Evaluating Real Estate, Innovation and Economic Growth in Abu Dhabi

This report evaluates the impact of strategic management and innovation on the real estate sector's contribution to economic growth in Abu Dhabi. It explores the relationship between real estate development, economic growth, and the role of innovation. The report examines how strategic management practices influence the Abu Dhabi property market, including investment, housing prices, and GDP growth. The methodology includes both quantitative and qualitative research methods, such as questionnaires and statistical analysis, to assess the impact of innovation and strategic management on the real estate sector, addressing previous research gaps. The findings provide insights into the factors supporting investment growth and inform policies for the future growth of the real estate industry in Abu Dhabi, focusing on the influence of strategic management capabilities, technological advancements, and market conditions.

Running head: STRATEGIC MANAGEMENT AND INNOVATION IN ECONOMIC
GROWTH
Strategic Management and Innovation in the economic growth of AbuDhabi: An Evaluation of
the Real Estate Sector in Abudhabi
Name of the University:
Name of the Student:
Authors Note:

1STRATEGIC MANAGEMENT AND INNOVATION IN ECONOMIC GROWTH
Table of Contents
1. Title of the Project...........................................................................................................2
2. Overview..........................................................................................................................2
3. Research Questions..........................................................................................................3
4. Literature Review............................................................................................................3
4.1. Real Estate Development in Abu Dhabi...................................................................3
4.2. Economic Growth in Abu Dhabi..............................................................................4
4.3. Innovation and Strategic Management in Real Estate and Economic Growth in
Abu Dhabi....................................................................................................................................5
4.4. Research Gap............................................................................................................6
5. Methodology...................................................................................................................7
5.1. Quantitative Method.................................................................................................7
5.2. Qualitative Method...................................................................................................9
6. Outcomes.........................................................................................................................9
7. Timescale.......................................................................................................................11
References..........................................................................................................................12

2STRATEGIC MANAGEMENT AND INNOVATION IN ECONOMIC GROWTH
1. Title of the Project
Strategic Management and Innovation in the economic growth of Abu Dhabi: An
Evaluation of the Real Estate Sector in Abu Dhabi
2. Overview
Innovation and strategic management of real estate facilitates in generating employment,
offering shelter to families, decreasing poverty along with encouraging income distribution
within the economy of Abu Dhabi (Singla, Sethi and Ahuja 2018). Real estate property is
deemed to be a mixture of buildings, land and natural resources. Innovation and strategic
management of real estate in Abu Dhabi considers management, purchase, ownership rental land
along with sale of real estate for profit. In a situation where real estate provides better returns in
consideration to its moderate risk, the investors will prefer putting more investment within this
sector that is resulting in its increased growth. New innovation theory explains the innovation
within the real estate sector along with its progress in technology that is deemed as a part of
production function (Sutrisna and Setiawan 2016). The Abu Dhabi real estate property includes
all the property segments that includes houses attained by single families to commercial and
agricultural land, go-dawns, warehouses, office spaces, shopping complexes along with retail
shops.
Real estate sector of Abu Dhabi is observed to have a gap in addressing such fundamental
goals because of various factors impacting the sector. This includes pursuit by most people In
Abu Dhabi to own houses, increased migration to urban areas, better remittances from UAE
people in a situation where property prices within the region is high (Venable, Pries-Heje and

3STRATEGIC MANAGEMENT AND INNOVATION IN ECONOMIC GROWTH
Baskerville 2017). Government within heavy infrastructure that incudes construction of road has
resulted in increased development of properties in Abu Dhabi because of enhanced demand
price. There is drastic impact of real estate sector in the development of economic activities that
is continuing to attract increased attention over years. This has resulted in the importance of
innovation and strategic management within the sector. It is therefore vital to evaluate the
aspects which support investment growth to inform policies which can maintain the future
growth of the real estate industry (Whicher, Philbin and Aronson 2018).
3. Research Questions
The research questions those are considered in the current research to be answered are
explained below:
 How real estate sector of Abu Dhabi contributes to economic growth of the nation?
 What is the contribution of strategic management and innovation in Abu Dhabi’s
economic growth?
 What is the position of real estate sector in Abu Dhabi?
4. Literature Review
4.1. Real Estate Development in Abu Dhabi
Al-Ansaari, Bederr and Chen (2015) stated that the impact of property market
development on the Abu Dhabi economic growth has attained increased interest over the past
years. This has been posssible because of the role played by housing in Abu Dhabi in offering
among the basic requirements to the population that is shelter. Alfaki and Ahmed (2017)
indicated that real estate is an important sector in the growth plan of the nation, specifically in

