Dubai continues to attract large inflows of foreign direct investment (FDI) and since 2000 the Dubai economy has grown an average 13% annually thanks to strong regional liquidity and major construction and infrastructure developments in progress. Because Dubai is not a major oil producing emirate like Abu Dhabi, a large services industry has grown, focused on real estate and construction, manufacturing, financial services and tourism sectors. Oil contributes just 3% of gross national product of Dubai.

In 2005, Dubai's non-oil sector contributed 95% to the emirate's GDP, against 90% in 2000, and approximately 46% in 1975. The services sector accounts for 74% of GDP.

Dubai's economy enjoys strong consumer confidence, underpinned by low or negative real interest rates and rising household income and wealth, which have bolstered private consumption.

Dubai has drawn up an aggressive growth strategy through to 2015. Under the Dubai Strategic Plan 2015, the future strategic growth of Dubai is based on key ‘building blocks’ which include tourism, trade, transportation and finance. Specifically, the Plan targets the following:

i) Dubai will maintain double-digit economic growth, achieve a GDP of $108 billion and increase real GDP per capita to $44,000 by 2015;

ii) Economic productivity will increase 4% annually, creating new sectors of growth with sustainable competitive advantages.

To encourage Dubai company formation, the government offers incentives including freedom from corporate taxation and 100% foreign ownership of companies under certain circumstances.

According to the latest ranking in the Global Financial Centres Index, Dubai is now one of the top 25 financial centres. Consequently, an increasingly wide array of financial services are available to investors during and after Dubai company formation. Following Dubai company incorporation, many entrepreneurs open a corporate bank account with one of the many international banks with branches in Dubai, including HSBC, Standard Chartered and Citibank.

Dubai is positively ranked  as the 35th least corrupt country in the 2008 Corruption Perceptions Index by Transparency International, a global measure of corruption amongst public officials and politicians. The UAE is the world's 32nd most competitive economy, according to The Global Competitiveness Report 2006-2007, ensuring a flourishing business environment during and after Dubai company registration.

That said, Dubai company formation is both difficult and expensive because of i) high government fees ii) inconsistent and complex Dubai company law and iii) inefficient bureaucracy. According to the World Bank's Doing Business 2008 Survey, the UAE is poorly ranked as the world's 46th easiest place to do business. The survey measures factors including business start up procedures, time, cost and minimum capital required to start a business. The UAE is also negatively ranked as the world's 63rd freest economy in the Heritage Organisation's 2008 Index of Economic Freedom, a measure of freedom enjoyed in  business, trade, monetary, financial, investment and labour markets.