The uae has an open economy with a high per capita income and a sizable annual trade surplus. Dubai became important ports of call for western manufacturers. The economy of uae is facing heavy competition from saudi arabia and egypt. The government is focusing on the uae becoming the economic, touristic and commercial capital for. This contribution examines the major features of uaes economy, its factors of strengths, undelying also its critical aspects. The q4 20 results still represent the secondstrongest yearonyear confidence gains since mid2010. Although the uaes economy is more diversified and less dependent on the oil sector than surrounding gulf states nonoil contribution amounts to 61% of gdp and 25% of the current account receipts in 20, the decreased oil price has seriously harmed the economy. Dubai is now a major tourist destination, playing host to over 11 million tourists in 20. The uae was ranked 17th out of 7 countries covered by the global competitiveness index 20172018, one place lower than the previous year. United arab recent developments emirates monetary policy is. The uae is poised to record an accelerated growth in 2018 to 3. The fiveyear average gdp growth rate had been expanding at a healthy 3 percent until the.
According to imf 20, in the oil exporters countries of the mena region economic. From the findings in the report, we learn that dubais sme economy is healthy and extremely dynamic in supporting the uae economy as a whole. The uae tourism promotional film presents uae as an alchemy of seven destinations, highlighting major. Past record and future trends martin hvidt abstract employing an empirical and comparative approach, this research paper analyses the past record and future trends of economic diversification efforts in the six gulf cooperation council gcc countries.
The uae government strategy 201120 lays the foundations to achieve the uae vision 2021. In 2017 it is estimated that the sector contributed over aed150bn to gdp 4. United arab recent developments gres and higher fees. The report includes countryspecific threeyear forecasts for major macroeconomic indicators, including commodity and financial markets. Increased spending on the economy and infrastructure makes the uae an attractive country for investment. In 2017, the inflation rate of the united arab emirates was at 1. Within 44 years the united arab emirates uae evolved from the backdrop of a subsistence. The political economy of emiratization in the uae article in journal of economic studies 401 january 20 with 191 reads how we measure reads.
The political economy of emiratization in the uae request pdf. The uae has the worlds third highest gdp per capita in purchasing power parity terms. Macroeconomic gains from gender equity prepared by katrin elborghwoytek, monique newiak, kalpana kochhar, stefania fabrizio, kangni kpodar, philippe wingender, benedict clements, and gerd schwartz authorized for distribution by siddharth tiwari and carlo cottarelli september 20. This page has economic forecasts for the united arab emirates including a longterm outlook for the next decades, plus mediumterm expectations for the next four quarters and shortterm market predictions for the next release affecting the the united arab emirates economy. United arab emirates economic indicators moodys analytics. Most of the new citys banking and financial centres were headquartered in the port area. Since the discovery of oil in the uae nearly 60 years ago, the country has undergone a profound transformation from an impoverished region of small.
Although the uae has hardly been touched by the political turmoil in the arab world, youth unemployment is rising and is a source of potential unrest. Uae s gdp has now exceeded 1 trillion dirhams, from 11 billion dirhams in 1973, depicting a rate of economic expansion that has exceeded even that of singapore. Economic diversification by boosting nonoil exports case of uae. As low oil prices have persisted, the economy has slowed further, with growth projected at 2. The governments decision to diversify from a tradebased but oilreliant economy to one that is service and tourismoriented resulted in the property boom from 20042008. Pdf this contribution examines the major features of uaes economy. The economy of the united arab emirates has slowly been climbing the ranks of the mostly free since 20. Low oil prices have prompted the uae to cut expenditures, including on some social programs, but the uae has sufficient assets in its sovereign investment funds to cover its deficits.
The increased diversification has made the economy more flexible and able to overcome the double shock of the decrease in oil and gas prices and global trade while maintaining a stable macroeconomic environment. Uae economy continues to see balanced growth, enhancing competitiveness and overcoming obstacles. Case study economics bibliographies in harvard style. A comparison of emirati and nonemirati youth in ras al khaimah 11 3 details on the measures used for all the relevant concepts, and a copy of the online questionnaire, are available from the author upon request. Economic, social, and political attitudes in the uae. Science, technology and innovation higher policy pdf 2mbmocaf. The ministry of economy is committed to providing effective channels for its customers to enhance transparency and raise the level of services. The river drains the combined waters of the euphrates and tigris rivers of iraq, and the karun river of iran. The hospitality and tourism sector in the united arab emirates uae is a significant contributor to the uaes economy and a major employer. The uae is the united states number one export market in the middle east region a distinction the uae has held for eleven straight years.
Diversification and development of the united arab emirates economy article pdf available in journal of applied economic sciences viii224. Saudi arabia has a lot of oil reserves and many seaports for international trade. While there are many strengths, for the dubai sme sector. Statistics according to the annual economic report 2018 pdf, 540 kb, the total labour force in the uae in 2017 was 6447. The economy of the oilrich united arab emirates is estimated to grow between 34% in 20. It aims to support the process of planning and development to help the setting of policies and decision making as well.
