United Arab Emirates growth may depend on transparency

Significance The United Arab Emirates (UAE) economy is increasingly diversified, not least with the imposition of VAT since January 1 -- albeit at a low initial level of 5%. Fiscal transparency has not necessarily kept pace, especially in ad hoc financial support both among the emirates and externally to Gulf neighbours. Impacts Any reduction in financial support from Abu Dhabi through GCC funds might endanger Bahrain’s currency peg. Increased clarity on UAE commitments could help to stabilise weaker economies in Bahrain and Oman. The federal government is likely to convert its current deficit to a surplus of around 2% in 2018. Fiscal reforms and innovations will not challenge Abu Dhabi’s financial dominance among the seven emirates. Plans to privatise state-owned firms will create further pressure to boost transparency.

Subject Outlook for Mauritania's ties with the UAE and Saudi Arabia. Significance President Mohamed Ould Ghazouani has recently sought to reaffirm the strong partnerships with Saudi Arabia and the United Arab Emirates (UAE) that were cultivated by his predecessor, Mohamed Ould Abdel Aziz, even as he pursues a markedly more liberal approach to domestic political affairs. Prominent exiles were allowed to return home earlier this month. This raises an apparent contradiction, given the two Gulf states’ endorsement of Ould Abdel Aziz and his repressive internal policies. Impacts Riyadh and Abu Dhabi will remain key sources of financial support for Nouakchott. A 2-billion-dollar aid package from the UAE will likely be disbursed over many months or perhaps several years. As the new chair of the G5 Sahel, Ould Ghazouani will seek to sustain hitherto inconsistent Emirati and Saudi support for the bloc.


1970 ◽  
pp. 56-63
Author(s):  
Tim Walters ◽  
Susan Swan ◽  
Ron Wolfe ◽  
John Whiteoak ◽  
Jack Barwind

The United Arab Emirates is a smallish Arabic/Islamic country about the size of Maine located at the tip of the Arabian Peninsula. Though currently oil dependent, the country is moving rapidly from a petrocarbon to a people-based economy. As that economy modernizes and diversifies, the country’s underlying social ecology is being buffeted. The most significant of the winds of change that are blowing include a compulsory, free K-12 education system; an economy shifting from extractive to knowledge-based resources; and movement from the almost mythic Bedouin-inspired lifestyle to that of a sedentary highly urbanized society. Led by resource-rich Abu Dhabi and Dubai, the federal government has invested heavily in tourism, aviation, re-export commerce, free trade zones, and telecommunications. The Emirate of Dubai, in particular, also has invested billions of dirhams in high technology. The great dream is that educated and trained Emiratis will replace the thousands of foreign professionals now running the newly emerging technology and knowledge-driven economy.


Author(s):  
Nada Hammad ◽  
Syed Zamberi Ahmad ◽  
Avraam Papastathopoulos

Purpose This paper aims to investigate residents’ perceptions of tourism’s impact on their support for tourism development in Abu Dhabi, United Arab Emirates (UAE). Design/methodology/approach Data were collected using self-administered questionnaires from Abu Dhabi residents (n = 407), who represented 30 nationalities residing in the emirate. Based on social exchange theory, structural equation modeling was used to test hypotheses. Findings Results suggest that Abu Dhabi residents perceive the impacts of tourism positively and are more sensitive to the environmental and economic influences of tourism than the social and cultural influences. Research limitations/implications This study was limited to Abu Dhabi residents; findings cannot be generalized to other emirates in the UAE, or other countries. Originality/value This study adds value to extant tourism literature by investigating residents’ perceptions of the influence of tourism in one of the richest cities worldwide, which aspires to be one of the fastest growing tourism destinations in the Middle East.


