The Future Privatization of the UAE Essay

The Future Privatization of the UAE


Privatization is considered as the most viable solution to dealing with the existing problems that currently face the UAE. This platform is founded on the important roles that this institution has played in spearheading wealth generation amongst different peoples in different parts of the world. One of the key solutions articulated by management frameworks is total overhaul of organizations. The harsh reality that has been brought forth by economic problems in the UAE have led organizations to initiate designs of privatization to deal with these economic issues.

Keywords (Privatization, organization, management, economic, social, future,)


The United Arabs Emirates future trends are centered within the needs to secure bright future for the country. The UAE is currently going through tough economic conditions and this has brought about the need to use privatization as one of the solutions to the financial woes. This is attributed to the massive wealth and control that the UAE as an institution holds over the globe. According to some studies, the UAE has control over most of the oil reserves and energy resources, in addition to economic infrastructure and this wealth has come with many responsibilities. Over time political and social hiccups have led many to believe that privatization of the UAE is the most feasible solution to its problems.  One of the major problems involves leadership and managerial lapses that are being experienced within the top structure of the organization. In fact, according to the experts the social and economic problems being currently experienced by the United Arab Emirates need some form of immediate realistic redress (Celâsun, 2001, p.67). Some have attributed the weakness of this organization to the low overseas debts and other economic problems currently being faced by major economies around the world. Through privatization as a platform, there is hope of breaking down bureaucratic processes being experienced in the management of UAE and helping the country retain its importance in the world economic and social affairs.

Background Information

The past century has experienced a variety of social and economic activities that have had an effect on the UAE. Tremendous social and economic pillars have been integrated within the United Arabs Emirates as whole.  This has been received with mixed reactions with some criticizing the management diseconomies that have taken place based on the wide variety of activities undertaken by the institution. The UAE operates a multifaceted economic set up that encompasses different operational and trading platforms with research showing that the country controls different economic and trading activities within the business sector. Its main operations are within the the exploration of oil and energy resources as well as infrastructural investments. Despite this control and having majored in investments as well as other forms of trade, the UAE has had many management and leadership problems and  especially with regard to the conduct of some of its officials and administrators. If allowed to persist, these management problems have the potential to place the viability of the organization under questionable and doubtful circumstances in future hence the dire need for privatization as a solution. Privatization measures will first embark on structurally reforming Abu Dhabi. The manifesto of this organization spells out some social attributes of this organization as good service delivery, and maximum social responsibility for all its members, as well as the society at large (Gonzales, 2008, p.123). Ultimately, the management problems of the UAE  can be resolved through restructuring.


There have been difficulties in predicting the future leadership of the UAE because of the current managerial problems. Even though its vested interests are viable and stable, its management casts doubt in its leadership structures. Privatization is the process through which private firms or individuals get the permit to lease an 5organization’s social and business interests for an agreed period of time. It is one of the major undertakings in restructuring viable organizations taken up to save many public institutions (Schwartz, 2010, p. 62). By allowing for privatization to take place, the UAE will salvage its image and future because there will be intrusion of new management and this will help to curb vices perpetrated through managerial and administrative officials. One of the main challenges caused by management problems in the UAE is the increased gap in social and economic structures of shareholders which has been created by the strata put in place by the management. The huge gap between the rich and poor will inevitably create tensions amongst shareholders of the UAE. This can be resolved through privatization. Currently the Emirates is undertaking privatization processes to resolve these problems. Abu Dhabi has embraced the privatization frameworks as the solution to social and economic gaps as well as diseconomies. In fact, privatization is deemed as a viable solution because it will create more wealth and reduce managerial diseconomies.

The taking up of privatization by Abu Dhabi has somewhat increased tensions because of the rise in the gap between the rich and the poor. Nevertheless Abu Dhabi has made great strides to reduce through the UAE privatization under which subsidies to the northern emirates have been reduced. Such moves have generated some amount of success even though poverty margins have still been seen to increase. The future success of the privatization process lies in the stipulated programs and changes in leadership structures. In fact, the leadership structure has remained firm and reinforced the support for the privatization project and the United Arab Emirates foresees a brighter future because of this project (Delener, 1999, p.95). It is expected that a firm leadership will be generated through this privatization project.

The financial and social burden experienced in the UAE remain strongly linked to the leadership structure in place. The solutions to these pertinent administrative problems are anchored in the confines of privatization. Currently, the future of UAE seems bright under the capable leadership ofShaykh Khalifa. In addition, privatization also permits majority of the reprieves offered under UAE’s membership.  The service sector which is of high importance to UAE has been largely affected by the privatization process because of conditional factors that encourage domination of experts in service delivery to many of UAE’s organs. most reprieves to the UAE’s membership.  Privatization has not come without its own share of problems. For instance analysts state that an  institution like UAE is supposed to have the mandate and capabilities for solving social and economic problems. An institution like UAE has the mandate of solving most social and economic problems in the society. Leadership and integrity are viewed as pertinent social aspects that form the basic elements of the organization  (Ramamurti& Hashai, 2011,p.78). To this effect, building a viable and sound leadership structure is seen as the responsibility of the UAE.

The current status and trend of theUAE leadership has caused huge social and economic problems that need to be addressed immediately. Through privatization, social pillars are being created for this organization with an aim of building strong leadership that can propel viable economic solutions for the institution. The platform also offers economic integration and institution that will create social justice and eliminate barriers to economic success for different social classes.


The privatization platform has created firm and socially vigilant frameworks for administration and leadership hence brightening and stabilizing the future prospects of UAE. The operational platform of this organization has prioritized leadership transparency and effectiveness in its stature. In addition, it has taken up social responsibility activities and good service delivery which the society at large heavily depend on. These pertinent restructuring activities form fundamental solutions to reducing poverty margins and conflicts that exist within the UAE as an organization.


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Delener, N. (1999). Strategic planning and multinational trading blocs. Westport, Conn. [u.a.: Quorum Books.

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Gonzalez, G., Rand Corporation, Rand-Qatar Policy Institute, Rand Education (Institute), & Labor and Population Program. (2008). Facing human capital challenges of the 21st century: Education and labor market initiatives in Lebanon, Oman, Qatar, and the United Arab Emirates: executive summary. Santa Monica, CA: RAND Corp.

Ramamurti, R., &Hashai, N. (2011).The future of foreign direct investment and the multinational enterprise. Bingley, UK: Emerald.

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