The overall United Arab Emirates (UAE) economy
The United Arab Emirates economy is one of a kind that is referred as an open economy. The economy has very high per capita income with substantial annual trade surplus. The economy’s GDP that relates to oil and gas output has so far reduced in percentage up to 25%. This reduction has been experienced due to the successful efforts made in diversifying the economy (Katzman, 2010). UAE for a long time in the past was known to be a poor economy characterized by fishing, herding and agriculture but since the discovery of oil, it has grown tremendously in terms of economic growth and today it’s one of the richest with its people experiencing high standards of living. During annual budgeting, the government normally allocates more funds for job creation and for the expansion of infrastructure. Moreover, the government is also responsible for encouraging the private investors to invest fully in to the private sector. The country has so far organized a Free Trade Zone that is responsible for offering a 100% foreign ownership with no taxes as well as helping in the attraction of overseas investors. Abu Dhabi is the richest emirates as it is the prime producer of oil while Dubai, being the second largest mainly operates on service-based economy, that is, its main income generating activity is tourism, construction and real estates. The two emirates are responsible in the contribution in to the UAE’s economy by 80% and the remaining 20% is shared among the remaining five emirates which are somewhat underdeveloped (Davidson, 2009). During the implementation of the main economic policies the seven emirates rarely come together for proper coordination instead little coordination is always had which is quite insufficient for the overall growth of the entire UAE. The UAE economy ones experienced difficulties which happened in the year 2009 and 2010. These difficulties were brought about by the worldwide financial crisis and the...
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