Globalization has rapidly increased the mobility of people within countries and around the

world. This has overwhelmingly had a negative effect on the UAE.

Introduction
Globalization can be described as international integration that arises from exchange of people,
products, views and other aspects of human life. Countries experiencing globalization are
effected in three major areas: social, cultural and economical. This paper aims to provide
evidence and theoretical perspective to the debate on pros and cons of globalization. It
hypothesizes that globalization has led to overwhelming effects on the UAE.
Lets study both pros and cons further:
Advantages
1- Globalization integrates economies of different regions so they can exist co-dependently.
The UAE has abundance of oil wealth and economy mostly depends on it. Oil is a natural
resource that is heavily used around the world and there is a possibility it could run out at
any time. If it does, the UAE will still have alternatives to economy due to globalization
which will kick in and create new jobs.
2- People from different countries and cultures around the world come to the UAE. All of
this adds new flavors to the culture; this is why its known as multi-ethnic society.
3- Globalization has also brought about a prosperous real estate business and industrial
developments to the area. Huge sky scrapers, tourism and large corporations are only
some of the big leads in this spectrum.
4- Free trade is possible because of globalization and it has benefited the UAE as it allows it
to import goods at a lower cost rather than producing them domestically. The UAE
economy has concentrated on importing profitable good such as oil, gas and petroleum
and relies on import for rest items.
Disadvantages
Immense globalization leads to erosion of original culture. Foreign people and products
bring different cultures which overtakes its original culture. The UAE is a favorable
destination for people around the world for both business and pleasure. They also leave
.there footprint on culture which is why the UAE has almost lost its urban Arab culture
In the early 1970s the nationals were more than 68% and now they are only 10% of total
population, rest are foreign nationals. Demographics are becoming a challenge for the
UAE. This demographic imbalance is very critical and needs to be corrected for citizens
.as it has left the country in a unique and unnatural position

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Private sector is backbone of a countrys economy. Total nationals contributing to this

sector have exceeded 1% since the formation of the country. This is critical as nationals
.have no standing in private sector, which is major source of new jobs

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Despite being a fast growing economy Unemployment is at its highest in the UAE.
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Thousands of jobs are created annually in the private sector, yet citizens cant find jobs.
Despite nationalization in various sectors, situation has remained critical as foreign
.nationals have high majority in private sector
Conclusion
Globalization undoubtedly brings benefits to a country. It largely depends on the government and
regulatory authorities to make sure its utilized to a countries advantage. Analyzing all the pros
and cons, it is clear that the UAE is enjoying all the benefits that come alongside globalization
and hence boosted trade. However the disadvantages are also not negligible and measures should
also be taken to reduce the negative effects associated with globalization.

References

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Organizational Culture Differences and International Joint Venture Performance, Journal
of International Business Studies, 33, 2, 243-265.
o The National. (2010). Globalisation isnt going anywhere. September 1, 2010.
http://www.thenational.ae/thenationalconversation. Retrieved on 25th December, 2011
o Silicon Valley. (2010). News Analysis: What the United Arab Emirates (UAE) Thinks
About Globalization. The Levin Institute : New York
o James Bennett. 2007. Dubais foreign licenses surge forward. Retrieved May 2, 2007,
fromhttp://www.arabianbusiness.com/index.