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Since its start in 1971, the United Arab Emirates (UAE) has continually been distinguished as a portrait for innovation. It is deliberated the fastest growing market in the region and is categorized as the most innovation-driven economy in the Arab world (EW 2010; DCCI 2010; WEF 2010). The country‟s leadership aims to create a knowledge-based economy powered by innovation. The UAE is rapidly transforming from an oil-based economy to an innovative, knowledge-based economy. By moving towards a knowledge-based economy, the UAE has diversified its economy and positioned itself as a key player in real estate, renewable energy and aviation; it has also become a global pivot for trade and logistics, financial services and tourism. The UAE today is considered as one of the most popular tourist destinations.

Innovation as a Source of Competitive Advantage in Human Resource Management: Case of Travel Agencies in the UAE