With the advances in technology, the world has become a global village.Not only does the internet and other technologies bridge the gap between cultures but they also allow people to travel the world.One such destination is the Middle East particularly, Saudi Arabia and Dubai, cities that are dramatically different from one another.One may assume that the two countries share similar characteristics, however, there are many differences between the two.
The most evident difference is its geography.Dubai is located on the east coast of the Arabian Peninsula, in the United Arab Emirates.Saudi Arabia is located on the west coast of the same peninsula. Dubailies on the coast of the Persian Gulf while Saudi Arabia lies on the Red Sea.Dubai is known for its modern infrastructure and is often called the ‘Playground of the Middle East’. It is a city-state and is known for its glamour and extravagance. Saudi Arabia is, on the other hand, a monarchy and is very conservative, with an emphasis on religion and tradition.
When it comes to culture, Saudi Arabia is a Muslim-majority country and all its citizens adhere to Islamic customs and practices.In comparison, most Emiratis in Dubai are Muslim, but it is a much more diverse city, with people of different backgrounds. Also, Dubai is much more accepting of foreign cultures than Saudi Arabia. This in turn affects their lifestyle, with both countries displaying stark contrasts in terms of leisure activities, festivals, and entertainment.
From a business perspective, the two countries also have different approaches.Dubai has focused on creating an attractive business environment for foreign companies and investors. A great example is the ease of doing business, which includes investment laws, taxation, travel policies, etc.Saudi Arabia, on the other hand, is more focused on promoting Saudi businesses and entrepreneurs. This has allowed it to achieve economic growth and stability.
From a political point of view, both countries have different systems of governance.Saudi Arabia is an absolute monarchy while Dubai is under the control of a President.Saudi Arabia’s government is seen as more authoritarian and strict while Dubai is relatively more liberal. The differences in government systems also affect their foreign policy.
Economy
The economy of both countries is quite different. Dubai is heavily reliant on foreign investments which accounts for over 75% of its economy. The country has been able to achieve tremendous growth due to its tourism industry and trade.Saudi Arabia, on the other hand, is dependent on its oil exports.The country’s oil exports account for more than 85% of its economic activity.
Another key difference in the economy is Dubai’s citizens are allowed to own property, businesses and even have access to bank loans.This degree of economic freedom is unavailable in Saudi Arabia as most business opportunities must be approved by the government.
Society
The two societies display some fundamental differences in their culture and values.In Dubai, women are allowed to dress as they please and interact freely with men, without any form of discrimination.In Saudi Arabia, women face more restrictions, such as being required to wear an abaya in public places.Moreover, Dubai is more welcoming to foreign visitors while Saudi Arabia has stricter laws towards it.
One of the most extreme differences between the two societies is the legal system.Dubai follows the laws of the United Arab Emirates, which is based on Islamic Sharia law. In Saudi Arabia, Islamic Sharia law governs not only the everyday life but also the court system. This means that the punishments for crimes, which can range from flogging to death, depend on the interpretation of the Sharia law.
Relationships
The two countries have distinctly different relationships with other nations.Though both countries are members of the Gulf Cooperation Council, Dubai has stronger ties with its numerous trading partners and neighboring countries.Saudi Arabia, on the other hand, relies primary on its close ties with the United States. This gives Saudi Arabia some degree of protection from its more volatile neighbors.
Also, while Dubai is open and accepting of foreign investors and outside influence,Saudi Arabia has a more conservative view. For example, Saudi Arabia has traditionally maintained its nationalistic views and has limited foreign investment. This has in turn affected the development of its economy.
Investment
An important aspect of the difference between Dubai and Saudi Arabia is their investment potential.Dubai has openly welcomed foreign investments for many years and has been successful as well, due to its openness to outside ideas. Saudi Arabia, on the other hand, has been more restrictive, and its investments are generally more high-risk.Therefore, for most investors, Dubai is seen as the preferred option.
The investment market in both countries is also different. While Saudi Arabia largely focuses on oil and energy, Dubai attracts more technological, media, and medical investments. Moreover, Dubai is looked at as a regional financial hub, while Saudi Arabia is seen as a source of investment for countries in the region.
Tourism
The two countries’ approaches to tourism vary greatly. Dubai is more focused on attracting foreign tourists and has a number of attractions such as malls, theme parks, and numerous high-end resorts. Saudi Arabia, on the other hand, is slower at opening up to the world of tourism and has only recently begun to allow foreign visitors into the country. This means that many of the cultural and historical sites and attractions in Saudi Arabia are off limits to most travelers.
Furthermore, Dubai has positioned itself as a more luxurious and safe destination, while Saudi Arabia is still considered a dangerous place and not well suited for tourist activity. This means that many of the hotels and resorts in Dubai offer a higher standard of service compared to Saudi Arabia.
Technology
Dubai and Saudi Arabia differ drastically when it comes to technology.Dubai is the most advanced and progressive city in the Middle East, with major investments in modern technology.The city’s infrastructure includes a world-class metro system, intelligent transportation systems, and an ultra-modern airport. Saudi Arabia, on the other hand, is not as technologically advanced and is yet to invest heavily in modern technology.
The use of technology in both countries also differs. Dubai is a world leader in the use of blockchain technology, artificial intelligence, and other modern tech solutions.Saudi Arabia has been slower to embrace such technology but is making efforts to catch up with the rest of the world.
Entrepreneurship
The two countries have very different approaches to entrepreneurship.In Dubai, the government is very supportive of startups and has invested heavily in infrastructure designed to attract foreign entrepreneurs.Saudi Arabia, on the other hand, has fewer incentives and thus not as much international participation in its startup scene. Also, the Saudi government is more focused on promoting the growth of Saudi entrepreneurs.
The approach of both countries towards businesses and investments also has a huge difference.Dubai is extremely welcoming towards foreign investors, while Saudi Arabia is increasingly restrictive.This has resulted in Dubai becoming an attractive hub for business investments.
Taxation
The taxation systems in both countries also differ.Dubai operates on a ‘zero-tax’ system, which means that foreign businesses don’t have to pay any taxes. Saudi Arabia, however, operates on ‘fixed taxes’, which means companies must pay a certain percentage of their income as taxes. This has made many foreign companies reluctant to invest in Saudi Arabia.
In fact, the taxation system also affects an individual’s income. Dubai does not require its citizens to pay any personal income tax, while people in Saudi Arabia pay taxes on their income. This helps to attract and retain talent in Dubai, making it more attractive for those looking to start a business or work in the city.
