Dubai

1 SOCA4030 CONTEMPORARY MUSLIM SOCIETY

Analyzing the Development and Progress of Dubai
(1990s to Present)

TABLE OF CONTENTS

Contents: Page No.:

1. Introduction: Transformation of a Village ..............................................................
1.1 Trade ............................................................................................................
1.2 Tourism ............................................................................................................
3
4
4

2. Healthcare ................................................................................................................

5

3. Literacy Rate ..........................................................................................................

7
4. Employment and Unemployment Rates ..................................................................

10 5. Income rate .............................................................................................................
11

6. Conclusion ..............................................................................................................

12

7. Bibliography ............................................................................................................

13

INTRODUCTION: TRANSFORMATION OF A VILLAGE The growth and progress undergone by Dubai over the past two decades are undeniably too significant to refute. Denicola (2005) states that the leaders of Dubai have successfully shifted the economic focus of this small, oil-exporting city-state from simple activities such as fishing and gold trading to "tourism, mass communications, shipping, and finance," causing it to become a "stable centre for commerce and tourism." It would also be interesting to note that unlike the 1990s and other components of cities belonging to the United Arab Emirates (UAE), the common languages often heard in Dubai is no longer Arabic, but English and Asian dialects. Before the influx of foreign workers following the discovery of oil that would produce cheap sources of energy in 1966, the now city-state in the UAE was a simple village; constituting of mostly locals raising animals and working as merchants or fishermen. Dubai maintained its reputation as a humble village that was slightly more than the typical Middle Eastern desert until the 1990s, when the government started focusing on stimulating their economy through both free trade and tourism. These attempts, as well as the rising cost of oil, play an important role in Dubai 's transformation into the urban area it is renowned for today. Dubai, an area of the UAE that was a mere desert-village once home to approximately 1.59 million locals now contains skyscrapers, motorways and luxurious hotels. The population in Dubai has also been reported to increase by approximately 3.03 million since 1990 - from a population of 1.59 million to 4.62 million in 2008 (Central Intelligence Agency, 2013). The city now consists of a beautiful combination of individuals from all over world who have decided to live and work in Dubai. The progress of the city has been so well-received that the ratio of foreigners to locals is now eight to one. However, in spite of the progress Dubai has achieved and continue to make thus far, it is important to note the inevitable concerns of natives. With regards to the speed of change, Mohammad Al Abbar, a businessman originating from Dubai said, “We must always remember where we came from. Our kids must know we worked very, very hard to get where we are now, and there’s a lot more work to do.” This paper will first discuss how Dubai has managed to transform from a simple fishing village to an urban city. Thereafter, the progress the city has made in four specific areas will be addressed: healthcare, education, employment and income. As it would be impossible to report on all fields of development, the aforementioned fields have been specially selected due to each playing a role in determining how developed a country is deemed to be worldwide as well as its position in the Human Development Index (HDI).

1.1 Trade The 0% tax policy on capital gains, income and property or free trade appealed to various large and established businesses. This makes the legal structure implemented by Dubai to be recognized as the most international friendly of the emirates. Thus, it is unsurprising that Dubai is now one of the world’s most influential business centres and trading ports. A significant portion of the city 's annual income comes from various industries instead of Dubai 's very own natural resource: the oil.

1.2 Tourism Aside from free trade, tourism also plays an important role in Dubai 's development and economy. By doing so, the city prevented herself from being dependent on only one resource for economic development. To promote their new tourist based economy, Dubai 's government has been initiating several construction projects. This includes the formation of tall buildings and unique man-made islands such as the Palm Jumeirah - part of the astounding infrastructure lining the once plain Sheikh Zayed Road, the longest road in the UAE stretching from Dubai to the border of Abu Dhabi. Dubai has also developed a shopping-oriented culture, one that would sit well with visitors who desire to not only relax on beaches, but also visit shopping malls while enjoying a luxurious and comfortable holiday. The malls offering lavish brands such as Versace, Chanel and Prada are scattered in numerous numbers throughout the city. Dubai also hosts an annual Dubai Shopping Festival, which endorse various promotions and marketing schemes. Another noteworthy tourist attraction is the Tower of the Arabs or Burj al-Arab, a luxury hotel sitting on a man-made island. The Burj al-Arab has been rumoured to be the most luxurious hotel worldwide, as well as the only 7-stars property in the world. With 28 floors of facilities, it is the world 's tallest structure to-date. Burj al-Arab is also home to al-Muntaha and al-Mahara restaurants, with the latter containing a grand aquarium. With the spectacular facilities that the hotel boasts, it is justified that accommodation amounts from $1500 to $5000 per night. In spite of the seemingly hefty expenditure, the tourism rate of Dubai constitutes more than two-thirds of UAE 's national tourism industry to-date.

