Oil and United Arab Emirates
Employment created due to the oil sector 3
Oil sector behind the development 5
It is no surprise that the credit for the transformation of UAE from a minor port to one of the richest countries in world goes to the oil sector. Currently UAE is widely known for its large amount of oil and oil sector. More than the half of the total oil reserves in the world is located in the Middle Eastern Arab countries like the United Arab Emirates, Saudi Arabia, Qatar, Kuwait, Oman and other such Arabic countries. The formation of oil is a process that goes on for over millions of years, when the remains of animals and plants that have died years ago forming sediments. When multiple layers of these sediments get accumulated, they form sedimentary rocks that are rich in oil (BBC, 2015). The Gulf States have a large quantity of sedimentary rocks under them, which have been the reason behind this quantity of oil being available right now. Prior to thirty years, United Arab Emirates was one of the underdeveloped countries in the world. Most of the people were engaged in dates cultivation and camel breeding and they were their source of income. But the time has changed now. Now it is considered as one of the most industrialized nations and it has achieved some un-matchable success. The cities of countries are filled with some of the world class buildings. It is regarded as one of the most stable, safe and modernized country in the world. The country’s name is also included in the nations with the highest per capita income all over the world. The country and the countrymen were fortunate that they did not face the hypo ethical phase that is experienced by most of the nation. Instead, the high numbers of the oil reserves helped to make a direct leap to stage of a larger mass consumption. Dubai and Abu Dhabi are two of the most prolific cities in the United Arab Emirates as well as in the world (Zayed University, 2015).
Employment created due to the oil sector
Thesis statement – Oil sector have boost up the economy of the country and it improved other sectors. This way, indirectly, oil sector created a major number of jobs.
The main credit behind the success story of the country goes to the oil sector. Among the Emirates, Abu Dhabi has approximately 90% of the total oil reserves in the country and rest 10% oil reserves are in Dubai. The country ranks fourth in the amount of oil reserve. The oil barrels are exported to a large number of the countries. This way, the transformation of the country started. With the huge capital earned with the help of the oil sector, the sheikhs of the country started to concentrate on other sectors too. The transport network was immediately improved. Smooth roads, harbors, and international airport with very good air connectivity were made. This gave job to numerous of people (Shihab, 1999).
Business and tourism sectors have been highly revolutionized. The construction sector has also been enhanced. These sectors have created more job opportunities than the job seeking individuals of the country. There is a huge amount of investment made in the areas such as construction and tourism sector. More investments equals business expansion and every business expansions needs more employees. So indirectly this creates more job opportunities and reduces the amount of unemployment (Issac, 2015).
Before the oil discovery, the population of the United Arab Emirates was much lower than the most of the nations in the world. But since the oil discovery and export boom, they have experienced a higher amount of significant growth. Among these increasing amounts of the population faced by the countries, the majority of them are migrated people from different nations. Currently, the United Arab Emirates have more than three quarters of the people of the total population that are citizens of the different country. The main reason behind the migration of people is that it provides large job opportunities. Construction sector provides jobs to more than one and a half million people, business sector provides jobs to approximately one million people and industrial sector provide jobs to half a million people of different nationalities in the country (UAE Embassy, 2015).
Summary – Apart from the local citizens, the country also provides employment to more than 2 million people.
Oil sector behind the development
Thesis statement – Today, Dubai and Abu Dhabi are very developed due to the oil sector.
Oil and its products are often known as black gold. The oil sector and oil industry have increased the living standards of the people of the country. Currently, one in every five citizens of the United Arab Emirates is a millionaire. The government of the country is also very strong and developed. With every wedding in the country, the government grants the couple with one hundred thousand dollars and with every birth of a female child, they grant twenty thousand dollars and some land as well to the parents. Cities like Dubai and Abu Dhabi are considered as one of the best city for travel and they are giving a tough competition with other cities of the developed nations. Dubai has become well known as a city filled with super luxurious hotels, shopping places, restaurants and tourist attractions. The city is attracting tourists from all over the world (DeNicola, 2005).
The policy of the United Arab Emirates government of economic diversification will help the country to prosper even after the oil will go empty. Finances, tourism sector, re – exports, and free trade zones are some of the factors that have helped the country to achieve the unparalleled success. Numerous international companies have opened their local subsidiaries or branch or even a representative office in the country and other companies are keen to open. Apart from sectors like this, the government has also taken some serious initiatives for making the lives better for the local citizens. They have invested heavily in the agriculture sector, power sector, numerous factories, and multiple enterprises. There are ample of green gardens, free space and agricultural fields for the people of the country (Saadi, 2015).
Summary – The policies of the government of the country works towards a balanced development of the country as well as its citizens.
It is correct to say that the oil sector is the main reason behind the success of the country. Currently everyone would be familiar with the success story of the country. It is estimated that the oil barrels with Dubai will last another ten years. While, the oil barrels with Abu Dhabi will last another ninety years (UAE Embassy, 2015). But the vision of the Sheikh is really praiseworthy here. He wanted that the country should not fall, once the oil barrels are emptied. So he started to develop and make all the sectors of the country, stronger. We can see how correctly, it worked. Today, the country does not rely on the oil sector anymore. The other sectors like business sector, health sector and construction sector have surpassed the oil sector.
BBC. (2015). How crude oil was formed. Retrieved from www.bbc.co.uk: http://www.bbc.co.uk/bitesize/standard/chemistry/materialsfromoil/how_crude_oil_was_formed/revision/1/
DeNicola, C. (2005). DUBAI’S POLITICAL AND ECONOMIC DEVELOPMENT: AN OASIS IN DESERT? Williamstown, Massachusetts : WILLIAMS COLLEGE .
Issac, J. (2015, January 3). khaleejtimes.com. Retrieved May 3, 2015, from Non-oil sector to spur UAE growth in 2015: http://www.khaleejtimes.com/kt-article-display-1.asp?section=uaebusiness&xfile=data/uaebusiness/2015/january/uaebusiness_january24.xml
Saadi, D. (2015, April 29). Bigger industry and service sectors to reduce share of oil to UAE GDP by 2025. Retrieved May 3, 2015, from thenational.ae: http://www.thenational.ae/business/economy/bigger-industry-and-service-sectors-to-reduce-share-of-oil-to-uae-gdp-by-2025
Shihab, M. (1999). Economic Development in the UAE. UNITED ARAB EMIRATES: A NEW PERSPECTIVE, UNITED ARAB EMIRATES: A NEW PERSPECTIVE.
UAE Embassy. (2015). The UAE and Global Oil Supply. Retrieved May 3, 2015, from uae-embassy.org: http://www.uae-embassy.org/uae/energy/uae-and-global-oil-supply
Zayed University. (2015). The Story of the U.A.E. Retrieved May 3, 2015, from zu.ac.ae: http://www.zu.ac.ae/main/en/_careers/living/story.aspx