4STRATEGIC MANAGEMENT AND INNOVATION IN ECONOMIC GROWTH
dealing with needs of urban population. Strategic management changes within the Abu Dhabi
real estate market indicated that wealth might impact an economy. Theory pf permanent income
indicated that people are anticipated to change their desired consumption in case the house prices
affects the target lifetime wealth. Bodolica, Spraggon and Zaidi (2015) indicated that in a
situation where real estate provides better returns in consideration to moderate risk, the investors
prefer switching their investment within the Abu Dhabi property market contributing to
increased economic growth. These reasechers also stated that the economic output is directly
proportional to the existing knowledge that indicates progress in technology in comparison to
overall output if the nation’s economy. In contrast Dawoud (2017) explained that there is a direct
relationship between property prices along with the consumption in Abu Dhabi and UAE
economy. These reasechers revealed that effect of house prices on private local demand indicated
that increase in housing market considerably increased domestic demand. There is also a
significant relationship between the property prices along with consumption within Abu Dhabi.
4.2. Economic Growth in Abu Dhabi
According to Dulaimi and Ellahham (2016) economic growth can be explained as
increase in the overall output of an economy that can be gauged through observing gross
domestic product (GDP) that facilitates in enhancing quality and standard of people within the
nation. These reasechers also indicated that such economic advancement takes place at the time
output per capita exceeds population. Economic growth in Abu Dhabi can be observed through
observing growth in the side of economies, macroeconomic indicators like per capita GDP
systematically which leads to positive impact on socio economic sector and for this reason
economic growth is expanding a nation’s economy. Dzenopoljac et al. (2017) revealed that with
increase in the advancement of real sector in Abu Dhabi, GDP growth has increased by 3% in the

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year 2016 and it is observed to increase over the future years. Increasing rate of indication in the
Abu Dhabi real estate sector is observed to increase the GDP growth by 3.9% in the year 2017
and by 4`7% in the year 2018.
Fadol, Barhem and Elbanna (2015) explained that this is deemed to OutSpace overall
growth rate of Abu Dhabi’s GDP over the same period considerably. Industry analysis indicates
that residential price performance is deemed to diverge in the year 2018 with neighborhoods
where considerable new supply delivery is anticipated to observe price changes. Farouk et al.
(2016) indicated that commercial market activity has increased considerably along with increase
in the prime office rents. Through growth in real estate sector the rate at which the economy of
Abu Dhabi is explained as change percentage within produced goods quality along with services.
Fletcher (2017) elaborated that real estate innovation in Abu Dhabi is impacted by high
competition, financial service markets, technological facilities, macro-economic conditions along
with financial risk and supervision that has enhanced the nation’s GDP. Several strategic
management capabilities focused on product, technological to consumer care services within
property market has drastically resulted in increasing profitability over years.
4.3. Innovation and Strategic Management in Real Estate and Economic Growth in Abu
Dhabi
Lasserre (2017) evidenced that the requirement for real estate sector in Abu Dhabi
increased over the past 10 years. Over the recent years Abu Dhabi has recorded highest growth
in its luxury house prices all over the world. Research carried out by Mahroum and Al-Saleh
(2015) indicated that real estate process has increased by 25% with constant innovation and
strategic management initiatives taken by managers in property market. Such increase in prices
has been observed because of innovative developments that might be explained by other factors.