HEALTHCARE Improvements in healthcare have contributed to the social and economic development of Dubai. In 2006, the three most common infectious diseases were chicken pox, viral hepatitis B and pulmonary tuberculosis; with reports for each amounting to 3,472, 392 and 310 cases respectively. Also, due to Dubai’s hot summer temperature, heat stroke remains to be prevalent in the city. Today, there is a decline in number of medical cases - not only for the aforementioned illnesses but other diseases in general, following the enhancement of the city’s healthcare system. According to Qadhi (2012), the mortality rate in Intensive Care Units (ICUs) of hospitals in Dubai has decreased from 60% to 35% in the year 2012. This figure has placed Dubai’s healthcare system under a positive light compared to the international bench mark of 45% to 50%. This progress was only possible because the government implemented many strategies to ensure that citizens, as well as tourists, are able to enjoy healthy and active lifestyles. It was reported by Alianz World Wide Care (2013) that Dubai’s healthcare services are internationally recognized as compliant to high standards and good services. It is also significantly different from that of other developed countries. For instance, hospitals boasting modern facilities are strategically located to ensure accessibility. There are approximately 20 clinics and hospitals distributed across the emirate. The ratio of clinics or hospitals to patients is a reasonable 1:78,000. Aside from assuring that overcrowding does not take place in health organizations, this ration also indicates that healthcare professionals have sufficient time to succinctly address the needs of each patient. One of the more impressive practices of medical professionals in Dubai is the post-clinic private medical calls that check on patients after they have been discharged from health institutions. Dubai’s public healthcare is managed by the Department of Health and Medical Services (DOHMS). This department is responsible for providing free or highly subsidized medical services for residents. DOHMS also hires foreign practitioners or health professionals trained in their home countries. A high percentage of them originate from the United States of America (USA), India, Egypt and Pakistan. Their qualifications are critically analysed and verified before they can practice healthcare in Dubai. By ensuring that healthcare services are reasonably charged and that there is a pool of healthcare professionals in the city, the department manages to maintain the health of every resident, regardless of their status quo in the society. In general, the government aims to improve the overall wellbeing of the people in Dubai. Its strategy is to provide patient-specific - a process that assess the problems and needs of a patient before attempting to treat on an individual basis. The medical services provided by healthcare providers in Dubai vary and include psychiatric treatments, adult and infant yoga therapy, rehabilitation, immunizations and vaccinations, community services (such as family counselling) and education on health and nutrition. Another attempt of the government to improve the healthcare services was made through the introduction of Dubai Health Authority (DHA) in June 2007. The DHA has been granted power to set and implement policies and strategies that could manage or improve the health of the people. DHA’s aim is to provide an accessible, effective and integrated healthcare system, safeguard public health and improve the quality of life in Dubai. This is a direct translation of one of the objectives states in the Dubai Strategic Plan 2015. DHA also focuses on providing services through its healthcare facilities such as hospitals, specialty centres and primary health centres that are spread throughout Dubai. From a simple village constituting of locals managing their health through basic home remedies and traditional methods, Dubai has without doubt, progressed in the field of healthcare. The city now boasts professional bodies, specifically the DOHMS and DHA, tasked with special healthcare roles and responsibilities. The former ensures financial accessibility of healthcare services and employment of qualified practitioners, while the latter acts as the brain of healthcare - aiming to enhance public health through its policies. The development Dubai’s healthcare services also play a significant role in displaying UAE under a positive light. For instance, from 19 deaths per 1,000 live births in 1990, the country now has an infant mortality rate of only 6 deaths per 1,000 live births (The World Bank, 2013).

