Research Paper on Economic Growth and Globalization in UAE

Introduction

The United Arab Emirates (UAE) consists of 7 emirates: Abu Dhabi, Dubai, Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah, and Fujairah (Zahlan, 2016). The United Arab Emirates is located in the Middle East and shares borders with Saudi Arabia, Oman, the Gulf of Oman, and the Arabian Gulf. The country consists of more than two hundred islands which that account for a total surface of approximately 83,000 square kilometers, around 74% belonging to the state of Abu Dhabi(Sharaf, A. (n.d.). The UAE has often prioritized on the issues concerning stabilization of its security, internal and border peace. It strongly believes in strong economic development and utilization of developmental technology as well as good relation with the international community. The UAE has a pivotal role in the production of conventional energy at local and international levels that significantly boosts the development an all almost all sectors of its economy. United Arab Emirates (UAE) has increasingly become a global player in world economics (Delgado, 2016). The rise of UAE is related to the discovery of oil in the gulf. An aerial view of the Middle East before the invention of oil and after indicates dramatic changes in the desert land. The UAE has exploited its oil gift to transform into a modest and innovative society.

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A significant population in the UAE consists of foreign citizens with diversity among the residents. Majority of the foreign citizens originate from the Middle East, Southeast Asia, and Europe. Numerous multinational companies in UAE include Microsoft and Boeing who have fully utilized the opportunity of UAE's favorable tax regulations as well as a strategic location to locate their offices. The hospitality industry has also boomed in recent years, specifically in Dubai that had a considerable share of its gross domestic income, about 20% from tourism alone. Moreover, Dubai boasts of various unique indoor activities and world class 7 star hotels that make UAE among the most admired place to travel in the world. UAE's business culture is strongly influenced by Islamic traditions and has characteristics such as warmth, friendliness, and tolerance towards diversity and multiculturalism. Relationships and mutual trust are important for any successful business and are mostly established during face to face meetings. The high number of expats shows the country's openness towards foreigners and the rising number of international companies demonstrates the efforts made by the government to create a favorable environment for foreign investments.

Problem Statement

The United Arab Emirates has had a successful global economic growth on a considerable scale in the past decade. However, economic growth and globalization are not evident enough in the region despite various research studies conducted. Hence, this research intends to examine the effect of the globalization on the culture, technology, and economy of the people of UAE. The study seeks to show the globalized society and the impact on cultural values, ease of doing business in the region amidst the political and economic realities.

Objectives

• To examine the impact of globalization on the culture and lifestyle of the people of the UAE
• To examine the effect of globalization on the economy of the UAE
• To study and analyze the expectations of the government as well as companies in the future concerning the impact of globalization in light of the findings.

Hypothesis

Based on the above-stated objectives, the following hypothesis was assumed and tested for critical variables in the research.

There is no significant relationship between globalization and culture and lifestyle of people in the United Arab Emirates.

There is no significant association present between technological advancement, multinational companies, increased trade, and marketing to the impact of globalization.

Literature Review

Globalization is a broad term and characterizes a phenomenon that encompasses all characteristics of the modern lifestyle. Therefore, it is critical that a more accurate and detailed show of the impact of globalization in the Gulf region, specifically the United Arab Emirates. Hence, a more focused direction primarily focuses on and technology thoughts surrounding the global phenomenon.

Globalization and UAE

Considering the population and territorial boundaries in the Gulf region may not present the appropriate place to invest. However, due to the vast natural resources of oil and gas, the UAE has actively participated in globalization (Jaradt, 2019). The UAE was a sparsely populated desert country, but with the discovery of oil and gas, its economy has significantly changed over the years. The effect of globalization has attracted various investors in the region. Globalization requires corporation among economies of multiple countries. UAE has often applied methods such as outsourcing and insourcing, which have worked best in international collaboration (Godwin, 2006).

The amount of foreign trade that a UAE shows indicate a significant position in the economic and trade map. The United Arab Emirates function as a vital trade hub within the Gulf region as well as the world. The UAE has considerably played a critical role in achieving economic growth in the customs sector of the state. The industry has improved its efficiency in realizing an economic system that recognizes free commercial systems. Through the numerous innovative techniques, the efficiency of the customs sector has tremendously increased competition and the effectiveness of the economy. The UAE growth in foreign trade grew significantly between 2012 and 2017 by 0.65%, while re-exports increased by about 4.97% (Fernandez & Joseph, 2019). This showed the importance of UAE in the facilitation of trade and the critical role the state plays in re-export trade regardless of free-trade zone or non-oil products.

