Strategies of development and diversification: a comparative analysis of Qatar and Dubai’s economic development models

Abstract

More than any other GCC states, political and economic foundation linkages between Dubai and Qatar have been great factors that could result in similar economic development. Shared oil boom experiences and early political cooperation brought several significant opportunities where Qatar and Dubai can manage similar economic development. Yet, Dubai’s government was able to develop and diversify its economy, thus becoming one of the largest economic hubs in the world, while Qatar wasn’t able to match Dubai in either economic or urban development. The similar political and economic foundations didn’t support Qatar in having similar accelerated development and thus this research aims to demonstrate the reason behind the different adopted development strategies between Qatar and Dubai, and why Dubai was able to develop and diversify faster than Qatar. To shed light on this issue, this research follows social constructive approach and examines the different economic, political and social factors of Qatar and Dubai, and how these factors worked differently in each state. This is done by examining certain areas, starting with the historical context of Dubai and Qatar, and how each state decided to adopt certain development path, and then the role of leadership in promoting the development through state’s strategic vision. Furthermore, the research dedicates a full chapter to illustrate the development and economic growth factors of the addressed states and how the differences in economic, political and social factors supported Dubai to develop earlier than Qatar. Based on the research finding, this thesis argues that Qatar and Dubai different development strategies are propelled by several economic factors and the most important is the size of oil reserve of the both states. The political actor is another vital finding in this research as the political interests of the state and leadership direction are major aspects in controlling and promoting the state development. Moreover the research argues that the environment origin is another vital element that determines the different development strategies; the research approaches that Dubai’s cosmopolitan and Qatar’s Modern traditionalism is another aspect that contributed to the difference in the economic and urban development of Qatar and Dubai. Therefore, the different development models and economic growth of Qatar and Dubai is not limited to certain state’s elements or state’s available resources, rather it is based on more profound political, economic and social factors which play great roles in determining the development path of the state.