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Knowledge Update

The United Arab Emirates' successful model can serve as a source of inspiration for countries in Latin America and the Caribbean

The United Arab Emirates' successful model can serve as a source of inspiration for countries in Latin America and the Caribbean

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Safety and security form the cornerstone of tourism and economic development. The 33 countries in Latin America and the Caribbean face significant challenges in this regard, with violent crimes having an outsized effect of approx. $224.4 billion. By contrast, the United Arab Emirates (UAE) stands out as a prime example, having achieved substantial economic success based on a robust foundation of safety, security, and visionary leadership. UAE's achievements underscore the crucial role of stability in fostering growth and prosperity.

Moreover, the UAE has been actively involved in partnerships with Latin American and Caribbean nations, participating in humanitarian and developmental initiatives designed to address systemic challenges and unlock the region's economic potential. Through these collaborations, countries in Latin America can extract valuable insights from the UAE's approach to sustainable development and social stability.

 

The UAE’s narrative of progress underscores the critical relationship between safety, security, and economic growth (Ahmed, 2018). The UAE has cultivated an environment conducive to investment, tourism, and innovation by prioritizing robust law enforcement, strict legal frameworks, and effective governance. This stable foundation has enabled the nation to attract millions of visitors annually, while fostering key sectors such as finance, technology, and commerce. Notably, the UAE’s travel and tourism industry contributed approximately AED 167 billion (USD 45.47 billion) to its GDP, accounting for 9% of the country’s total GDP, with the nation ranking 25th globally in the Travel and Tourism Index (MOEC, 2024).

 

By contrast, Latin America faces substantial challenges. Despite comprising only 8% of the global population, the region accounts for nearly one-third of global homicides (World Bank, 2024). Criminal activities cost the region 3.4% of its GDP annually, which is equivalent to 80% of its public education budget (Goldfajn and Valdés, 2024; IDB Paper, 2024). This crime-induced drain stifles innovation, discourages investment, undermines firm productivity, and perpetuates economic stagnation (IMF Research, 2023). The detrimental effects of crime further hinder tourism, a vital driver of economic growth.

 

To break this cycle, Latin American countries can adopt strategies inspired by the UAE. Effective governance, stringent law enforcement, and sound economic policies are the critical elements of this approach. Regional cooperation, akin to the UAE’s security partnerships, can address cross-border criminal activities and restore public trust. Simultaneously, investing in grassroots programs, educational initiatives, and youth employment opportunities could reduce inequalities and deter criminal behavior, fostering an environment conducive to sustained economic development.

 

A strong foundation for safety and security is essential for tourism and economic growth. Drawing lessons from the UAE’s proven strategies (Ahmed, 2015), Latin America can build safer communities, strengthen its economic resilience, and offer its population a brighter and more prosperous future.

  • Ahmed, G. (2018) Transforming the UAE from Desert to Developed Economy, Forbes Middle East, No. 70, P.29, April.
  • Ahmed, G. (2015) Destination 2021, Forbes Middle East Guide, August, pp. 46-47
  • Goldfajn, I., & Valdés, R. (2024). Breaking Latin America’s Cycle of Low Growth and Violence. IMF Blog
  • IDB Paper (2024) Crime, Security, and Economic Growth in Latin America.
  • IMF Research (2023). Quantifying the Costs of Crime and Its Impact on Growth. IMF.
  • MOEC (2024) Ministry of Economy, United Arab Emirates