2014 ◽  
Vol 4 (5) ◽  
pp. 1-12 ◽  
Author(s):  
Hamad A. Al Ali ◽  
Syed Zamberi Ahmad

Subject area International business and/or strategic management. Study level/applicability This case is useful for undergraduate and postgraduate level students majoring in international business management and/or strategic management. Case overview Etihad Airways was established in 2003, in Abu Dhabi, United Arab Emirates (UAE) with the UAE government as sole owner. It is the national carrier of UAE with Abu Dhabi as its centre of operations. Etihad is recognized as a fast-growing player in the aviation industry, and has become one of the dominant international players in the industry in a relatively short time. Etihad's fleet now contains more than 67 planes, with more than 1,300 flights per week to diverse destinations across the Middle East, Africa, Europe, Asia, Australia and North America. The company describes its business strategy as “sustainable growth”. Looking through a practitioner's lens, strategic partnerships have been the critical activities through which Etihad has delivered its strategy. The purpose of this case study is therefore to elaborate on its major and successful partnerships and the critical benefits of these. Secondary data were collected from credible sources including academic studies, relevant Etihad publications and industry reports published by official aviation associations. Expected learning outcomes Students will be able to understand the theory of strategic partnerships, their roles and benefits and critically evaluate the pre-staging “requirements” of such partnerships. In this case, the specific learning outcome of it is to help students to understand the importance of successful strategic partnerships for Etihad Airlines and how partnership strategies can improve the performance of Etihad Airlines. Supplementary materials Teaching Notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes.


2011 ◽  
Vol 1 (1) ◽  
pp. 1-2
Author(s):  
Conchita Mary Fonseca

Subject area Business strategy and human resource management. Study level/applicability Undergraduate Business and Management. Case overview This case spotlights Oilfield Services branch in Abu Dhabi, United Arab Emirates. It focuses on various problems encountered whilst operating in Abu Dhabi. Oilfield Services was first established in Dubai in 1995, primarily to meet the growing demand of quality human resources in the oilfield, shipping, and fabrication sectors in the Middle East and Persian Gulf region. The case highlights the challenges of motivation and compensating staff and the importance of strategic decision making. Expected learning outcomes This case can be used to teach decision making, cost/benefit analysis, employee motivation, and compensation and elements relating to international business strategy. Supplementary materials A teaching note is available on request.


Significance The UAE military is deeply concerned about both direct and indirect threats from Iran and from Sunni political Islam. It has therefore focused on building alliances with global and regional partner militaries, seen as more useful than developing unilateral capabilities. Impacts The UAE military will not engage in the current Qatar crisis which is political and economic. Abu Dhabi will prioritise alliances with the United States, Europe and Israel to deter Iran. Lobbying for the transfer of the US airbase from Qatar to the UAE is unlikely to succeed. The UAE will build its defence industry to function as an arsenal for regional allies.


Significance Emirati trainers had already been withdrawn from the base amid an escalating row between Abu Dhabi and Mogadishu, which has intensified since the announcement on March 1 that Ethiopia would take a 19% stake in the UAE state-run DP World development of Berbera port in Somaliland. The port deal has brought the Emirati role in Somalia’s political economy into the spotlight, with important spillover for politics within the Federal Government of Somalia (FGS), as well as the federal member states (FMS). Impacts Although this is a setback in its approach to Somalia, the UAE will not dramatically alter its overall posture towards the Horn of Africa. Turkey may benefit most in terms of access and influence, as well as logistics and reconstruction contracts for Turkish companies. Other external actors may take note of the precarious nature of deals in Somalia, especially given corrupt tendering practices.


Significance Major banks and investment companies have also announced planned mergers in 2016-17. The Ipsos City Index in July named Abu Dhabi the second-best place to live and work, overtaking Paris and London. On the ground, however, the oil-price driven slowdown is finally starting to hit residents hard. Impacts The government will increase its emphasis on economic diversification, although this will be a difficult task. Loss-making state airline Etihad is likely to face another restructuring. Abu Dhabi’s vast reserves will enable it to retain its position as leader of the United Arab Emirates (UAE).


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