How Economic Integration Affects the Social Infrastructure Sector of Abu Dhabi - Case Study Example

How globalization and regional, economic integration affects the social infrastructure sector of Abu Dhabi Name Institution Affiliation How globalization and regional, economic integration affects the social infrastructure sector of Abu Dhabi International and Regional Integration in Abu Dhabi Introduction Regional integration refers to a situation when various nations agree to work closely and cooperate in achieving stability, peace and wealth. Integration entails one or more documented agreements that highlight the cooperation areas in details as well as the coordinating bodies that represent the involved countries. The cooperation between nations starts with the aspect of economic integration and later includes other aspects such as social and political integration (Espinoza, 2010). Other aspects of regional and international integration that promotes the development of social infrastructure include sustainability, culture, connectivity and transparency. The city of Abu Dhabi alongside other emirates has engaged in various economic agreements with different countries in Europe and the United States that enhance the development of social infrastructure (Ponzini, 2011). The economic aspect of integration facilitates foreign direct investment in the country, which promotes the migration of expats from different nations worldwide to Abu Dhabi. In this case, the need for entertainment and leisure by the investors enhance the creation of social infrastructure such as hospitals, schools, museums, parks and luxury hotels (Ponzini, 2011). The aspect of education and cultural exchange facilitates the development of social infrastructure in the city (Nader, 2009). The need for students and tourists to examine the traditional practices and cultural activities of the city’s residents has promoted the development of cultural centres in different parts of the city (Hvidt, 2011). Besides, the movement of tourists and foreign students to the city contributes the rehabilitation of social infrastructures in the city. The emirate of Abu Dhabi engages in regional and international agreement on the adoption of renewable sources of energy which has attracted investors and labour from various parts of the world (Abdelal, 2010). SWOT Analysis Strengths Strong religious, historical, cultural and language affinities: Abu Dhabi has a strong cultural and religious heritage that provides a reliable platform for the development of social infrastructure. The history, religion and cultural aspects of international and regional integration between Abu Dhabi and other countries facilitates the movements of tourists from different regions worldwide which provides an appropriate market for the cultural and historical heritage in the city (Harders & Legrenzi, 2013). In this case, the aspect of economic integration facilitates free movement of tourists and learners from developed nations to the city (Davidson, 2009). The authorities of Abu Dhabi develop and rehabilitate cultural and social centres to promote tourism in the emirate. Besides, luxurious hotels and sites are developed to provide entertainment to the foreigners (Reiche, 2010). The cultural context of the Abu Dhabi society is a reliable strength in the development of social amenities and infrastructure in the emirate. The integration of hotels in the tallest towers in the emirate provides an avenue for social and academic tourists to obtain entertainment and leisure after visiting different cultural museums in the city. Furthermore, the towers provide foreigners with a reliable view of the city, which is crucial for attracting additional tourists (Nader, 2009). Privatisation and Liberalisation: The aspect of market liberalisation and privatisation results from international and economic integration. This aspect enhances the movement of people as well as transfer of technology between the participating parties (Hvidt, 2011). Market liberalisation entails the promotion of free market practices in Abu Dhabi that promotes bilateral trade agreements in the emirate. The concept of market liberalisation further allows investors from different regions worldwide to invest in the capital markets of the emirate. Besides, it facilitates free flow of goods and manufactured from different countries to Abu Dhabi that facilitates the movement of labour and investors (Espinoza, 2010). Market liberalisation promotes the development of social infrastructure such as museums and towers to cater for the cultural and accommodation needs of the expat population. Besides, privatisation entails the concept of engaging the private sector in the development activities in the city (Harders & Legrenzi, 2013). The aspect of economic integration promotes the involvement of foreign investors in the construction and entertainment industry in the city. The authorities in Abu Dhabi have promoted the concept of privatisation in the construction industry. This aspect of privatisation enhances the development of modern social infrastructures in the city due to the increase in the number of tourists and workers (Ponzini, 2011). Availability of intellectual, capital, skills and labour: The migration of workers, tourists and learners to Abu Dhabi has increased the availability of skilled labour in the emirate. The development of social infrastructure such as the F1 marina, tall towers and rehabilitation of museums requires skilled labours in different stages of construction. In this case, the migration of architectures, engineers and labours to the emirate provides an avenue for innovation in the construction of the structures (Abdelal, 2010). Moreover, the availability of skilled labour promotes the development of modern social infrastructure that facilitates tourism in the emirate. Weaknesses Trade Barriers: Trade barriers refer to policies in a particular country that limit the establishment of foreign ventures. The trade policies in the emirate focus on embracing the Shariah Law guidelines, which hinder foreign investors from engaging in the development of social infrastructure in the city. The Shariah guidelines embrace the Islamic approaches and teachings regarding land ownership and construction that limit foreign investments in the city (Espinoza, 2010). Additionally, the Abu Dhabi policies highlight