The United Arab Emirates Case of Economic Success

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The United Arab Emirates Case of 
Economic Success 
The Federal Government Economic Policies 
Final Work in the form of Internship Report submitted to Universidade 
Católica Portuguesa for the obtainment of the Master Degree in Management 
by 
Pedro Alexandre Azevedo Dias Lima Delgado 
under orientation of 
Alexandra Pinto Leitão, PhD 
Católica Porto Business School 
July 2016 
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Acknowledgments 
I would like to thank Professor Alexandra Pinto Leitão for all the helpful advice, 
guidance, and invaluable comments on this essay, which have helped me to 
develop the present Master’s Final Work. 

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Abstract 
Within 44 years the United Arab Emirates (UAE) evolved from the backdrop of 
a subsistence economy into an innovation-driven economy characterized by a 
high-mass consumption society. Prudent policy-making by the UAE Federal 
Government was vital in providing proper guidance on the how, where and 
when to apply hydrocarbon revenues and support the much needed process of 
economic diversification. Due to its astonishing economic development the UAE 
has become a role model in economic diversification for oil-producing countries. 
In this sense, the present Master’s Final Work sheds light on the following 
research question - “What were the policies adopted by the United Arab Emirates 
Federal Government that made the Emirates economy a case of success?”. 
A “two building-block” rationale was adopted in order to address the research 
question at hand. The first “building-block” allowed us to verify that the UAE is 
a case of economic success. Within 44 years, the country has now one of the most 
competitive economies in the world and is at par with most advanced economies 
in terms business regulations, infrastructure and technological advancement. 
The second “building-block” focused on the understanding of the UAE’s Federal 
Government policies that fostered such success. By adopting the single-case 
study methodology it was possible to verify that within the UAE’s set of 
macroeconomic policies, diversification played a leading role and has allowed 
the economy to divest away from hydrocarbons dependence. Trade, Investment, 
Fiscal and Monetary policies have worked as tools to foster and promote both 
economic growth and diversification.