Human Interactions in the Form of Communication

Table of Contents


Human interactions appear in the form of communication, and this communication can either be in terms of spoken or written discourse. Discourse is a word derived from a Latin word, discursus, and it means conversation or speech. Therefore, in any communicative event, discourse is the dominant feature. In fact, when people are conversing, it is said that they are engaging in a discourse.

Discourse is applied in many situations including education, social contexts, political contexts, legal contexts and many other contexts. In all these contexts, there are various analysis criteria that can be used to understand the discourse. This is because people engaged in discourse have to understand for it to be said that they are communicating.


Cohesion occurs in texts when some interpretations of the discourse are dependent on one another. Cohesion is also concerned with formal links that tie different parts of a discourse together. This means that a text can only be decoded by applying another element in the same discourse. Therefore, a student, in an academic context, will associate constituents of a sentence or chapter to understand the concept being explained. He will look at features such as conjunction, ellipsis, anaphora among others to understand the concept.


This is the relationship of a discourse that makes the constituents of a text have some logical relationship with each other. The material or discourse content must be presented in proper sequence so that it does not confuse the recipient; the material should build on each other. This relationship creates a relationship in the speaker such that the reader can create a mental representation of the information presented.


This means that the person giving the message should have the willingness to deliver the message; he should deliver his message in a deliberate and conscious manner. In a school context, the teacher’s intention is to teach so that students can understand. Therefore, the teacher is delivering his content consciously and deliberately.


In order for a conversational material to have any relevance, the speaker and the hearer must be in agreement; the listener should be willing to listen, and the speaker should be willing to speak; they have some underlying rules guiding them. In an academic situation, the information presented should be that which is relevant to the syllabus. Therefore, the communication product of the speaker should be acceptable to the listener or audience.


In any discourse situation, some information should be communicated. This ensures that the discourse has some content. For instance, in an academic discourse, the information should flow in a two way dimension; from the students to the teacher and from the teacher to students.


Intertexuality means that, in order to understand a text, one needs to refer to the world outside the text; the world outside the text becomes important to the interpretation of the text. In an academic context, the reader will make some reference of things outside the classroom some as to understand the content being presented by the teacher.


The circumstances in which the language is used must be relevant to its application. For instance, the teacher should use some language with which the learners will identify. This will facilitate good communication in the classroom.


A good discourse context should take all these criteria in to consideration as they are important for the understanding of any discourse. They help for a good relationship between the speaker and the listener, and this facilitates good communication.


The Future CSUF College Town Project

Executive Summary

California State University, Fullerton, the oldest university in Fullerton, in collaboration with the City of Fullerton has come up with a project to develop a town known as college town. The location of the town is to be behind Hope University and the current Nutwood Street. The college town is designed to provide various activities, which may be of great benefit to not only the members of CSUF, but also to other members of the public.

Due to the magnitude of the project and people who have the potential of being affected by the town, there must be a consensus in development of the town between CSUF and the city of Fullerton regarding the development of the town. In addition, Fullerton University plays a very big role in supporting the economy of Fullerton thus setting up the college town will also help improve its image.

The zoning of the college town will include a residential area that will be divided into the middle class and upper middle and upper class areas. The town will also have a market district where the main businesses of the town will be located. In addition, the town will have a plaza district where prime businesses will be located. Another area will be set aside for use as a residential area or any other development, which may be suitable for the town.

The cost of putting up the town is estimated to be around $ 63.9 billion compared to the benefits, which are estimated to be around $ 30.5 billion. Thus, the setting up of the town would be a worthwhile investment, as the recurrence of the benefits would take the investment positively. The Return on Investment (ROI) is found to be 47 %; this is a fairly large value considering that this is a public development. Thus, ROI show that setting up the college town is a viable investment to the university and the people of Fullerton.

To help promote the image of the town, the paper proposes that it should be done through several Hollywood magazines. In addition, promotion would also be done through CSUF and the City of Fullerton who will undertake many of their activities in the town so as to advertise the town indirectly. The town will also try to attract several large chain stores, which are recognized throughout the country to set up their businesses in the town.


Universities are very important learning institutions; they are vital to the development of an area. In addition, Universities help in improving prestige and public view of an area, as well as attracting young and bright students, and bringing intellectuals i.e. the lecturers and other trainers to a town.

The presence of a successful university in a given town helps in attracting investments into an area since the companies are assured of a pool of young, bright, and hardworking students who would help in the provision of the necessary manpower required for the effective functioning and growth of the companies.

However, for the investments to be attracted to the area there must be proper infrastructure, which has been put in place to facilitate the smooth running of the companies. In addition, the presence of good infrastructure will help in attracting the students to the university since most young people are known to be attracted to urban centers.