LITERACY RATES Home to the largest group of population in UAE, Dubai continues to steadily grow into a cosmopolitan metropolis and global city, claiming the 22nd position in an analysis of the most expensive cities in the world. This was made possible through the aggressive development programme the government of Dubai has implemented to the education sector. According to Dubai Statistics Centre (2013), the percentage of illiteracy rate has decreased from 13.83% in 1993 to 4.7% in 2007. This figure further declined to 3.9% between 2007 and 2008. Thereafter, from 2008 to 2009, the percentage of illiteracy rate fell to 3.2%. Inevitably, a plunge in illiteracy rate indicates a significant rise in Dubai’s literacy rate – from 23.26% in to 94.6% in 2007. The following year witnessed a slight rise in this figure to 95.5%. By 2009, Dubai’s literacy rate amounts to 96.3%. Being a rapidly developing city, Dubai faces intense economic integration and rapid technological change, demanding from the society a highly-skilled workforce. Specialized knowledge is required to meet the development needs of the city. The most significant action taken by the government to address this situation was establishing the Knowledge and Human Development Authority (KHDA) in 2006. KHDA acts as a regulatory body of the government responsible for licensing educational institutions in Dubai, subsequently monitoring the growth, direction, and quality of private education in the city. According to KHDA, a ‘knowledge economy’ requires a highly skilled workforce that emphasises on both communication and problem solving. In order to meet this demand, the government has taken it upon themselves to improve the education system in Dubai. There has been an upward surge in number of schools over recent years, totalling the number of educational institutions in 2013 to 232 - 80 public or government schools and 152 private ones (KHDA, 2013). The former shares the same system as educational institutions in other parts of UAE: using Arabic language as its medium of instruction while English is considered a second language. On the other hand, private schools use English language as its medium of instruction. As part of the educational development programme, it may also be interesting to note that schools have started applying technology to its monitoring and evaluation systems. Today, most children in Dubai enjoy learning in private schools, which have gained much popularity over the years due to the use of English language as its medium of instruction. The government also encourages international universities to establish branches and offer various educational pathways throughout the city. As a result, a sizeable number of accredited foreign universities have been permitted to offer courses in Dubai over the past decade. The formation of Knowledge Village and Dubai International Academic City as a free zone has become a unique strategy to develop knowledge in the society and economy. The high level of participation in education could be attributed to UAE’s policy that grants free education for all citizens. The education system includes a curriculum for the Arabic language as well as separate schools for boys and girls at all levels of education. To provide accessibility and ease financial burdens that often accompany the pursuit of studies at a tertiary level, three large federal higher educational institutions were developed and an international scholarship programme was established. In conclusion, the rapid and aggressive development of Dubai requires a large pool of highly-skilled workers who possess specialized qualifications that can further expand the economy. The government has not only strived to attain a high level of literacy rate, but also ensured that the education system in Dubai provides various specialization options, pathways as well as financial aid to those who may be financially challenged. By continuously feeding the young with knowledge and skills, Dubai has successfully prevented its death - for a nation could only thrive through a strong economy. The strategies implemented on the education system, such as limiting inter-gender relations in school, providing free education for all citizens, offering scholarships and providing many options for individuals to consider upon embarking on tertiary education are commendable approaches that should be considered by other countries.

