The Impact of Globalization on the UAE and Dubai During The Last Decade - Essay Example

How has Globalization Affected UAE′s Dubai in the Last 10 Years? affiliation How has Globalization Affected UAE′s Dubai in the Last 10 Years? Globalization is a general term describing how different people, companies and governments come together usually initiated by international trade and investment and complemented by information technology. Currently, globalization is necessary in every country, whether it is already developed or developing, big or small. Since its inception in 1980, it has brought about technological advancements in the transport and communication sectors and opening up developing countries to international trade and investment. Every country, even the poorest are trying to take a chance in globalization by utilizing the world markets of manufactured products and services with their huge labor. Globalization mainly affects three main areas in a country: social, cultural and economic (Silicon Valley, 2010). Globalization has been of significant effects across the globe. The vice has been cited as one of the greatest reason behind the development of nations from the third world. Globalization has increased the efficiency of diplomatic interactions across the globe. Similarly, globalization has been cited from its negative impact such depletion of cultural and traditional social values. Regardless of the criticism, one may assert the globalization has influenced positive changes across the globe. Over the past decade, the massive economic, political and social advancements have been influenced by globalization (Silicon Valley, 2010). A similar can be experienced can be explained of the United Arab Emirates. The region has been significantly impacted by globalization. From a dominant fishing and gold trade industry, the region has successfully transformed its economy to tourism, mass communication, finance and shipping industries. The effects of the transformation have been of great benefit to the region. For instance, Dubai had undergone massive growth transformation. Dubai is fast becoming a global developed city. Executive skyscrapers and modernized architecture dominate the view of the city. Dubai, which is one of the wealthiest member countries in the Middle East, has hugely benefited from globalization (Silicon Valley, 2010). Globalization has influenced Dubai significantly because it has increased the foreign investments, encouraged domestic investment and even stimulated free trade with other countries. Dubai runs an autocratic government whereby one person possesses the power. They have a foreign policy that runs on the principle of non-interference in the internal matters of other countries and believes on peaceful resolutions in case of a dispute. Dubai has for a long time enjoyed global economic success since the discovery of oil and gas deposits. Before the oil and gas, Dubai was just a poor desert country but since the discovery of the resources, its market changed rapidly (Silicon Valley, 2010). However, oil is a resource that does not exist forever and one day all the oil resources will run out. However, thanks to globalization, the economic situation in Dubai will still remain stable and continue to enjoy dominance in the global market. At first, the economy of Dubai was mainly depending on natural resources. Later on, they started focusing on other sectors that could bring revenue stream. These include the tourism sector, real estate and international finances. Globalization has really increased the foreign investments in the Dubai. According to a survey carried out in 2005 “Foreign investment inflow in Dubai was a record US$ 10 billion. This is nearly 34% of capital flow into the Dubai (Silicon Valley, 2010). The reason for these high investments is that the country is politically stable; it has favorable working conditions for the business people and does not impose taxes on the goods and services provided. Because of globalization, it has been easy for many business people to realize the economic merits the Dubai guarantees for the business people. The flourishing real estate business and industrial development is because of globalization. Globalization has opened up the country not only on foreign trade but also on import and export market. The top most export partners of Dubai include Japan, South Korea, Thailand and India; and the main export goods are natural gas, crude petroleum and dried fish. Its main importer countries are Germany, UK, Italy, France, United States, China, Japan and India with the main imported goods including equipment and chemicals for inner enterprise (Silicon Valley, 2010). Tourism is now a part of the globalization process in the Dubai that is now a major source of foreign exchange, which chips in the development of the infrastructure. Tourism is a crucial generator of employment in the Dubai and it helps reduce the dependency on other sources of the economy like oil reserves because they will not last forever. Tourism, which revolves on sun, sea and sand, has seen the extensive growth and development of tourism infrastructure like roads and airports to the international standards. Free trade with other countries was possible through the implementation of globalization. This means that Dubai can import goods cheaply than its costs to produce them locally. This allows the country to concentrate on the production of goods with greater value. Globalization has been successful in the Dubai due to the political stability of the country. Dubai has and will always be the most favorable country for carrying out business dealings and investment because of the favorable foreign trade policies implemented by the Dubai government. The country develops policies to enable citizens get suitable jobs in their homeland as many of its citizen’s work in their homeland (Silicon Valley, 2010). In short, the government is responsible for providing the social goods and services such as jobs, subsidized consumer goods and other things that improve their standard of living. The country has less political reforms than the economic ones because of the presence of ‘sheikh’s dilemma’ in the country. Through the adoption of open economy policies, activating private sectors and attracting foreign investors, globalization became a success. Dubai has been able to provide a healthy business and investment environment. However, the Dubai government runs under the feudal political structure whereby the directive families have power over who leads the country (Silicon Valley, 2010). This means that the whole Dubai population has no powers on the running of their own country. Therefore, due to globalization, the Dubai should adopt a more democratic political approach to leadership and move away from traditional forms of governance while embracing commercial diversification. Globalization has affected the Dubai society in many ways but their traditions remain intact. Dubai has now become a multicultural hub whereby people from different cultures, nationalities and ethnicities come and associate with each other and even calls it home. Since the discovery of oil and inception of globalization, the various cities in Dubai have drastically changed from dusty desert villages to urban metropolitan cities. However, their cultures remain the same since it has existed for centuries. While modernity has been a reality for the citizens of Dubai, it has not very much influenced their social and cultural lifestyles (Silicon Valley, 2010). The western culture that is slowly crouching into their society is not yet present in the Dubai culture. Instead, they have embraced little of such a culture of commercialism due to their strong attachments and bonds to a historical sense of traditional family values expected on a tribal communal system. Although Dubai do not have much of historical past in terms of artifacts or paintings to offer to their visitors, you can study their traditions and historical heritage by studying the people themselves. The citizens of the country have been able to balance tradition and culture together with the modern technological progress. This has prompted the rapid and successful development of the whole country economically in such a short period. The sudden changes in the economic sectors of Dubai has changed the way its citizens socialize among themselves, conduct business and interact with foreigners in both public and private settings. In order to avert any negative effects of globalization on the social life of its citizens, the Dubai has managed to safeguard the natural culture and traditions via a careful design of policy tracks (Silicon Valley, 2010). Globalization has brought about the integration of economies but along with it, it has disadvantages, issues and challenges. There has been a worry about the environmental pollution due to globalization. Dubai experiencing difficulty in curbing the trade barriers and there have been issues over ethical responsibilities of businesses. Globalization can also increase labor exploitation, degradation resources. Another challenge is the financial instability; absence of financial control. Large countries can be making profits but not for the smaller countries. The government should always check to see if the financial sector is getting the full benefit from the investments or not (Silicon Valley, 2010). In conclusion, globalization has been an integral part in the growth of the Dubai. It has ensured in providing the favorable environment for both business and investment. As a result, they have expanded their imports and export market to include many countries. This has help Dubai improve its infrastructure and develop good business relations with other countries (Silicon Valley, 2010). Globalization has resulted to openness of the country that has its negative impact on culture and tradition. The government must be able to manage the foreign investment flow to have a stable economy. Lastly, globalization is not solution to every economic situation in a country. Countries must have the right mindset to produce equality in the outcome of globalization. References SiliconValley. (2010). News Analysis: What the United Arab Emirates (UAE) think about globalization. New York: The Levin Institute. Read More