ECONOMIC DIVERSIFICATION IN UAE

The Ministry of Information and Culture (2006 ) explained that the non-oil sector (SECTOR OF WHAT ) contributed 72 percent of the GDP of the UAE . Policies of economic diversification have been pursued elsewhere . A notable example is Singapore , a city state , where studies such as Huff (1995 ) have shown that policies of economic diversification can be difficult to implement and rely on a combination of micro-economic stability economic planning and effective management

In Singapore , economic diversification in 1985 to present has two phases . While undergoing the two phases of development , manufacturing growth

outstripped GDP growth this situation was reversed between 1979 and 1984 . During that period , value-added growth in manufacturing slowed to just over five percent a year while the economy as a whole was growing at about eight-and-a-half percent annually . This mainly reflects the impressive performance of the business and financial services sectors . To maintain high growth and improve performance in manufacturing , attempts have been made to find new sectors where technological gaps could profitably be exploited . Biotechnology computer peripherals and aerospace were identified as potential high-growth sectors and were actively promoted by the EDB with pioneer and expansion incentives

A concerted effort at diversifying the production and export base especially (but not exclusively ) outside manufacturing and into business and financial services was implemented in the mid-1980s . Responsibility for the promotion of banking and financial services rested with the MAS while EDB was responsible for the promotion of other services and offered incentives similar to those in manufacturing , including pioneer...