UAE is the most globalised state in the Middle East because Abu Dhabi, emirates with immense oil wealth and Dubai with entrepreneurial accomplishments was opened as commercial hub shortly after deriving independency from British. Long before UAE had started opening up to free trade, free motion of labor and joint concern ventures so the other states in Middle East. So, when the tendency of globalization becomes clear in mid 1990s most of the Middle East states are unprepared for the economic and political impact of globalisation while UAE was all set for going globalised at least economically. It had ne’er taken gobalisation as challenge but as chance from which they can hold benefit. UAE was ever prepared to make this without doing any via medias with his values and tradition. ( THE UAE – The Challenge Of Globalisation – Part 19. , 2002 )

UAE has set an illustration for the universe on managing challenges by keeping political stableness and societal security. By following unfastened economic system policies, triping private sectors and pulling foreign investors helps him in globalisation. UAE has worked difficult to do its manner for healthy concern and investing environment. ( Paulo, 2004 )


Today globalization is a demand of every state in the universe, whether it is little or large, developed or developing state. Globalisation was started in 1980, but has taken gait with the technological promotion in the sectors of conveyance and communicating and by puting through large development states and opening them for international trade and investing. Even the hapless states are besides seeking hard to use the chance of globalization. They are doing to universe markets of manufactured merchandises and services with their immense labor. ( Viswanathan, 2008 )

With 32,278 square stat mis of country, dwelling of 7 little emirates of Abu Dhabi, Dubai, Ras Al-Khaimah, Sharjah, Ajman, Umm Al-Qaiwain, and Fujairah, which together makes United Arab Emirates. These emirates were united as one federal province on 2 December, 1971. Abu Dhabi is the wealthiest member in the brotherhood because of its immense oil wealth and Dubai is 2nd largest emirates being a commercial port. Bing allied to the emirates like Abu Dhabi and Dubai, the staying five little emirates are basking political and economic benefits.

UAE is considered to hold bossy authorities, in which one individual possesses the power. There are less political reforms in the state than the economic 1s because of being of ‘sheikh ‘s quandary ‘ in the state. UAE has foreign policy of non-interference in the internal personal businesss of other states. They believe in peaceable declaration of differences. UAE ever supports for international establishment like United Nation and Gulf Cooperation Council ( GCC ) . ( Stone )

Globalization and UAE

In footings of population and its district Middle East may non be a good part for investing, but holding good natural resources of gas and oil make these states to actively take part in globalization. UAE was hapless desert state but the find of oil changed its economic system markedly. The consequence of globalization had made the resources of oil so of import that investors instead consider the little district and population of the UAE.

Globalization is mutuality of universe economic system ; it requires cooperation among economic systems of the states. Some techniques like outsourcing and insourcing proves to be the best method for international coaction. Today UAE, particularly Dubai is pulling many foreign investors because it provides all the installations for concern development.

UAE recognized the importance of being an unfastened state that can offer something new to the investors. Therefore, offshoring, which consist of shifting of production procedures and services from one state to another besides plays an of import function in globalisation and made direct impact on the states. Dubai is offering considerable economic conditions and chances to foreign investors for making concern at that place. The vision of UAE is to make an unfastened state for international concern investing and to give their best for edifice better substructure.

At first the economic system of UAE was largely dependent on natural resources, but now it is besides concentrating on other sectors for developing net income. It has begun to seek other beginnings of income such as touristry, existent estate and international fundss.

Globalization besides permits UAE to spread out its market. Its economic system is non merely depending on foreign trade but besides on import and export market. Its top most export spouses are Japan, South Korea, Thailand and India ; and chief export goods are natural gas, crude crude oil and dried fish. The chief importers states are Germany, UK, Italy, France, United States, China, Japan and India ; and chief imported goods are equipment and chemicals for interior endeavors.

Another success of UAE is the application of latest engineerings. The market is collaborating with modern tendencies and using new cognition to production map. Conformity progress thoughts in market aid in acquiring efficient work in sectors like production, direction and entrepreneurship. ( Effect of Globalization on United Arab Emirates Market )

Challenges and Opportunities

Present twenty-four hours state of affairs does non give any other option so to fall in the globalisation procedure along with other developing states. However it may non be same for some underdeveloped states. Globalization interrupts the civilization and outlook of UAE people. If the state wants to pull tourer and foreign investors so it have to do via medias with its deep-seated Islamic traditions, but the strong followers of regulations for both locals and aliens consequences in losing most of the visitants and tourers. Therefore to come in the globalisation UAE go a free state with wide positions. This resulted in alteration non merely culturally but besides economically. Dubai can be best illustration as it is surrounded by conservative states like Iran and Saudi Arabia but it is able to pull foreign investors by leting company to work in revenue enhancement free environment.

Globalization is socialization of many states. So it is really hard to continue 1s civilization and traditions, hence for the interest of globalisation people in UAE have to abandon some regulations and values of their imposts.

Another Challenge of globalisation is fiscal instability ; absence of fiscal control can besides take to economic instability. It is true that big states are doing net incomes from globalisation but it is non confirmed in the instance of little states. Foreign investing helps in development of the state so it is of import to hold right policy and logical usage of the standard money. Government should look into whether the states fiscal sector is acquiring full benefit from the investings or non. ( Effect of Globalization on United Arab Emirates Market )

The challenges of globalisation can be met through the joint attempt of both public and private sector. The public sector is actively take parting in development of unfastened economic system procedure and accommodating economic and societal fortunes in conformity with the demands. On other manus private sector is acquiring support by constitution of industrial country and free trade zone. Enhancement in the procedure of denationalization is allowing the market forces to rectify turns and bends seasonably by commanding economic life.

Government should non merely be responsible for the growing and development, private sector should besides take part. Private sector can assist by bettering public presentation and productiveness. They can unify little private endeavors to do big productive unit and can increase competition. Meanwhile, Government should work with societal and concern organisation to accomplish different ends. ( Paulo, 2004 )

On the security terminal, UAE has signed many defence pacts with western powers like US, Britain, France and have strong defence dealingss with closer states and figure of other states.

With the clip there is alteration in thought of people in UAE, because of positive alterations brought by Dubai in field of concern development. Even it has become an illustration for other emirates. Younger coevalss of UAE are taking him and are the determination shapers. Their inputs are doing singular alterations in the commercial and infrastructural sectors. The younger coevals is straight related to governing households. ( THE UAE – The Challenge Of Globalisation – Part 19. , 2002 )


United Arab Emirates is greatly influenced by Globalization. It has actively participated in the procedure by supplying favourable environment for concern and foreign investing. They besides have broaden their imports and export market with addition in the figure of states. This besides helped UAE in development of substructure of the state. Some economic techniques like outsourcing, insourcing and offshoring helped him to develop good concern dealingss with other states which indirectly are influenced by the globalisation. Globalization besides leads to openness of state which can do negative impact as in footings of civilization and tradition. Government need to pull off the flow of foreign investing in order to hold economic stableness. ( Effect of Globalization on United Arab Emirates Market )

From 1990 to 2003 volume of trade has been increased and high and in-between income states had made their portion in universe trade, this became possible merely because of globalisation. Globalization can non be taken as a solution to everything. It barely provides any chances, states who have taken advantage are booming who don & amp ; acirc ; ˆ™t are droping. States with right mentality can bring forth equality of result with globalisation. The low income states need international aid and support to take part in Globalization It demands the corporate action of all the states in the universe. ( Viswanathan, 2008 )