Dubai’s population reaches 4 million: What it means for residents

Vijay Valecha, August 28, 2025, Khaleej Times

Dubai’s population reached four million on Thursday, the highest in its history, according to the Dubai Data and Statistics Establishment’s estimates.

The population has doubled in 14 years, as the number of residents in the emirate stood at 2 million in 2011.

Data showed that the emirate’s population was only 187,187 in 1975, reaching the one million mark in early 2002, two million in 2011, and three million in 2018.

The emirate’s population increased from two million to three million in seven years and then from three million to four million in another seven years. If this rate of growth continues, Dubai’s population could reach five million by 2032 and six million by 2039, potentially surpassing the estimated 5.8 million under the Dubai 2040 Urban Master Plan.

The emirate saw the slowest increase in population in 2021 due to the outbreak of the Covid-19 pandemic, when a large number of companies laid off employees and many people returned to their home countries. Since then, the emirate has bounced back to its position as a centre of attraction for businessmen, professionals, millionaires, and billionaires, offering high returns on investment, better job opportunities, a world-class lifestyle, and safety and security.

Similar to Dubai, the UAE’s population has also been witnessing exceptional growth over the decades, reaching an all-time high of 11.39 million, according to Worldometer.

Impact of rising population

The rising population will have a direct and indirect impact on the city’s residents in terms of higher demand of homes, educational facilities, public transport, healthcare professionals and facilities, infrastructure projects, job opportunities and visas, among other needs.

“A growing population in a city typically translates to increased demand for goods and services. As such, one of the first impacts residents will see is a greater variety of options available across multiple sectors. It also means that overall demand would be more inflationary in nature since there will always be a strong demand narrative,” according to Vijay Valecha, chief investment officer, Century Financial.

Behaviour-wise, he said consumers may look to explore more new options, including buy-now-pay-later (BNPL) solutions and providers, as well as digital and online options for purchasing groceries, food, and other products. “With the growth in urban population, traffic backlogs would become a significant roadblock. It could imply that more residents are looking to undergo resettlement to the nearest and most affordable residential hubs near their workplace,” he added.

“Consider a case where a foreign non-resident has purchased a property here and is looking to establish a business base as well. What typically follows is a host of relatives and friends looking to explore Dubai's vibrant life and culture. The opening up of visa laws in this regard has further motivated foreign buyers,” he said.

Dubai is home to a diverse community of expatriate residents with varying income levels and lifestyle preferences. As a good number of the population remains reliant on public transportation, including metro, buses and taxis, the growing population will require more transport resources.

“While car buying has increased, the overall dynamics are further likely to change with the addition of new Dubai Metro Blue Line projects. Major realignment, as well as the creation of new retail hubs, would likely take place,” he predicted.

Source:

Khaleej Times