Introduction
The economy of the United Arab Emirates (UAE) is the second-largest in the Arab world after Saudi Arabia with a gross domestic product of $337 billion according to the statistics provided in the year 2013. The country has a diverse economy and there are so many sources of income for the government apart from oil. However, there is a need to understand that oil has had a major impact on the economic growth of the United Arab Emirates (El Gawad, Lotfy, Sadooni & Katheery, 2008).
This has made many researchers heavily focus on the positive side of oil and its impact on the economy of UAE while ignoring the negative impact that this might be having on the economy and its people. The latest research has shown that oil created wealth inequality among citizens of UAE especially immigrant workers (Elhakeem, Elshorbagy&Chebbi, 2007). To add to that, the world is taking a new direction with a focus shifting to green energy, something that is likely to affect the economy negatively. Oil has created wealth inequality in UAE and a shift in world energy focus to green energy will negatively impact the economy of UAE.
Statement of the problem
Oil is a major contributor to the economy of the UAE and for many years, the country has heavily relied on revenue generated from the exportation of oil to build the country’s economy. As a result that, oil has been seen as a major economic pillar and few researchers have concentrated on whether it has any negative impact on the economy of UAE. Wealth inequality in UAE is something that has been able to build over a period of time and this has happened because of the structures that have been in place. The main purpose of this research will be to find out how oil as a resource has contributed to wealth inequality in UAE and how a shift globally on the focus to green energy might affect the economy of UAE.
Justification
This is a study that is justified because of the manner in which it is going to yield new insights on what oil has actually been able to do for the economy of UAE from a negative perspective. This will shift focus away from the past where scholars have concentrated on the manner in which oil has added value to the economy of UAE (Khalaf & Alkobaisi, 2009). There are immigrants who moved to UAE to work as laborers in oil fields and there is nothing that they can show up for after many years of toiling while there are those who have accumulated wealth as a result of work done by these people.
Objectives
The main objectives of this research will be:
- To explore the negative effect of oil on the economy of UAE;
- To explain how oil has resulted in wealth inequality among citizens of UAE with a special focus on immigrant workers;
- To explore the impact of a shift from petrol to green energy by the world economy on the economy of UAE.
Research Questions
The main research questions that will be addressed in this research are the following:
- How has oil negatively affected the economy of the UAE?
- How has oil resulted in wealth inequality among UAE citizens especially immigrant workers?
- How will a shift from oil energy to green energy globally affect the economy of the UAE?
Methodology
This is research that is supposed to be added to a body of knowledge and as a result of that, there will be a need to ensure that a proper research design has been utilized for the same. The cross-sectional research design will be used to gather data for this particular study and the main reason for choosing it is because of the population size that has to be studied. This is an observational kind of study that involves collecting data from a given population and thereafter using the same for purposes of analyzing and drawing conclusions about it.
It is a research design that aims at providing data about the entire population that is under study so as to understand the manner in which various variables come into interplay. This is research will be focusing on the economy of the UAE and oil wealth will be used as a variable in this study while looking at the manner in which oil has affected the economy negatively.
Hypothesis
The hypotheses that will be tested in this particular research are the following:
- H0: Oil has affected the economy of the UAE.
- H1: Oil wealth has created wealth inequality in UAE.
- H2: A Global shift to green energy will negatively impact the economy of the UAE.
Operational Definition of variables
Oil here refers to the precious mineral that is mined in the UAE and then used as a source of energy for different types of machinery. On the other hand, oil wealth refers to all manner of resources that have been acquired by people as a result of them engaging in the oil business.
Data collection and analysis
Data in this research will be collected through surveys, questionnaires and the use of secondary sources of data. This will have to be done within a certain time frame and the focus will be on the manner in which the data collected helps in achieving the objectives of the research. There is a lot of data that will be gathered ranging from families that have been working in these oil fields to the manner in which oil has economically impacted citizens and the nation at large.
The feasibility of the study will also focus on how the UAE economy is likely to be affected if the latest trend when it comes to the adoption of green energy sails is through. Analysis of data in this particular research will take a number of different strategies, such as calculation of percentages over a certain period of time and also the usage of descriptive terms of present findings in the research.
Conclusion
The United Arab Emirates is the second-largest economy in the Arab world and its GDP has been rising steadily in the past. Oil is one of the major pillars of this particular economy and income generated from exportation has been used to make the lives of its citizens even better. Traditionally, researchers have focused on the positive impact that oil has had on the economy of the UAE while ignoring any negative effects because of the belief that none of them exists.
This research mainly focuses on the negative impact that oil has had on the economy of UAE and the manner in which it has led to wealth inequality in the country. There are several things that are likely to be established by this research including the manner in which immigrant workers in oil fields have benefited less. It is also likely to be found out that a shift in green energy negatively impacts the economy of UAE that depending on revenue from oil.
References
El Gawad, E. A., Lotfy, M., Sadooni, F. N. & Katheery, B. 2008, ‘Assessment of the oil pollution extent in the offshore sediments, Abu Dhabi, UAE’, Australian Journal of Basic and Applied Sciences, vol. 2. no. 3, pp. 561-574.
Elhakeem, A., Elshorbagy, W. & Chebbi, R. 2007, ‘Oil spill simulation and validation in the Arabian (Persian) Gulf with special reference to the UAE coast’, Water, air, and soil pollution, vol. 184. no. 1-4, pp. 243-254.
Khalaf, S. & Alkobaisi, S. 2009, ‘Migrants’ strategies of coping and patterns of accommodation in the oil-rich Gulf societies: evidence from the UAE’, British Journal of Middle Eastern Studies, vol. 26. no. 2, pp. 271-298.