Running Head: ENGINEERING VERSUS BUSINESS MANAGEMENT

Engineering versus Business Management

An Exercise in Critical Thinking
( Does the UAE need more engineers or MBAs?)

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Two young men , Khaled and Saleh , feel that their own field of study,
Business Management and Engineering respectively, is more important
than the other if UAE s development has to be ensured. Who is right?
Today in the globalized world, engineering continues to be of one the main contributors
towards nation building. The entire skyline of the UAE has changed drastically since the council
of the seven emirates was formed in 1971. To the uninitiated, it may even resemble the
Manhattan skyline at night. Of the various challenges that were faced by urban planners and
engineers, the hostile deserts of the UAE, was perhaps the toughest. However, engineers being
engineers did what they were asked to do. Today, development of the UAE continues unabated
and major projects pertaining to infrastructure are given priority as infrastructural development
facilitates trade of oil and other items. From the export of oil, comes the foreign exchange, which
has made possible UAEs development today.
Saleh at times feels that both business management and engineering are important for
developmental projects. However, the rulers of the Emirates mark a certain portion of funds for
development projects. There is no financial planning involved for fund inflow, and Saleh feels
that these projects will require engineering expertise in a much greater scale then business
acumen. In this paper, Salehs contention will be explored in detail and its veracity gauged.
Construction Industry of the UAE
Following the economic downturn in the West, vibrations were felt all over the world. In
the UAE alone $300 billion worth of construction projects were put on hold. Now, as the
situation gradually seeks to reclaim its previous status, the UAE has also loosened its grip, which
was holding back projects and is letting a couple of them go at a time. Projects valued at more
than $12bn have resumed construction work in the UAE over the past 18 months with more

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expected to get the green light this year, according to a new study
(Constructionworkonline.com, 2014 April). Dubai appears to be leading the way as far as
released projects in infrastructure and real estate are concerned. Constructionworkonline.com
says in its January 2014 issue that Dubai launched more than 500 building projects in 2013,
which was the highest number of building projects, launched in the last five years. Abu Dhabi,
apart from Dubai, holds similar potential of planned development through huge projects and
bigger budgets
The Plan Abu Dhabi 2030 outlined the development of a world-class transport system
that contains road projects worth 20 billion Dh including a network of highways,
construction of tunnels, local roads and bridges. Furthermore, a light-rail metro network
for everyday and commuter travel and a high-speed rail line to connect Abu Dhabi with
the rest of the contribute to a vast range of opportunities for the construction industry.
( Gorgenlnder, 2011)
The Economy

The economy of the country has been increasing at a healthy rate of 4% - 4.2%
these last three years. The same does not surprise the careful observer considering the
huge positive trade balance as can be seen above. Credit has to be given to the political

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stability of the country for this to some extent. The UAE prefers not to court controversy
and sit back ding its own work. The people are contented and have full faith in the rulers.
As such, any repercussions of the rebellions, which took place in 2013 in Islamic
Republics like Libya, Tunisia, Egypt, Syria etc. had no effect on the UAE.
Contributions of selected sectors on GDP growth shown below.

Demand for Engineering Professionals.

From the data presented before, it is evident that in Dubai and Abu Dhabi alone,
engineers will be required in large numbers, as tenders awarded towards the end of 2013 will be
taken up and site execution started. The value of these projects considering both Dubai and Abu
Dhabi will not be less than 50 million Dhm. Again, in 2014, tenders have been or will be floated
for another 100 million Dhm minimum, as the Government will gradually release the projects on
hold. Further, government legislation dividing the Abu Dhabi economy into clusters to make
them attract international investment will also increase the demand for engineers, as per

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McPherrson and Sylvester (2007) In these circumstances, there is no doubt that unless measures
are taken immediately, projects will be held up for lack of engineers. A study was taken up in this
connection, where questionnaires were distributed among a large number of companies, asking
for a feedback. From the filled up questionnaires, the following data was obtained.
Table 1: Degree Programs being considered by potential students.

Table 2 : Institutions offering Engineering degrees to colleges.

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Table 3: Abu Dhabi grade 12 students instructed in a Construction Degree.

Conclusion (Which is more important)

From the tables above, we see that management students are slightly more in numbers
then engineers. Does this prove Saleh wrong? No, it shows that many engineers are willing to go
in for a postgraduate management diploma. MBAs however cannot obtain an engineering
diploma.
The fact is such that as the development of the emirates is at the initial phase,
management graduates will be required to finalize the finance and modalities side of the project.,
The engineer takes over once this is done. In this stage, engineers will be required in much more
higher numbers than MBAs. For example, consider a refinery. The MBA will intervene at the
initial point but then one engineer will not suffice. You will require water, you will require power
which means a captive power plant, you will need firefighting facilities etc. Therefore, you will
need many more engineers then management professionals. But in other sectors like banking and
insurance, consumer goods, capital markets etc. an engineer will not be able to do the job. Here,
the presence of business management professionals is necessary.

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Therefore, both Khalid and Salehs discussions regarding the importance of their respective lines
of study are baseless. Both are equally important for nation building and both can serve the
nation equally well in different but very important segments. Their jobs may not be prestigious
but if they wish to serve their country then prestige will come second and their jobs first in
priority. They will have ample scope for practicing innovation and creativity later once they get
experienced.
**************

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References
Constructiononline.com (Jan 28 2014). 500 building projects launched in Dubai in
2013.Accessed on 9th May 2014
(http://www.constructionweekonline.com/article-26186-500-building-projects-launchedin-dubai-in-2013/)
Constructiononline.com (April 2, 2014). UAE projects worth $12bn resume construction.
Accessed on 9th May 2014 (http://www.constructionweekonline.com/article-27395-uaeprojects-worth-12bn-resume-construction/)
Constructiononline.com (2009) UAE projects on hold are worth more than US $300bn. Accessed
on 9th May 2014(http://www.constructionweekonline.com/article-5994-uae-projectson-hold-are-worth-more-than-us-300bn/)
Gorgenlnder, V. (2011). Strategic Analysis of the Construction Industry in the United Arab
Emirates : Opportunities and Threats in the Construction Business. Publisher Diplomica
Verlag, Hamburg, pp 15.
Macpherson.R, Sylvester.K(2007). Demand for Engineering Professionals in the UAE., Abu
Dhabi University.
The Central Intelligence Agency (2009). The World Fact Book 2009 - Country Comparison:
GDP per Capita (PPP), URL:https://www.cia.gov/library/publications/theworldfactbook/rankorder/2004rank.html, accessed 9th May, 2014

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