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Rise of the City-State: Is the Future Micro?
How places like Dubai, Singapore, and Monaco might outlast nations.
Philip Saparov
May 23, 2025
In partnership with
Greetings, ever-curious seeker of global insight,
There was a time when cities like Athens and Venice called the shots. Then came nation-states—big, bold, bureaucratic. But now, the pendulum may be swinging back.
What if the future belongs not to countries, but to cities?
From Singapore’s precision governance to Dubai’s bold reinvention, a new breed of sovereign city is emerging—small in size, massive in impact. They don’t demand allegiance. They offer something better: safety, freedom, and possibility.
In this edition, we explore the rise of city-states—and why they may be the blueprint for tomorrow.
Let’s dive in.
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Welcome to the city that acts like a CEO.
Singapore has no natural resources. It sits on a swamp, with no farmland, no oil, and almost no space. And yet—by virtually every global metric—it’s one of the most successful nations on Earth.
How? Vision, execution, and ruthless attention to detail.
Singapore blends the long-term thinking of a business with the pragmatism of a startup. It boasts the world’s best airport, a near-corruption-free government, and a healthcare system that delivers outcomes rivaling Switzerland’s at a fraction of the cost. Taxes are low, services are high, and efficiency is everywhere.
And it’s just getting started—leading Asia in AI adoption, biotech investment, and green infrastructure.
🔎 Fascinating Insight:
Singapore has more UHNWI (ultra-high-net-worth individuals) per capita than London or New York—and it’s becoming the top relocation choice for family offices worldwide.
Dubai is proof that vision—not oil—is the most valuable resource in the Middle East.
Fifty years ago, it was a dusty trading post. Today, it’s a global magnet for entrepreneurs, nomads, and investors seeking a cosmopolitan life without the baggage of traditional bureaucracy.
With zero income tax, ultramodern infrastructure, and a commitment to reinvention, Dubai doesn’t just attract capital—it attracts imagination. Free economic zones and one-click business licensing have turned it into a sandbox for global enterprise.
Add in luxury tourism, drone taxis in testing, and a digital nomad visa—and you’ve got a city-state custom-built for the 21st century.
But it’s not all smooth sand—restrictions on speech and long-term residency may give pause to some. Still, the tradeoff is clear: personal safety, economic freedom, and opportunity on a scale few places offer.
🔎 Perspective Shift:
Dubai's economy is now 95% non-oil—making it arguably the fastest economic reinvention of any city in modern history.
Monaco is the closest thing the world has to a gated community with a UN seat.
Perched on the French Riviera, this city-state is smaller than Central Park—but its influence, allure, and wealth density are colossal. Home to roughly 39,000 residents (about one-third of them millionaires), it offers security, zero income tax, and a famously high standard of living.
While often caricatured as a playground for the ultra-wealthy, Monaco is surprisingly forward-thinking. It’s investing in eco-friendly marine tech, expanding with floating neighborhoods, and applying rigorous planning to stay relevant—even as climate and real estate challenges mount.
It’s more than a fiscal haven; it’s a masterclass in small-scale sovereignty.
🔎 Stunning Stat:
With a GDP per capita over $190,000, Monaco isn’t just rich—it’s the richest, per head, anywhere in the world.
Hong Kong was the poster child for city-state brilliance—until its autonomy began to unravel.
For decades, it thrived as a bridge between East and West: low taxes, common law, free markets, and a fiercely entrepreneurial spirit. As a Special Administrative Region under “One Country, Two Systems,” it acted like an independent state in everything but military affairs.
But that model is under pressure. Since 2019, political crackdowns have shifted the city’s trajectory. Emigration is rising. Western firms are relocating. The once-vibrant civil sphere has gone quiet.
Yet Hong Kong’s story isn’t over. It remains a top-three global financial center. And if history has taught us anything, it’s this: never bet against the resilience of a city built on commerce.
🔎 Migration Wave:
Since 2021, over 140,000 Hongkongers have applied to relocate to the UK under new migration pathways. That’s nearly 2% of the city’s population.
With a population smaller than metro Denver, Qatar is not supposed to be a global power. And yet—it is.
Why? Because it’s mastered the art of strategic leverage. With its vast natural gas reserves and savvy diplomacy, Qatar has inserted itself into conversations from global sports to high-stakes peace negotiations.
Doha is rapidly transforming into a global cultural capital. Its sovereign wealth fund tops $500 billion. Its World Cup wasn’t just about soccer—it was about branding a nation as modern, open, and influential.
And behind the scenes, Qatar is funding universities, startups, and biotech plays that stretch far beyond the Gulf.
🔎 Eye-Opener:
Nearly 90% of Qatar’s population is foreign-born, making it the most globally outsourced labor force of any country—ever.
Estonia doesn’t look like a city-state. It’s a small Baltic country. But scratch the surface, and you'll find a bold experiment in software-based sovereignty.
Estonia has digitized nearly every aspect of governance. You can vote, pay taxes, register companies, and even access your medical records—online, securely, in minutes. But the real breakthrough? e-Residency.
Over 100,000 people have registered as digital residents, allowing them to operate businesses under Estonian law—from anywhere in the world. Estonia isn’t just a country anymore—it’s a service.
In an age of cloud-first business and remote-first living, Estonia might be modeling the future of citizenship itself.
🔎 Wild Possibility:
By 2030, some predict more people may hold digital residencies than physical passports—blurring the line between nation and platform.
If Singapore is a city-state, and Estonia is a digital-state, what’s next? Private states.
From Próspera in Honduras to tech billionaire-backed islands in the South Pacific, experiments are underway to build cities from scratch—with corporate governance and charter-based law. These aren't pipe dreams—they're funded, mapped, and in some cases, already under construction.
The pitch? Maximum personal and economic freedom. Minimal government interference. Transparent rules, low taxes, and a startup culture for civic life.
The challenge? Political legitimacy, long-term viability, and the very messy business of running a city with no historical precedent.
But if even one succeeds, it could change everything.
🔎 Prediction to Watch:
Over 50 privately-governed “charter cities” are expected to be operational or in planning stages by 2035. One could be your next home—or your next big investment.
As old systems wobble, city-states are quietly rewriting the rules—and thriving.
They’re small, smart, and built for the future. If you’re thinking about where to live, invest, or simply belong, their rise is worth watching.
Because sometimes, the smallest players shape the biggest futures.
Warm regards,
Shane Fulmer
Founder, WorldPopulationReview.com
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