[No. 337] Why Look at the United Arab Emirates (UAE)? — A Country That Transformed from Desert to Global City 🌍🏙️
This time, I would like to focus on the United Arab Emirates (UAE).
Many people might associate the term 'Middle East' with the oil industry or deserts.
However, in recent years, the UAE has been increasing its global presence in various fields such as finance, tourism, logistics, and aviation.
It cannot be described solely by the image of a 'resource-rich country.'
It is also a country where you can feel such changes.
An investment journey of continuous learning 📚✈️
📖 Cultivating the Earth — A Record of Walking with Global Stocks
📖 Cultivating the Future — Renji Enko's 'Trust and Entrust' Investment Log
Global Geographical Positioning and Population 🌍👥
The UAE is a country located on the eastern side of the Middle East and the Arabian Peninsula,
bordering Saudi Arabia and Oman.
Centered around Dubai and Abu Dhabi,
it has developed as a country where people and companies from all over the world gather.
Dubai, in particular,
is known as a transit point connecting Europe, Asia, and Africa,
and plays a role like the 'crossroads of the world.'
It also has a unique history of building cities and infrastructure
within the harsh natural environment of a desert region.
Economic Pillars — Industry and Finance ✈️🏗️
While the UAE once had a strong impression of being an oil-based economy,
it has now expanded significantly into tourism, finance, aviation, real estate, and logistics.
Particularly famous
are Dubai International Airport, known as a global hub airport,
and the presence of the massive airline, Emirates.
Also, with skyscrapers and artificial islands,
it has attracted global attention for large-scale urban development.
In recent years,
national strategies to reduce dependence on oil have been underway,
and investments in renewable energy and digital fields are also expanding.
From a "country that sells resources" to
a "country where the world's money and people gather."
There are aspects that make one feel such a change.
Similarities and differences with Japan 🇯🇵🌐
Japan is a resource-importing country,
and it relies heavily on overseas energy.
On the other hand, the UAE is also a country
that has grown against the backdrop of oil resources.
In that sense,
its position is significantly different from Japan's.
However, what is interesting is that
both may place importance on "connection with the world."
Japan through trade and technology exports.
The UAE through logistics, finance, and aviation.
Even if the forms are different,
there is an aspect where both have developed their countries by connecting with the world.
Also, I feel there is a commonality in the point that
they have built cities and economies within limited environments.
Weight in global stocks 📊🌐
The UAE is
often included in the emerging markets category within global stock indices.
In the Middle East region,
it is one of the countries advancing multifaceted economic growth, including finance, logistics, aviation, and tourism.
I personally do not hold individual stocks directly.
Even so, by investing broadly in the global economy through global stocks,
I am naturally incorporating the growth of such countries as well.
A place that was an "unknown country"
becomes a little more familiar through investment.
When writing the world travel series,
I have that kind of feeling.
Politics, society, and investment stance 🏛️💹
The UAE has
achieved rapid economic development, but on the other hand,
there are also discussions about its political system and labor environment.
However, countries around the world each have different histories and backgrounds.
When considering investments, it may also be important to look at the direction a country is heading, rather than simply viewing it as 'good' or 'bad'.
In recent years, moves toward diversification have been progressing, including tourism, finance, IT, and renewable energy.
I do not concentrate my investments in any specific country, but through global stocks, I have chosen a form that broadly embraces these changes as well.
Lessons as an investor 👀✨
The UAE has built a massive city in the middle of the desert and has attracted people and companies from all over the world.
Watching that, I feel that 'you cannot grow because the environment is harsh' is not necessarily true.
Rather, within limited conditions, what can be turned into a strength?
That may be important, whether for a country or a person.
When looking at the world through investment, you can see not only the numbers but also the history and choices that the country has accumulated.
I want to continue to cherish such learning.
⚠️ Note: Regarding the financial information covered in this article
📝 This article is based on the author's experience and personal thoughts.
💹 It is not intended to recommend any specific financial products.
📊 Information may contain errors due to revisions or updates.
✅ Please make decisions and investments at your own risk.
Underlying × Cultivation
Fields, bodies, and investments—a way of life that keeps on tilling.
Renji Enko