specific procedures for construction of recreation facilities in the city. These policies prevent investors establishing original designs of the social infrastructures across the city. In this case, the policies regarding construction designs, location and Shariah law requirements hinder effective development of social infrastructure in the city. Conflict: The conflict in the sounding nations is among the main factors that influence economic and social aspects of the city. Most of potential investors from developed nations fail to invest in the social infrastructure sector in the emirate because of the potential of occurrence of conflicts. Furthermore, the religious conflicts in the nation influence the ability of investors to risk engaging in long-term investments in the city (Nader, 2009). The economic, social and political conflicts in the East and Middle Asia affects the potential of investors to engage in the construction industry in the city. Restrictive ownership guidelines: The United Arab Emirates is among the leading investments points in East and southern Asia. The country experiences steady economic growth due to the increase in foreign investments and tourism sector. However, regardless of the high foreign investment levels and rapid economic growth rates, the legal and regulatory framework in Abu Dhabi favours the local investors over foreign investors (Abdelal, 2010). In this case, the regulations fail to establish national treatment of investors and prohibit foreign ownership of stocks and land. These regulations prevent potential investors from engaging in the development of social infrastructures in the city (Randeree, 2012). Opportunities Effective utilisation of resources through improvement of the quality of capital and human resources: Abu Dhabi is one of the largest members of the United Arab Emirates due to the large fields of oil. The government through the department of education engage in various bilateral agreements with developed countries such as the United States and the United Kingdom. The agreement encompasses the recruitment and training of the local population on different technological approaches in various sectors such as information technology, engineering design, construction and education (Peeters, 2010). The use of resources in education and research creates various opportunities for diversification of the sources of revenue in the emirate. High-tech infrastructure requirements in the country: the country is presently experiencing an influx of foreign populace because of the investment opportunities. The growth in population as well as increased production in the country requires transport and communication reliability (Harders & Legrenzi, 2013). In this case, the need for the development of updated communication and transport systems promotes the flow of specialised workforce to the country, which creates the need to develop leisure platforms in the city (Espinoza, 2010). Furthermore, the infrastructure gap in the country facilitates investment opportunities in the construction, communication and transport sector, which is crucial for social infrastructure development (Peeters, 2010). Diversification Expansion: The major source of revenue in the country encompasses oil production. However, the finite nature of the oil resources creates the need to invest in the development of renewable energy approaches for energy production (Ponzini, 2011). In this case, investors focus on investing in the energy sector to provide alternatives to fossil-based fuels. The migration of labour, renewable energy specialists and researchers lead to the need for development of social infrastructures such as health facilities, education institutions and entertainment avenues in the city. Besides, the continued research and training of individuals in the renewable energy sector creates the desire for development of different social infrastructures in the country (Randeree, 2012). Threats Upgrade and overconsumption: the revenue for the construction of the social infrastructure in the country is obtained from the oil industry (Nader, 2009). However, the high consumption rate of the oil reserves in the country threatens the long-term development of the sectors. Moreover, the need for upgrading the infrastructure to enhance their competitiveness on the international platform threatens the continued benefits from the infrastructure in the end (Espinoza, 2010). The government of Abu Dhabi is presently constructing high towers to cater for the large number of tourist in the countries. However, the facilities need for upgrading hinders their long-term benefits. Conclusion Regional and international integration refers to the united efforts by various nations to achieve common goals in various economic, social and cultural platforms. Abu Dhabi engages in different international integration platforms to enhance the performance of different sectors such as production, processing, tourism, and agriculture as well as oil production. The concepts of integration allow the country to promote revenue collection and development of social infrastructure such as museums, hotels, hospitals and entertainment avenues. Abu Dhabi engages in various aspects of regional integration such as cultural exchange, trade, infrastructure development and growth in tourism. Various factors contribute in the development of social infrastructure in the country such as labour migration, exports, tourism, development of new technologies and the need for high-tech infrastructure. The strengths of the country that promotes the development of the social infrastructure entail cultural diversification, skilled labour availability, strong economic ties and effective utilisation of resources. On the other hand, the weaknesses in the industry such as strict ownership regulations, Shariah law, strict religious guidelines and the conflicts in the neighbouring countries inhibit the development of social infrastructure in the country. The country has different opportunities in the construction, transport and education sectors, which are essential factors for the development of social infrastructure. References Abdelal, R., Blyth, M., & Parsons, C. (Eds.). (2010). Constructing the international economy (pp. 1-19). Ithaca, NY: Cornell University Press. Davidson, C. M. 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