The initial development of Dubai was funded by its oil wealth but the Government has devoted enormous resources to developing an economy which will prosper in the future without requiring the support of oil revenues. Dubai has long been a major port and the Jebel Ali Free Zone has attracted multinationals from around the world to take advantage of its strategic location for servicing the Gulf markets and its situation midway between east and west.

The Dubai International Financial Centre is expanding rapidly and providing stiff competition for the longer established banking institutions of Bahrain. A more recent innovation has been the adoption of the Offshore Company Regulations 2003, which introduced the Dubai Offshore Company, also known as the Jebel Ali Offshore Company.  Features of this type of company are: 100% foreign ownership permitted; it can own real estate on the Palm Islands and in various other developments by certain government owned development companies but it may not otherwise trade within Dubai; it can maintain banking accounts in the U.A.E. and elsewhere; if the company maintains an office, as opposed to a Registered Agent in the Free Zone, a residence visa may be obtained for one director.

Dubai does not impose income tax, capital gains tax or estate or inheritance taxes. It is said to be considering a value added tax.

The legal system of Dubai is based on the Sharia law and this needs to be borne in mind by non- Moslems acquiring assets in the Emirate. Sharia law incorporates strict rules, for example, in the matter of inheritance and this can result in unintended consequences for the unwary.