History Of The United Arab Emirates

By the beginning of the second Millennium, many countries realized the need and necessity to cope up with the rest of the rapidly developing world. As they realized this necessity, they also realized that the key to growth and development is, indeed, education. As a result, many countries around the world entered the heated race of reforming their education systems hoping that this would ensure them a foothold in the modern world.

Presently Bahrain, Egypt, Iraq, Iran, Israel, Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia, Syria, United Arab Emirates, and Yemen are the 14 nations in the Middle East. The majority of Middle Easterners share in common the Arab culture, language and religion. It is especially important to take note of the Islamic belief. "Islam means the act of giving one's self to God or Allah" (Harris & Moran, 2000, p.385). Visitors and business people must understand the powerful religious and cultural force of Islam to appreciate or comprehend this country. Although this paper focuses on establishing and doing business in the United Arab Emirates (UAE), the writers have also given attention to the

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

It started back in 1980 when President Carter determined UAE to be a viable asset by stating this in the “Carter Doctrine”, “…an attempt by any outside force to gain control of the ...[Arabian] Gulf region will be regarded as an assault on the vital interests of the United States of America, and such an assault will be repelled by any means necessary, including military force.” (uae-embassy.org, n.d.). In mid-1990, when Iraq invaded Kuwait, not only did UAE help fund the war for America, they also sent approximately 2,000 of their own troops to help fight the Iraqis in Operation Desert Storm. In Abu Dhabi, the first used United States Air Force base was opened to mainly provide refuel missions for US aircraft during the war, and is still utilized by US forces today. Also, a couple years later the US and UAE signs the defense pact, which allowed US forces to utilize UAE’s ports. One specifically in Dubai, Ali Port, is crucial to the US Navy due to the fact that it is the only port on the Gulf that is deep enough to be used for an aircraft carrier. Since 1992, UAE has been the largest manufacturer of US military equipment, investing over $360 million in defense gear for the American troops. As we move forward in time, lets take a look at the acts that hit closer to home. When we were attacked by arguably the most malicious terrorist attacks on American soil on September 11, 2001, UAE immediately froze all bank accounts to anyone suspected of funding terrorism, and instantaneously confronted Al Qaeda and the Taliban Regime. Only four short years later, the American people were hit by another catastrophic event, Hurricane Katrina. When the US was trying to regroup, UAE invested $215 million into the aid of people impacted by the event. The most important fact to date, is when UAE requested and the US approved to sell $15 billion in defense equipment to include the

During the 19th and the early 20th centuries, the pearling industry thrived which provided income and employment to the people of the Persian Gulf. However, the first world war had a severe impact on this industry which wiped it out. The British then set up a development office that helped in some small developments within the Emirates. Due to the trial nature of society and the lack of definition of borders between the emirates, there were frequent disputes which kept settling either through meditation or, more rarely, force.

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.

In 1997 the sales of natural gas surged in 1997 as one of Qatar’s North Field came on line (Beard, p. 18). This specific event contributed to a total GDP of approximately 30% (Beard, p. 18). Further development in 04’ can be directly attributed to transportation, storage, hotels, bank and finance and government. Again, Qatar’s reinvestment in their community enables them to function and thrive even with any imbalances in the gas and oil industry that many other countries base their entire GDP to. Further growth was seen through Qatar’s history though. Specifically, in 2008, Qatar’s capital was believed to have peaked. Further contributing factors are the positive traits that coincided not only with the factors that enabled them to grow not only in the hydrocarbon sector nonetheless the non-hydrocarbon sector as well. The labor growth within Qatar has indefinitely increase. Specifically, many workers have migrated from one sector of growth to the other. The IMF stated that, “Qatar’s population rose from approximately 650 000 in 2001 to 1.9 million in 2013. The employment-to-population ratio rose from 48 percent in 2001 to 68 percent in 2007 and more than 85 percent in 2013. As a result, growth in GDP per worker has been slower than growth in GDP per population (Table 1). This is illustrated in the case of the non-hydrocarbon sector, which appears to be growing fast in per-capita terms but not in per-worker terms” (Beard, p. 20). However, with this population increase occurring, production by these workers lacked. IMF found that this production was in decline from 01’ through 09’, but then elevated in 12’ with a slight decline yet again in 2013. This may only be explained by the shift of labor to the construction sector of the

The military of the UAE has grown exponentially in size and spending and nearly doubled their defense budget in the last decade. In recent years, they have gone from an unsociable military to one that is considering creating a coalition against Islamist terrorist groups with Egypt, Saudi Arabia, and Kuwait. They assisted in the overthrow of Libyan dictator Muammar Gaddafi back in 2011. The UAE has utilized the U.S. in the importation of F-16 and F-35 fighter jets as well as their own PATRIOT and Terminal High Area Air Defense (THAAD) air and missile defense systems. Currently, the U.A.E. is the third largest defense importer in the world. (Rosen 2014) Furthermore, they are combating the fight against the spread of ISIS with bombing efforts along with the U.S and Australian fighter pilots. Exercises,

This unitary Islamic absolute monarchy “possesses 18 per cent of the world’s proven petroleum reserves and ranks as the largest exporter of petroleum” (OPEC, 2015), also is a member of the Organization of Petroleum Exporting Countries. The oil production is responsible for about 50% of the Gross Domestic Product, and about 85% of export earnings (OPEC). Although it is the world’s greatest exporter, its GDP per capita is only $24,454. Saudi Arabia ranks weakly on the Human Development Index as number 59 of the 182 states in the world, and it is only number 8 between the other MENA countries. Although Saudi Arabia’s elite is very wealthy and large, a great portion of the population barely receives profits from the state's wealth. It is ranked as not free relating to civil liberties and also ranked as suffering hard from corruption. Also, the political parties in Saudi Arabia are banned, and political organizations that oppose may only exist outside the country (Freedom House, 2015). Even before the discovery of oil, the family that was in power depended on the merchants of Jeddah, a Saudi Arabian city, to collect their taxes. When oil was discovered in Saudi Arabia, that is when the country started to develop, just like the United Arab Emirates. It can be said that if a country has strong institutions, stable economy, and a flexible political system, they

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 UAE has become one of the most important models of political stability when there are some nations in the region are suffering from unrest even when there is a presence of a large foreign community in the country. This political stability helped the BMW company to grow with minimal political tension and not having that much of risks in the market. (Opportunities)

Justification: The United Arab Emirates is one of the fastest developing nations in the world in terms of infrastructure. One of the key elements contributing to the development of the UAE is the country’s booming tourist industry, whose growth can be attributed to several leaders in the country. However, one leader stands out in particular, and that is the UAE’s Minister of State for Foreign Affairs, Dr Anwar Mohammed Gargash. Dr Anwar’s achievements as a leader have been given a great deal of significance as they have resulted in changing the face of the UAE.

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).

But there’s more to Dubai than simply oil revenue. The westernisation of the emirate’s economy has created much diversification. Today’s new arrivals are as likely to find themselves employed in tourism, financial services or real estate as in energy or construction. They

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