In order to acquire space for expansion of its activities, CSUF came up with the college town to provide additional space for expansion of its activities. In addition, the college town will provide more revenue to CSUF and the city of Fullerton. The university of Fullerton has for a very time been the major establishment which greatly affects the lives of the residents of the city of Fullerton. Establishment of the college town will help it consolidate its position as the defining feature of the city of Fullerton.


California State University Fullerton, known commonly as CSUF, is an integral education institution in the state of California as it is the university that enrolls the highest number of students. In the city of Fullerton, it is the largest learning institution in terms of the number of students who are enrolled in the university (university website, 2011)

Fullerton is generally an area that is almost fully developed with very little land for development. The city is mainly composed of low industrial developments. In addition, there is a project to develop a transportation network known as “Go local.” The transportation network aims at connecting FTC and CSUF campus.

The development of the “Go local,” plan aims at covering just the right place where development of the college town is to be located; that is, behind Hope University and current Nutwood (Focus on Fullerton, 2009). The main strategy for the creation of the Go Local is to help ease the congestion in the city’s freeway. Hence, by easing the congestion the city would be opening up other areas for development and investments.

One of the areas is the area behind Hope University and the current Nutwood Street.

Go local would not only help in decongesting the city but also help in facilitating the development of the college town. The development of the project has therefore been done at a timely period, as its design will be integrated with the design of the Go Local.

Economic Climate

Despite the fact that the city of Fullerton is not a heavy industrial town, various economic activities are undertaken to support its economy and provide thousands of jobs to the residents of Fullerton. Among the economic activities undertaken, include Tourism, Agriculture, Financial services, Building and construction, and Manufacturing.

All the above economic activities generate revenue to the City of Fullerton. In addition, CSUF generates considerable revenue to the city; indeed, CSUF alone is the largest single employer in Fullerton. The economic impact of the university offers $ 4.28 million in output to the economy of Fullerton. In addition, student expenditure offers about 4550 jobs to the residents of the town (Bhattacharya & Cockeril, 2002, p. 4).

Due to the fact that California state university of Fullerton is of so much economic importance t o the city of Fullerton, setting of the college town in the vicinity of CSUF, would enable the city to reap maximum economic benefits from the university by creating thousands of jobs to the residents of Fullerton.

The College Town Project

The college town will offer a variety of services to the people of Fullerton. The college town is designed in such a way that it has a residential area where several apartments will be set up, which will be available to everyone. The apartments are designed in such a way they can be able to offer accommodation even to students who would not wish to be accommodated in the university.

All the apartments will have ample parking and security of the residents. In addition, the college town will offer space for the university to build residential areas to accommodate the students. The college town will also have space to accommodate the expansion of the other CSUF activities.

In addition, the college town will offer an up-market residential area, which is specifically suited for the intellectuals and business people. This area will have various recreation activities that would enhance the comfort of the residents.

This area will have residential units, which will not be fenced to enhance the communal setting of the college town. Though the units will not be fenced, there will be ample security in the area to help in the protection of the residents’ property. Just like all the areas of the city, the residential districts will have all the social services and amenities.

The college town will also have a market place district that will be mainly suited for setting up business enterprise. This area will be specifically suited for banks and other financial institutions in addition to other businesses, which are relatively small. The market place district will be the focal point of the town and will therefore have many aesthetic features, which will help in the improvement of the image of the town. There will be many hotels, clubs, and other entertainment joints, which will be located in this area.

Just past Nutwood road, there will be a plaza district. This area will be suited for entertainment spots, a place where both the youth and families can hang out during their free time. This region will have a five star hotel that will offer world-class facilities and will be ideal for tourists and other people having leisure. This region of the town will be specifically suited for high-income business ventures. A mall will also be established in the area.

The town will also have other parts that can be used for both residential and business purposes. In this area, there will be a large library, which will cater for both the needs of the university students and the public.

This area will have many other recreation facilities such as sports center, swimming pool, sports ground and a recreational park. The recreational park will offer an ideal place where people can relax without the noise and interference of the other areas. This region is also ideal for students for students to spend their leisure time while socializing with other students or the members of the public.

Cost Benefit Analysis

In a business case, cost benefit analysis is used to explain the benefits of a certain investment so as to provide good comparison and thus help in determining whether the investment should be made when the benefits are compared with the costs of undertaking the investment.

However, the cost benefit analysis is not written only for business investments, it can be taken to determine whether certain actions, which are undertaken by a party, will turn out to be good. Hence, the cost benefit analysis of the college town will look at various aspects, which may be caused by the setting up of the college town. Factors that are mainly considered are social, environment and financial or economic.

