Clusters can be a factor for service-based tourism and
regional economic development (Jackson and Murphy 2006)
and improve competitiveness (Lagos and Courtis 2008).
Moreover, they can encourage entrepreneurship and economic development (Rocha 2004) as well as innovation
(Piperopoulos 2012). Special economic zones have been a
powerful tool for attracting foreign investment, promote
growth and generate employment, upgrading, encouraging
regional integration, enhancing innovation, being sustainable, and protecting the environment (Farole and Akinci
2011). The UAE has successfully created free economic
zones that contribute to all these challenges and more
importantly actively advancing sustainability and protecting
the environment.
The uniqueness of the UAE financing of projects and
infrastructure paradigm lies also on the fast that there is not
only vertical integration at the municipality and small city
level but there exists horizontal integration among diverse
municipalities at the city and metropolitan area. This creates
a very diversified infrastructure and business ecosystem.
The UAE is moving to the post-oil era and diversification is
an important strategy to achieve that. Most importantly,
infrastructure as represented by construction and building,
and real estate activities has surpassed the contribution of
natural resources to GDP.
Abu Dhabi and Dubai are home to some of the most
expensive, top quality and technologically advanced projects. These projects are environmentally sustainable and, in
addition, support business and economic sustainability.
The UAE has therefore successfully diversified its economy
by financing projects in infrastructure. At the same time, the
UAE reduced sustainable development, environmental and
social risks (Eisenbach et al. 2014; Esty and Sesia 2010.
Moreover, the high policy stability that characterizes the
UAE, further reduces investment risks (James and Vaaler
2018). The UAE is also continuously innovating by
investing in smart cities and modern technologies. All these
policies and characteristics make the UAE a unique global
paradigm in infrastructure and prepare it well to face the
transformations and challenges of the Fourth Industrial
Revolution. The UAE is a leader in financing and infrastructure development and innovative policies can further
enhance its regional and global leadership in infrastructure,
digital transformation and sustainable development goals
(Petratos and Petratos 2019).
Acknowledgements The author would like to thank Professor
Miroslav Mateev for organizing the conference and chairing the presentation panel and Dr. Corlise Le Roux for discussing the paper, and
their useful comments.
References
Abbas, W. (2018a, February 12). Out of top 10, Dubai is home to
world’s 7 tallest hotels. Khaleej Times. Retrieved November 10,
2018, from https://www.khaleejtimes.com/nation/dubai/out-of-top10-dubai-is-home-to-worlds-7-tallest-hotels.
Abbas, W. (2018b, April 9). Expo 2020 boom: Mega projects set to
redesign Dubai’s landscape. Khaleej Times. Retrieved November
10, 2018, from https://www.khaleejtimes.com/business//economy/
dubai-builds-on-expo-boom.
Airports Council International. (2018). Retrieved November 10, 2018,
from https://aci.aero/data-centre/.
Berst, J., & Logsdon, D. (2016). The hill: At smart cities week, tackling
opportunities and challenges. Smart Cities Council. Retrieved
November 10, 2018, from https://smartcitiescouncil.com/article/hillsmart-cities-week-tackling-opportunities-and-challenges.
Connoly, E. (2018, February 18). Yas marina circuit sold for US$1.32
billion. Retrieved November 10, 2018, from http://www.sports
promedia.com/news/yas_marina_circuit_sold_for_us1.32_billion.
Department of Culture and Tourism. (2018). Retrieved November 10,
2018, from https://tcaabudhabi.ae/en/what.we.do/tourism/sustain
ability.aspx.
Eisenbach, S., Schiereck, D., Trillig, J., & von Flotow, P. (2014).
Sustainable project finance, the adoption of the equator principles
and shareholder value effects. Business Strategy and the Environment, 23(6), 375–394.
Esty, B., & Sesia A. (2010). An overview of project finance and
infrastructure finance-2009 update. Harvard Business School
Publishing. Case No. 9-210-061.
