If there are no taxes in Dubai where does the government get it's money from? How does that work?

Question

How do they pay for hospitals, food, infrastructure etc? I mean all the new developments that are happening - where does the money come from??

Answer 1

Oil.

The UAE has an open economy with a high per capita income and a sizable annual trade surplus. Its wealth is based on oil and gas output (about 30% of GDP), and the fortunes of the economy fluctuate with the prices of those commodities.

Since the discovery of oil in the UAE more than 30 years ago, the UAE has undergone a profound transformation from an impoverished region of small desert principalities to a modern state with a high standard of living.

At present levels of production, oil and gas reserves should last for more than 100 years.

The government has increased spending on job creation and infrastructure expansion and is opening up its utilities to greater private sector involvement. Its other great asset is location. The emirate of Dubai is strategically located between Africa and the Middle East and between the Far East and Europe, making it a gateway to over 1.5 billion consumers located in countries surrounding the Red Sea and the Gulf. It has a superb infrastructure with the consequence that it has become a key link in the global transport and distribution system.

Dubai is served by more than 170 shipping lines and more than 86 airlines offering links to over 100 cities worldwide. The strong shipping and transportation sector is composed of most of the leading regional and international freight forwarders, insurers and shipping agents.

Despite a relatively small population, in 2004, total non-oil imports stood at Dh 149,046 million. The reason is that Dubai is the major re-export centre for the region. Many of the economies of the region served by Dubai are still at a relatively early stage of development, so there is plenty of long term scope for diversification and expansion in the future. Another important consideration is Dubai's rapidly developing role as a supplier to such emerging markets as India, the CIS, Central Asia and South Africa.

There are no foreign exchange controls, quotas or trade barriers. Import duties are extremely low, and many products are exempt. The UAE dirham is freely convertible and is linked to the US dollar, the currency in which oil revenues are paid. The current exchange rate is Dh 3.675 = US$ 1 and no revaluation has occurred since 1977.

Answer 2

The hotels are over $200 dollars or Euros a night. They don't need money to order supplies because commmunists in India supply "benefits" they confiscated while visiting the West. They have confiscated enough ATMs, hospital equipment, etc, now all they got to do is get the electric outlets converted (and the ATMs converted to thier currency), they confiscated phones from Spain they used before they had Euro coins, etc. and they are all set to lay back and wait for tourists, people on their honeymoon, etc.

Answer 3

We pay for them. The Western world