Industrial Development of Dubai

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Table of Contents

The Rapid Industrialization of Dubai
Introduction
The Industrial Development strategy in Dubai
The positive impacts of the rapid industrialization in Dubai
The Negative Impacts of the Rapid Industrialization in Dubai
Gaps to be filled for Economic Sustainability in Dubai
Conclusion
References

The Rapid Industrialization of Dubai

Motivation

The aim of this research is to study the strategic industrialization in the economic system of Dubai. Being a student of international relations and a citizen of the United Arab Emirates, I am much interested in having extensive knowledge about my home country. More precisely, I have a strong desire and great enthusiasm for representing my own country on international matters one day. In this regard, am very much encouraged to know the particular impacts that my country is facing as a result of its massive industrialization over the last few decades.

As revealed by CBS (24-27), every country went through the industrial revolution, though at varying rates under different circumstances; following the industrialization era across the world. This paper presents the impacts of the rapid industrial development in Dubai and its subsequent implication on its other sectors of the economy. Particularly, the paper would go into an in-depth analysis of the impacts and aspects of the rapidly increasing industrialization in Dubai.

Introduction

According to Christopher (42-45), Dubai has experienced the most rapid industrial development over the last few decades; becoming the most popular among international businessmen. Basically, the industrial development in Dubai can be described to have been revolving uniquely, as it does not go through the hypothetical development stages of development other developed countries have experienced.

In this regard, this massive industrial development can be associated with the hefty oil reserves in the country which has enabled it to develop at such a high rate. It should also be noted that Dubai has an abundance of natural resources like gas and oil; which have enhanced the development of ‘Resource-Based Industries’. Generally, the country has been experiencing remarkable income levels from these natural resources enhancing the achievement of significant social and economic development within a very short span of time as reported by Shamir (76-97).

The Industrial Development strategy in Dubai

In the last two decades, the pace of economic growth in Dubai has been incredible with high future prospects due to extensive development projects that are currently established, as reported by Little (32-51). As it has been observed, the government and legislative institutions have been designed to create a business-friendly environment for all investors. By so doing, this has led to increased property development and ownership, increased capitalism, and the general growth of the economy. Generally, the rate of industrial development in Dubai has can be described as unique; as many developed countries have been observed to the hypothetical stages of industrial development. As Shamir (76-97) observes, the rapid industrialization in Dubai has resulted in both positive and negative effects in the country.

Since the start of the trading industry in Dubai in the nineteenth century, the concession of reasonable taxes by the government has stimulated rapid investors’ immigration into the country. Later in the twentieth century, the country specialized in the importation and exportation of valuable commodities, the major being gold. According to Doha (13-17), Dubai’s trade with India helped in strengthening the industrial development in the country which in turn enhanced the stability of its economy. With a very bright vision, the United Arab Emirates was able to upgrade its national infrastructure; which paved way for the increased industrial development that is evident today in the country.

The positive impacts of the rapid industrialization in Dubai

Being one of the countries in the Middle East endowed with large reserves of natural resources, the UAE longs to enhance the development of all other sectors of the economy from its massive industrial investment in natural resources processing. As reported by the CIA (134-157), the availability of huge amounts of oil and gas in the country has enhanced the generation of high income from those resources; in which the money gained has been used to boost other sectors in the economy. More so, being a business-friendly country, the UAE has been engaged in various international trade agreements and unions, which have propelled the country high in terms of its performance in business. Particularly, MASDAR (29-41) points out how Dubai has experienced a remarkable international relationship with other countries; which has boosted the country higher in terms of its performance in business.

As revealed by Shihab (59-67), the rapidly increasing industrial development in UAE has impacted a lot in the development of other sectors of the economy by availing enough money to establish various infrastructures. It should be noted that Dubai has the most modern industrial infrastructure and thus; has drawn a lot of investors into the country. By so doing, the country has been observed to expand tremendously in terms of its industrial sector which has created a lot of job opportunities among the citizens and foreigners. In this respect, therefore, the country can be described as having the least level of unemployment among its citizens.

The Negative Impacts of the Rapid Industrialization in Dubai

Nevertheless, the rapidly increasing industrialization in Dubai has been observed to create various adverse impacts in the country. Being a geographically small country, with a small population size, many expatriates have been observed to move into the country in very large numbers, as reported by MOP (31-33). As it has been revealed, the largest population in UAE constitutes immigrants in search of favorable investment opportunities in the country. This has resulted in population pressure in the country as there has been a continuous flow of foreigners into the country, as the resources remain constant. Particularly, there has been significant pressure on natural resources which has resulted in a significant decline in the living standards among the people despite the massive economic growth.

Gaps to be filled for Economic Sustainability in Dubai

Despite the significant increase in industrial development in Dubai, the country still needs to reinstate various structures so as to enhance the sustainability of economic progress. For instance, according to Anand (133-150), the rapid capitalism and economic growth in Dubai have been associated with the lack of sufficient regulations to monitor and govern various investments within the country. As many economists may argue, very rapid capitalism and economic growth without sufficient regulation may make the economy sterile which can easily collapse. In this regard, appropriate strategies ought to be developed so as to regulate the investment patterns in the country so as to enhance the sustainability of the industrial development in the country.

More specifically, this is would effectively regulate and maintain the long-term sustainability of the industrial development in the country, by reducing the wastage of human labor. Perhaps, this increased growth will lead to the motivation of investors in the industrial sector in the country, in which appropriate reinstation of the market and monetary policies, as suggested by UNDP (102-113).

Conclusion

Generally, the rapid industrialization in the United Arabs Emirates has impacted a lot in the country’s general economic progress. As it has been revealed, there are various positive and negative effects of the massive industrialization taking place in the country; impacting a lot in various economic sectors of the country. Perhaps, several strategies ought to be developed so as to ensure the sustainability of the rapid industrialization in the country.

References

Abu Dhabi Future Energy Company (MASDAR). Today’s Source for Tomorrow’s Energy. 2009. Web.

Anand, Ravallion. “Human Development in Poor Countries in The Role of Private Incomes and Public Services”. Journal of Economic Perspectives, 7.1 (1993): 133–150.

Central Bureau of Statistics (CBS). Interactive Business Network: Steady Industrialization. 2008. Web.

Central Intelligence Agency (CIA). The World Fact-book. 2009. Web.

Christopher, Davidson. “Dubai: The Vulnerability of Success.” New York: Columbia University Press. (2008): 42-50.

Little, Claire. “Understanding the Economic Development of Dubai.” Abu Dhabi: Abu Dhabi University Press. (2007):32-51.

MOP (Ministry of Planning, UAE). “Annual Economic Report, 1999”. Abu Dhabi: Government Press. (1999): 31-33.

Shihab, Mohammad. “Industrial Development in the United Arab Emirates”. London: Pearson Publishers. (1990): 59-67.

Shamir, Pradhan. Dubai’s Manifest Destiny. 2010. Web.

United Nations Development Program (UNDP). “Human Development Report 1999”. Oxford: Oxford University Press (1999): 102-113.

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