THE EFFECT OF GLOBALIZATION
ON DUBAI'S ECONOMIC DEVELOPMENT
Tennis legend Andre Agassi and world No. 1 Roger Federer played atop the helipad at the Burj Al-Arab hotel prior to the Dubai Duty Free Open in February 2005. |
The most noticeable way in which Dubai has entered the global economy is through its success in attracting tourism and attention to the city. "The Burj Al-Arab" (Tower of the Arabs) hotel, the only seven-star hotel in the world, has become an international symbol of Dubai. In addition, "The Palm Jumeirah" is an ongoing $1.5 billion project to create the largest man-made island in the Arabian Gulf with exclusive hotels, residences, shops and entertainment facilities. This development, which city officials claim will be visible from outer space, is shaped like a palm tree, "one of Dubai's most enduring symbols of life and abundance." Yet it is interesting to note that these new projects are physically removed from Dubai's shore and accessible only by restricted bridges. Thus they are directed more towards a global media, according to Elsheshtawy. Consequently contemporary expansion of Dubai is taking place with globalization in mind. Elsheshtawy concludes, "The city is being created to respond to globalizing tendencies - tourism, large corporation headquarters, events (conferences, rock concerts, etc.) - thus increasingly catering to transient populations. No real effort is made to resolve social problems, address concerns of the lower class, or try to make the urban environment more 'liveable.'"
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Another way that globalization has affected Dubai's economy is through international sports. The city has become increasingly known for its hosting of sporting events that offer large monetary prizes (that are often won by foreigners). For example, Dubai's Nad-al-Sheba Racecourse hosts the Dubai World Cup, the world's richest horse race with a $6 million purse. Since 1995, the race has attracted horses from the United States, England, France, Australia and Southeast Asia. Dubai also hosts renowned tennis and golf tournaments. (To promote the tennis tournament, Andre Agassi and Roger Federer, two of the highest-ranked players in the world, played on a tennis court built on a helipad at the Burj-Al-Arab. Similarly Tiger Woods, the No. 1-ranked golfer in the world, drove golf balls off the helipad prior to Dubai's golf tournament.) When Montreal, Canada, announced in January 2005 that it would not be able to host the 2005 FINA World Swimming Championships, Dubai immediately submitted its bid to stage the event at its new aquatics center. Montreal has since been able to pull together resources to host the event in July 2005, but Dubai was ready if necessary. Through sporting events, the United Arab Emirates has emerged as a global player, and Dubai has become a world city.
Dubai has also become "an emerging global city" through its involvement in global commerce. The city constructed the Dubai International Airport and added a runway extension that could accommodate any type of aircraft. Emirates Airwaysis based in Dubai. In addition, the largest man-made harbor in the world was built at Jebel Ali, and a free zone was established around the port. By having a free zone, Dubai provides an alternative for global corporations to operate without restrictions.
In addition, Dubai provides global economic opportunities because of the availability of low-wage workers. The foreign population in Dubai outnumbers its native population by between 5 to 1 and 12.5 to 1. Most of the "higher-end" jobs in the business world belong to Britons, Indians, Iranians and Lebanese, and many of the low-wage laborers are Indians and Pakistanis. In Dubai, global corporations have also been able to avoid some of the tax and environmental regulations which might exist in their home countries.
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Overall, Dubai has become a global center for trade and commerce within the last thirty years. According a 2004 study by Jones Lang LaSalle titled "Winning Cities of the Decade", Dubai has an employment growth of 8.3 percent per year . The same study found that Dubai's population is growing by 5.8 percent per year, meaning the employment growth rate is outpacing the population growth rate.
The globalization of Dubai marks a new stage in the history of a city founded as a small fishing village. Dubai has been able to provide the necessary infrastructure for global corporations and has expanded to attract worldwide attention. However, it is important to consider that while Dubai becomes a "global city," it remains a "local city". Elsheshtawy maintains that in order for Dubai to continue to expand and be successful in global commerce, it must address social issues within its city and cater to the local population as well as the "transient" international population. In this way, like the legendary bedouin, the city will continue to be able "to bathe in the sea."