Dubai as Rentier State
United Arab Emirates
Political Economy
The success of the United Arab Emirates come directly from its high revenue made from oil exports. This country was a desert region that turned into an economic boom in the recent years. According to CNN World News, "Abu Dhabi, the capital of the United Arab Emirates [is] the richest city in the world. The Emirate 's citizens, who sit on one-tenth of the planet 's oil and have almost $1 trillion invested abroad, are worth about $17 million apiece. Because of this factor, the UAE is considered one of the wealthiest countries in the world." However, turmoil struck the country with the recent global recession in 2008 that led to contradictions in their global oil wealth. Now that the country is recovering from this down point, the state infers global oil position will recover in sales on a slow but steady pace. In this research paper, I will demonstrate how the United Arab Emirates functions under a rentier economy and the country has not built the political stability they intended which led to challenges faced by the people and government.
The rentier model of the United Arab Emirates depicts the stability of the political economy from its high oil revenues. A unique characteristic of the prosperity of the country stems from the fact of the discovery of oil. What oil production really means is a natural resource taken from the earth and not an existing good that is produced through sales. What distinguishes a rentier economy from other countries is the oil profits and its high dependence on one necessity for foreigners. A rentier is a group or entire state that profits on income from property or investments, and in such a case oil from the UAE. The rentier is not involved with the making of the incentive, but is entitled to a high amount of the money. In his journal, "The Rentier State in the Arab World," Beblawi explains what a rentier economy is based upon. He claims, "There is no existence of a real rentier state.
Political Economy
The success of the United Arab Emirates come directly from its high revenue made from oil exports. This country was a desert region that turned into an economic boom in the recent years. According to CNN World News, "Abu Dhabi, the capital of the United Arab Emirates [is] the richest city in the world. The Emirate 's citizens, who sit on one-tenth of the planet 's oil and have almost $1 trillion invested abroad, are worth about $17 million apiece. Because of this factor, the UAE is considered one of the wealthiest countries in the world." However, turmoil struck the country with the recent global recession in 2008 that led to contradictions in their global oil wealth. Now that the country is recovering from this down point, the state infers global oil position will recover in sales on a slow but steady pace. In this research paper, I will demonstrate how the United Arab Emirates functions under a rentier economy and the country has not built the political stability they intended which led to challenges faced by the people and government.
The rentier model of the United Arab Emirates depicts the stability of the political economy from its high oil revenues. A unique characteristic of the prosperity of the country stems from the fact of the discovery of oil. What oil production really means is a natural resource taken from the earth and not an existing good that is produced through sales. What distinguishes a rentier economy from other countries is the oil profits and its high dependence on one necessity for foreigners. A rentier is a group or entire state that profits on income from property or investments, and in such a case oil from the UAE. The rentier is not involved with the making of the incentive, but is entitled to a high amount of the money. In his journal, "The Rentier State in the Arab World," Beblawi explains what a rentier economy is based upon. He claims, "There is no existence of a real rentier state.
Bibliography: Beblawi, Hazem. "The Rentier State in the Arab World." Politics of the Middle East (2009). Web. 5 May 2012. Chazan, Guy. "Oil: Finally Aligning Strategic Plans." Financial Times. 16 Apr. 2012. Web. "Economy of UAE." CIA World Factbook. 12 Apr. 2010. Web. Gared, Davidson. "Economy and Financing Projecting the UAE." The New York Times. 16 Mar. 2011. Web. Gimbel, Barney. "The Richest City in the World." CNN World News. 12 March 2007.