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First Question - Dubai Final

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Submitted By mhess15
Words 666
Pages 3
CPSP379B
Dr. Wellman
5/10/13 Global Immersion Experience: The United Arab Emirates

1)
a. It is hard to imagine that less than fifty years ago Dubai was still a desert. The growth of this emirate has been expedited to such an outrageous extent due to the implementation of Dubai’s economic development strategy. The strategy is facilitated by the emergence of four clusters: the Construction Cluster, the Financial Cluster, the Logistics Cluster, and the Tourism Cluster. All four have helped service this fast paced, strategic development that is Dubai. The Construction Cluster can be broken down into three main sectors: infrastructure, commercial properties, and residential properties. “The first two segments contain projects that require significant scale and expertise from both developers and construction companies” (Ketels). Because of this, global competitors vie for contacts. The residential sector is composed of smaller projects that tend to be taken on by local companies, but are still subject to a high degree of competitiveness, especially with the building of developments. In “Clusters and Dubai’s Competitiveness” Dr. Christian Ketels gives an overview of the international competition in regards to construction services. The sector is dominated by European countries, and is followed closely by the United States and Asia. Real estate developers have reached considerable sizes, and delve in foreign operations. The second zone to compliment Dubai’s success is its affluent, up-and-coming Financial Cluster. Tapping into the fast growing local market, the Dubai International Financial Centre (DIFC) has shown the most progress in traditional retail and corporate banking. Adding to the unique competitiveness is the structure of the DIFC and Islamic banking in general. These banks are used as arms of the government, competing against one another but at

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