The ability to effectively and efficiently manage rapid urbanization is critical. Cities must increase the efficiency of existing and new infrastructure and services to a level never previously achieved. While Dubai has pursued its vision through magnificent real estate, today it is harnessing technology to drive a revolutionary new vision for a smart city. As one of the fastest-growing urban developments globally, Dubai aims to become the smartest city worldwide in the coming years.
What is a Smart City?
A smart city uses information and communication technology (ICT) to improve operational efficiency, share information with the public and provide a better quality of government service and citizen welfare. The main goal of a smart city is to optimize city functions and promote economic growth while also improving the quality of life for citizens by using smart technologies and data analysis. The value lies in how this technology is used rather than simply how much technology is available.
Dubai Smart City Ranking
Dubai is currently ranked 29th globally out of 118 cities on the Smart City Index 2021. The index, by the Institute for Management Development, in collaboration with Singapore University for Technology and Design (SUTD), surveys residents in ranked cities to assess smart infrastructure and services covering health and safety, mobility, activities, opportunities, and governance.
Dubai's government introduced a plan to make the city smart using innovative technology, digital tools, and smart policies. The Dubai Plan 2021, worth approximately $7 to $8 billion, provides upgraded economic and social services for residents, transforms government services into data-based smart solutions, and improves the development of the city's infrastructure. Dubai's smart city strategy includes over 100 initiatives, including a plan to transform 1,000 government services into smart services. The strategy aims to foster collaboration between public and private entities to achieve six main smart targets: smart life, smart transportation, smart society, smart economy, smart governance, and smart environment.
Increased Economic Benefits
Smart city status offers Dubai's local economy increased opportunities for further growth. An advanced digital payments ecosystem – a key feature of smart cities – points to an opportunity for countries to increase their GDP by growing a digital payments economy. Benefits include access to jobs, increased commercial activity, streamlined business loans, and reduced operating cash cost. Higher card use in 70 countries, representing 90 percent of the world's GDP, contributes an additional $296 billion to consumption.
According to Mastercard's proprietary Payments Ecosystem Design and Development (PEDD) methodology analysis, a 1 percent increase in the use of digital payments produces an average annual increase of $104 billion in the consumption of goods and services. This represents a 0.04 percent increase in GDP in developed markets and a 0.02 percent increase in developing markets. This infers that the GDP of the United Arab Emirates will continue to grow as its biggest cities, such as Dubai and Abu Dhabi, continue to adapt to smart city policies.
Digital Capability
Digital capabilities are increasingly acting as a barometer for economic resilience in this 'new normal'. With unified data and analytics, smart city operators are empowered with better information, which means they can make more informed decisions to optimize operations for the new environment. Continuous learning is also redefining the city's competitive advantage.
Smart cities also enable leaders to serve citizens and businesses better and enhance the quality of life for residents. Automation of resources with AI and IoT technologies utilized by smart cities reduces costs significantly. Smart city sensors ensure resources are used efficiently, while robust connectivity serves to improve the city's performance, thus attracting an inflow of talent and leading to the rise in the overall economy of the city.
At Sentinel Business Centres, we have years of regional market knowledge and experience working with clients across many diverse sectors. Our team can help with everything you need to get your business up and running in the Middle East's most dynamic city. Contact us to learn more and get started.