Costs of setting up the college town

Preliminary costs:

Consultation and planning costs  – $ 100 million

Preparation of the area – $ 5 billion

Survey – $ 50 million

Environmental impact estimate – $ 3 billion

Construction costs:

Cost of materials and equipment – $ 50 billion

Labor – $ 4 Billion

Provision of necessary support services:  

Access roads – $ 500 million

Electricity – $ 75 million

Water and sewerage – $ 150 million

Landscaping – $ 50 million

Other expenses:

Logistics – $ 1 billion

Total – 63.925 billion

Benefits of setting up the college town:

Employment offered in construction work – $ 1 billion

Employment offered upon completion – $ 6 billion

Entrepreneurial knowledge to the students estimate – $ 10 billion

Social cohesion of the town estimate – $ 2 billion

New students attracted to the university – $ 500 million

New investments attracted to the town – $ 10 billion

Revenue from tourism attraction – $ 30.25 billion

Evaluation of costs and benefits

The total cost of putting up the college town is 63.925 billion. The above costs include all the expenditure that may be involved in the setting up of the college town. However, the benefits of setting up the college town are estimated to be roughly 30.5 billion.

However, the recurrence of some of the benefits would make the benefits outweigh the costs of putting up the town, as most of the costs are not recurrent. Therefore, the setting up of the college town is a potential worthwhile investment and should therefore be made for the benefit of the residents of the town, the students, and other relevant stakeholders.


Promotion is a very vital aspect that will determine the success of the college town. Promotion of the college town will be done through famous magazines that are based in California. Particular emphasis will be paid to Hollywood magazines. This will help attract tourists to the college town by portraying the college town as a place where celebrities meet.

The college town will be formulated as a place where intellectuals, both the young and the old meet. The college town will also be portrayed as a place where the true culture of the people Fullerton is exhibited. In addition, it will be portrayed as a place where the young people can have fun responsibly.

In addition, CSUF and the City of Fullerton should form a website of the college town to help attract people to the town. The website will inform people of the various services and activities which are offered at the college town thus attracting them to the college town.

To help in promotion of the town, several CSUF and City of Fullerton activities should be carried out in the college so as to help in making the people of know of the existence of the town. In addition, CSUF and the City of Fullerton should carry out several campaigns to help in attracting investments into the college town.

This can be done through posting of advertisements in several investment magazines. In addition, CSUF and the City of Fullerton should be involved in several workshops and trade fairs to help in the promotion of the image of the town and help attract investments into the town. Several advertising campaigns should also be undertaken using televisions.

The shopping mall to be located at the heart of the town will help in attracting supermarkets and other large chain stores into the area. These establishments will act as a form to promotion to the college town, since, by establishing their businesses, they will be bringing their good reputation to the college town hence attracting people and other investments into the area.

Return on Investment (ROI)

Return on investment or simply ROI, is a method that is used to determine the return that a certain investment is likely to yield over a given period of time. It is used by most analysts to determine the potential income, which the investment may generate before the setting the investment. In calculating ROI, the most tangible financial gains of the project are compared against the cost of implementing the project. Return of investment is not usually as comprehensive as the cost benefit analysis explained above (NSGIC, 2006, p. 1).

ROI is usually presented as a ratio of the total financial gains to the costs of undertaking a certain project.

Costs of undertaking the project

Preliminary costs:

Consultation and planning costs – $ 100 million

Preparation of the area – $ 5 billion

Survey – $ 50 million

Construction costs:

Cost of materials and equipment – $ 50 billion

Labor – $ 4 Billion

Provision of necessary support services:

Access roads – $ 500 million

Electricity – $ 75 million

Water and sewerage – $ 150 million

Landscaping – $ 50 million

Other expenses:

Logistical expenses – $ 1 billion

Total – $ 60.925 billion

Financial benefits of the project:

Employment offered in construction work – $ 1 billion

Employment offered upon completion – $ 6 billion

New students attracted to the university – $ 500 million

New investments attracted to the town – $ 20 billion

Revenue from tourism attraction – $ 1 Billion

Total – $ 28.5 million

Return of investment of the project

ROI = 28.5/60.925 = 47 %.

From the above calculations, the ROI of the project has been determined as 47 %. For a viable business venture, the ROI should generally be greater than zero. Hence, this shows that the investment is viable. The value is far much greater that the ROI of most governments projects which are in most cases negative (NSGIC, 2006, p. 1).


College towns or other establishments undertaken near colleges have been shown to be a great benefit to various societies. Other similar establishments have been successfully implemented in other universities such as the University of Connecticut, Ohio state university and Arizona State University (Anon, 2011).

Creation of the college town would be of great benefit to the city of Fullerton. The benefits are not restricted to the ones explained above. In addition, the several methods of analysis done on the project have shown that the project is a viable undertaking, which has the potential of reaping very good returns to the city of Fullerton. The Cost Benefit Analysis (CBA), the most efficient method of analysis of a project clearly shows that the project is bound to have great benefits.

