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Dubai has become an important tourist destination, helped by its rapidly-expanding airline Emirates, which is headed by Sheikh Ahmed bin Saeed Al Maktoum, an uncle of the emir. Dubai is also diversifying as a hub for service based industries such as IT and finance, with the new Dubai International Financial Centre or DIFC. The government has set up enclaves and freezones for industry specific corporations. Dubai Internet City, now combined with Dubai Media City as part of TECOM (Dubai Technology, Electronic Commerce and Media Free Zone Authority) is one such enclave and houses IT companies such as EMC Corporation, Oracle, Microsoft and IBM, and media organisations such as MBC, CNN, Reuters and AP.

The ruler of Dubai is H.H. Sheikh Maktoum bin Rashid Al Maktoum, who is also the Prime Minister of the federation of the United Arab Emirates. The crown prince is H.H. Sheikh Mohammed bin Rashid Al Maktoum, one of the emir's younger brothers.

There are an increasing number of "freehold" villas and flats which come with a guaranteed residence visa renewable every three years for a around US$1350 per person. The Jumeira Palm, an artificial island in the shape of a palm tree, is one of these. It is illegal to seek employment on this visa though, and a separate job visa must be obtained from an employer. It is common practice among Dubai employers to hold on to employees' passports for the duration of the employment contract. This is done to prevent expatriate employees from moving to higher paying jobs. On termination of an employment contract, expatriates and their families are usually banned from the country for six months.

Dubai is the second largest emirate in the federation after Abu Dhabi. The emirate is located on the Persian Gulf, southwest of Sharjah and northeast of Abu Dhabi, and reaches into the interior. The town of Hatta is a segregated portion of the emirate of Dubai and borders Wajajah, Oman.

Dubai is fairly unique in that its population consists mainly of expatriates, with UAE Nationals (Emiratis) constituting the minority. The vast majority of these expatriates come from the Indian subcontinent and the Philippines. The UAE government does not allow any form of naturalization or permanent residence to expatriates. Even children born in the country are not granted citizenship, unless a parent is a UAE national. Discrimination against Asian expatriates is common. Salaries for lesser qualified citizens are usually several times that of a much higher qualified expatriate. Reports of Emirati employers defaulting on several months salaries are quite common. Expatriates from Western countries however, do not face such discrimination.

The International Media Production Zone is a project targeted at creating a hub for printers, publishers, media production companies, and related industry segments. This project was launched in 2003 and is estimated to be completed by 2006.