Oil and trade have transformed what was once a quiet and anonymous fishing village into the Pearl of the Middle East -- Dubai -- a modern desert trading city with luxurious four- and five-star hotels and world-class entertainment facilities.  Tourists from all over the world revel in the bright lights and bargains that Dubai can offer, but could it also be your retirement haven?    

Climate in Dubai | Government in Dubai | Tax System in Dubai | Medical Care in Dubai | Real Estate in Dubai | Shopping in Dubai | Cost of Living in Dubai

NEW LIFE IN DUBAI CITY

Climate in Dubai

Make no mistake; Dubai is hot, hotter than tropical countries such as Thailand or Vietnam. In summer (June-September), the temperature can reach as high as 40 degrees C. You will need a lot of cold water and protective clothing and lotions, if you want to last in the desert summer months. However, air-conditioning is a blessing of technology that  Dubai’s population has not hesitated to acquire and use. In fact people may find air-conditioned buildings altogether too chilly. It rains from February-March but the amount of rainfall is miniscule compared to say England or Ireland. Winter lasts from October to March, and features a healthy combination of warmth and sunshine

Government in Dubai

Dubai is one out of seven geo-political entities that currently compose the United Arab Emirates (UAE).  The UAE was established in 1971 and is ruled by the seven emirs who are called the Supreme Council of Rulers. The Council chooses the UAE’s prime minister and the cabinet.  Up till 2006, government leaders were not elected. Although the majority of the people and the rulers of UAE are Islamic, other cultures and religious are generally tolerated or respected, and allowances are now being made for tourists who may not be familiar with Muslin beliefs and practices regarding dress, diet and worship. It is better, however, for tourists and other visitors to exercise prudence and refrain from offending the Islamic population.  UAE society is generally stable and will probably stay so in the foreseeable future.

Since 1966, the income from the oil industry has been channelled to meet the people’s needs regarding health care, education and infrastructure. Per capita annual average income is an astounding US $23,770. The oil and gas industry has also made it necessary for Dubai to employ foreign workers who now number 75 percent of the total population. Freedom of speech is enshrined in the constitution but there are strong controls on what appears in the media, especially when foreign media is concerned. On the other hand, there are about one million Internet users who can access a lot of information.

Tax System in Dubai

Dubai earns so much income from oil and gas that it does not need income from taxes and is an almost tax-less city.  There are no income taxes, sales taxes, capital taxes, and withholding taxes. Only banks  and oil companies pay 20% and 55% tax, respectively, on locally sourced income. Importers pay standard 4% duties but there are many exceptions such as food items and products meant for specific establishments. There have been talks and recommendations about setting up a modern tax system but these have remained at the proposal level.

Medical Care in Dubai

Both the local population and foreigners are entitled to health care provided by the government either free or low cost. The health care network in Dubai consist of four government hospitals, a number of private hospitals, and the Dubai Medical Center.  The number of facilities is quite sufficient for the number of population so that there is generally no hospital overcrowding or lines of patients waiting for assistance. The quality of medical care in Dubai compares favorably with that available in Europe and the USA. However private health care is generally expensive. Most of the physicians and other health professionals are foreigners who received training in their own countries and were recruited to Dubai, attracted by the high salaries and good facilities. Respiratory and other illnesses caused by sand and dust, fatigue and heat are quite common among foreign workers, most of them employed in the construction industry.  The ‘guest workers’ are also subject to excessive consumption of alcohol due to loneliness and homesickness.

Real Estate in Dubai

The Dubai government is making the acquisition of real estate by foreigners a much easier and simpler process.  Real estate prices have gone up substantially over the last two years, especially in the case of prime properties. Real estate experts recommend buying rather than renting property. Houses and other living accommodations for sale are still reasonably priced while rent has gone up tremendously. Many foreigners stay for only a couple of years, making properties for lease much in demand and therefore priced higher.

Shopping in Dubai

With no taxes or import duties, Dubai has become transformed into a shopper’s paradise. It celebrates each year (generally January) with a Dubai Shopping Festival when companies offer even more bargains not only in goods but also in hotel accommodations and airplane fares.

Dubai’s shopping centers are 21st century marvels with air-conditioning, valet parking and other services. Those who want authenticity can visit the traditional markets or souks including the Deira souk that sells gold. Dubai laws ensure that the gold is correctly marked and classified.  Other traditional products are rugs, food and spices. Bargaining is a skill that takes some practice but is expected by merchants.

Cost of Living in Dubai

The cost of living in the city has gone up so much that many choose to live in Sharjah, a nearby emirate. In the space of five years, prices have doubled. You pay US$2,200 for a single bedroom apartment and more if you want a two-bedroom apartment or house. Public transportation is not practical so you have to plan on having at least one car for yourself and another car for your spouse. One person needs about US$1000 a month for food.

It is quite clear that Dubai is an expensive city so you should factor that in your choice of a retirement haven. Living accommodations are expensive. So is private education if you have children who are still studying. Entertainment is expensive. On the other hand, there are advantages such as the fact that there are no taxes. If you have the means, however, you will find Dubai extremely entertaining and exciting, with its beaches, beach clubs, bars, restaurants, gold clubs, modern malls and traditional souks.