Furthermore, the work focuses on the crucial factors that characterize a diversified knowledge economy and indicates the policies that the economy of the united arab emirates must pursue in order to improve its performance and be a competitive economy at a global level. The constituent emirates are abu dhabi which serves as the capital, ajman, dubai, fujairah, ras alkhaimah, sharjah and umm alquwain. Dubai exports, the export promotion agency of the department of economic development in dubai, was created to ensure the success of the exports sector in dubai and the uae, providing constant guidance, advice and practical support to both. The uaes dependence on oil is a significant longterm challenge, although the uae is one of the most diversified countries in the gulf cooperation council. In addition, the paper tries to single out the new business sectors for the diversification and the development of the uaes economy. According to the uae economic report 2009 released by the uae ministry of economy in may 2010 the nonoil sector contributed 71.
United arab emirates global economic prospects examines trends for the world economy and how they affect developing countries. Uae economic growth set to double news khaleej times. Workforce in the uae the official portal of the uae government. Diversification and development of the uaes economy 20 university of messina. Uae economy is not perfect as yet and is still not the number one economy of middleeast. Figure 2 united arab emirates government operations as share of gdp sources. It is based on the information available at the time it was completed on june 11, 2014.
The economy of the united arab emirates or uae is the second largest in the middle east after saudi arabia, with a gross domestic product gdp of usd 414 billion aed 1. Pdf diversification and development of the united arab emirates. After the formation of the uae, oil revenues, especially from abu dhabi and dubayy, continued to fuel local development but increasingly became the main engine of growth for the national economy. United arab emirates economic forecasts 20202022 outlook. Risks and challenges the outlook is expected to improve over the medium term, but risks are skewed. It has to strive hard in order to be more competitive in the region. Executive summary the united arab emirates uae continues to have a strong economy in the region, growing by 4. The uaes economy, which grew 3 per cent in 2016, is expected to record growth of around 2 per cent for 2017, according to economists polled this month by bloomberg, thanks to a drop in oil.
Oil revenues became significant in abu dhabi in 1963, in dubayy in 1970, in sharjah in 1975, and in ras al khaymah in 1984. The property boom is largely driven by megaprojects such as the offshore palm islands and the world. Mar 22, 2020 statistics according to the annual economic report 2018 pdf, 540 kb, the total labour force in the uae in 2017 was 6447. In the postglobal crisis, the united arab emirates is challenged by a weaker global. The united arab emirates uae once largely known for its oil exports today has a diverse and highly developed economy. In addition, the paper tries to single out the new business sectors for the diversification and the development of the uae s economy. Contribution to gdp by sector in the emirate of abu dhabi 20. In recent years, significant real estate development has been a signature feature of the uae. Women, work, and the economy international monetary fund. Successful efforts at economic diversification have reduced the portion of gdp from the oil and gas sector to 30%, according to the cia world factbook.
United arab emirates economy gdp, inflation, cpi and. Apr 07, 2020 united arab emirates economic growth economic growth is expected to decelerate this year on a weaker oil sector, while the nonoil sector is also expected to contract. The duration of the outbreak and its impact on global travel and trade present considerable downside risk to the outlook. Much of the sediment clouding the water in this image of the persian gulf is from the shatt al arab river, which enters the gulf in the north along the iraniraq border. The uae is committed to helping the people of egypt through economic reforms and through the creation of jobs and opportunities. The uae has supported egypt with significant development assistance to help the egyptian economy recover since the ousting of mohamed morsi in midjuly 20. Uae has the secondlargest economy in the arab world after saudi arabia, with a gross domestic product gdp of usd 414 billion aed 1. Relatively high gdp growth volatility over the past few years indicates the need for a more sustainable economy. Workforce in the uae the official portal of the uae. Pdf diversification and development of the united arab. Jun 02, 2011 economic uae pest analysis introduction political facebook now.
Diversification and development of the uaes economy. The ministry of economy is pleased to present public and private stakeholders the annual economic report for 2017, which draws up a clear map backed by reliable figures and statistics on major regional and global economic developments. Open data uae ministry of climate change and environment. Outlook for the performance of dubais economy in 2018 41. The rate of participation in the female labour force was about 41.
Figure 1 united arab emirates annual gdp growth rate. Major gecs indicators for the global economy new consensus on recovery fails to lift business confidence in q4. The united arab emirates the united arab emirates uae is a federal monarchy in the middle east made of up of seven emirates. About 30% reported confidence gains, up from 28% previously, but 35% reported losses, up from 32% in the third quarter. The k12 age group 418 shows the highest growth during the 202016 period cagr 2.
United arab emirates economic growth economic growth is expected to decelerate this year on a weaker oil sector, while the nonoil sector is also expected to contract. From the tallest buildings in dubai to the worldfamous architecture in abu dhabi, the uae has become synonymous with development. The direct impact on the uae economy through airline traffic, tourism, real estate investment, and the financial sector is expected to be limited as trade with qatar accounts for less than 1 percent of the uaes total trade. Although dubais economy was initially built on revenues from the oil industry, revenue from petroleum and natural gas currently account for less than 5% of the emirates gross domestic product. Driven by high levels of business opportunities particularly in the trading and services sector, the dubai sme sector continues to grow the economy.
Economic uae pest analysis introduction political facebook now. Diversification and development of the uaes economy munich. It forms the basis upon which the federal entities develop their strategic and operational plans, and consists of seven general principles, seven strategic priorities, and seven strategic enablers. We aim to provide a comprehensive overview of the strategies. Middle east united arab emirates the world factbook.
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