One of the main reasons for the boom in construction in Dubai is its drive to diversify the economy. The Dubai government does not want to depend on its oil reserves which are largely believed to become exhausted by 2010 and, as such, has diversified its economy to attract revenues in the form of expanding commercial and corporate activity. Tourism is also being promoted at a staggering rate with the construction of Dubailand and other projects that include the making of mammoth shopping malls, theme parks, resorts, stadiums and other various tourist attractions.

One of the other reasons for the boom in construction is the recent reversal of a law in 2002 that allows non-nationals of the UAE to own property (not land) in Dubai (albeit freehold and 99 year leases are actually sold to people with ownership still remaining with private companies). The larger of the property tycoons are Al Nakheel and Emaar Properties. In Dubai, demand is currently outstripping supply by a significant margin and is showing no signs of slowing in the near future. Rents have also skyrocketed with the recent inflow of professionals and companies from around the world who are attracted by Dubai's no-tax benefits although rises have been capped to 15% per annum up to 2006 under a directive from Sheikh Mohammad. This cap demonstrates the realisation that uncontrolled rents can hamper development. Legislation in this area is still sketchy as the property market is a new one and rights of tenants and landowners are based on shaky principles borrowed mainly from European law. Most contracts and tenancy agreements do not stand up to the standards of international law and almost always grossly favour the lessor or the company selling property.

Dubai has a fairly large bus system run by the Dubai Municipality. The bus system has 59 unique routes on weekdays and transports over 200,000 people each week. The government has issued plastic, swipable "e-go" cards. There are also several discounts and period pass options available. Unfortunately though, the bus network is used extensively by lower income groups and does not do enough to attract higher income earners who would do well to use the bus transport system and ease traffic congestion that has recently become a major problem in Dubai and the United Arab Emirates. Traffic congestion has come about mainly due to lack of foresight on the recent rapid population increase, the relative ease of credit facilities for obtaining a car and the convoluted road networks that are constantly being changed, improved or reconstructed. Furthermore, Dubai has developed a reputation for having the most deaths and road accidents in the developed world clocking in with a statistic of having a minor road accident at least every 3 minutes. Due to the frequency of such incidents, road networks are blocked and held up quite frequently.