Analyze the Economic growth plans of your chose Economy.
Dubai is one of the largest economies around the world and it has been growing at a steady rate to become a world leader. The country is termed as the success story of the Arab world owing to the fact that it is the largest economy in Middle East (Brizi, Lust and Woolcock 2015). The country started to grow back in 1980 and since then it has transformed itself as one of the best destinations for the Foreign Direct Investment (FDI) from the western economies (Henry and Jennie 2016). Based on the oil economy and resources of natural gas, Dubai has become a brand, which is acknowledged as the potential place for growing business. With ever-increasing government spending, and growth of the infrastructure in the country, the domestic economy has become one of the most sustainable economies around the world (Delgado 2016). In recent days, there has been a strong debate regarding the issue that whether it is possible to export the Dubai’s economy in the other GCC countries or not. This report is meant to analyze this phenomenon and trace out the feasibility of the proposition.
Very few academic instances unfold the economic growth and plan of Dubai. Most of the current information regarding the economic condition of the country is achievable through media coverage, business reviews and magazine (Harvey 2017). However, being a top ranking economy around the world, Dubai has huge importance in the global market. Thus, this report considers economic condition of the country and it tries to analyze whether it is possible to export the Dubai’s economy to the other GCC and non-GCC countries or not.
There is very few evidence of academic researches on the Dubai’s economy. It has constrained the scope of analysis of the possibility that whether the present economic growth structure of the country can be implied to other nation or not. According to the Faris and Soto (2016), Dubai’s economy is presently growing due to the successive strategic plans taken by the government back in 1996, 2003 and 2007. Besides this, since 1980, oil economy of the country has aided it to have a strong financial condition. Along with this, diversification in the economic activities of the country has aided it to reach sustainability. As per the words of Elbadawi (2016) Dubai’s economy has grown eleventh time during the period of 1975 to 2008 compared to its previous economic condition. When it comes to other GCC countries, then it can be seen that all of the countries lag far behind from the Dubai’s Gross Domestic Product (GDP). Besides this, political turmoil is higher in other GCC countries and there is lack of government intervention in the economy (Sbaouelgi and Bulila 2016). Moreover, there is lack of skilled labour in the other GCC countries that makes them constrained in the case of production in goods and services. One of the main differences of Dubai’s economy is that it has great amount government spending. Countries other than non-GCC economies, have higher fiscal deficit that constraint them to include the Dubai’s economy.
Qualitative and quantitative research of Dubai’s economy has displayed that the economy has portrayed great amount of growth through last three decades. As the strategy of growth, economy of Dubai considers the importance of government intervention (Hartman and Zandberg 2014). One of the major stimuli towards the economy was oil and gas production of the country. Besides this, the economy achieved great level of benefit from the skill development program of the government and economic reforms in recent times. Moreover, Green Growth Strategy introduced by the UAE government back in 2012 has aided the economy to survive the recession effect, which took place back in 2008 (Alajoutsijärvi, Juusola and Lamberg 2014). Besides this, the employment policy of the economy is flexible enough to hire and fire employees smoothly that has curtailed the growth rate of the economy and lead it towards a smooth transition from a lagging economy to a growing economy.
Dubai is one of the largest economies in the world and it ranks 25 among the world’s best economies. Besides this, the economy has highlighted great potential to reach sustainability by the end of 2030 (Antiado, Castillo and Tawadrous 2017). Various researches have used the SWOT analysis on Dubai economy and they have highlighted various strength and weaknesses of the economy.
|
Strength |
Weakness |
Opportunity |
Threat |
|
— Economy has great investment activity — High amount of FDI — Skill development programs — Availability of oil and natural gas |
— Country lacks diversity in its economy — External balances are tending towards weak position — There is lack of public finance data for analysis |
— Economy of Dubai can introduce new goods and services — Country has possibility to enhance its capability of expanding market by incorporating newer business |
— Huge external assets are on e of the main threat to the economy of Dubai — Political turmoil present in the economy can act as the negative stimuli towards the Dubai’s economy |
Table 1: SWOT analysis of Dubai
Source: (Created by Author)
Above risk analysis of the Dubai’s economy portray that country is in stable condition, however there is scope to expand it too largely. Compared to other nations, Dubai has fewer threats in the world market. Dubai’s airline and oil market is one of the major factors that cause the economy to have cannon balling its GDP (Elbanna et al. 2017).