Even though the implementation and completion of the project may take several years to complete, successful planning of the college town should be done in order to benefit the future generations and help uplift the standard of the city of Fullerton and the California State University, Fullerton.


Anon. (2011). A University without Walls, Where Campus and City Life Converge. CSUF news. Web.

Bhattacharya, R. & Cockerill, L. (2002). . Web.

“Focus on Fullerton. (2009). City of Fullerton website. Web.

NSGIC. (2006). Economic justification measuring Return on Investment (ROI) and Cost Benefit Analysis (CBA). Advanced Statewide Spatial Data Infrastructures in Support of the National Spatial Data Infrastructure. Web.

University website. (2011). California State University, Fullerton. Web.


Globalization Essence by M. Steger and N. Bisley

Globalization is probably one of the most difficult and controversial issues to deal with. A number of attempts were made by sophisticated researchers and philosophers in order to understand how to treat the process of globalization and whether it is possible to investigate it from different perspectives. However, not all ideas and suggestions were positively accepted by the society, and numerous discounts are still present in the chosen field.

In this paper, the works of two writers will be analyzed to comprehend why it is justified to understand globalization in terms of several dimensions at the same time and which dimensions remain to be the central ones in the system. Manfred Steger with his Globalization: A very short introduction and Nick Bisley with his Rethinking globalization are the two great contributors to the field of sociology and the role of globalization in particular. Their works help to define how it is necessary to treat the process of globalization and why it is important to consider its complexity.

The peculiar feature of Steger’s work is his desire to not only present a clear definition of globalization but also understand the mistakes of previous researchers and define their weak points. What he observes were numerous attempts to reduce the complexity of globalization and define only one particular dimension (Steger 14).

However, what is really important is to realize that globalization is of multidimensional nature in terms of attributes, and it has to be defined as a set of dimensions which aim at creating and stretching various independencies which promote people’s awareness.

This is why it is wrong to decrease the level of globalization’s complexity but it is necessary to define several dimensions which discover a true essence of the chosen concept. There are five main dimensions which are defined by Steger: political, cultural, ideological, economic, and ecological. Each dimension plays its own role in world’s development and differs from each other due to their purposes and impacts on society.

The process of globalization has already left its special mark on economic life of society: unbelievable spreading of economic relations around the whole world, development of new markets, transnational corporations and trading systems are supported. This is why it is not a surprise to define the economic dimension as one of the most important issues in globalization.

Economic relations predetermine the conditions under which people have to live. It is not enough to mention that economic order is important, but it seems to be crucial to admit that economic changes and conditions dictate the rules which have to be followed by the society.

In addition to the economic dimension, globalization is the process that considers certain ecological factors and needs. There are a number of ecological challenges the modern world has to face. Civilizations are not sure to solve the problems and improve the conditions they have to live under.

A kind of environmental degradation is the threat that cannot be overcome within a short period of time. It is a problem that has to be discussed on a global level. Current Industrial Revolution was the main factor of why environmental degradation has become an urgent issue nowadays. Earth’s environment was not a serious problem for several thousands of years (Steger 86), and now, it is a concern to deal with.

Unfortunately, it is not the only challenge to be mentioned. An ideological dimension is also an important issue of globalization. The point is that any ideology aims at providing people with particular ideas, norms, and ideals. The way of how people perceive the required information determines the scope of globalization, and the chosen dimension.

The chosen ideology may explain why a number of leaders truly believe that globalization is the only good thing to pay attention to and, at the same, is the step that may lead to negative outcomes which may destroy the existing society (Steger 96). This is why it is hard to define whether the impact of ideologies is pure positive or pure negative in regard to globalization, and it is a challenging task to understand how globalization may be controlled by society with its rules and norms.

The cultural dimension is not less important for the process of globalization. Though Steger defines it as a subordinate process that depends on the movements which are characterized by global markets (99), cultural changes influence the development of the world and people’s attitude to each other.

The role of cultural globalization is huge indeed: human consciousness undergoes considerable improvements so that human identity may be properly formulated (Steger 75). There are so many people who treat their cultures as something urgent and stable in their lived, this is why when something is changed from a cultural perspective, the rest ideologies and relations have to be changed with time basing on the cultural innovations.

It is necessary to admit that Steger defines two dimensions as subordinate processes, so, the cultural dimension is not the only one dependable process. The political dimension deals with the political interrelations which take place across the whole globe. Considerable growth of intergovernmental organizations, global governance, and state sovereignty promote the development of a new conceptual ground that will influence the process of globalization.