6STRATEGIC MANAGEMENT AND INNOVATION IN ECONOMIC GROWTH
These innovations include improvements and new road construction along with emergence of
new land laws. Such improvements in investments within the real estate sector has contributed to
increased economic growth of Abu Dhabi.
McCusker and Gunaydin (2015) elaborated that real estate innovation in Abu Dhabi is
impacted by high competition, financial service markets, technological facilities, macro-
economic conditions along with financial risk and supervision that has enhanced the nation’s
GDP. Several strategic management capabilities focused on product, technological to consumer
care services within property market has drastically resulted in increasing profitability over
years. Perner et al. (2015) revealed that innovation has resulted in increase of the real estate
market productivity that serves as significant source of increasing wealth within economy of Abu
Dhabi. These reasechers also explained that over several years the nation’s real estate sector
focused on capturing the values from the waves of innovation and technology. Over these years,
the property market realized that the new start-ups observed possibilities to capitalize of
opportunities that is observed by the organizations. Herridge, Jaber and Joannidis (2015)
evidenced that strategic management functional strategies that resulted in the growth of real
estate sector includes marketing production and supplier strategies that has enhanced the
performance of economic growth.
4.4. Research Gap
Previous research on this subject failed to explain the residential real estate investment
that includes prices of stock and interest rates serves as an effective GDP indicator. Moreover, it
also failed to explain that innovation serves as creative regeneration and implementation of new
ideas which can attain considerable improvements within a product, structure, program along
with activities (Pervan, Al-Ansaari and Xu 2015). Addressing the research gap, the current

7STRATEGIC MANAGEMENT AND INNOVATION IN ECONOMIC GROWTH
research will explain the ways in which innovation and strategic management strategies is
resulting in increased growth of luxury house prices within the nation.
5. Methodology
5.1. Quantitative Method
Research design- Quantitative research design is selected in analyzing the impact of
strategic management and innovation within real estate sector in developing economic condition
of Abu Dhabi (Whicher, Philbin and Aronson 2018). This research design is chosen for the
reason that this can support in obtaining certain vital data on the human perception subject in
consideration to some relevant research data. In addition, a larger sample size is chosen within
this exploration as this is deemed to be suitable for quantitative research design.
Research instrument- Questionnaire is deemed to be the suitable research instrument for
this exploration for obtaining certain reliable as well as valid data. Through employing this
research instrument participants of the survey will be able to provide responses that can be
evaluated in realizing the strategic management and innovation strategies adopted by real estate
sector in improving the economic growth of Abu Dhabi (Venable, Pries-Heje and Baskerville
2017). The developed questionnaire for the survey participants is deemed to contain both the
open as well as close ended questions. This research instrument will be used in consideration to
the fact that this can serve as most effective survey process in attaining significant information
from a large research population. Such questionnaire will be provided to its respondents by
means of social media along with personalized e-mails (Venable, Pries-Heje and Baskerville
2017).

8STRATEGIC MANAGEMENT AND INNOVATION IN ECONOMIC GROWTH
Data Analysis- Relevant data collected by means of the questionnaire survey technique
is deemed to be analyzed through employing certain effective statistical evaluation tools. MS
excel application is deemed to be employed in based on the gathered responses from this
questionnaire survey. Additionally, in evaluating the collected data correlation and regression
analysis in order to answer every question set in this research of strategic management and
innovation within real estate in attaining economic growth of Abu Dhabi (Venable, Pries-Heje
and Baskerville 2017). Findings will be represented through the graphs and tables that can
facilitate the researcher in analyzing the human responses on this subject.
Research validity and reliability- Validity and reliability of the collected data will be
ensured by means of employing website sources which contains currently updated data on the
strategic management and innovation strategies taken in improving real estate industry and
economic growth of Abu Dhabi (Pervan, Al-Ansaari and Xu 2015). Moreover, in analyzing
quantitative data Pearson correlation test will be conducted which can ensure the reliability and
validity of data collected from quantitative data gathered through survey.
Sampling/ sample size- Simple random sampling technique is deemed to be employed in
the recent research in which 41 real estate managers from Abu Dhabi will be selected from a
large survey population. This survey method will be used in the current research as this offers an
equal chance to every respondent in getting chosen for the process of survey (Venable, Pries-
Heje and Baskerville 2017). This is one of the major cause for which quantitative data is
collected from a huge population through the process of simple random sampling. In such
scenario, quantitative data analysis requires a big sample size in obtaining and evaluating
responses collected from target respondents in this survey process.

