Abu-Dhabi vs. Dubai

Abu-Dhabi (Father of the Gazelle in Arabic) is by far the richest of the 7 emirates of the UAE, and the one with the largest oil reserves. It is estimated that Abu Dhabi holds 9% of the world’s oil reserves, large enough to secure sufficient investment inflows for at least another 100 years. The capital state’s business culture is definitely more conservative, with strong government involvement focusing on preserving and promoting national Emirati culture. Abu Dhabi government and its main financial institution Mubadala promote joint economical and social development in the region

Dubai, on the other hand, is UAE’s most populous state and the most economically thriving. The city economical freedom and lax regulations allow for greater innovation and growth...too much, too fast at times. Foreigners (Expats) can own properties and businesses in the free-hold areas, providing a strong incentive for foreign investment and entrepreneurial activity. In fact Dubai is far less depended on oil and successfully diversified its economy into the tourism, real estate and services sectors.

Throughout our trip, from our interviews with business people and government officials, the unique identity of these two powerful states and the competition between them became more obvious. Is this inter-state rivalry healthy for UAE’s development? Strategically it could allow the two cities to position themselves and to jointly support regional economic growth: Dubai is a financial center, luxurious and extravagant, while Abu-Dhabi remains more traditional, with a focus on developing culture and fine arts . Another example is Abu-Dhabi’s young airline company Etihad, now competing with Dubai’s Emirates, pushing the industry to further innovate and improve quality standards to compete locally and internationally. However, the long term results of this brotherly rivalry remain to be seen....

Dubai's Burj Kalifa and Abu Dhabi's Yas Island future developments: Guggenheim, Louvre and Opera House