The United Arab Emirates or UAE is a well-developed and fast changing economy, based on various socioeconomic indicators such as HDI, energy consumption per capita, and GDP per capita. Its $270 billion GDP in 2008 ranked second in the CCASG, third in the Middle East and North African region, and 38th in the world. It has around $350 billion worth of construction projects; and even if it is no longer as dependent on natural resources as it was before, its economy still benefits from natural gas and petroleum.
It has an open economy with a sizeable annual trade surplus and a high per capita income. Fruitful efforts at economic diversification have reduced the GDP portion based on gas and oil output to twenty-five percent. Since the discovery of oil over thirty years ago, the United Arab Emirates has undergone a profound transformation from a small desert region to a modern state with state-of-the-art buildings and facilities.
The Great Recession, however, affected the country’s economy; that is why Dubai, which was valued at $46 billion in 2006, slowed down. Nonetheless, analysts, economists, and researchers have found that the economy of Dubai should grow by up to four percent this year. Such growth would primarily be the result of the vibrant recovery of trade and logistic sectors. Moreover, in December 2009, Dubai has gotten an additional $10 billion loan from the Abu Dhabi emirate. So, the economy is expected to rebound gradually.
Based on statistics, the economic output of Dubai is approximated to have soared by 2.2 percent last year after sinking by 2.4 percent in 2009. Regardless of the economic downturn, nonetheless, the United Arab Emirates should still remain as the most dynamic economy in the Middle East as well as North Africa. Investments in education, infrastructure, real estate, energy, and petrochemicals should greatly help for growth too.
As a matter of fact, the International Monetary Fund has foreseen that the economy of the United Arab Emirates would rise by 3.2 percent this 2011 due to its oil reserves. Crude would double and trade handsomely at over $100 per barrel. Plus, even if Dubai has so many debts, it would not need to sell any of its assets. That would no longer be necessary because there would be $30 billion in bonds and loans for it. Abu Dhabi, its capital and largest emirate, would also benefit from the construction of the Khalifa Industrial Zone. This year is a good year.
The United Arab Emirates would remain a growing and improving country. Although many challenges are on its way, it would still stick to its long-term plan of focusing on diversification and providing opportunities through better education and employment in the private sector. Inflation pressures, dependence on oil, and expatriate workforce would not get to it. After all, economic diversification is a vital key to success. Moreover, investment opportunities should not be ignored; instead, they should be analyzed and thought about.
Interested to discover more information about Abu Dhabi? Hear about today’s Gulf Business News by clicking the link.
|
|