Analysis of Leadership in UAE: Crossing the Chasm and Economic Growth

This report examines leadership in the UAE, particularly focusing on how effective leadership can help the country navigate economic challenges and foster growth. The analysis highlights the importance of leadership styles, such as situational and charismatic leadership, in responding to the impacts of the COVID-19 pandemic and the decline in oil prices. The report discusses the need for leaders to adapt to a digitalized world, including the adoption of digital technologies and the formation of virtual teams. It also explores the potential of Emiratization policies, investment in digital economies, and the use of sovereign wealth funds to promote economic stability and diversification. The report references various sources, including academic journals and online resources, to support its arguments and provides insights into how the UAE can position itself as a leader in the region by promoting international trade and adapting to global economic shifts.

Assessment

Contents
ARTICLE........................................................................................................................................1
type of leadership that is needed to cross the chasm and progress towards better future............1
the emerging issues related to leadership in the digitalized world..............................................2
REFERENCES................................................................................................................................4

ARTICLE
type of leadership that is needed to cross the chasm and progress towards better future
Crossing the leadership Chasm:
For a better future why is the transition from an individual contributor to manager is
needed. It is obvious that better leaders are needed for economy to grow. For crossing the chasm,
effective leadership and adequate management is required. The skills that people demonstrate to
earn a promotion rarely include leading, delegating, or motivating. Throughout the past 40 years,
GDP if UAE has grown tremendously. In a larger measure, these successes are attributable to the
countries leadership and their leadership styles. UAE has positioned themselves to take
advantage of globalisation during these tough times. COVID-19 for them as become a blessing
in disguised. Emerging consequences is that currently country is stressed about economic cost
related of the new COVID-19 and this pandemic is having significant effect on the global
economy. Research has provided that UAE’s economy is expected to contract by -3.5% in 2020.
For progress towards future better leadership approaches needs to be used. Current pandemic is
having devastating effect on global economy. Both Abu Dhabi and Dubai, the two economically
dominant Emirates, are particularly at risk, albeit at different degree and with different capacity
to deal with any financial fallout of the pandemic (Alzaabi, Rizk and Mezher, 2019).
Currently Abu Dhabi is going through fiscal pressures because of falling oil prices.
Sovereign wealth fund (SWF) is estimated at over $800 billion. It means that Abu Dhabi is in
better condition and they can cope up with severe economic crisis because of pandemic. Strong
leadership is required during critical situation for the future success. During this situation
struggle is real and most leaders are unable to evaluate right path. One question raised by leaders
is how they can move forward in such tough times. Positive and effective leadership can help in
re-building communities. Leaders are supposed to be charismatic and clarify their purpose. In
this situation leaders of Abu Dhabi can use SWF in order to protect the economic stability of
Abu Dhabi. Pandemic will have adverse effect on global economy and in this oil and tourism
industry are ones whose business is going to be severely affected. In this circumstance situational
leadership can be appropriate to use. Leaders of Abu Dhabi can do their significant contribution
in areas health care, infra structure education as it will be most appropriate according to
situation. Recession can be the time from where business giants can be rebuilt, so COVID-19
pandemic can bring up various opportunities and leaders can consider changes in structure of
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Abu Dhabi economy by involving in further diversification. Investing in import substitution
industries can also be a way that can be adopted by leaders of Abu Dhabi. Health and economy
issues are faced by all international cooperation. Leaders in Abu Dhabi can make use of
nationalistic and protectionist policies so that they provide protection to their citizens. Economy
can be fundamentally re-shaped if the leaders of Abu Dhabi reduces their dependency on
Chinese manufacturing goods and focuses on regional supply chain (Mosteanu and Alghaddaf,
2019). UAE acts as an emerging hub and they promote international trade, leaders can take
benefit of weakening international trade cooperation and make sure that free trade is been
promoted. They can become champion of this on international and specially on regional level.
For this situational leadership and charismatic leadership is much needed. This puts the Abu
Dhabi in position to seek to position itself as the leader of the supply chain for GCC and MENA
Regional. Global pandemic COVID-19 has provided Abu Dhabi with opportunity to re think on
its Emiratization policy. Leaders of Abu Dhabi can re strategize this policy. In the time of
disruptions because of COVID-19, Abu Dhabi can see an increase in foreign migration, so there
are chances that countries who depends on foreign labour can be negatively affected. Further in
this Abu Dhabi can face another challenge that is in foreign labour based economy people are
less involved in exploring private sector jobs and they are highly engaged in seeking
opportunities in public sector (Digital Technology Key to Post COVID-19 Recovery of Offshore
Oil and Gas Industry, Reveals ADIPE, 2020).
Emiratization of labour and the investment in digital economy can provide Abu Dhabi
with triple advantage. It can assist leaders in enhancing knowledge based economy, higher
paying job roles nationwide and government will also be able to earn broader source of revenue.
In this situation leaders can invest in digital economy and leaders of Abu Dhabi needs to do more
investment in technological hubs (De Jong, Hoppe and Noori, 2019). This will support them in
attracting foreign investment in technological based business. A research by Accenture has
provided that investment in automation and AI can result in 1.6% increase in economy of UAE,
so this pandemic can be converted into situation of opportunities and leaders of Abu Dhabi can
work towards making their economy grow. It can generate better revenue for the government
too.
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the emerging issues related to leadership in the digitalized world
Gulf’s political economy is in crisis because of COVD-19 and low prices of oil. UAE has
earned advantages of their wider strategies like national innovation strategy 2031 and block
chain strategy 2021. Abu Dhabi has become the first region to fight pandemic with various
digitalised innovation. In this an effective and positive leadership is needed so that better virtual
team can be formed. In order to overcome the fallout from crisis, UAE has also lifted their ban
from VOIP services (Molotch, 2019). This can enable leaders to form a better team and also it
can increase their ability to withstand global pandemic. Abu Dhabi leaders needs to support their
team by integrating technologies and forming virtual teams. Challenges like gaps in skills is
faced by Abu Dhabi during this tough situation. For this online training can be provided by
leaders to employees so that economy can be grown and also they can be able to convert this
situation of pandemic into opportunity. Leaders are bounded to work on these aspects in order to
attract foreign investments.
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REFERENCES
Books and Journals
Alzaabi, M., Rizk, Z. and Mezher, T., 2019. Linking Smart Cities Concept to Energy-Water-
Food Nexus: The Case of Masdar City in Abu Dhabi, UAE. In Smart Cities in the
Gulf (pp. 85-106). Palgrave Macmillan, Singapore.
De Jong, M., Hoppe, T. and Noori, N., 2019. City Branding, Sustainable Urban Development
and the Rentier State. How Do Qatar, Abu Dhabi and Dubai Present Themselves in the
Age of Post Oil and Global Warming?. Energies.12(9). p.1657.
Molotch, H., 2019. Consuming Abu Dhabi. The New Arab Urban: Gulf Cities of Wealth,
Ambition, and Distress.p.256.
Mosteanu, N.R. and Alghaddaf, C., 2019. Smart economic development by Using Foreign Direct
Investments–UAE case study. Journal of Information Systems & Operations
Management. pp.9-20.
Online
Digital Technology Key to Post COVID-19 Recovery of Offshore Oil and Gas Industry, Reveals
ADIPE. 2020. [ONLINE] Available through: < https://www.prnewswire.com/ae/news-
releases/digital-technology-key-to-post-covid-19-recovery-of-offshore-oil-and-gas-industry-
reveals-adipec-301070284.html>
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