In his turn, Bisley admits that political aspect usually deals with the conduct of states and their attitude to the questions of war and peace (Bisley 5). The peculiar feature of this type of dimension is all about the attempt to establish a number of successful capitalist markets. In spite of the fact that such attempts are made, the political dimensions is still regarded as an important issue to pay attention to.

All the above-mentioned dimensions are hierarchically ordered by the both writers under analysis. In fact, this order means that nation states cannot properly perform their roles of protagonists and dictate their own rules in the world economy even under the most favorable conditions which they create. In spite of the fact that nation states are the integral part of the existing world economy, they cannot evaluate the effects of multinatonalism and find it obligatory to protect the already chosen welfare-state system.

This is why the ideas of technological change, international finance, or trade liberation usually proceed with particular rules which predetermined the traditional hierarchy of the current power. Even if some researchers admit that this type of hierarchical order is not as effective as it was several decades ago due to new trade rules and environmental problems, the dimensions of globalizations are still ordered.

This order came from the period when some European countries were eager to embody some new values and strengthen globalization tendencies. Steger defines these attempts as the development of a new capitalist world system under which it is difficult for capitalists to achieve the desirable expansion (Steger 28). This is why much attention is paid to the development of this type of economy so that nation states may control the investment capital under the conditions which are the most favorable for the chosen markets.

People truly believe that the nature of this economy will help to promote the ideas of free choice. However, Bisley underlines the fact that even taking into consideration the benefits of the offered economy, it is not enough to use the economic dimension of globalization as the only powerful body. The role of political dimension especially as it involves the nation state is still important.

The explanation to the above-mentioned statement is clear. For a long period of time, people tried to organize their political features and differences in accordance with the territory they belong to certain nation states (Bisley 3). National self-determination was rooted from the activities of the political leaders like Woodrow Wilson (Steger 59), as a result, the political dimension is defined as the one that is a dependent process as well as the one that may influence the development of other dimensions of globalization.

In general, considering the whole analysis of the dimensions of globalizations, it is hard to define the role of which dimension is more important because globalization has to be regarded as a complex process that is not complete in case some dimension is omitted, and only of the five dimensions perform the leading role in the system. People make a decision to use several factors to predetermine the process of globalization, and it is wrong to define the priority of a single body.

Work Cited

Bisley, Nick. Rethinking globalization. Basingstoke: Palgrave Macmillan, 2007. Print.

Steger, Manfred. Globalization: A very short introduction. New York: Oxford University Press, 2003. Print.


Table of Contents

History of Dubai

The economy was initially based on pearl-fishing until oil was discovered about 50 years ago. The economy became heavily reliant on oil that was discovered in various islands, and given the ready market in the world, the country’s economy was boosted. However, this did not last forever. About 20 years ago, the country faced a serious economic shock that threatened to derail its economy. This was caused by the dwindling oil reserves, which were the only pillar of the economy. This incident made the government realize that there was a need to diversify its economy. It transformed it into a free-trade oasis as a way of attracting investors to various sectors of the economy. The country turned to the retail, manufacturing, and information technology industries to boot its economy. The new focus of Dubai is currently the tourism industry (Al-Amine 57). The government has been developing infrastructure in order to promote tourism in this city.

Jebel Ali Free Zone

Jebel Ali Free Zone is a free economic zone in Western Dubai that was established in 1985 as a way of promoting trade within the city of Dubai. The main competitive advantage of JAFZA in Dubai as a trading center is that the government of Dubai has eliminated or reduced tax for the players in this region, something that is not common in any other part of the world. Business entities in this region also enjoy security, good infrastructure in transport and communication, and cordial relationship with government officials, making it attractive to foreign investors. This is the reason why companies are choosing JAFZA in Dubai as their preferred business hub. However, it is important to note that operating in the free zone has the disadvantage of stiff competition as many players will be attracted to it.

The government of Dubai is planning to expand JAFZA to be a major industrial zone in this city in the coming years. JAFZA makes its money majorly from the services offered to business entities in this region (Abdul-Rahman 28). The transport and communication sector is majorly dominated by the government. This model, where the government becomes an active player and not just a mere regulator, is very suitable because it opens more income avenues for the government. JAFZA faces stiff competition from the regional free economic zones such as JLT Free Zone and Dubai Silicon Oasis.

Al Hilal Islamic Bank

Al Hilal Islamic Bank is a large government-owned Islamic bank in UAE. Just like the Sharjah Islamic Bank, this bank offers Islamic banking products to its clients. They both offer personal, corporate, and investment services to their clients. However, the main difference between the two firms is that while Al Hilal Islamic Bank has wholesale banking services, Sharjah Islamic banking does not offer such services. The Islamic banking system has been able to withstand the recent economic meltdown that affected many industries because of the nature of its income. During the economic meltdown, the number of people borrowing from the banks was reduced. Traditional banks rely majorly on the profits earned out of these borrowings, which means that they were affected by the meltdown. However, this does not form the basis of the income of Islamic banks. Some of their main sources of income, such as the foreign exchange, were not heavily affected during this period in the Middle East.

