Economic Difference between Dubai (UAE) and Arizona (USA)





Economic Difference between Dubai (UAE) and Arizona (USA)

            An economic system involves the production, trade and consumption of limited services and goods by various agents in a given location. Economic agents can be organizations, individuals, governments or individuals. Education, values, technological evolution, cultures, political structure, history, social organization and legal systems result in a given economy. Moreover, the endowment of natural resources, geography and ecology are other factors that make up the economy. These factors are responsible for providing the content, context, parameters and conditions in which a specific economy functions. Arizona and Dubai are two different cities with diverse economies. Arizona’s economy performs better than that of Dubai because the Arizona’s government provides more resources and incentives for economic development than Dubai’s.

            Arizona is a southwestern state in the United States of America. Its capital city is Phoenix, and it is the sixth largest state in the U.S. Dubai, on the other hand, is the capital city of the United Arab Emirates. UAE has seven emirates of which Dubai is one of them. It is located on the south coast of the Persian Gulf. These two cities are from different countries; hence, it is evident that their economies are diverse. Dubai’s economy dates back to the 19th century before its formation. The history of Dubai states that the city came to existence because it was a trading centre. Various people from the region often traded their goods and services in Dubai because of its strategic position. As the years progressed, Dubai became more popular and by the 20th century, it became a regional port. Arizona resulted from war between the Mexicans and the Americans. It is one of the pieces of land, which America claimed after the war between the two countries in 1847. Hence, from their histories, the two cities were bound to have different economies.

Total Gross Product (GDP)

            By 2012, the total gross product of Arizona was $259 billion. This is a very high value and by estimation means that it has a higher economy compared to New Zealand, Finland and Ireland. Arizona’s per capita income is approximately $40, 828, with a median household income of $50, 448, ranking among the top economic regions in the United States of America. The state’s moderately diverse composition makes its economy thrive. However, its largest sectors are the government, transportation and healthcare. Currently, the construction and real estate trade are the leading economic activities followed by financial services.

            In Dubai, its gross domestic product is approximately US $83.4 billion by 2011. Dubai’s economy backbone is the presence of the oil industry. However, the oil industry only contributes less than 7 percent of its economy. This was Dubai’s main income revenue before it extended to other activities such as mining other products, construction, real estate business and tourism.

Presence of Natural Resources

            Arizona’s pride is due to the presence of various natural resources in the state. The state produces various mining materials such as gold, copper and silver, which were used to trade. However, it only focuses on extensive mining of copper. There are many underground mines and extensive open pits in the region. Arizona is leading in the mining of copper and Americans use it in making jewelry, telephone and electrical wires and coins. Copper Sulphate, which is another form of copper, is important in the purification of water. Approximately 75% of the nation’s output results from mining. Hence, the presence of copper in the region boosts Arizona’s economy.

            Apart from mining, Arizona is abundant with crops, livestock and watershed. Despite the state being a desert, agriculture is one of the most important natural resources in the region. The region invests in farming of lettuce on a large scale. According to the United States Department of Agriculture, lettuce accounts for approximately 14 percent of the state’s farm receipts. Honeydew melon, cotton, hay and cantaloupe, are other agricultural products from the state. Additionally, the state is abundant with livestock. It contributes about $9.2 million to Arizona’s economy. The presence of numerous livestock means that the state is abundant with beef and dairy products. The products sold to other states earn it more revenue. Another natural resource in Arizona is the presence of watersheds. The watershed lands enable the livestock and agricultural sectors to thrive.

            The primary natural resources in Dubai are natural gas and petroleum. The city exports most of the petroleum products while it uses some in the region. The presence of oil attracts various nations to the city. Despite the fact that mining only accounts for 3% of the city’s exports it is a beneficial to the emirates gross domestic product. The export generates revenue for the city, and it boosts its economy. Additionally, the presence of oil in the region attracts investors to do business.

            The region also extracts sand and rock, which the emirate uses in construction. Limestone, marl, sand and gypsum are other products extracted in this region, used to make cement. This saves the city from purchasing construction materials from other states, and it saves some revenue. Since the extraction of these products is small scale, it sells most of the excess products to neighboring cities, and this earns the emirate more revenue.


            Arizona embraces various sectors that yield to its high gross domestic product. Its leading economic activity is the manufacturing industry. The state manufactures products ranging from processed foods, printing and publishing, electronics, transportation to aerospace products. All these industries produce and export products to other states. Eventually, the state gets to save its revenue since it can provide for its relatively large population. Additionally, the state practices large-scale production, the excess are exported to other countries and sold to neighboring states. This earns the state income revenue, boosting its economy. The state also has high technological research and development industries, tourism, and communication industries, which extends its economy.

            In Dubai, the state invests mostly in the tourism, construction and real estate. This is a relatively diverse economic background. Dubai is a beautiful city, and it attracts numerous tourists from all parts of the world. The tourists earn the city foreign revenue, which boosts its economy. From the real estate business, the city is able to sell most of its beautiful buildings to interested investors. However, it has limited economic activities compared to Arizona’s economy.

Population, Employment and Taxation

            According to the United States Consensus Department, Arizona is one of the highest populated regions in the United States. In addition, the state has also the largest employer in the U.S. The state has diverse industries present in the region. The number of industries is capable of employing the high number of people from the region. The region also attracts multiple investors due to the business nature of the residents. This increases the number of employment opportunities to the highly populated region. Hence, in areas where there is a high rate of employment, the economy also thrives. Taxation in this region yields a lot of income for the state because of the high employment rate and high population of the region.

            The population in Dubai is relatively smaller than Arizona because Arizona is larger. Moreover, Dubai is an expensive city and in order for one to survive, they need to have some amount of income. However, the employment rate in Dubai is high. The number of employment opportunities is enough to cater for the population present. This means that the industries are many but not as many compared to those in Arizona. Taxation in this region is high because of the high employment rate but lower because of the low population. Hence, the relatively low population with a higher employment rate ranks Dubai below Arizona.

Geography and Climate

            Arizona is one of the four corners of the U.S. The land is extensive and experiences a desert landscape. This means that the region also experiences desert climate. The region experiences mild winters and hot summers. This exceptional climate attracts tourists to visit the region. Tourists also visit Arizona in order to tour the desert features present in the region such as basins and plateaus. There are numerous mountains, which offer tourist, good hiking grounds. The mountain climate also facilitates the growth of crops and rearing of livestock.

            Located on the Persian Gulf coast, Dubai borders the coast. The presence of the shoreline facilitates the formation of natural harbors. These harbors benefit the state because it provides importing and exporting grounds for various products. This earns the state income revenue. Moreover, the presence of a coastline attracts tourists to the region. This is together with the coastal climate that provides cool breezes.

            The presence of different factors determines the economy of a particular city or country. Some of these factors are the industries present in the region, their geographic position, their climate, employment rate and presence of natural resources. When comparing the economies of two different cities, it is crucial to consider these parameters. Dubai and Arizona’s economies are diverse because of the difference in their parameters. Hence, providing details about each parameter in each state is vital when comparing the economic difference between two states.

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