The UAE as a Developmental State

Introduction

In recent years, the UAE has been ranked as one of the most developed countries in the world: it has achieved, throughout its united journey, record-breaking rates of growth in all fields, which has placed it at the top in terms of global competitiveness, according to reports by specialised regional and international organizations (Wam, 2014). Its residents and citizens are viewed as happy, there appears to be sustainable growth in numerous fields, its economy is strong, trade is booming, tourism is increasing, and infrastructure is still growing. It provides a multicultural environment for expatriates and offers world-class educational opportunities (Gupta, 2018). However, there are some ways in which the UAE is still in a developmental stage. According to Gupta (2018) the UAE is still very different from other developed states in terms of its social and governmental views. Economically, the UAE is a powerhouse of progress which puts it on par with other developed states. Socially and governmentally it is quite different.

Economic Characteristics

Economically speaking, the UAE is a very developed state. Even as far back as the start of the 21st century it was obvious that the UAE was destined for great things, economically (Kawach, 2002). Just from 1990 to 2000, the UAE climbed nearly thirty ranks from the UN Development Programs 77th position to the 45th position in terms of states with high future prospects (Kawach, 2002). On the human development index level, it was spending a great deal of investment to improve the quality of life of the people living there. Life expectancy had risen from 53 years of age in 1956 to 75 years by 1999 (Kawach, 2002). But at its core, the UAE lauded its commitment to Islamic virtues and ethics for this rise (Kawach, 2002). Alone among other developed states, it combined both modern sensibilities and wealth with traditional Islamic ideas and customs to create a unique state in the Middle East.

Today, the UAE is ranked as one of the most developed states in Western Asia (Global Edge, 2021). Its top trade partners are China, India and Saudi Arabia, and its main exports are oil, precious stones and metals, and electrical machinery. Services, industry, and manufacturing make up the bulk of its gross domestic product (Global Edge, 2021).

While Gupta (2018) argues that the UAE is behind the curve when it comes to liberal values, the 2021 Index of Economic Freedom indicates that the UAE has an economic freedom score of 76.9, which gives it the 14th freest economy in the 2021 index, a remarkable feat.

Social Characteristics

Social control is not really seen as one of the flaws of the UAE but rather as one of its features: it does not permit political dissent, and free speech is not entirely welcomed. However, the effect of this is that there is social uniformity and acceptance of the ideas and agendas that UAE leaders put forward. For most, the UAE represents a healthy, and functioning society. Gupta (2018), however, laments that social control of the type seen in the UAE is a major drawback when compared to other developed states for it infringes on the individuals freedom of choice and places obstacles in his way in terms of becoming an entrepreneur: This unjust social control does not simply stop at the social level it leaks into the functioning of industry, creating another set of challenges. If we look at the types of companies that Dubai and the UAE have managed to lure in, it becomes clear that it is only really the financial and marketing departments. The heavy restrictions...

And, yet, companies do come to the UAE because they find it a very hospitable state that is more than willing to grant business a great deal of freedom to conduct business. The complaints of individuals that there is not enough freedom can seem hollow when considered from this perspective. After all, even Gupta (2018) admits that free zones such as Internet City, Media City or DIFC exhibit spaces independent of the Sharia law, providing loopholes for businesses to be able to carry out work under conditions of relative normality, away from regulation and restriction. Yet the problem of censorship is still viewed as a roadblock to future progress: the assurance of free expression in delimitate zones has not been enough to push industries like creative research, development and programming to take the leap into the Middle Easts financial hub (Gupta, 2018).

Governmental Characteristics

In the UAE, the government is presided over by the seven royal families of the seven Emirates: They vote for and make up the committees and councils of any federal responsibilities, ranging from defence to air traffic control. No institutions are democratically elected, and citizens do not have the right to influence government or set up their own political party (Gupta, 2018). Thus, Gupta (2018) asks: How developed is a country where citizens cannot...

…population growth, which may not necessarily be a problem but it does mean that careneeds to be shown for the future of these people. Moreover, if oil prices decline once more as they did in 2020, the state will suffer substantially. It also has low water supplies and a high dependency on foreign labor.

The UAE can certainly address some of these challenges, and it is doing so already. It is focusing more and more on education with the intention of developing its own scientific researchers; it is intent on boosting technological developments, and addressing its water issues so that agriculture can increase. It wants to move away from a reliance on oil for economic growth, and its collaboration with other states like Japan and Israel show that the potential exists for the UAE to develop solidly in these arenas. After all, Japan had little going for itself in these departments after WW2, but it looked to other states for guidance, learned from them, and became a global powerhouse. There is really nothing preventing the UAE from following suit.

Conclusion

The World Economic Forum, the Competitiveness Index, the World Banks Doing Business Index, and the Global Innovation Index all rank the UAE at or near the top of its region (Signe, 2019). Indeed, one really need only consider that Dubai, the UAEs most populous city, is now an international trade and business hub, with an economy organized around four pillars: trade, transport, tourism, and technology (Signe, 2019). Or one can point out that Abu Dhabi, the capital city, is home to the vast majority of the UAEs oil wealth (Signe, 2019). After all, it is the fact of the UAEs rich oil reserves that the fact that UAEs leaders have used this resource well that economic progress has been made in the Gulf State: Abu Dhabis oil is the reason the UAE holds some $1 trillion in assets and reserves through two of its major sovereign wealth funds, the Abu Dhabi Investment Authority (ADIA) and Mubadala (Signe, 2019). Lesser states might have squandered this resource unwiselybut the rulers of the Emirates have been methodical and even-keeled in managing the wealth and resources of its state. The UAE has done well at attracting foreign investment, and it has a long-term strategy that should serve its population well. It has made peace with Israel and hopes to bring wider peace to the Middle East through greater collaboration and friendship, setting old grudges aside. The UAE is well-positioned in the Middle East and therefore in the world…