Farole, T., & Akinci, G. (2011). Special economic zones: Progress,
emerging challenges, and future direction. The World Bank
Publications.
Goverment of Abu Dhadi. (2008). Council for economic development:
The Abu Dhabi economic vision 2030. Retrieved November 10,
2018, from https://www.ecouncil.ae/PublicationsEn/economicvision-2030-full-versionEn.pdf.
Government of Dubai. (2018). Dubai strategic plan 2021. Retrieved
November 10, 2018, from www.dubai.ae/en/Lists/Articles/
DispForm.aspx?ID=108&event=Planning%20a%20business%20in
%20Dubai&category=Businesses.
Government of India. (2018). Ministry of housing and urban affairs:
Smart cities mission. Retrieved November 10, 2018, from http://
smartcities.gov.in/content/innerpage/what-is-smart-city.php.
Haine, A. (2018, September 25). Tourists spend more in Dubai than
any other city in the world. Retrieved November 10, 2018, from
https://www.thenational.ae/business/travel-and-tourism/touristsspend-more-in-dubai-than-any-other-city-in-the-world-1.773851.
His Highness Sheikh Hamdan bin Mohammed bin Rashid Al
Maktoum. (2018). Retrieved November 10, 2018, from https://
hamdan.ae/en-us/department?aid=5.
Issac, J. (2018, February 3). UAE remains No.1 in GCC for
construction. Khaleej Times. Retrieved November 10, 2018, from
https://www.khaleejtimes.com/business/local//uae-remains-no1-ingcc-for-construction.
Jackson, J., & Murphy, P. (2006). Clusters in regional tourism an
Australian case. Annals of Tourism Research, 33(4), 1018–1035.
James, B., & Vaaler P. (2018) Minority rules: Credible state ownership
and investment risk around the world. 29(4), 547–753, C3.
Lagos, D., & Courtis, P. (2008). Business clusters formation as a means
of improving competitiveness in the tourism sector. European
Research Studies Journal, 11(1/2), 111–121.
Sustainability and Financing Project: The UAE Paradigm
169
regional economic development (Jackson and Murphy 2006)
and improve competitiveness (Lagos and Courtis 2008).
Moreover, they can encourage entrepreneurship and economic development (Rocha 2004) as well as innovation
(Piperopoulos 2012). Special economic zones have been a
powerful tool for attracting foreign investment, promote
growth and generate employment, upgrading, encouraging
regional integration, enhancing innovation, being sustainable, and protecting the environment (Farole and Akinci
2011). The UAE has successfully created free economic
zones that contribute to all these challenges and more
importantly actively advancing sustainability and protecting
the environment.
The uniqueness of the UAE financing of projects and
infrastructure paradigm lies also on the fast that there is not
only vertical integration at the municipality and small city
level but there exists horizontal integration among diverse
municipalities at the city and metropolitan area. This creates
a very diversified infrastructure and business ecosystem.
The UAE is moving to the post-oil era and diversification is
an important strategy to achieve that. Most importantly,
infrastructure as represented by construction and building,
and real estate activities has surpassed the contribution of
natural resources to GDP.
Abu Dhabi and Dubai are home to some of the most
expensive, top quality and technologically advanced projects. These projects are environmentally sustainable and, in
addition, support business and economic sustainability.
The UAE has therefore successfully diversified its economy
by financing projects in infrastructure. At the same time, the
UAE reduced sustainable development, environmental and
social risks (Eisenbach et al. 2014; Esty and Sesia 2010.
Moreover, the high policy stability that characterizes the
UAE, further reduces investment risks (James and Vaaler
2018). The UAE is also continuously innovating by
investing in smart cities and modern technologies. All these
policies and characteristics make the UAE a unique global
paradigm in infrastructure and prepare it well to face the
transformations and challenges of the Fourth Industrial
Revolution. The UAE is a leader in financing and infrastructure development and innovative policies can further
enhance its regional and global leadership in infrastructure,
digital transformation and sustainable development goals
(Petratos and Petratos 2019).
