Dubai's Political and Economic Development:
DUBAI'S POLITICAL AND ECONOMIC DEVELOPMENT: AN OASIS TN THE DESERT?
by CHRISTOPHER DeNICOLA
A thesis submitted in partial fulfillment of the requirements for the Degree of Bachelor of Arts with Honors in Political Science
WILLIAMS COLLEGE Williamstown, Massachusetts
MAY 10,2005
Table of Contents
I
Persian Gulf Development Literature Oil Curse Literature Arab and Islamic Factors Regional Ovemiew and Historical Background Dubai's Development History
I1
PI1
Explaining Dubai9sDevelopment Outcome Why Not Other Gulf States? Dubai versus the Development Literature
IV
Dubai in a Cornparatbe Corntext Saudi Arabia Qatar Brunei
Conclusion
Appendix
Bibliography
Introduction
Dubai, a tiny, oil-exporting city-state located in the Persian Gulf, has recently undergone a remarkable transformation. As a member of a federation of small Arab, Islamic monarchies known as the United Arab Emirates (U.A.E.), its leaders have implemented a bold development strategy. In the space of four decades, they have managed to shift the city's economic focus from fishing and gold trading to tourism, mass communications, shipping, and finance. Unlike many of its regional peers which have developed unstable regimes and stagnant, oil-dependent economies, Dubai has diversified its economy to become a politically stable center for commerce and tourism. Consequently, Dubai has resisted the expectations of regional analysts and is a clear outlier from development trends in the Gulf. This observation leads to the central puzzle of this thesis: why is it that Dubai has defied the expectations of conventional wisdom and become so economically dynamic and politically stable? The answer to this question has implications for evaluating the efficacy of both development theories and policy options that emerging states may choose to pursue in their own development strategies. Walking the streets of Dubai, most visitors are struck by the fact that instead of Arabic,
by CHRISTOPHER DeNICOLA
A thesis submitted in partial fulfillment of the requirements for the Degree of Bachelor of Arts with Honors in Political Science
WILLIAMS COLLEGE Williamstown, Massachusetts
MAY 10,2005
Table of Contents
I
Persian Gulf Development Literature Oil Curse Literature Arab and Islamic Factors Regional Ovemiew and Historical Background Dubai's Development History
I1
PI1
Explaining Dubai9sDevelopment Outcome Why Not Other Gulf States? Dubai versus the Development Literature
IV
Dubai in a Cornparatbe Corntext Saudi Arabia Qatar Brunei
Conclusion
Appendix
Bibliography
Introduction
Dubai, a tiny, oil-exporting city-state located in the Persian Gulf, has recently undergone a remarkable transformation. As a member of a federation of small Arab, Islamic monarchies known as the United Arab Emirates (U.A.E.), its leaders have implemented a bold development strategy. In the space of four decades, they have managed to shift the city's economic focus from fishing and gold trading to tourism, mass communications, shipping, and finance. Unlike many of its regional peers which have developed unstable regimes and stagnant, oil-dependent economies, Dubai has diversified its economy to become a politically stable center for commerce and tourism. Consequently, Dubai has resisted the expectations of regional analysts and is a clear outlier from development trends in the Gulf. This observation leads to the central puzzle of this thesis: why is it that Dubai has defied the expectations of conventional wisdom and become so economically dynamic and politically stable? The answer to this question has implications for evaluating the efficacy of both development theories and policy options that emerging states may choose to pursue in their own development strategies. Walking the streets of Dubai, most visitors are struck by the fact that instead of Arabic,
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