What type of economy is the UAE. List the features that are typical of this type of economy and provide a detailed discussion as to why you have chosen this classification. The economy of a country is the economic systems of a country which consists of the labor, capital and land resources that it has. An economy has economic agents that are the consumption of goods, production, distribution and exchange. The United Arab Emirates is considered as an “open economy”,
it consists in having economic activities within the country and outside the country, which is the flow of funds on an international scale for the exchange of goods and services. This economy consists in having an international trade. The United Arab Emirates Dirham (current currency) has a limited flexibility due to its terms with the US dollar (1$ = 3.67 dhs). 30 years ago, the UAE was constituted by seven small desert principalities ruled by local Emirs, and then came the discovery of oil which has changed the country and undergone a massive transformation. The Citizens and residents of the UAE could enjoy freedom of speech, but when it is related to political issues, there are grounded rules and foreign newspapers are censored at the point of entry. Today, the United Arab Emirates has altered from an impoverished country to a modern country with high-level of living, it has invested in infrastructures that has truly developed which lead to the creation of jobs in both private and public sectors. There are Free Trade Zones in the UAE which have for objective to attract foreign investors due to its zero taxes and increase job opportunities. For instance the Jebel Ali Free Zone offers Business centers, ready to use offices, warehouses, factories. The main strength of the Jebel Ali FTZ is that it is located near Jebel Ali Port which is the largest port of the Middle East and that it has the access to market of over 2 billion peoples. It is positioned to access southern and western Asia, and Africa....
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