Research Paper Undergraduate 559 words

Oil's role in the UAE economy and diversification efforts

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Essay 559 words

Economics of the UAE

majorly driven by the oil explorations vast oil reserves are found within the region.

Oil contributes the highest GDP to the UAE.

UAE's economy is one of the most open in the world.

Economics of the UAE

The economy of the UAE and other Arab countries is majorly driven by the oil explorations that are as a result of the vast oil reserves that are found within the region. Oil is the single natural resources that contribute the highest GDP to the UAE to an extent that foreign explorers are also involved in the mining and processing of the oil. It shapes both the economic trends as will be seen below and also the leadership and the politics of the region.

Inflation in UAE has been recorded at 2%

Despite the global credit crunch and recent crisis in Dubai, reports indicate that Dubai has the lowest unemployment rate

UAE unemployment rate went down to 4.2% last year

UAE to run a budget surplus of 6.6% of the GDP in 2014

Economic outlook is positive with a GDP growth expected at 4.7% in 2014.

Oil in UAE

UAE has almost 10% of the total world supply of proven crude oil reserves. This means that the UAE is a very important provider of global oil markets. UAE possesses sixth largest reserves of oil in the world and this contributes significantly to its economy. UAE produces close to 2.3 barrels of oil each day among themselves. This is a fact that explains just how important UAE is to the global economy. As a mainstay to the economy of UAE, oil exports are now 30% of the gross GDP of UAE.

Non-oil sector in UAE

UAE launched a diversification and liberalization program aimed at reduction of reliance on oil.

The federal and individual Emirate governments have invested different non-oil sectors.

Leading non-oil sectors are such as tourism, manufacturing, retail re-export, real estate and Non-oil sector in UAE

UAE launched a diversification and liberalization program that was going to reduce the reliance of oil and transform the economy of the country from one that is conventionally labor-intensive to one that is based on technology, knowledge and skilled labor. The federal as well as individual Emirate government have gone ahead and invested heavily in other different non-oil sectors. These non-oil sectors have become the biggest contributors to the growth of UAE's economy. The leading non-oil sectors are

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The economy of UAE159 words
UAE's economy is one of the most open in the world. Inflation in UAE has been recorded at 2% in May 2014 up from 1%…
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References
4 sources cited in this paper
  • Haider, H.(2014). Outflows cut UAE surplus current account balance. Retrieved July 10, 2014 from http://www.khaleejtimes.com/kt-article-display-1.asp?xfile=data/uaebusiness/2014/May/uaebusiness_May442.xml§ion=uaebusiness ↗
  • Embassy of the United Arab Emirates. (2009). Trade & Export. Retrieved July 10, 2014 from http://www.uae-embassy.org/business-trade/trade-exportButler ,R.(2013). United Arab Emirates: Economy. Retrieved July 10, 2014 from http://www.mongabay.com/reference/new_profiles/238uae.html ↗
  • Embassy of the United Arab Emirates. (2009). UAE economy. Retrieved July 10, 2014 from http://www.uae-embassy.org/uae/economy ↗
  • Advameg ,Inc.(2014). United Arab Emirates. Retrieved July 10, 2014 from http://www.nationsencyclopedia.com/economies/Asia-and-the-Pacific/United-Arab-Emirates.html ↗
Cite This Paper
PaperDue. (2014). Oil's role in the UAE economy and diversification efforts. PaperDue. https://www.paperdue.com/essay/uae-economy-190439

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