EMPLOYMENT AND UNEMPLOYMENT RATES According to Dubai Statistics centre, there was an increase in the employment rate from 1993 to 2000, and 2000 to 2005 (Appendix A, Table 1). The data indicates that majority in 2005 held occupations from the craft and related sectors, followed by the service and sales sector. Agricultural or fishery work was found to have the least employees, totalling to only 4,686 workers. The data also shows that the employment rate among males is higher than females. There are two key factors that contribute to the low labour force participation among women in Dubai. First, women were traditionally barred from public spaces, since the city adopted a “male domain” or patriarchal societal system. Although women participation has been increasing in the public sphere over recent years, they still have limited job opportunities. The second factor is Dubai’s nature of economics - largely connected to oil. The oil industry is not labour-intensive, dominated by men, and pays well. Families whose income is connected to oil revenues are able to live on the men’s salary alone, permitting women to stay in their traditional domain, which is at home. The region’s oil economy has reinforced the culture of gender segregation, limiting women’s ability to enter the labour force and compete with men in employment. At an attempt to attract more individuals to work in Dubai, the government has decided to waive tax charges against salaries. This results in a more disposable income per capita. Many industries in the Middle East, especially the UAE, offer high chances of providing employment due to the rapid growing business. Some of these industries are telecommunication, information technology, construction, engineering, oil and gas, media and medicine. According to a report released by Dubai Statistics Centre (2012), the rate of unemployment from 2008 to 2009 has plunged from 19% to 0.8%. In 2009, Dubai’s economy enjoyed the employment of 1.36 million individuals, while losing out on the support of 11,152 individuals: 3,973 locals and 7,179 expatriates. The most common reason for unemployment in 2009 was discovered to be retrenchment, proving that in spite of not contributing to the economy, most still prefer to work for an organization instead of being self-employed. Interestingly, graduates have been reported to be unsuccessful in securing themselves a decent career compared to those who possess education up to primary or secondary level. It remains unclear whether this is because more are graduating from universities and overpopulating the employment sectors. Those who were unemployed tend to be against low-skilled jobs, preferring clerical or administrative work instead.

INCOME RATE According to the Human Development Index, the definition of GNI is the ‘aggregate income of an economy generated by its production and its ownership of factors of production, less the incomes paid for the use of factors of production owned by the rest of the world, converted to international dollars using purchasing power parity (PPP) rates, divided by midyear population.’ Hence, GNI is a measure of the country’s economic performance or what its citizens have produced (i.e. goods and services) and whether these items were manufactured within the border. This means that the GNI does not include the income earned within the domestic economy by overseas residents. According to Arab statistics (Appendix 1, Table 2), the GNI of Dubai in 1990s was US$21,140. Dubai’s economy developed remarkably over the years 1990-2009. It was supported by the growing oil revenues together with the growth of the quantities of oil from 1990 to 2009. These were reflected in the high pace of economic activity due to the implementation of large-scale projects public and private. According to the website Doing Business, Dubai’s GNI is currently US$40,760. UAE Interact, a website that publishes news and information on UAE, a senior government official said that the economy is to expand at a “relatively high rate” in 2013. This is due to the significant increase in number of travellers and tourists during the first two months of the year. There are also positive signs indicating that the construction and real estate sector will bounce back. In addition, Dubai officials have announced plans for the development of the world’s biggest shopping mall and gardens, estimated to be larger than London’s Hyde Park. Trade, transportation and logistics have also played a key role in growth acceleration. This is apparent as Dubai’s airport is the world’s third-busiest in the world.

CONCLUSION Dubai has shown that it has progress over the years, from a small, oil-exporting city-state to a stable centre for commerce and tourism. This progress does not happen through one area but by the combination of the different areas. In the health area, Dubai is now equip with special healthcare roles and responsibilities such as the DOHMS and DHA which has cause a decline in number of medical cases. Knowledge and Human Development Authority (KHDA) was established to meet the demand of ‘knowledge economy’ highly skilled workforce that emphasises on both communication and problem solving. This has help to attain a high level of literacy rate and various specialization options for the education system in Dubai. The number of employment is also increasing year by year while the level of unemployment in Dubai has declined by 19% to just 0.8%. The increasing of employment rates is due to the rapid economics activities, which provides variety of occupations opportunity to the people. Dubai’s economy is also expanding due to the development of various sectors such as tourist industries, shopping malls and construction and real estate. This paper has highlighted the various areas that have caused Dubai to progress over the years, however if given a bigger time frame for the research, we might able to discover other factors that contribute to the development of Dubai.

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