Clusters, cluster policy and competitiveness: case of Dubai's free zones cluster

A competitive economy - aims to - utilise its factor endowments in the most efficient manner to achieve productivity in a more sustainable and inclusive manner. In Dubai, UAE, a profound drive to achieve economic diversification and create a competitive knowledge-based economy has been evident in the past 30 years. This study looks into the economic competitiveness of the Dubai free zones clusters. SWOT analysis of the business environment and Global Indices were explored to support the argument on the UAE's potential for cluster creation. The Porter's Diamond Model helped assess the competitiveness of the free zones clusters. A cluster map was designed on one of the free zone clusters as a case study to gauge its competitiveness and study value chain components. Based on these analyses; several challenges and policy gaps were identified. Recommendations include, establishing a Federal Free Zone Authority along with enriching private sector partnerships with the public agents to maximise cluster policy benefits.