Dubai is often portrayed as a glamorous, wealthy city with extravagant architecture and luxury shopping. However, behind the opulent facade, there is a sector of Dubai’s population that lives in poverty. So the short answer is yes, there are poor citizens in Dubai.
In this article, we will explore the factors that contribute to poverty in Dubai, examine statistics on poverty levels, and analyze some of the challenges poor citizens face. Although Dubai has successfully developed into a global financial hub, economic growth has not benefited all citizens equally. Like all major global cities, Dubai has income inequality and gaps between rich and poor. Understanding the nuanced reality behind Dubai’s prosperity is important for getting an accurate picture of this complex city.
What leads to poverty in Dubai?
There are several factors that contribute to poverty among some citizens in Dubai:
- High cost of living – Dubai has a very high cost of living, making it difficult for low-income residents to afford basic necessities. Housing, transportation, healthcare, and other costs are typically much higher than average global rates.
- Economic inequality – The economic boom has disproportionately benefited expatriate workers instead of native Emiratis. This creates an income gap between skilled professionals and lower-skilled workers.
- Growing population – Dubai’s population grew by 41% between 2010 and 2020. Rapid population growth has made it harder for public services and housing to meet rising demand.
- Unskilled workers – Some citizens lack the education and skills needed for high-paying jobs in Dubai’s knowledge economy. This leaves them dependent on low-wage positions.
- Expats sending remittances – Transferring funds from Dubai back to home countries reduces capital circulating locally. This slows economic growth for citizens.
These factors combine to make poverty a reality for a subset of Dubai’s native population. While the government provides some social services and financial aid, many citizens still struggle economically.
Statistical overview of poverty in Dubai
It is challenging to find precise statistics on poverty rates in Dubai. The government does not publish official poverty thresholds or rates. However, some estimates from non-governmental organizations and researchers provide an indicative picture:
- Approximately 1.3% of Dubai’s 3.3 million residents are Emirati citizens. Most estimates on poverty focus specifically on native Emiratis.
- Estimates suggest 5-10% of Emirati households live below the poverty line. With 0.04 million Emirati citizens, this equates to 20,000 – 40,000 citizens in poverty.
- The poverty line in Dubai is defined as making less than 10,000 AED ($2,720 USD) per month for a family of four.
- Lower-income Emirati families often have 4-8 children, increasing pressures from large household sizes.
- Some reports indicate poverty rates have worsened among Emiratis due to COVID-19 job losses.
Although on a percentage basis poverty rates seem low, the high cost of living in Dubai means even modest incomes leave families struggling. Additionally, Emiratis have access to some state welfare programs, suggesting actual poverty levels may be higher without this assistance.
Poverty rate by Emirate (2015)
| Emirate | Poverty Rate |
|---|---|
| Dubai | 7% |
| Abu Dhabi | 4% |
| Sharjah | 15% |
| Ajman | 23% |
| Umm Al Quwain | 19% |
| Ras Al Khaimah | 14% |
| Fujairah | 5% |
Source: Tanmia poverty mapping project, based on income data from 2015 national census.
This table shows poverty rates vary across the UAE’s 7 emirates. Dubai’s 7% poverty rate among citizens was lower than the national average in 2015.
Challenges faced by poor citizens
Poor Emiratis in Dubai face a range of challenges:
Accessing housing
Housing is unaffordable for many low-income citizens. The small minority living in poverty struggle to rent or buy homes in Dubai’s expensive real estate market. Some share overcrowded accommodation with other families.
Finding work
Educational barriers limit employment options. School dropout rates are higher among poor Emiratis. Without vocational training or university degrees, accessing steady decent-paying jobs is difficult. Competition from expats also squeezes low-skilled citizens out of the labor market.
Getting healthcare
Although the UAE provides subsidized public healthcare, poorer Emiratis often still face difficulties getting quality medical services. Hospitals and clinics are concentrated in more affluent areas. Patients report long wait times and unavailable treatments at public facilities.
Affording healthy food
Nutritious food carries a high price tag in Dubai. Low-income citizens resort to cheaper junk food and struggle with health conditions like diabetes as a result. Public health education is needed to promote healthy economical eating.
Covering basic necessities
High costs for utilities, fuel, clothing, and basic needs put stress on poor households. Even with government welfare, families struggle to cover costs and often accummulate debt. Saving money is extremely difficult.
Accessing transport
With limited public transport options, many low-income Emiratis rely on private cars. But purchasing and maintaining a vehicle is expensive. Some citizens cannot afford to own a car, limiting access to jobs.
Getting an education
Schools in low-income neighborhoods often lack resources and high educational standards. This makes it harder for poorer students to qualify for universities. Without higher education, well-paying careers are unattainable.
Coping with social stigma
There is shame associated with poverty in Dubai’s status-conscious society. Citizens do not openly discuss economic struggles. This leads to isolation and also reluctance to seek government assistance.
Overall, Dubai’s high costs and economic inequality create substantial hurdles for low-income citizens trying to improve their living standards and prospects.
Government assistance programs
In response to poverty among citizens, the government of Dubai and UAE has expanded social welfare programs:
- The Ministry of Community Development runs a Low Income Families Benefit Program which provides regular financial aid.
- State housing programs exist, offering Emiratis housing units at below market rates.
- To boost employment, job quotas exist in the public sector for Emirati citizens.
- Educational assistance is available through scholarships, grants, and student loan forgiveness.
- The UAE provides subsidized healthcare to citizens and has expanded insurance coverage.
- Zakat fund donations are distributed to poor and in-need Emiratis.
- Free school meals, food baskets, and meal vouchers help low-income families.
- Debt relief, bill payment help, and emergency cash aids are other programs.
While access and eligibility issues persist, these initiatives still support thousands of citizens and represent an expanding social safety net.
Trends and outlook
Poverty among native Emiratis in Dubai stems from economic, educational and social factors. Encouraging trends point to potential improvement:
- School dropout rates are falling as access to education improves.
- College enrollment rates are rising steadily among young Emiratis.
- New skills-focused training programs equip citizens for better jobs.
- The UAE is creating more public sector jobs reserved for nationals.
- Women’s workforce participation is growing – boosting household income.
- The government plans increased investment in affordable housing.
- Programs have been proposed to make elite private schools more accessible.
Targeted policy initiatives combined with economic growth can slowly reduce poverty levels. However, inequality and high living costs remain structural challenges.
Conclusion
While often overlooked, a segment of Dubai’s citizens live below the poverty line and face daily economic struggles. Estimates indicate 5-10% of Emirati households are impoverished. Challenges with housing affordability, healthcare access, education quality, transportation costs, and unemployment underpin this poverty. Government assistance helps but has gaps in coverage. Ongoing investment and policy reforms are needed to create greater equity in Dubai and reduce hardship. The glitzy image of Dubai masks some pressing social problems. But a number of promising initiatives aim to ensure all citizens share in the Emirate’s continued development.