1.2c- Jebel Ali Dubai

Question 1

Why is jebel Ali regarded as a hub for foreign businesses?

Answer 1

• Middle East’s first big ‘free zone’
• the world’s largest FEZ
• 1,225 companies with 14%-18% growth per year
• $1bn of new development planned

Question 2

How does jebel Ali demonstrate trade and internal growth?

Answer 2

1) Dubai has a customs-free corridor between the port and airport- businesses can import and export raw materials without charge
2) Jebel Ali port is the world’s 9th busiest- it is the point of call for any vessels travelling from SE Asia to the Red Sea, or the Persian gulf.

Question 3

How is jebel Ali going to survive it’s energy and water demands and is it efficient?

Answer 3

Dubai electricity and water authority has built a $23m 132kV substation in Jumeirah lakes towers in the Jebel Ali area of the city with 21 km of underground cables to the substation which requires less maintenance = efficient

Companies like Imdaad are in charge of managing building projects and the end outcome, e.g. recycling, power, water and eco-friendly equipment= sustainability

Question 4

Has the government used subsidies and transport services to attract local workers?

Answer 4

• Residents working for firms in Jebel Ali are allowed free access to the new Jebel Ali hospital, owned by lifeline healthcare ltd.
• Dubai metro opens until 1am and has been extended to Jebel Ali from the city centre and airport.
• the UAE govt. also subsidises transport companies such as emirates airline- cheaper flights/easier access=more businessmen willing to consider business ventures in Dubai

Question 5

What is cumulative causation?

Answer 5

The process by which one region of a country becomes increasingly the centre of economic activity leading to prosperity and increased investment, use of skilled labours=more jobs

Question 6

How does Jebel Ali demonstrate cumulative causation?

Answer 6

• companies importing raw materials and exporting more goods.
• TNCs setting up branch factories there- US Navy 5th fleet- FDI
• transfer of technology through Etihad rail
• also growth of supply chain e.g. Imdaad

Question 7

What are possible problems with FEZ?

Answer 7

1) economic globalisation can lead to cultural globalisation
2) the foreign companies may benefit more than the locals

Question 8

How does the UAE government deal with the risk of cultural dilution?

Answer 8

• made it difficult for foreigners to obtain citizenship- expats make up 85% of Dubai’s population of 2m.
• the government subsidises the Emirati population for e.g. giving money to pure Emirati couples only and benefits for every child they have to conserve the Emirati population.

Question 9

What is An example of a trade bloc used by Jebel Ali?

Answer 9

The gulf cooperation council