Islamic banking should explore the markets in Canada and Europe because of the increasing number of Muslims in these regions. They have a special niche in these two regions that are not exploited by other firms. In Europe, Samba Financial Group and the Islamic Bank of Britain are the major players in this industry. In North America, the American Finance House LARIBA is the main player in this industry (Kettell 117).

These financial institutions are not able to satisfy the needs of Islamic banking products in these regions, which means that there is room for more of such organizations. Some of the main challenges that the Islamic financial institutions in North American and Europe face are the misconception that Islam is associated with terrorism. These banks have met harsh environments in these regions, and are always shunned by non-Muslims who are the majority in North America and Europe. More challenges lie ahead, especially as financial institutions struggle to expand their sources of income. Given that the system does not allow charging of interests on loans, these banks may have to come up with new means of earning some income if they expect to remain competitive in the market. This may be the right time to establish an Islamic financial institution in Canada because of the growing population of Muslims in this country.

In a contemporary Islamic banking system, profits are not earned by charging interest. The banks earn their profits by sharing the profits that borrowers make out of their investment using a predetermined formula. This means that if a borrower gets money from the bank, the bank will see its operations, and after a set period of time, the borrower will give a fraction of the profits to the bank. These institutions also charge some service fees on withdrawals.

According to El-Gamal (56), the 2008 economic recession was caused by the United States Housing Bubble that reached its peak in December 2008. People borrowed a lot of money to buy homes at high prices, only for the price to fall tremendously in 2008. Some new homeowners preferred forfeiting their collaterals instead of paying the loans, a fact that seriously affected the financial institutions in the country. In the Sponsorship Model in the United Arab Emirates, the government is the ultimate guarantor for the loans taken by its citizens. This means that in case of a failure by the borrower to repay the loan, the government will pay the loan and find its own way of recovering the money from the borrower.

The key competitors of Al Hilal Bank include Samba Financial Group, Sharjah Islamic Bank, Emirates Islamic, Dubai Islamic Bank, and Abu Dhabi Islamic Bank. The Islamic financial system is very beneficial to society. When an individual investor needs some money for an investment, he can easily get help from these institutions knowing that he will only need to give part of the profit earned from the business venture. It is important to understand the difference between loan capital and risk capital. Risk capital is the fund used to finance high-reward high-risk projects, while loan capital is the borrowed funds used to finance the normal operations of a firm.

Al Halal Bank was able to establish its operations despite the recession because it did not focus on the interests earned from loans, which was the worst affected product during this time. Non-Muslims may be interested in using Islamic banks because of the nature of their loans. They do not charge interest on their loans. Just like any other financial institution, Islamic banks operate under clear regulatory policies. Although each of the institutions will need to follow regulations in the specific countries where they operate, just like other banks, they are also expected to follow Shariah law in their operations. This includes not charging interests on their loans.

Abu Dhabi 2030 Vision

The Abu Dhabi Economic Vision 2030 refers to the plan by the Abu Dhabi government to transform the economy of the Emirate. The vision seeks to foster diversification of the economy in order to promote other sectors as a way of reducing the overreliance on the oil sector as the major contributor to the country’s GDP. The reasoning behind the Abu Dhabi Economic Vision 2030 is that as the country continues to exploit its oil reserves, it will reach a time when the reserves will be depleted. When this happens, the country may be faced with a serious economic crisis if it lacks other pillars that support its economy.

The rationale is that as the oil reserves continue to dwindle, other pillars should be developed to support this economy. This vision is based on four key themes that must be realized for the vision to be considered a success. The economic development, social and human resource development, environmental sustainability and infrastructure development, and optimization of operations of the government are the four themes upon which this vision is based. The government of Abu Dhabi will realize this vision even before the panned date. This is so because of the investment that has been directed to the project, goodwill from the government and the society, and the technocrats involved in implementing the policies.

Abu Dhabi and the Banking System in the UAE

A number of factors have made Abu Dhabi more successful than the other Emirates with respect to oil production. The main factor is that Abu Dhabi is the largest of all the emirates, giving it a large geographical location to exploit oil. The government of Abu Dhabi has also invested a lot in this sector, giving it a superior capacity to extract oil as compared to other emirates (Çizakça 72). Many institutional investors have the Middle East on their radar because of the rich oil reserves in this region. They want to control trade in this commodity, which is the most important commodity in the international market.

