Page 110 - Aamir Rehman - Dubai & Co Global Strategies for Doing Business in the Gulf States-McGraw-Hill (2007)

94 Dubai & Co.

Under a worst-case scenario, the GCC states might need to hunker
down and defend themselves, at the expense of their posture of
openness and booming economic growth.

Avoiding the Unspeakable: Extremist Violence and Terrorism

Extremism and radical ideologies, though actively suppressed by
the regimes of the GCC states, are a real threat to the region’s
sustained growth. Terror attacks in Saudi Arabia (not to mention
the Saudi affiliation of many of the 9/11 terrorists) have had a
palpable impact on the business environment and quality of life in
the country and especially in Riyadh, the capital. Terror incidents
elsewhere in the GCC states have hitherto been negligible or
nonexistent. A terror attack could, however, cause great damage to
GCC economies that are today noted for their openness and
peaceful environment—especially the UAE. Dubai, seen by some as
too permissive, could potentially be a target.
Extremist movements find followers when there is unemploy-
ment, dissatisfaction with the government, and poor education of
the masses. The GCC states are increasingly concerned with creat-
ing jobs for young people and spreading prosperity not only as the
right things to do but also as the best way to prevent extremism.
Educational systems are being reviewed to ensure that there is
intervention against extremist messages before young people have
had a chance to hear or be influenced by them. Foreigners who are
identified as terror threats are unwelcome and can swiftly be
removed. The risk of extremist violence is present, but is being
actively managed by regimes across the Gulf.

“Huddled Masses . . . ”
The low standards of living and mistreatment of many foreign
workers is a major issue for the GCC. According to observers such
as Human Rights Watch, Dubai’s low-paid construction workers
toil for 12 hours or more each day, six days a week, for $150 per
month. Companies provide housing, but in cramped and dreary
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quarters. Instances of workers not being paid on time or not at all
have become common: one Dubai resident told me about a person
who was hired as a watchman for the construction site of a private