Why Is Dubai a Rich Country?
What makes a country rich? Is it the monetary wealth of the elite, the quality of life its citizens have? No, it is productive that country is. Dubai, an emirate of Arab, is mostly associated by being a part of the Gulf, which in turn makes people think Dubai got so “rich” because of oil. Dubai owes its wealth to the factors of production it uses to be so productive.
Although oil is a natural resource attributed to Dubai, it is not the most influential in its economy. In fact, it is only responsible for a fraction of Dubai’s growth. I think Dubai’s strategic location on the globe counts as a factor of production, because without a place to be situated in, there would be no Dubai, and because Dubai is located on the Persian Gulf, allowing it to become a business center of the world. Without these natural resources, Dubai would not be as prosperous as it is.
Dubai’s sudden growth has attracted many investors to invest in Dubai’s industries and land. This, along with the laborers who are responsible for building the plethora of Dubai’s many lavish buildings, are a form of human capital, that is, these people have contributed their skills and knowledge to further improve the country.
The money that these investors have risked investing towards Dubai is physical capital, a factor of production that is necessary in order for growth to occur in the economy. There is a saying that goes, you have to spend money to make money.
Technology is a key aspect in modern Dubai. Many companies have outsourced their offices to Dubai, many being companies centered on computers. Companies use computers to help their business, and in turn, this helps Dubai strive. More technology used by Dubai includes the machines they use to create man made islands and the tools they use to build their tall skyscrapers.
Dubai owes a lot of its success to the country’s effective use of the factors of production to be productive....
Please join StudyMode to read the full document