How Does Globalization Affect The Economy

Globalization in U.A.E: The positivity in technology and economy

What are the reasons behind a country, mostly desert, to convert into an oasis or one of the most modern countries in the world? And to what extent does globalization play a part in making that possible? The farthest country from the United Arab Emirates is Chile, which is approximately fourteen thousand miles away. It seems like a great distance, but we have entered into the dawn of a new era and with the help of technology nothing is impossible. The words ‘far’ or ‘new’ stray in the past, seen nowhere other than a dictionary. Even with a population of over seven billion, the earth looks like a tiny ball filled with hundreds and thousands of individuals, all different in their

It has even surpassed the world’s mightiest countries like the United States. “The city, which boasts residents and visitors from quite literally every corner of the globe, is also a finalist to host World Expo 2020”, (US-UAE Business Council, 2013). Technology has reached almost every corner of the world where everyone is connected all the time. It is due to globalization the individuals in different parts of the world try to contribute to the betterment of the world, either it be in technology or anything else. Similar is the case with U.A.E, where technology is at its heights. The advancements that have taken place in a span of less than two decades have left the whole globe astonished. Yes, it is without question that hard work and brilliant minds have been the biggest contributions to this achievement but the question that rises is whether or not it was possible for U.A.E to achieve all of this on its own without any external help. Are the tallest towers and the amazing constructions the work of the country or its people alone? It is an absurd question that still needs an explanation. The only way to do that is to explain it by relating it to globalization. It is a fact that technology in U.A.E is by far the best in the world but most of its credit goes undoubtedly to globalization. There are many factors due to which until this day the technology keeps progressing. Firstly, the amount of

Firstly, it is important to know that U.A.E holds large amounts of oil reserves worldwide. This helps it to become a very important country even with its small size and is a big reason for it to take an active role in globalization. As a result, the country’s economy has reached extraordinary heights. One of the major benefits of globalization on economy is the foreign investments. According to a survey done in 2005, “Foreign direct investment inflow into the UAE achieved a record US$ 10 billion amounting to nearly 34 percent of the total foreign capital flow into the Arab world” (United Arab Emirates 2007, 2007, p.76). Furthermore, foreign investments are a big reason for U.A.E. to increase its capital stock. This increase has aided the country in having more equipment and structures to produce numerous goods and services. Not only foreign investments but also domestic investments have boosted to a new level. For example, “The UAE is an important participant in global capital markets through several investment institutions, including, among others, the Abu Dhabi Investment Council, the Dubai Port, Dubai Holding, and the Abu Dhabi’s International Petroleum Investment Co. (IPIC)” (United Arab Emirates 2007, 2007, p.76). It is true that U.A.E is highly dependent on oil but as a result of globalization, it also has major areas of growth in tourism, manufacturing and financial sectors. Tourism also