Feasibility of Importing Dubai Financial Center to Kuwait - Case Study Example

The fact that most of the inhabitants of the Middle East engage in trade, makes it suitable for Dubai to import its financial center (The University of Virginia, 2009 p.370). It is evident that, unlike Dubai, Kuwait does not suffer numerous challenges with regard to the development of its financial centers. It is worth noting that, Kuwait has robust and developed financial sectors with a greater scope of development, unlike Dubai. The fact that Dubai has limited domestic and corporate sectors that reflects on the shareholdings of the state, makes it feasible for importing its financial center (Great Britain. Dept. of Trade & Great Britain. Dept. of Industry, 2010 p.430).It is imperative that Kuwait has sufficient human capital, unlike Dubai that is characterized by a lack of skilled staff hence the inability to develop its financial centers.

The problem of developing financial centers is compounded by the magnificent government sector in Dubai. It is also important to note that, Kuwait has a robust financial cum business environment that forms the basis of a successful financial center. In this regard, Kuwait does well on tax remuneration with respect to the stipulated government policies. The country also has extensive expatriate staff who can offer the needed advice accordingly (University of Michigan, 2010). By pooling its financial centers in Kuwait, Dubai will be able to expand its global sovereign assets and wealth rapidly.

Dubai’s investment style is, therefore, bound to change. It is evident that Dubai does not appear to be transparent in its investment behavior; therefore, by importing its financial centers to Kuwait, Dubai will be able to succumb to the dynamic international standards of disclosure.It is also significant to note that, Dubai is unable to facilitate private asset management (The University of Michigan, 2009 p.99). By importing its financial centers to Kuwait, Dubai will be able to incorporate its customers with a wider range of assets to meet its global development demands (The University of California, 2007 p.260). It is also important to realize that, Dubai is faced with a greater restriction that accrues owing to its smaller economy.

Following the aforementioned reasons, it is therefore sufficient to note that the idea of Dubai importing its international financial center to Kuwait is called for.