GEO 255 project
Michael Reich
Dr. Samers
GEO 255-004
12/6/2011
United Arab Emirates: The sky is the limit
There have been enormous changes in world trade systems since the end of World War II. Advances in both technology and education allow countries to continually shape their economic structural plans. World economy seems to become more closely interconnected as each new report or census is published. “National economic systems have gradually, but inexorably, invaded one another’s territory and have become intertwined together in extended divisions of labor (Scott 394). This point is ever present today in the Persian Gulf region.
The United Arab Emirates’ (UAE) race for regional economic development and their investment strategies, largely due to the discovery of oil, attracted large amounts of foreign direct investment leading to the diversification of its economy, which will likely ensure they stay fiscally sound when the oil stops flowing. I plan to delve into the forward thinking strategies of the UAE government that have inevitably launched them into a global hub of industry. With the magnet draw of the words “free trade,” companies looking to expand, and at the same time pinch pennies, jump when such opportunities present themselves. Competition in a global market is always running at high rpms; an engine that always pushes the next company to keep their economy of scale ahead of market fluctuations. UAE has definitely come a long way since its’ statehood in 1971, but to fully understand their place in the global economy, we have to look at what their status was post World War II.
The UAE is a federation of seven emirates (principalities), each governed by a hereditary emir, with a single national president. The emirates are Abu Dhabi, Dubai, Sharjah, Ajman, Fujairah, Ras al-Khaimah and Umm al-Quwain. The UAE relied many on the fishing and pearling industries for thousands of years until the economic depression of the 1920s and 1930s, coupled with the
Dr. Samers
GEO 255-004
12/6/2011
United Arab Emirates: The sky is the limit
There have been enormous changes in world trade systems since the end of World War II. Advances in both technology and education allow countries to continually shape their economic structural plans. World economy seems to become more closely interconnected as each new report or census is published. “National economic systems have gradually, but inexorably, invaded one another’s territory and have become intertwined together in extended divisions of labor (Scott 394). This point is ever present today in the Persian Gulf region.
The United Arab Emirates’ (UAE) race for regional economic development and their investment strategies, largely due to the discovery of oil, attracted large amounts of foreign direct investment leading to the diversification of its economy, which will likely ensure they stay fiscally sound when the oil stops flowing. I plan to delve into the forward thinking strategies of the UAE government that have inevitably launched them into a global hub of industry. With the magnet draw of the words “free trade,” companies looking to expand, and at the same time pinch pennies, jump when such opportunities present themselves. Competition in a global market is always running at high rpms; an engine that always pushes the next company to keep their economy of scale ahead of market fluctuations. UAE has definitely come a long way since its’ statehood in 1971, but to fully understand their place in the global economy, we have to look at what their status was post World War II.
The UAE is a federation of seven emirates (principalities), each governed by a hereditary emir, with a single national president. The emirates are Abu Dhabi, Dubai, Sharjah, Ajman, Fujairah, Ras al-Khaimah and Umm al-Quwain. The UAE relied many on the fishing and pearling industries for thousands of years until the economic depression of the 1920s and 1930s, coupled with the