UAE is the most globalised country in the Middle East because Abu Dhabi, emirates with huge oil wealth and Dubai with entrepreneurial skills was opened as commercial hub soon after gaining independence from British. Long before UAE had started opening up to free trade, free movement of labour and joint business ventures then the other countries in Middle East. So, when the trend of globalisation becomes clear in mid 1990s most of the Middle East countries are unprepared for the economic and political impact of globalization while UAE was all set for becoming globalised at least economically. It had never taken gobalisation as challenge but as opportunity from which they can have benefit. UAE was always prepared to do this without making any compromises with his values and tradition. (THE UAE – The Challenge Of Globalisation – Part 19., 2002)

UAE has set an example for the world on handling challenges by maintaining political stability and social security. By adopting open economy policies, activating private sectors and attracting foreign investors helps him in globalization. UAE has worked hard to make its way for healthy business and investment environment. (Paulo, 2004)

Introduction

Today globalisation is a need of every country in the world, whether it is small or big, developed or developing country. Globalisation was started in 1980, but has taken pace with the technological advancement in the sectors of transport and communication and by investing through big developing countries and opening them for international trade and investment. Even the poor countries are also trying hard to utilize the opportunity of globalisation. They are making to world markets of manufactured products and services with their huge labour. (Viswanathan, 2008)

With 32,278 square miles of area, consisting of 7 small emirates of Abu Dhabi, Dubai, Ras Al-Khaimah, Sharjah, Ajman, Umm Al-Qaiwain, and Fujairah, which together makes United Arab Emirates. These emirates were united as one federal state on 2 December, 1971. Abu Dhabi is the wealthiest member in the union because of its huge oil wealth and Dubai is second largest emirates being a commercial port. Being allied to the emirates like Abu Dhabi and Dubai, the remaining five small emirates are enjoying political and economic benefits.

UAE is considered to have autocratic government, in which one person possesses the power. There are less political reforms in the country than the economic ones because of existence of ‘sheikh’s dilemma’ in the country. UAE has foreign policy of non-interference in the internal affairs of other countries. They believe in peaceful resolution of disputes. UAE always supports for international institution like United Nation and Gulf Cooperation Council (GCC). (Stone)