9STRATEGIC MANAGEMENT AND INNOVATION IN ECONOMIC GROWTH
Questionnaire design and interview- The questionnaire which will be provided to all
the participants taking part in the survey will include sections on open and close ended questions.
Part A of this questionnaire will collect vital information regarding the demographic profile of
the participants (Pervan, Al-Ansaari and Xu 2015). Part B of this questionnaire will encompass
questions concerned with the strategic management and innovation strategies taken in real estate
industry. Part C will contain questions regarding the ways in which advancement of real estate
sector has resulted in growth of economy in Abu Dhabi.
5.2. Qualitative Method
Data Collection- Secondary data collection technique is deemed to be most suitable in
case of secondary resource selection. The selected secondary sources are selected employing
which certain vital and reliable information regarding use of strategic management and
innovation within the real estate industry of Abu Dhabi supporting economic growth (Venable,
Pries-Heje and Baskerville 2017). These secondary sources include government websites,
journals, along with real estate development publications by local authorities of Abu Dhabi.
Chosen Research Variables- The variables those are selected for carrying out in this
research includes dependent and relevant independent variables (Pervan, Al-Ansaari and Xu
2015). The dependent variable is economic development of Abu Dhabi. The independent
variables include strategic management in development of real estate sector of Abu Dhabi and
innovation impact on Abu Dhabi real estate sector.
6. Outcomes
From accomplishing research on the strategic management and innovation within the real
estate sector of Abu Dhabi will indicate the ways in which this sector contributes to the

10STRATEGIC MANAGEMENT AND INNOVATION IN ECONOMIC GROWTH
economic development of the nation (Whicher, Philbin and Aronson 2018). From the research
certain implications will also be derived regarding the fact that innovation continues to
revolutionize Abu Dhabi real estate sector. Through implementation of analytical structures
within the nation’s real estate sector at different level an increased knowledge on the strategic
management steps that can be taken in order to improve innovation within this sector. The paper
will also reveal that the disruptive technology of strategic management indicates certain
innovations that derives new value propositions within the market (Pervan, Al-Ansaari and Xu
2015). Moreover, this also have capability of fundamentally reshaping the competitive landscape
within the real estate sector. It will also be gathered from research carried out in this paper that
there is a positive relationship between the economic growth and strategic management-based
innovation within Abu Dhabi real estate industry. Moreover, it will bed revealed that there is a
significant impact of real estate development on the nation’s economic advancement.
Considering the same, the government is increasing its focus on investing within the real
estate and developing re-engineering policies. This is deemed to surround the management and
development of real estate within the nation through attracting investment from the private
sector. This can serve among the ways through which the nation can ensure rapid development of
the sector (Pervan, Al-Ansaari and Xu 2015). Findings of the research will also elaborate that the
internet serves as a process which can revolutionize the real estate industry of Abu Dhabi. This is
for the reason that it can increase competitive advantages, improving its business processes along
with enhancing investment returns. The paper will also reveal that the real estate industry of Abu
Dhabi has two strategic pathways regarding management of this sector (Whicher, Philbin and
Aronson 2018). First among them is to select whether to have own frontline personnel or to

11STRATEGIC MANAGEMENT AND INNOVATION IN ECONOMIC GROWTH
outsource the same. Another factor that will be revealed is the ways in which leasing task can be
treated.
7. Timescale
Task Year 1 Year 2 Year 3
Selection of topic
and search for
justification
Constructing
literature
Selecting
appropriate
methods
Data collection
Data analysis and
representation
Reviewing the
outcomes
Conclusions and
recommendations
Submitting draft
of the project
Printing and final

12STRATEGIC MANAGEMENT AND INNOVATION IN ECONOMIC GROWTH
submission

13STRATEGIC MANAGEMENT AND INNOVATION IN ECONOMIC GROWTH
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