructure projects and modern architecture becoming defining features of the cityscape. Despite its relatively small population, the UAE has become a global player and a hub for innovation and entrepreneurship.
A significantly lower score of 43 on the ‘Quality of Life’ dimension suggests that Abu Dhabi needs to address some of its social and physical infrastructure deficiencies. While the city has made significant strides in economic development, its efforts to provide residents with quality healthcare, affordable housing and a sustainable environment leave room for improvement.
The study shows that to improve citizens’ quality of life, more investment is needed in areas such as public transport, green spaces and social services.
High scores on the ‘social capital’ dimension confirm that Abu Dhabi is a place where people feel a sense of belonging and connection to the community. This can be attributed to the city’s efforts to preserve its cultural heritage and promote social cohesion among residents. Additionally, Abu Dhabi’s high level of safety and security also contributes to the city’s strong social capital, as residents feel protected and secure.
A high score for ‘Interaction with authorities’ recognizes Abu Dhabi’s well-established governance system, with the government responsive to citizens’ needs and actively involving them in the decision-making process. 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 A leader in smart city strategiesusing smart technology and data to provide innovative ways for cities to deliver services and interact with residents.
The ‘speed of change’ dimension places Abu Dhabi at the higher end of the middle table, demonstrating the city authority’s ability and agility to plan in response to the changing environment in various areas, including infrastructure, technology, sustainability and urbanization. Notably, Doha and Mecca were found to be more adaptive.
outlook
Looking ahead, the study urges government officials around the world to continue investing in making their cities better places for businesses and residents.
“Improving the quality of cities is critical for Middle Eastern countries in order to sustain economic growth and attract and retain talent,” said Christopher Daniel, managing director and senior partner in Boston Consulting Group’s Middle East public sector practice.
“By playing to their strengths and working hard to advance their areas of opportunity, Middle Eastern cities can leapfrog into the future. Quality of life is a key opportunity. While Middle Eastern cities have made strides in infrastructure upgrades through large-scale projects, the next step should be to focus on In neighborhood and community services and urban planning.”
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