The banking system in Canada and that of the United Arab Emirates closely compare in terms of policies put in place by the governments. In both countries, this sector is closely controlled by the national government because of its strategic role in the economy. However, the government in the United Arab Emirates, through its sponsorship model, is more integrated into this system than is the case in Canada. It is also important to note that in Canada, most of the financial institutions operate under the traditional banking system, while in the United Arab Emirates, many banks are currently embracing the Islamic banking system.

Many banks in Abu Dhabi are owned by the government, but it is important to note that they favorably compete with one another in the market. Although they are owned by the government, they operate semi-autonomously, with minimal direct control by the government. This means that they can compete in the market. A bank that wishes to be the safest financial institution in the Middle East may choose to operate in a politically unstable country like Egypt because of the opportunities the market presents, and as a means of demonstrating that even in such difficult times, the institution will still be willing to offer its services to all its customers.

Sheikh Zayed Grand Mosque

Sheikh Zayed Grand Mosque has become a tourist attraction center because of its sentimental values to the people and the architectural design that was used in its construction. It is a uniquely beautiful structure that attracts tourists. This tourist attraction site gets its funding directly from the government of Abu Dhabi (Low 63). Such a model for a tourist attraction can be successful in Europe and North America because people like visiting structures with unique designs, especially if they have sentimental values. The grand mosque will help this Emirate achieve its vision 2030 of diversification of the economy. It helps in developing the tourism industry.

Atlantis Resort

Atlantis Dubai is a branch of the original Atlantis resort in the Bahamas. Both resorts have a similar architectural design, and their cuisine also has some commonalities. However, Atlantis Dubai has been forced to introduce some of the Western cuisines because of the cosmopolitan nature of the city. The Kerzner resorts have to understand the needs of the customers before defining the products. The products offered should be in line with the needs of the customers within the local environment.

Atlantis resort has faced a number of challenges in recent times, especially the stiff competition from other leading players in the hospitality industry. Sheraton Hotels have offered stiff competition to this firm, the fact that it has reduced its profitability. Inflation that affected the West in recent times has also been an issue that has reduced the flow of customers into the regional market. The Palm Dubai Project and the World Island Project have a number of common factors. Both were designed to give visitors a clear view of the sea. Their architectural designs also integrated the traditional and contemporary designs in their structures.

There has been a recent change of ownership at Atlantis. Kerzner International Holdings Limited sold its fifty percent stake to its co-owner, the Istithmar World. Kerzner has also given up its ownership of Bahamas One & Only Ocean Club to Brookfield Asset Management, its long time creditor. This deal meant that Brookfield forgave the debt that this resort owed it to a tune of $ 250 million. From this transaction, the researcher believes that this firm’s performance will improve because it will no longer be burdened by the debts. Just like the Atlantis Dubai, the World’s Islands has been successful in the local market. With a collection of about 300 private islands, World’s Islands has attracted both regional and international visitors.

The Atlantis Dubai Project and the World’s Islands Project are on their path towards great success in the future (Low 48). Dubai City is increasingly becoming a major business and tourist hub in this region that is attracting a high number of international visitors. The two projects have been part of the major attraction. This means that they have become part of the developing city, and this gives an assurance of great success in the near future. Atlantis depends on both the local and international customers for its growth. The local tourists have a huge potential that this resort has been tapping on in the recent past.

As Dubai becomes a strategic business hub in the world, international customers have also been making a substantial share of the market for this firm. The key competitive advantage of Atlantis over its immediate competitors is its financial strength and the size of the facility. The recent waiver of its debts means that the resort can now operate without the burden of paying debts. With the luxurious 600-suite Cove Atlantis and 497-room Reef Atlantis, it is one of the biggest resorts in this region. This competitive edge is likely to remain if the management is keen on maintaining the excellent performance that has been witnessed in the recent past because it will be able to expand its financial strength.

Atlantis has some challenges that the management has been forced to deal with within the market. One of the main challenges is the stiff market competition from its competitors. The firm has responded to this by improving its service delivery process. The dwindling customers from the West have been another major challenge that the firm has been facing. To address this problem, it has been expanding its target market to include more of the local tourists. Although Atlantis was affected by the financial crisis, just like any other five star hotels in this region, its unique products enabled it to maintain a steady flow of visitors, especially from other countries in the Middle East, the fact that cushioned it from the impact of the crisis. The key markets for Atlantis still remain visitors from Europe, North America, and the Middle East.

Islamic Finance

There are a number of prohibited transactions in Islamic banking systems that must be obeyed by all firms operating in this system. The first prohibition is on the issue of interest on loans, which this system describes as usury or riba. According to the Shariah law, any loan from the bank, or deposits to the banks should not attract any form of interest, always known as riba. The Islamic banking system also prohibits Gharar, which Visser (52) defines as a deceptive uncertainty. Maisir or gambling is also prohibited under this system of banking. It is also important to note that Islamic banks are prohibited from investing in or loaning businesses that offer products prohibited under Islamic laws such as alcohol or pork.

