Amena Abdulhameed

Graduation research project, part 2

How did the UAE’s economy develop after tourism and oil?

objectives

1. When did the economy see a shift?

2. In terms of tourism, what were the major keys that boosted the tourism economy?

3. Did the lives of Emirates change after oil and tourism?

4. How did UAE make Dubai a place of tourism less than two decades?

5. Besides form Abu Dhabi’s oil and help to Dubai, how did Dubai stand on its feet after the

crisis?

6. What are Dubai’s sources of income as we know it is not rich in oil?

Literature review

The point of this research is to explore how oil and tourism developed UAE’s economy.in the

1950s and 1960s the oil discoveries was made, and in 1970s, the UAE has established itself as a

significant player in the world oil market. Oil was the main income for the United Arab Emirates

that helped them to shift to a better country. The profit UAE gained from oil they invested in

buildings, airports, trade, and hotels. Scholars from within and abroad always talk about how the

United Arab Emirates went throw several shifts over the years. I want to talk specifically about

how oil and tourism changed the United Arab Emirates economy.
The first objective is When did the economy see a shift? Over the past few decades, there

have been several changes to the UAE economy. One crucial change was in the 1970s, when the

UAE saw a sharp rise in oil earnings, which sparked enormous economic expansion and

development. The UAE has concentrated on diversifying in recent years to lessen its reliance on

income from oil. The 1990s saw the beginning of the shift towards a more diversified economy,

which has persisted to the present. The UAE has put in place several projects and regulations

targeted at advancing industries like tourism, banking, technology, and renewable energy. To

assist economic diversification and expansion, the UAE has also made significant infrastructure

investments, including the building of airports, seaports, and transportation systems. Generally,

the UAE has succeeded in diversifying its economy, but what developed from the begging is oil.

Oil was the reason they developed and built the country then shifted to tourism and other factors.

The COVID-19 pandemic has, however, had a substantial influence on the UAE's economy,

which is why the nation is currently concentrating on reducing the pandemic's consequences

while maintaining its economic diversification initiatives.

In my opinion the success is from the nation and leaders because they are the most ambitious

nation, the ruler and Emirates are responsible for the development of the United Arab Emirates.

What attract me a lot is the role of women in the country how they take the responsibilities and

challenges more than any other nations in the world.

economy. We all know most of the UAE’s economy is driven by tourism. We always hear

about it boosts the GDP and generates jobs across a range of industries, but we should know

what the primary factors driving the tourism sector in the United Arab Emirates are.

Infrastructure development: the United Arab Emirates to support its tourism economy they made

significant investments in developing its infrastructure this includes buildings, airports parks, and

other tourism attraction. The busiest international air hub in 2012 was Dubai International

Airport, which surpassed London Heathrow. Also, they made a very good and affordable

transportation which made it very easy for people to go to different destinations, and this helped

a lot to increase tourism.

Another reason is the geography location The United Arab Emirates due to its advantageous

location at the confluence of Europe, Asia, and Africa, is a particularly popular travel destination

for people all over the world. The United Arab Emirates has developed into a significant

worldwide travel hub and easily reachable by air.

The most important reason is the political stability security the United Arab Emirates has a stable

political environment. When a country is viewed as safe and secured, they are more likely to

have a good tourism.

In my opinion when they talk about the success, they do not mention the disadvantages of the

tourism from my own experience I have seen it they have lost touch with their culture and

language some of their new generation can’t write in Arabic anymore, because of the

modernization that is happening now. Tourism is a very good factor for economy but at the same

time it has a lot of disadvantages.

discovery of oil and the growth of tourism sector, peoples live in the united Arab of emirates

have changed a lot specially in Abu Dhabi and Dubai. Before the life of Emirates was very

difficult because their economy was based on trading, fishing, and agriculture but when the oil

was discovered the economy grew rapidly. The United Arab Emirates started investing in all

public sectors like education, health care, and infrastructure. they helped their residents, to have

social welfare program like free healthcare, best education, and housing assistance. The United

Arab Emirates tried to make good jobs for their people and foreigners. the development of new

business including hospitality, aviation, and retail because of the expansion of the tourism sector

has given UAE citizens access to have variety of jobs opportunities. UAE succussed because of

investing in all public sectors, business, and made sure that their people are having the best life.

The fourth object is how UAE made Dubai a popular place of tourist less than two decades.

Constructing of prominent landmarks: Dubai is very famous because it is a home to several

iconic structures like Burj Khalifa, the tallest building in the world, and the beautiful palm

Jumeirah the biggest man-made island in the world. These two iconic structures helped Dubai a

lot to be the most visit location. Dubai invested in tourism they expanded its economy beyond oil

and gas, because we know Dubai is not rich in oil what made Dubai rich is tourism. The vice

president and the prime minister of the United Arab Emirates, Sheikh Mohamed Bin Rashid Al

Maktoum, has invested a lot in Media To attract people from all around the world to see Dubai is

global center for media and entertainment. Also, Dubai launched a lot of events like Dubai

shopping festival and the Dubai international film festival to highlight Dubai’s cultural and
entertainment attraction. Media helped a lot to show the world Dubai as a top destination for

business and tourists. The most important factor that helped Dubai and Emarat was security and

safety. The United Arab Emirates is ranked one of the world’s safest countries. In Dubai the rate

of crime is very low. Tourists always search for a safe and secure countries and for that the

United Arab Emirates is the best.