Acknowledgements The author would like to thank Professor
Miroslav Mateev for organizing the conference and chairing the presentation panel and Dr. Corlise Le Roux for discussing the paper, and
their useful comments.
References
Abbas, W. (2018a, February 12). Out of top 10, Dubai is home to
world’s 7 tallest hotels. Khaleej Times. Retrieved November 10,
2018, from https://www.khaleejtimes.com/nation/dubai/out-of-top10-dubai-is-home-to-worlds-7-tallest-hotels.
Abbas, W. (2018b, April 9). Expo 2020 boom: Mega projects set to
redesign Dubai’s landscape. Khaleej Times. Retrieved November
10, 2018, from https://www.khaleejtimes.com/business//economy/
dubai-builds-on-expo-boom.
Airports Council International. (2018). Retrieved November 10, 2018,
from https://aci.aero/data-centre/.
Berst, J., & Logsdon, D. (2016). The hill: At smart cities week, tackling
opportunities and challenges. Smart Cities Council. Retrieved
November 10, 2018, from https://smartcitiescouncil.com/article/hillsmart-cities-week-tackling-opportunities-and-challenges.
Connoly, E. (2018, February 18). Yas marina circuit sold for US$1.32
billion. Retrieved November 10, 2018, from http://www.sports
promedia.com/news/yas_marina_circuit_sold_for_us1.32_billion.
Department of Culture and Tourism. (2018). Retrieved November 10,
2018, from https://tcaabudhabi.ae/en/what.we.do/tourism/sustain
ability.aspx.
Eisenbach, S., Schiereck, D., Trillig, J., & von Flotow, P. (2014).
Sustainable project finance, the adoption of the equator principles
and shareholder value effects. Business Strategy and the Environment, 23(6), 375–394.
Esty, B., & Sesia A. (2010). An overview of project finance and
infrastructure finance-2009 update. Harvard Business School
Publishing. Case No. 9-210-061.
Farole, T., & Akinci, G. (2011). Special economic zones: Progress,
emerging challenges, and future direction. The World Bank
Publications.
Goverment of Abu Dhadi. (2008). Council for economic development:
The Abu Dhabi economic vision 2030. Retrieved November 10,
2018, from https://www.ecouncil.ae/PublicationsEn/economicvision-2030-full-versionEn.pdf.
Government of Dubai. (2018). Dubai strategic plan 2021. Retrieved
November 10, 2018, from www.dubai.ae/en/Lists/Articles/
DispForm.aspx?ID=108&event=Planning%20a%20business%20in
%20Dubai&category=Businesses.
Government of India. (2018). Ministry of housing and urban affairs:
Smart cities mission. Retrieved November 10, 2018, from http://
smartcities.gov.in/content/innerpage/what-is-smart-city.php.
Haine, A. (2018, September 25). Tourists spend more in Dubai than
any other city in the world. Retrieved November 10, 2018, from
https://www.thenational.ae/business/travel-and-tourism/touristsspend-more-in-dubai-than-any-other-city-in-the-world-1.773851.
His Highness Sheikh Hamdan bin Mohammed bin Rashid Al
Maktoum. (2018). Retrieved November 10, 2018, from https://
hamdan.ae/en-us/department?aid=5.
Issac, J. (2018, February 3). UAE remains No.1 in GCC for
construction. Khaleej Times. Retrieved November 10, 2018, from
https://www.khaleejtimes.com/business/local//uae-remains-no1-ingcc-for-construction.
Jackson, J., & Murphy, P. (2006). Clusters in regional tourism an
Australian case. Annals of Tourism Research, 33(4), 1018–1035.
James, B., & Vaaler P. (2018) Minority rules: Credible state ownership
and investment risk around the world. 29(4), 547–753, C3.
Lagos, D., & Courtis, P. (2008). Business clusters formation as a means
of improving competitiveness in the tourism sector. European
Research Studies Journal, 11(1/2), 111–121.
Sustainability and Financing Project: The UAE Paradigm
169