It is important to understand some of the most common Islamic models that are currently in practice. Mudaraba refers to a contract signed between an investor and a manager, also known as Mudarib. In case the project earns losses, the investor will have to bare it all, while the profits are enjoyed by both parties. Murabaha is an Islamic financial system where a buyer acquires a property through an intermediary. The intermediary purchases the property and hands it over to the buyer, who will agree to pay an agreeable sum of money on installments. When the buyer completes the payment, the property will then be registered under his or her name.

Musharaka refers to an Islamic financial system where capital is generated from two partners who will then agree to share profits on the basis of their contributions. Salam is an Islamic financial system where payments are made, but the delivery is done at a future date. It is very common when making purchases of agricultural products that are yet to be harvested. Istisna’a refers to a contract of exchange that is signed between two parties, with the delivery being deferred to a future date.

There is a number of Islamic finance offerings within the Islamic financial system. Some of them are Shariah-compliant, while others are not. Mudaraba, Murabaha are the two clear Islamic finance offerings that are Shariah-compliant because they do not attract any form of interest (Ayub 68). However, some of these banks currently offer some form of interest to the account holders as a way of attracting more customers. This goes against Shariah law.

The banks which offer mortgage loans at some fee also go against the teachings of Shariah. Sometimes two similar transactions can be viewed differently on the basis of their compliance with Shariah law. This is possible based on the terms of the transaction. For instance, a bank may inform the account holder that his or her savings will be used to conduct a specific business, and the profits will be shared. This will not be considered interest, and therefore, the transaction will be Shariah-compliant (Pock 59). However, when such payments are made without such clear clarification, it may be regarded as a riba, which goes against the Shariah teachings. When an organization administering Zakat funds receives funds, it will debit its cash account and debit the Zakat funds account.

Middle Eastern Marketing Perspectives

The marketers in the Middle East and those in North America and Europe share a common factor in that they both have the responsibility of convincing the customers to accept a given brand or product in the market. They both have to use the socio-cultural factors that are appealing to their clients in order to win their trust (Ahmad 39). However, it is important to note that to enjoy the liberty of using gender-sensitive language, the marketers in the Middle East, they must be very careful when using such languages because of the strictness of the Islamic religion.

Marketers in the Middle East face a number of challenges that are not witnessed by those in North America and Europe. One such challenge is the diction they use when developing messages for their customers. Customers in this market are very sensitive to the words used, especially in public, and this means that the marketers must be very careful when developing promotional campaigns — strict adherence to Islamic culture that rigidly defines how people should behave poses another serious challenge. In North America and Europe, a marketer can easily develop a promotional campaign without fear of rejection because a specific Shariah law was ignored.

Marketers face a number of challenges when convincing a customer to buy a given product. In this region, buyer behavior is closely defined by their religious beliefs. A marketer may find it difficult to convince a customer to purchase a given product that goes against the religious teachings. For instance, advertising alcohol in the United Arab Emirates may not yield any positive fruits in the market. It may also be straining trying to convince a consumer to purchase a new product that has just been introduced into the market.

Works Cited

Abdul-Rahman, Yahia. The Art of Islamic Banking and Finance: Tools and Techniques for Community-Based Banking. Hoboken: Wiley, 2010. Print.

Ahmad, Abu. Theory and Practice of Modern Islamic Finance: The Case Analysis from Australia. Boca Raton: BrownWalker Press, 2010. Print.

Al-Amine, Muhammad. Risk Management in Islamic Finance: An Analysis of Derivatives Instruments in Commodity Markets. Leiden: Brill, 2008. Print.

Ayub, Muhammad. Understanding Islamic Finance. Hoboken: John Wiley & Sons, 2007. Print.

Çizakça, Murat. Islamic Capitalism and Finance: Origins, Evolution and the Future / Murat Çizakça. Cheltenham, UK: Edward Elgar Pub, 2011. Print.

El-Gamal, Mahmoud. Islamic Finance: Law, Economics, and Practice. Cambridge: Cambridge University Press, 2006. Print.

Kettell, Brian. Frequently Asked Questions in Islamic Finance. Hoboken, N.J: Wiley, 2013. Print.

Low, Linda. Abu Dhabi’s Vision 2030: An Ongoing Journey of Economic Development. Singapore: World Scientific, 2012. Print.

Pock, Alexander. Strategic Management in Islamic Finance. Wiebaden: Deutscher Universitäts-Verlag, 2007. Print.

Visser, Hans. Islamic Finance: Principles and Practice. Cheltenham: Edward Elgar Pub. Ltd, 2013. Print.

International Business in the UAE


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