The fifth object is besides form Abu Dhabi’s oil and help to Dubai, how did Dubai stand

on its feet after the crisis? In 2008 to 2009 Dubai faced financial crisis. The Dubai real

estate companies started facing financial problems. a government-owned investment firm,

declared it would be unable to pay its obligations, which totalled about $60 billion. Due to

investors' concerns about the viability of Dubai's economy and its capacity to pay back its

loans, this led to significant worry on the international financial markets. During this time,

the formerly thriving real estate market in Dubai, which had been going well for several

years, abruptly crashed. Due to the global financial crisis and the excess of properties,

demand for luxury properties in Dubai decreased. The result was a sharp decline in real estate

values and a slowdown in the building sector. What helped Dubai to stand on its feet beside

the Abu Dhabi’s help

first thing Dubai made Economic diversification: Dubai has made tourist, technological, and

renewable energy investments to diversify its economy. To draw tourists from all over the

world, the city has constructed some of the biggest hotels, retail malls, and entertainment

complexes in the world. Dubai has also made significant investments in the technology sector

to establish itself as a enter for innovation and start-ups.

its fiscal responsibility and lower its debt load. To make its debt more bearable, the city

enacted austerity measures, decreased public spending, and restructured it.

Third thing was the better regulation: To increase transparency and lower risks in the

financial sector, Dubai has enhanced its regulatory framework. To regulate financial

organizations operating in the Dubai International Financial Centre, for instance, the city

formed the Dubai Financial Services Authority (DIFC).

Dubai has made significant investments in its infrastructure to enable economic expansion.

To increase communication within the city and with other areas of the region, this involves

creating new airports, expanding the metro system, and building new highways and bridges.

These factors helped Dubai a lot to recover from the crisis and be the center of the significant

regional economic and cultural powerhouse. In addition we have to include that Abu Dhabi

played a huge factor, and never forget without Abu Dhabi financial support made them do

the factors I mentioned before because Dubai wouldn’t finish the highest building in the

world which boosted the Dubai’s reputation and brough so many tourism all around d the

world to see the tallest building Burj al Khalifa and without Abu Dhabi this would not have

been possible. Abu Dhabi founded the project because first it was Dubai tower but after Abu

Dhabi funding in it, it was named Khalifa after the ruler of the United Arab Emirates and

sheikh of Abu Dhabi sheikh Khalifa Bin Zayed.

oil?

Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the

United Arab Emirates and Ruler of Dubai, has proposed a policy known as the "Three

Ts." The plan focuses on three crucial areas that, in Sheikh Mohammed's opinion, are

necessary for Dubai's continued expansion and success. Which are:

Tourism: The strategy's first "T" stands for tourism word. The contribution of tourism to

Dubai's economy has been stressed, and Sheikh Mohammed has called for ongoing

investment in the sector. Dubai has earned a reputation for its opulent hotels, iconic

structures, top-notch shopping malls, and a variety of entertainment options that draw

millions of tourists from all over the world.

Trade: The strategy's second "T" stands for trade. Dubai has always been a hub for trade

and commerce due to its ideal location at the confluence of Europe, Asia, and Africa. To

keep Dubai's status as a major international commerce hub, Prince Mohammed has urged

for continuous investment in the city's ports, airports, and logistical infrastructure.

Technology: The strategy's third "T" stands for technology word. For Dubai to succeed

in the future, Prince Mohammed has underlined the value of innovation and technology.

With the intention of developing into a centre for entrepreneurs and innovation, the city

has made significant investments in its technology sector. The Dubai Future Foundation,

which strives to foster innovation and influence the future of the city, is one of the many

technology-related initiatives that Dubai has launched.

mention one of the sheikh Mohamed’s dreams that came true that he mentioned it in his

book was the Dubai international airport which is a great achievement.

“In 2018 89million passengers went through the Dubai international airport

compared to Heathrow 80.1 million travelling through Heathrow.”

-Sheikh Mohamed Al Maktoum

This was his dream to make the Dubai international airport to surpasses London’s

Heathrow airport. From 2018 till now it’s still in the top of the best airports in the world.

Visit Dubai and just by landing in the airport you will see how the history is being made.

Resources:

1. Yasar Jarrar, 2020, the sheikh CEO lessens in leadership from sheikh Mohammed bin
Rashid Al Maktoum

2. Sheikh Mohammed bin Rashid Al Maktoum, My Vision, 2004

3. UAE 'focused on tourism to boost post-oil economy', The National, June 15, 2021
https://www.thenationalnews.com/business/travel-and-tourism/uae-focused-on-tourism-to-
boost-post-oil-economy-1.201886

4. UAE Economy: UAE Embassy in Washington, DC, March 1, 2023, https://www.uae-

5. Editors by Ibrahim Abed, Peter Hellyer, 2001, United Arab Emirates new perspective.

6. Elie Azar, Anthony N. Haddad, June 23, 2021Artificial Intelligence in the Gulf
Challenges and Opportunities.

7. The economic crisis in Dubai 2008 - 1710 Words: Research Paper Example,
https://ivypanda.com/essays/the-economic-crisis-in-dubai-2008/

8. Crossing the three T's, World Business Times Crossing the three Ts Comments,
http://world-businesstimes.com/2016/12/15/crossing-the-three-ts/
9. Dubai architecture: 10 famous buildings to visit, July 22, 2022,
https://www.tripadvisor.com/Articles-lFWK9Ilcqvno-
Famous_architectural_landmarks_in_dubai.html

10. Robert Nowell and Simone Nowell, 3 august 2022, Dubai then and now.