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Bahruz Babayev: Studying the Case of the UAE in Economic Diversification and Non-Oil
Export Growth: Public Policy Lessons for Azerbaijan

an excellent infrastructur e in Dubai, it was able to develop a great environment to
attract many foreign companies (Nyarka, 2010: 8).

While summarizing all government policies of the UAE, it is important to note that
one of the largest oil producers of the world could raise its earliest finance from oil
revenues, however, the government policies of the UAE which include huge
investments in infrastructure, the adoption of free-market system, its strategy for
increasing competitiveness based on knowledge and innovation-based economy, as
well as conduction of rational fiscal policy based on efficiency played a unavoidable
role in the rapid development and diversification of the economy of the UAE.
Coordinated monetary, trade and investment policies while the prioritization of the
increasing the national competitiveness of the economy are all contributing factors
to increasing non-oil exports of the UAE.

LESSONS LEARNT AND POLICY IMPLICATIONS FOR AZERBAIJAN
Studying the economic diversification policy of the UAE can be a good case study
to deduct policy lessons for Azerbaijan. Both Azerbaijan and the UAE have several
common similarities. Both countries have experienced rapid economic growth since
their independence thanks to oil revenues (Suleymanov, Aliyev, 2015: 40). Both
countries have their strategic location, and both countries have a dependence on the
export of oil resources. The difference is that while the UAE has successfully
experienced the economic diversification, 91% of Azerbaijan's national income still
comes from the export of energy resources, even though economic diversification
has been chosen as the main development strategy for Azerbaijan too (Azernews.az,
2018). Questionably, what kinds of policy lessons can be deducted for Azerbaijan
based on the experience of the UAE on economic diversification, and can policy
measures implemented in the UAE can be applied in the case of Azerbaijan.

PUBLIC INFRASTRUCTURE INVESTMENTS
The role infrastructure in economic development is very vital. “Without adequate
infrastructure, modern commerce characterized by production specialization and
exchange across markets would grind to a halt” (Azam and Abu Bakar, 2017: 630).
One of the lessons which can be drawn from the UAE is the massive investments of
the government in the development of tremendous infrastructure in the UAE.
Investment in infrastructure is an important policy objective for the government of
Azerbaijan too (Belt & Road News, no date). The president of the Republic of
Azerbaijan Republic Ilham Aliyev has always "stressed that, in general, the creation
of modern infrastructure is one of the Azerbaijani government’s key goals” (Belt &
Road News, no date). It is a good public policy lesson from the UAE too. Even
though infrastructure support policy of Azerbaijan overlaps with the UAE, the
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