Countries like UAE, Saudi Arabia, Oman, Bahrain and Qatar are the part of the Gulf Cooperation Council (GCC) (Ulrichsen 2016). This regional political organisation is aimed provide a better cooperation among these economies and enhance the trade. However, it can be seen that all of the countries have different economic structure and they follow different plan for the economy. Among all of the GCC countries, UAE is the richest one and implying their structure into the other economies will not be beneficial. Domestic economies of the other GCC nations have fragile political condition, which will make the amalgamation into a devastating situation (Lekhraibani, Rutledge and Forstenlechner 2015). Moreover, when it comes to other non-GCC nations then the lack of funds are one of the main reasons that can lead the conjugation into a devastating situation for them too.
Comparison of Dubai’s economy with both the GCC economies and non-GCC economies portray that Dubai is a growing economy and it has great amount of government spending (Snyder 2015). This aids the economy to have lower unemployment level and a sustainable growth rate. Monarchy system of the government helps the country to have a stable financial condition; however, political turmoil is one of the major concerns for the economy (Harvey 2017). Comparing the Dubai’s economy with the help of EMBA programme, the report has found that it will not be possible for other economies to adhere with it due to lack of public finance and lower level of skills.
Conclusion:
The report has analyzed the Dubai’s economic performance and it has found that the country’s economy is reaching towards better sustainability. Lower amount of unemployment and highest GDP in among the GCC countries; make Dubai one of the best economy around the world. From the comparison of the economy of Dubai with the other GCC nations, it has been found that other nations are not in a position to absorb the economic condition of Dubai. Due to lack of government spending and political turmoil, GCC countries like Egypt, Oman, and Iran will not be able to accommodate the Dubai’s economic structure. When it comes to non-GCC countries like Singapore, China, and Africa, accommodating Dubai’s economy is not possible owing to high level of unemployment and great magnitude of fiscal deficit.
References:
Al Faris, A. and Soto, R. eds., 2016. The Economy of Dubai. Oxford University Press.
Alajoutsijärvi, K., Juusola, K. and Lamberg, J.A., 2014. Institutional logic of business bubbles: Lessons from the Dubai business school mania. Academy of Management Learning & Education, 13(1), pp.5-25.
Antiado, D.F., Castillo, F.G. and Tawadrous, M.I., 2017. Educational Tourism in Dubai: The Global Higher Education Hub Across Culture. In Leadership, Innovation and Entrepreneurship as Driving Forces of the Global Economy(pp. 543-551). Springer International Publishing.
Brixi, H., Lust, E. and Woolcock, M., 2015. Trust, voice, and incentives: learning from local success stories in service delivery in the Middle East and North Africa. World Bank Publications.
Delgado, P.A.A.D.L., 2016. The United Arab Emirates case of economic success: the Federal Government Economic Policies (Doctoral dissertation).
Elbadawi, I., 2016. Productivity, Efficiency, and Sustainability of Economic Growth. The Economy of Dubai, p.278.
Elbanna, S., Elbanna, S., Kapoutsis, I., Kapoutsis, I., Mellahi, K. and Mellahi, K., 2017. Creativity and propitiousness in strategic decision making: The role of positive politics and macro-economic uncertainty. Management Decision, 55(10), pp.2218-2236.
Hartman, S. and Zandberg, T., 2014. Legacy planning of mega events: the organic growth strategy of Amsterdam as a sustainable development model?. In 32nd EuroCHRIE conference” Hospitality and Tourism Futures”, Dubai 6-9 October 2014. EuroCHRIE.
Harvey, S., 2017. Beliefs, Institutional Change and Economic Growth: Evidence from Dubai.
Harvey, S., 2017. Beliefs, Institutional Change and Economic Growth: Evidence from Dubai.
Henry, C. and Jennie, L., 2016. Higher Education and Philanthropy Potential in the GCC States: Analysis of Challenges and Opportunities for FDI and Venture Philanthropy in the MENA Region.
Lekhraibani, R., Rutledge, E. and Forstenlechner, I., 2015. Securing a Dynamic and Open Economy: The UAE’s Quest for Stability. Middle East Policy, 22(2), pp.108-124.
Sbaouelgi, J. and Boulila, G., 2016. Does the Impact of Gini Index on Growth Differ among GCC Countries?.
Snyder, R.S., 2015. The Arab uprising and the persistence of monarchy. International Affairs, 91(5), pp.1027-1045.
Ulrichsen, K., 2016. The GCC states and the shifting balance of global power. Browser Download This Paper.
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