Dubai: A “Second India” with Restrictions – What India Can Learn from the UAE’s Success

Introduction

Dubai often feels like a “home away from home” for Indians, with nearly 3.5 million Indians calling the UAE home. Whether it’s the bustling Indian businesses, the rich cultural influence, or the Bollywood movies playing at local cinemas, Dubai has become a “second India” in more ways than one.

But what truly makes Dubai stand out for many Indians is its stringent regulations, efficient governance, and business-friendly environment that have helped it rapidly rise as a global hub for business and luxury. This leads us to the question: Could India adopt some of these policies to improve its own systems? Let’s dive into the comparison to understand what Dubai is doing right and the challenges India faces in following its path.

1. Law Enforcement and Low Crime Rates

Dubai’s low crime rate is one of the defining factors that makes it appealing to residents and tourists alike. The UAE’s laws are strictly enforced, from petty crimes to more serious offenses. Dubai’s authorities take swift action, and penalties are severe for offenses like theft, assault, and drug use. This has led to a crime rate in Dubai that’s over 70% lower than the global average.

In contrast, India struggles with issues in its justice system. Despite having comprehensive laws, India’s enforcement is often hindered by a backlog of cases, corruption, and delays that impact public safety. According to a recent report by the National Crime Records Bureau, India has over 30 million pending court cases – a number that would likely be impossible to manage without major judicial reform.

For India, adopting Dubai’s model of strict enforcement could lead to improvements, but it also raises questions about the balance between freedom and security in a democratic society. While Dubai’s approach works well under its unique governance model, it may be challenging to implement similar restrictions in a culturally and politically diverse nation like India.

2. A Tax-Free Income Model

One of Dubai’s biggest attractions for expatriates and business owners alike is its tax-free income policy. This means that residents, including millions of Indians, don’t pay personal income taxes. With more disposable income, people are encouraged to invest, spend, and save more, which helps boost the economy further. Dubai also has very low corporate tax rates, a policy that makes it particularly appealing to global businesses.

India, by contrast, has a much more complex tax structure. Income tax rates range from 5% to 30%, and there are corporate taxes, GST, and other levies that businesses must navigate. While taxes are essential for funding public services, India’s high tax burden can sometimes discourage business investment.

For India, a complete shift to a tax-free model may not be feasible due to its need to fund large-scale public programs. However, streamlining the tax system, reducing red tape, and creating tax incentives for entrepreneurs could make India more competitive without drastically reducing public revenue.

A must read book The India Way: Strategies for a uncertain world written by non other that S. Jaishankar for all indians who love india you gotta check this out

LINK: https://amzn.to/40GH8fj

3. Rapid Infrastructure Development

In Dubai, the skyline changes almost every year. With iconic developments like the Burj Khalifa, the world’s tallest building, and the cutting-edge Dubai Metro, Dubai has shown the world what rapid infrastructure development looks like. The government is able to approve and execute large-scale projects quickly, helping the city transform at a remarkable pace.

According to the World Economic Forum, Dubai ranks among the top cities in the world for infrastructure quality. India, on the other hand, faces significant hurdles when it comes to infrastructure. Although there are impressive projects like the Delhi-Mumbai Expressway and the Mumbai Metro, bureaucracy, resource allocation, and regulatory delays often result in extended timelines and budget overruns. A study by the Ministry of Statistics and Programme Implementation shows that over 45% of infrastructure projects in India face delays.

India can learn from Dubai’s centralized, streamlined approach. By improving coordination between agencies, fast-tracking approvals, and reducing bureaucratic hurdles, India could increase the pace of its own infrastructure development.

4. Ease of Doing Business and Business-Friendly Policies

Dubai has created a business ecosystem that welcomes entrepreneurs with open arms. Ranked 16th in the World Bank’s Ease of Doing Business Index, Dubai offers minimal restrictions on starting businesses, simple licensing processes, and accessible financing options. Free zones like Jebel Ali and Dubai Internet City make it especially easy for foreign businesses to set up operations.

India has made strides in improving its business environment, but challenges remain. Currently ranked 63rd on the Ease of Doing Business Index, India still contends with regulatory complexities, a lack of digital infrastructure in some areas, and administrative delays that can make it harder for small businesses to thrive.

India could consider streamlining its business processes further, perhaps even implementing “free zones” for certain industries to attract more foreign investment and boost entrepreneurship.

5. Social Regulations and Controlled Freedoms

One of Dubai’s defining characteristics is its “controlled freedom.” Public decency laws, strict rules around alcohol consumption, and limitations on freedom of speech are a few examples. These laws help maintain order but also ensure that the city is clean, organized, and safe.

India, on the other hand, enjoys broad democratic freedoms, which is one of the country’s greatest strengths. However, these freedoms can sometimes lead to public unrest, misinformation, or incidents of social discord. Striking a balance between personal freedoms and public order could benefit India, though achieving it without limiting democratic rights poses a challenge.

While India’s democratic fabric might make it difficult to impose similar regulations, focused efforts on civic education, stricter enforcement of existing laws, and promoting community cohesion could improve social order without restricting freedoms.

6. Job Market and Employment Opportunities for Indians

Dubai’s employment opportunities have attracted millions of Indians over the years, particularly in sectors like IT, construction, and hospitality. According to recent reports, over 30% of Dubai’s workforce is made up of Indians. High wages, tax-free salaries, and abundant job opportunities make it a dream destination for many Indian professionals.

India has a talented workforce but faces issues like job scarcity, underemployment, and low wage growth. High population growth and rapid automation add to the challenges in creating enough quality jobs.

For India, fostering job creation through public-private partnerships, promoting tech and skill-based training, and encouraging foreign direct investment could help the country better retain its workforce.

Conclusion: What Can India Realistically Adopt?

Dubai’s model of governance, with its strict laws, tax-free income, rapid infrastructure development, and controlled freedoms, has created a city that is as appealing as it is efficient. However, India’s size, diversity, and democratic principles make it challenging to replicate Dubai’s policies in full.

But there are valuable lessons India can take from Dubai:

Faster project approvals to improve infrastructure

Simplified business regulations to encourage entrepreneurship

Focused job creation efforts in sectors poised for growth

In a globalized world, cities like Dubai and countries like India each bring their unique strengths to the table. While Dubai may be a “second India” in some respects, India’s own potential lies in embracing reforms tailored to its distinct social, cultural, and economic fabric. Embracing that uniqueness, while implementing strategic reforms inspired by Dubai, could pave the way for a more prosperous India.