La inversión extranjera y la dependencia de mano de obra migrante en el desarrollo económico de Emiratos Árabes Unidos

Abstract

This study examines the impact of foreign investment and globalization on the economic development of the United Arab Emirates (UAE), placing particular emphasis on its structural dependence on foreign labor. Over the past several decades, the UAE has transitioned from an oil-centered economy to a diversified and increasingly competitive model, attracting large flows of foreign direct investment (FDI) in sectors such as construction, manufacturing, logistics, technology, and financial services. This diversification has been made possible by favorable institutional policies, including tax incentives, free-trade zones, and flexible migration systems. However, more than 85% of the workforce consists of foreign employees, whose labor conditions are often shaped by cost-reduction strategies, and the sponsorship system know as kafala. Methodologically, this research combines theoretical analysis with empirical evidence, focusing on a case study of NAFFCO, a fire-safety company where more than 90% of employees are migrants from India and the Philippines. The findings indicate that, while FDI has produced positive outcomes in knowledge-intensive sectors, industries that rely heavily on manual labor remain fundamentally dependent on low-wage foreign workers. This structural duality raises concerns about the long-term sustainability of the Emirati development model. The study concludes that economic growth in the UAE has successfully attracted capital and enhanced global competitiveness, yet it also reinforces significant social and labor inequalities. The country’s ongoing dependence on migrant labor limits the advancement of national human capital and poses challenges for long-term social cohesion. These dynamics highlight the complex balance between rapid economic modernization and persistent structural vulnerabilities overal.