As a rule, a stable country with a young, skilled and growing population is in a good place. Whereas societies with an ageing demographic profile often have to contend with a shrinking workforce and the costs of supporting its older people, states with a dynamic, balanced population mix are in a stronger position to succeed.
From doctors, teachers to entrepreneurs and nannies, the UAE’s journey to becoming the Arab world’s second-largest economy has consistently attracted more people and their families to work and live in the country. Statistics prove that this growth trend has been a sustained one: official figures show that Abu Dhabi's population rose to just under 3.8 million in 2023, a sharp increase of 83 per cent since 2011. Dubai’s population has doubled in 15 years to reach four million.
Such growth in the country’s main population centres has supported the UAE’s robust economy and enriched its cosmopolitan society. However, for this success to be sustainable, intrinsic challenges inadvertently arise. Citizens and residents alike need access to housing, good roads, reliable public transport and quality schools for their children. People also need a welfare safety net for when times are hard. All this comes at a cost but there are plenty of signs that the Emirates is investing in people’s quality of life.
This week it was announced that the country is to spend Dh170 billion ($46bn) on transport and road projects over the next five years to ease traffic congestion. Meanwhile, Dubai unveiled plans to build 60 new lower-cost schools to serve 120,000 pupils by 2033 under a long-term strategy aimed at improving access to quality education. Housing, always a key issue, has consistently been a government priority; in April, the Abu Dhabi authorities launched a Value Housing Programme to ensure the emirate’s “housing units are both affordable and of exceptional quality”.
The UAE, thanks to its measured development, has a strong policy toolkit to guide its demographic growth but there will always be internal and external issues to resolve. The cost of living, for example, is a touchstone issue in countries all over the world these days, including the UAE. The Emirates’ reliance on imported foodstuffs, consumer goods and raw materials make inflation a perennial concern. Although the dirham’s peg to the US dollar makes for a stable currency, changes to interest rates in America do have an effect on the cost of borrowing and financing in the Emirates.
Population growth can also increase the demand for housing, creating opportunities for developers and raising prices. Costs for private schooling and healthcare can also outstrip inflation, presenting some families with understandable concerns about finances.
Therefore, the kind of pro-active, long-term measures seen this week are welcome. They are not just about maintaining the UAE’s competitiveness in the global market – such steps also support the social good that comes from affordable schools and access to housing. Stable, settled families make a happier, more successful nation. By investing in the social infrastructure that supports a cohesive community, the Emirates is showing how population growth can be managed to the benefit of all.
