Boomtown: managing UAE growth

by Riad Al-Khouri June 1, 2007

written by Riad Al-Khouri June 1, 2007

The Gulf economies have moved ahead in the currentdecade. The extent of change is apparent when we rememberthat only eight years ago, the price of a barrel of OPECcrude went as low as $9, and vast Arab investment went tothe US or Europe compared to the money put into business athome. In sharp contrast, today’s oil prices are nudging $70a barrel; all GCC states have now joined the WTO and areliberalizing their economies; and Gulf investment in theWest has slowed while capital accumulation soars regionally.This has been especially true of the UAE, where growth hasoutpaced the rest of the GCC. Among the emirates, glitzy Dubai, of course, is the mostfamous example of growth, due in large part to the abilityto diversify away from oil. However, other parts of the UAEhave moved in the same direction. Sharjah is a case in point: Dubai’s northern neighbor hadlagged behind the rest of the

Riad Al-Khouri

Riad al Khouri is an economist specializing in the Middle East and North Africa region. He has undertaken extensive research on regional trade and political economy, among other topics, and writes widely about development issues. He taught economics at the American University in Beirut (AUB) and Beirut University College (now the Lebanese American University) and worked as a consultant for the European Commission, ESCWA, GTZ, ILO, IOM, OPEC Fund, UNDP, UNIDO, USAID, and the World Bank, among many other public sector organizations, as well as for numerous private firms.

Boomtown: managing UAE growth

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