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Economy of the United Arab Emirates

Article image: Economy of the United Arab Emirates

Strong economy is the main secret of prosperity and high level of development of the UAE. Effective economic system has brought the Emirates to a totally new level that enables the country to outperform in terms of business activities majority of the European countries.

Today the United Arab Emirates is one of the richest and fastest growing countries in the world. UAE government managed to attain incredible results in the economy, that are spoken about by the whole world nowadays. Famous magazines and newspapers actively monitor new trends of the economic system of the Emirates, and foreign businessmen have already made a plan to make profit on the basis of this economic model.

Features of the UAE economy

The United Arab Emirates is characterized by open economy with large positive surplus and high standards of living. Since 1971 the UAE’s GDP has grown by more than 190 times: from 6.5 billion to 1.2 trillion dirhams. In 2011, GDP per capita was 48,5 thousand dollars, while inflation rate was only 2,5%. It brought UAE closer to the level of developed countries, making the Arab country even more attractive for living and doing business: almost 60% of the Emirate’s GDP is income from foreign investment.

Indicator of high efficiency of the UAE economy is the fact that in terms of number of millionaires this Arab state ranks 6th in the world. Totally 53 800 dollar millionaires live in the country of which 778 have more than 30 million dollars.

The backbone of the United Arab Emirates economy is production and export of oil and gas. Currently, the UAE produces daily almost 2 million barrels of "black gold." The biggest oil producers are located in Abu Dhabi, Dubai, Sharjah and Ras al-Khaimah. Shipbuilding, manufacture of construction materials and aluminum, textile industry, tourism and trade make significant contribution to the economic development of the country. In addition, the UAE economy is famous for its traditional industries such as handicrafts and oasis agriculture. The main agricultural products cultivated in the UAE are watermelons, dates and vegetables.

In the recent years investors from Europe have had a significant impact on national economy of the UAE. They largely invest huge amounts of money into industrial enterprises. For example, the construction of a large company in Sharjah in 2010 was financed by European businessmen.

Prospects of economic development of the UAE

The main challenge for the government of the United Arab Emirates is to overcome oil dependence. Strategic plan for the next few years is further diversification of economy through tourism, finance and other service industries, as well as through further development of infrastructure.

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