Comparative study of SMES in Dubai and south Korea

Abstract

Gulf Cooperation Council (GCC) countries have enjoyed large amounts of oil revenues for their development and prosperity over past fifty years or so. However, since the dramatic drop in oil prices in 2014, all the GCC countries are facing serious challenges in this regard. Dubai is one of the least dependent states in the UAE in terms of oil revenues and is the first state in the GCC to focus on SMEs. However, its economic activities are still, in many ways, related to oil activities and basic trading sectors. SMEs contribution to GDP in Dubai is also relatively lower than other European and Asian countries, and citizen’s participation in private sectors is also limited. In this regard, I argue that Dubai can use the development state model of South Korea to develop their SMEs and private sectors, as the Asian nation successfully used this theory to increase industrialization from an agricultural based economy from 1960 to 1990.