Dubai as Rentier State

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

Located in Western Asia at the South-East end of Arabian Peninsula on the Persian Gulf is the oil-rich economy viz. United Arab Emirates (UAE). The demographic of the economy consists of 11.6% Emiratis, as much as 59.4% South Asian (including 38.2% Indian) and 29.1% others (2015 est.). The economy constitutes young population with majority of the population between 25-54 years of age (61.27%) and about 96% are aged below 54 years of age. Dubai, Abu Dhabi and Sharjah account for 85% of the total UAE population.

Dubai with all it's wealth is not wealthy because of their technological knowledge and inventions causing their advancements wealth wise, but only because other races of people from outside their country came in discovered their oil, established oil drilling and oil refineries that later the leaders of Dubai nationalized and took over the oil operation from the outsiders keeping the preponderance of the profits from the sale of oil for themselves and their people. If it wasn't for the oil they would be just another group of poor none white people.

I have to admit that we are very blessed with so many beautiful and breathe taking cities in the world. Dubai is just one of the many countries which has advanced from their humble beginnings and today are multi million tourist. Dubai is another city which has moved from having not as much as other countries once did such as money and a stable economy, to one of the richest cities in the world. In 1966 oil was discovered in Dubai and was a catalyst for Dubai’s economic growth. From a country that had come from not having a stable economy and not a lot of money, it has become like I said earlier, one of the richest cities in the

Iraq’s political economy has undergone various changes and was shaped greatly by the wars, sectarian violence and sanctions. However, it has the potential to be one of the greatest, most balanced economies in the Middle East. The economy depends greatly on oil, whereas other sectors like agriculture, services and industries contribute very little to the economy. This dependence on oil has been there since the mandate years, but the nationalization of oil in1972 increased oil production, allowing the Baath party to diversify the economy. For most of modern history, the Iraqi government has been in control of directing and stimulating the economy, Especially during Saddam’s era, where the government was centrally directing the economy. Although

The UAE was formed by the union of the coastal sheikdoms around the Arabian Gulf in 1971 by an agreement for a Federal Constitution. The country has forged ahead and the economy grew because of its oil wealth. Although now the economy is not reliant on oil and revenues come in from tourism, real estate and trading. This has promoted development in other areas like social, cultural and education. It also brought in a great influx of expat community and the Emirati population is only 20% (Gaad, 2006).

Saudi Arabia has developed into a wealthy nation over the last 30 years due to the export of oil to other countries around the world (Sullivan, 2013). The

Most countries affected by the civil wars have been cut off from any regional connections therefore they weren’t able to attract many of their regular customers. The UAE has taken that to their advantage by reeling in the customers who would normally shop in Egypt, Syria, Tunisia, Libya and Yemen and give them the opportunity to shop in places in the UAE instead of in a dangerous country. This has led to a 10% rise in spending by shoppers affected by the Arab Spring. The United Arab Emirates is known as a modern country with a stable government system that the public seems to respect. Governments from different countries such as Syria have shut down Internet and power connections to avoid the world to see the troublesome county. Because of these barricades, countries such as the United States and England have been keeping a close eye, especially since they cannot export and import products between countries. Perhaps the Middle East would’ve been better off without the Arab Spring.

The economy in Iraq largely relies on oil mining. Oil in the country accounts for approximately 90 percent of government revenue and an estimated 80 percent of its foreign exchange earnings. The Iraqi economy is mainly run by its government. The country’s security environment is improving and foreign investors play a role in spurring economic activities in the construction retail and energy sectors. This leaves a niche in their market and this is where we come in with our computer and auto parts investments. The county’s long term fiscal health, broad economic developments and improvements sustained in the overall living standards of the Iraqi people depend on its central government’s passing of major reform policies. (The World Factbook:

One to take away from UAE’s strategy that Saudi Arabia needs to start implementing now is “social engineering is better at changing civic attitudes than economics one” (Jones). The changes that were made allowed for the UAE to have “successful efforts at economic diversification” (Indexmudi.com).

Over the past 50 years one country has stood out from the rest. From its abundant resource of oil to owning one of the top soccer teams in the world. By choosing a different government system from its surrounding countries and investing heavily. Qatar had the quickest turnaround from a fishing village to one of the top GDP per capita, in the world. Qatar is currently the richest country in the world today. Located in western Asia, next to Saudi Arabia and the gulf coast, a small peninsula is where Qatar can be found. It is a part of Arab sovereign states and it is about 7,000 square miles. The people of Qatar are called Qatari, only a few true native Qatari remains, most of the citizens there are immigrants. Compared to its surrounding countries, Qatar has a different lifestyle than its neighbors. Qatar abundant resources and choosing a different path from the rest of the Middle East has shaped it to be one of the richest country in the world by incorporating a different government system, managing their resources and its liberal culture.

Just looking at economic growth, the Mena regions have a lot of money just sitting underneath them, however this reserve of oil isn’t being spent on what many seemed to be the best. In many of these countries, the oil, is being used to fund terrorist organizations and leading the deaths of millions. Even in the countries were they are economically wealthy they are not political wealthy because of the corruption. One good example is Qatar, where they are very wealthy from oil,

The economy in the United Arab Emirates has experienced substantial increases in the last 40 years. The UAE’s capabilities with the pearling and oil industries have given the region its necessary budgets to expand so rapidly. The economic policies in the UAE have gone through stages, since the birth of the region in 1971. Changes in economic welfare of the markets, and privatization policies are also key aspects in understanding the UAE’s economic liberalization and growth. In order to understand the UAE’s economic standard, economic liberalization must be analyzed. The argument of this paper will discuss how economic liberalization has occurred in the United Arab Emirates and is continuing to grow.

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

The UAE 's economy is the most diversified in the Gulf and the wider region. There’s no income tax. The gross domestic product is 67,616 dollars US per capita. The country oil and gas reserves are among the richest in the world. Successful efforts at economic diversification have reduced the portion of GDP based on oil and gas output to twenty five percent with a plan to push it to zero within next fifty years (Renewable Energy Prospects: United Arab Emirates p. 30). Low prices of oil have prompted the UAE to take steps to reduce its spending on country wide social programs, including eliminating fuel subsidies in August 2015. The IMF recently praised the vision and fiscal policies adopted by the country that