Dubai's economy has bounced back strongly from the Covid-19 pandemic, which helped elevate its ranking. Bloomberg
Dubai's economy has bounced back strongly from the Covid-19 pandemic, which helped elevate its ranking. Bloomberg
Dubai's economy has bounced back strongly from the Covid-19 pandemic, which helped elevate its ranking. Bloomberg
Dubai's economy has bounced back strongly from the Covid-19 pandemic, which helped elevate its ranking. Bloomberg

Dubai tops Mena in Global Power City Index 2022


Alkesh Sharma
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Dubai retained its top position in the Middle East and North Africa region and climbed up three spots globally to 11th overall on the Global Power City Index 2022.

The emirate also stood first regionally and fourth globally in the cultural interaction parameter, improving from its fifth rank overall on the parameter in last year’s index, Dubai Government Media Office said in a statement.

The index, issued by the Mori Memorial Foundation’s Institute for Urban Strategies in Japan, ranked the world’s major cities according to their “magnetism”, or power to attract people, capital and enterprises from around the world.

The rankings are derived from scores on six parameters — economy, research and development, cultural interaction, liveability, environment and accessibility.

Dubai has emerged as one of the world’s great metropolises and a prominent global cultural centre, a dynamic hub for creativity and a destination for talent, said Sheikh Hamdan bin Mohammed, Crown Prince of Dubai.

“The improvement in rankings reveals the richness and strength of Dubai’s vibrant cultural environment and its ethos of inclusive development that has brought well-being to its residents from around 200 nationalities.

“The progress in rankings on cultural interaction shows Dubai’s emergence as a unique bridge between cultures and markets and its ability to promote engagement between people and institutions worldwide. The progress in various international indices encourages Dubai to raise excellence further and enhance its cultural and creative assets."

Institute for Urban Strategies said 2022 rankings were significantly affected by how cities responded to the Covid-19 pandemic, which upended the world economy.

Dubai's economy bounced back from the coronavirus-driven slowdown last year, picking up further growth momentum this year.

Expo 2020 Dubai and government measures to minimise the effects of Covid-19 also spurred growth this year.

Dubai’s economy expanded by 4.6 per cent on annual basis in the first nine months of this year to about Dh307.5 billion ($84 billion), driven by the emirate’s efforts to solidify its position as a business, financial and tourism centre, Sheikh Hamdan said this month.

By tracking changes in international flight frequencies of cities since 2019, the GPCI analysed the responses and strategies of cities and countries to the pandemic.

Dubai was one of the first cities to reopen for international visitors since the onset of the pandemic. It also created a safe environment for holding Expo 2020 Dubai from October 2021 to March 2022, the statement said.

“Both achievements contributed to the emirate’s rise to third ranking in the tourist attractions sub-parameter within the cultural interaction,” it added.

“Dubai has developed an integrated strategy to consolidate its position as a city of choice for cultural practices, experiences and consumption,” said Sheikha Latifa bint Mohammed bin Rashid Al Maktoum, chairwoman of Dubai Culture and Arts Authority, and member of the Dubai Council.

“Dubai’s emergence as a major global hub for culture and creativity increases our determination to raise the emirate’s global competitiveness in these spheres … we also seek to enhance the diversity of Dubai’s cultural offering in order to further enrich the experiences the city offers both residents and visitors.”

In the latest index, Dubai also jumped in other sub-parameters, including number of foreign visitors, cities with direct international flights, attractiveness of shopping options and attractiveness of dining options.

While you're here
if you go

The flights

Etihad, Emirates and Singapore Airlines fly direct from the UAE to Singapore from Dh2,265 return including taxes. The flight takes about 7 hours.

The hotel

Rooms at the M Social Singapore cost from SG $179 (Dh488) per night including taxes.

The tour

Makan Makan Walking group tours costs from SG $90 (Dh245) per person for about three hours. Tailor-made tours can be arranged. For details go to www.woknstroll.com.sg

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

Updated: December 22, 2022, 5:30 PM