Availability of business development significantly affects the economic growth of a country. Dubai is attracting a considerable number of investors because it provides a wide range of facilities suitable for business development. According to Miller, Kyriazi & Paris (2017), the United Arab Emirates recognized the importance of an open country and welcomed foreign investors. Hence, it resulted in the shift in the service as well as production processes. The vision of the UAE is to become an economic powerhouse and create favorable conditions for investors to offer their best towards developing a better future.

Since the establishment of the United Arab Emirates in 1971, the economic strategy of the state has always revolved around the utilization of natural resources, including oil and gas. The government uses revenue obtained from the oil in developing infrastructure for the future when the non-renewable resources will be unavailable (Waal & Frijns, 2016). The UAE still depends significantly on the vast oil and gas reserves to boost its economy. However, the UAE government emphasizes on diversification of revenue to service and tourism as well as the use of clean energy in manufacture. Particularly, Dubai is making extensive efforts to minimize overreliance on oil and gas revenue to develop a long-term development and employment opportunity.

Direct Investment Policy

According to the Gulf Business, a law was put in place that allows 100% of foreign ownership of companies in the UAE. The framework Although the country has restrictions on company ownership by non-UAE & GCC nationals, making it mandatory for Emiratis or GCC national to own 51% of any business, the foreign investors are able to own 100% of the company when operating in one of the +25 free zones present in UAE. The largest and oldest free zone is located in Jebel Ali and is home for over 6,400 companies from different sectors and around 120 different countries (Mina, 2014).

Artificial Intelligence

There are great developments in Artificial Intelligence (AI), including smart cars, google searches, and virtual personal assistants (Kressne, 2017). The evolution of AI and the internet in the UAE are pivotal to its development. Dubai government is using three smart approaches, including life, economy, and tourism, to develop smart cities. This is critical to the economic advancement of Dubai since it will be seen as a destiny for technology and innovation in vital sectors such as education and healthcare. AI has significantly transformed the healthcare and security sectors in the UAE. A policy permitting the use of algorithms assisted the security in detecting fraud and boosts healthcare issues such as diagnosis of certain diseases (Kressne, 2017). The innovation has facilitated effective data design of treatments, effective data management in medical records, and health assistance through online consulting.

Methodology

In line with the objectives and aims of the research, the study seeks to investigate further the effects of globalization on the economy and culture of the United Arab Emirates. The study will primarily be based on primary information from respondents drawn from UAE. The study relied on respondents filling a survey questionnaire through survey monkey.

The study used a probability sampling, specifically random sampling. The questionnaires were shared randomly among different online users to get their views regarding the impacts of globalization on the economy and culture of the UAE. To satisfy the objectives of the study, a qualitative study was used. The primary characteristic of qualitative research is that it was appropriate for the study sample as well as the study outcomes. The advantage of quantitative research to the study is the ability to give a detailed description of the research subject, with no limitation of the study scope and the nature of the responses.

Participants

The target population for the study included residents from the United Arab Emirates. The online survey was conducted through the survey monkey site where links were generated and send through social media. There were 102 respondents from the study that included 62 males and 39 females. The survey was voluntary, and a probability sampling was used to get a sensible population representative of the total population.

The total sample size consisted of the UAE residents, executive directors, and senior managers of both multinational and UAE based companies from various industries, especially manufacturing. Selecting the study sample was based on the profile of the company while considering equal representation in the service sector and manufacturing. Respondents from the company top management were targeted to give insight on aspects of technological advancements experienced through the various stages of globalization including the use of Artificial Intelligence, job statistics and reforms in the diversified sector as well as the ease of doing business in the UAE from the multinational companies.

Data Collection Method and Analysis

The research will utilize an operational online questionnaire through the survey monkey. Arab Emirates (UAE). The questionnaires were distributed to the respondents through online posts, emails through the online survey tool SurveyMonkey.

Data gathered from the survey questionnaires were analyzed and interpreted using SPSS by using statistical tools such as averages, Pearson's chi-square tests, correlations as well as mean. Moreover, data in the form of graphs and tables were used to show the study findings.

Limitations and Ethical Issues

Since the survey involves corporate executives that represent the top management of the survey companies which posed a problem to the researcher while collecting data. Specifically, getting an adeq...