Breaking the
“oil rich”
stereotype...
by: Anjum Bhat
Welcome to UAE, a country amidst an oil rich
region, with minimum reliance on oil export
revenues, a futuristic infrastructure and a solid
economic outlook. UAE’s efforts to economic
diversification have delivered strong outcomes
in creating a favorable business climate,
minimizing reliance on hydrocarbon revenues
and leveraging the potential of other sectors
including construction, tourism, trade, services
and aviation.
After instructions from the IMF in the past few
years, all GCC countries have been implementing
efforts for economic diversification to create
a stable macroeconomic environment and
shield their economies from the volatility
in the global oil market. The GCC countries
adopted a number of policies to reduce reliance
on oil, improve trade and strengthen the
business environment, liberalize foreign direct
investment, and advance education and health
sectors. The adapted policies and the growth
model achieved significant results.
UAE was always keen of economic diversification
with the emirate of Dubai on the forefront. Dubai
developed from a small settlement with few
natural resources, and limited infrastructure, to
a global city with a modern infrastructure and
the world’s busiest airport, and this significant
transformation happened in less than 50 years.
While other GCC countries spent oil money
to improve infrastructure, Dubai was busy
shaping a diverse path towards modernization.
Dubai’s favorable location in the oil-rich Gulf