792-Dr. J. K. Patel Institute Of Management - Gujarat Technological ...

as a key manufacturing activity over the last 20 years as a result of the growth of
Dubai Aluminum, owned by the Dubai government.
Energy
In 1997, in response to the UAE’s rising demand for electric power, coupled with
volatile swings in peak loads, the Abu Dhabi government formed the Privatization
Committee for the Water and Electricity Sector to assess the emirate’s energy
requirements and consider privatization as an option. This committee recommended
that Abu Dhabi’s water and electricity department be changed to a semi-autonomous
regulatory body, the Abu Dhabi Water and Electricity Authority (ADWEA), and that
the emirate’s power stations be partially or totally privatized. The privatization of
Services
According to the UAE government, the services sector (including financial
enterprises and government services) produced 43.1 percent of the gross domestic
product (GDP) in 2004and 40.4 percent of GDP in 2005. This sector employed more
than 1.4 million persons in 2004and almost 1.5 million in 2005, which is
approximately 60 percent of the total workforce.
Banking and Finance
The UAE Central Bank was established in 1980 to direct monetary, credit, and
banking policy. It maintains the UAE government’s reserves of gold and foreign
currencies, acts as the bank for banks operating in the UAE, and serves as the
state’s financial agent at international financial institutions. In response to pressure
from the World Trade Organization to open the banking sector to more foreign
competition, in late 2004 the UAE central Bank stated that it would consider allowing
new foreign banks to establish themselves in the UAE for the first time in 20 years.
Tourism
The primary source of the UAE’s rapidly growing tourism sector is the Dubai Emirate,
which hosts the world’s tallest hotel. According to the UAE government, Dubai’s
tourism revenue exceeds its oil revenue. The emirate’s 302 hotels hosted 6.4 million
visitors from India, Pakistan, Iran, Lebanon, the Philippines, Europe, Australia, and
South Africa in2006.
Parul Institute of Management and Research - 792 Page 15