This paper aims to investigate ways which Dubai have used to attract globalization and develop their tourism industry. Dubai put tourism at the core of its economic development plans in order to diversify and strengthen its economy, while decreasing its dependency on fluctuating oil prices (Sharpley 2008). The plans have been successful; in 2007, non-oil revenues contributed to 63% of GDP, with Dubai contributing 29%, to the UAE’s total GDP. What is more surprising is that due to Dubai’s push to use tourism to diversify its economy, Dubai contributes over 80% of the non-oil related GDP in the UAE. Dubai is now considered one of the top tourist destinations in the world.
Instead, it provides you a full-fledged way in guiding you to do what it takes in escaping from overwhelming restrictions put forward by governments and their policies in the way of expansion and growth of the brands. Comparative profit base The main reason for which export business gets so much attention is the incredible rate at which it provides profitability to a brand. The more exports a brand makes, the more it gets to earn and so does the profit. The strength of a firm increases in correspondence to its profit rate. Boosting productivity As the brand moves out in foreign markets, its customer base increases depending upon the creativity stuffed in its promotional tools.
Through a global trade network, Saudi Arabia found great prosperity at the cost of sacrificing its founding principles. Stability of the Arabian Peninsula created the opportunity for the newly formed Saudi Arabia to encourage foreign investments, and thus the eventual oil industry. The Arabian Peninsula of the early 20th Century was characterized by diverse and militant Islamic groups (Federal Research Division, 2004, p. 10). Although oil was discovered by 1938, Saudi Arabia did not begin to reap its benefits and face its problems until after World War 2. Oil has often been described as a ‘transforming force’, and this description is easy to apply to Saudi Arabia.
Inasmuch as monetary improvement is an approach intercession try with points of budgetary and social prosperity of individuals, financial development is a marvel of business sector gainfulness and climb in GDP. However, Saudi Arabia has an oil-based economy with firm government control over real budgetary exercises. The kingdom of Saudi Arabia has 18 percent of the world's demonstrated petroleum stores, positions as the biggest exporter of petroleum and plays a foremost role in the petroleum companies. This leads to an economic development in its kingdom. Saudi Arabia's free market economy has experienced exceptional changes in a moderately brief time of time.
On the other hand, the high- end tourism industry is very crucial to the island, which accounts to around 30 percent GDP. Also, with the financial sector continues to develop new businesses and establish businesses continue to grow, this will enable employment opportunities for local people to be employed in the tourism industries. Furthermore, with approximately 120 different nations living and working in the Cayman Islands, this brings skilled labor, which is a positive in developing the Island, but as well as a negative factor due to the economic leakage. As I mentioned earlier, with the Cayman Islands economy continuing to improve its investment development and infrastructure spending to build new roads, improve Airport model are all ways in which to satisfy local and tourists’
The research question aim to answer that what made Dubai a successful model. In general, this paper aim to approve that is Dubai phenomena a successful model for development. Conceptual analysis Since 1970 Hussein Mahdavi an Iranian scholar was the first introduce the rentier state concept. He defined rentier state as a state that receives substantial rent from “foreign individuals, concerns or governments”. (Mahdavi, 1970) In the earlier time, when the oil discovered in Arab peninsula Hazem Balbawi and Giacomo Luciani were the first scholars applied the concept over Arab countries, they have written a book considered about rentier state.
It is strange to imagine that 20 years ago Sheikh Zayed... ... middle of paper ... ... of international business and services in the Middle East. One of the ways it has achieved this is through its public policy towards tourism. Dubai’s actions towards and success around tourism are a direct result of its and its neighbors wealth from oil, as well as its central planning. While it has achieved remarkable success in a relatively short period, its tourism industry and overall development has also been affected by the global financial crisis and Arab Spring movements. As Dubai resets its course after its own economic recession, it needs to be aware of opportunities within the tourism industry around focusing on consumer segments other than the high-end, luxury tourists and developing cultural and heritage attractions, potentially around the booming gastronomic tourism market and its emergence as a gastronomic destination.
Standards of living rise because the depreciation and other cash flows of industries employing older, increasingly obsolescent, technologies are marshaled, along with new savings, to finance the production of capital assets that almost always embody cutting-edge technologies. This is the process by which wealth is created incremental step by incremental step. It presupposes a continuous churning of an economy in which the new displaces the old. The process is particularly evident among those nations that have opened their borders to increased competition. Through its effect on economic growth, globalization has been a powerful force acting to raise standards of living.
This happens through increased employment and a great amount of technical advances. Though, critics of globalization say that it weakens national sovereignty and allows rich nations to ship domestic jobs overseas where labor is much cheaper. (“Globalization,”) Global changes have fundamentally altered the national interest of the United States. (Callahan, 2004) When you looks back to the past two centuries, the international interdependencies have increased. All in number number and kind and grown in an increased amount within the impact.
The formal sector is our capitalistic principles that regulates our market. Capitalism’s main function in my opinion is to continually replicate itself establishing its set of structures and regulation, to the benefit of few. The inequalities that exist within our global economy concerning labour and wages have seen the rise in unemployment and an increasing gap between rich and poor. The lack of economic opportunities have also plagued our formal economy placing pressure on individuals and manufacturers to seek new forms of production and distribution. As Moser (1978) stated The ‘accelerated growth’ model ... aimed to increase overal national growth through policy of accelerated industrialisation ... industrial expansion would result in increased wage sector employment on the basis that there was inevitably a positive relationship between the growth of output, employment and labour productivity, while the ‘filter down’ effect would lead ultimate... ... middle of paper ... ...isations are growing and will continue to grow in our free market environment.