Economic Liberalization Of The United Arab Emirates

Iraq’s economy was based almost exclusively on agriculture until the 1950s, but after the 1958 revolution economic development was considerable. By 1980 Iraq had the second largest economy in the Arab world, after Saudi Arabia, and the third largest in the Middle East and had developed a complex, centrally planned economy dominated by the state. (Britannica)

Persian Gulf Development Literature Oil Curse Literature Arab and Islamic Factors Regional Ovemiew and Historical Background Dubai's Development History

The upheaval had a number of grounds, one of which was economics (Aissa 2). After gaining independence from colonial powers, most Arab countries embraced development and became major global players (Douglas 6). Socialist development philosophies were pursued by Arab countries including Yemen, Iraq, Egypt, and Libya. As years went by, oil prices fell. This resulted to the collapse of the socialist labor division. The economic models that had been embraced by various Middle East countries proved to be ineffective and produce sustainability and competitiveness. The economic situation of these countries was worsened by the global economic crisis of 2008. Additionally, though respective governments attempted to implement economic reforms, this too proved to be unsuccessful especially due to the fact that it was not accompanied by democratization. The

This economic modernization in the Middle East, could only be a short term success which does not guarantee the successful and stable economic development of oil rich states and the region as a whole in the long term. The Middle East, despite its vast reserves of oil, is still considered a developing region due to the high reliance on oil revenues and rather weak production sector of the economy as well as due to some political factors such as lack of democracy, corruption, reluctance to the reforms and other issues. There are various reasons as to why the Middle East is still considered a developing region despite its oil wealth. Natural resource revenues have also been linked to slow economic growth rates, inequality, and poverty. One culprit may be "Dutch disease," which was discussed earlier. Other factors may include the volatility associated with commodity prices, which can have especially negative impacts on weak-state economies; and the underdevelopment of agricultural and manufacturing sectors during boom periods in resource-based economies. And even when oil abundance produces high growth, it often benefits only a few corrupt elites rather than translating into higher living standards for most of the population. Corruption is one of the economic deficiencies which can weaken economic growth and development; thus it is considered as an important impediment to economic growth and political stability, particularly in developing countries. The dependence on a

The Middle East “which happens to possess over 66% of the world’s [oil] reserves,” has been catapulted into the geopolitical limelight thus bringing in tens of trillions of dollars in revenues to the nations that possess it. In about the time span of only two decades, the United Arab Emirates, which before had little but sand and tiny merchant communities, became a sprawling and prosperous country all because of the oil that they had.

The UAE is still thriving even though cultural diversity is not thoroughly followed. Specific rules and regulations are in place in order to lead the workforce, and the economy. With the increase of influence from the west, the UAE is faced with challenges of law. These changes include but are not limited to, better care for labour and other skilled workers in addition the equality of men and women, citizen or foreigner. The country motives are to meet the needs of the citizen and worker in order to keep generating income and prosperity.

UAE has for a long time enjoyed global economic success since the discovery of oil and gas deposits. Before the oil and

Is Dubai a capitalist model in the Middle East? Even that Dubai has its own challenges to deal with, but it dazzled the world’s attention in the last few years from its remarkable success story. Dubai is a city that considered as one of the fastest growing country in the world. It has gone from strength to strength. In every year Dubai is developing by working hard on its self and its goals. Dubai is a capitalist model because of its hard work at building its road infrastructure, having more entertainment places, and making a comfortable environment for the people from different cultures.

The UAE has one of the most diversified economies in the region. Abu Dhabi holds 90% of the Federation’s hydrocarbon reserves. A down side of that is that now the UAE is dependent on the revenues Abu Dhabi can obtain from the reserves. On the other hand, the service industry in Dubai has been booming, as Dubai has the 7th largest port in the world and has become the largest business center in the region. Additionally, there seems to be political stability across the Federation, which increases the chances of people doing business. There have been reports of the lack of transparency of para-public entities and businesses, which is something

The UAE is one of the riches nations in the world as measure by per capita GNP. The economy is primarily based on the oil

Strong economic statistics and prosperous strategic financial positioning in the international market is the corner stone of any country’s international strategic positioning. Kingdom of Saudi Arabia, the third largest country of Asia after China and India, with population around 22 million owns a strong economic prosperity The growth of Saudi Arabian economy has been accelerated manifolds during second part of twentieth century. This nation building phenomenon is fortified with oil revenues segregated through the modernized institutes of establishment. Demographic studies reveal that with 3% population grown the Saudi folks will be doubled by 2020 and 65% of the total will fall in the ambit of less than twenty-five years. Following these demographics, stake holders are paying special attention in the education sector, healthcare facilities, infrastructure, and industrial and agricultural development. They have ample oil revenue that they are investing in these sectors. However, they have also considered domestic price for telecommunication, electricity and power and petroleum products with the intent of

The Middle East region is a conservative cultural and religious area that grew at only half the rate of other developing countries during the 1990s. A number of factors such as structural imbalances, the so-called 'curse of natural-culture and religious conflicts, are highlighted for the slow economic development in the Middle East. Similarly, Abed (2003) identifies five main causes holding back the economic growth of the Middle East i.e. lagging political reforms, dominant public sector; underdeveloped financial markets; high trade restrictiveness and inappropriate exchange regimes. apart from these , some of the others factors include the lack of integration into the global

Next we should discuss some of the similarities and contrasts between the two countries. the most important contrast between these countries that is related to the study objective, UAE statistical SMEs report, shows that the dominate SMEs sector is the trade sector (60%) such as retail sector, consumer goods trading or garments trading. the second sector is services (35%) such as contracting industry and tourist-focused services. the Sector that is ripe for development in the UAE, is manufacturing (5%), such as auto parts or IT components. On the other hand, SMEs GDP contributions in Canada were highest from agriculture, then health, and then education. Where mining, information, and manufacturing are less contributions to the GDP. However, the concentration in the economic activity in UAE are in sectors with limited productivity growth, such as tourism, retail trade, and construction. In addition, exports are concentrated in gold and jewelry as well as tourism and transportation services. While in Canada the concentration in the economic activity in sectors with higher productivity growth such as agriculture.

The Gulf Cooperation Council states (GCC) are heavily dependent on oil to generate economic growth. Oil and natural gas are the two main sources of capital inflow that enters into these countries. GCC countries’ dependency creates economies that are sensitive to any decline in oil prices. After four years of relatively stable oil prices of around $105 per barrel (bbl), a sharp and notable decline occurred in June 2014. In the face of the plummeting oil prices, most GCC countries have cut their spendings to cope with the significant reductions in their revenues.

In 1971, six of the Trucial States of the Persian Gulf – Abu Dhabi, ‘Ajman, Al Fujayrah, Ash Shariqah, Dubayy, and Umm al Qaywayn – merged to form the United Arab Emirates (UAE). As a strategic location along the Strait of Hormuz, a transfer point for countless oil resources, the UAE has been able to play a vital role in the vast and diverse Middle Eastern economy. High oil revenues have been the result of this location, allowing the country’s per capita GDP (Gross Domestic Product) to virtually match those of prominent and influential Western nations. Abu Dhabi is the capital of the UAE and the Abu Dhabi emirate as well as the second most populous city in the country following Dubai. In 1962, a few years before the UAE was able to