Bolg #6: UAE’s Economy and Dubai’s uniqueness

United Arab Emirates

This is the UAE profile from the famous Forbes website. It gives an overview about the economy of this gulf state. It also provides numbers and rankings about the country such is its GDP, inflation rate, unemployment rate, and so on. It also explains what efforts were taken by the government in respond to the recent oil prices shock.


Summary:
According to Forbes lists, the United Arab Emirates is ranked number 33 in the Best Countries for Business List. As of December 2016, UAE GDP is $370 B; and it has a notable growth rate of 4%. While the UAE population is 5.9 million, it only has 2.4% unemployment rate. Its open economy allowed the per capital income to reach as high as $40,400.Initially, UAE was a poor country consisting predominantly of desert principalities. However, since the discovery of oil more than thirty yeas ago, the country has developed dramatically. Most significantly, 100% foreign ownership and zero taxes are allowed in the country’s free trade zones. Regarding to the recent economic situation, and in respond to the recent instability of oil prices, the government has taken many successful steps in order to get over the crisis.For instance, there has been well done job in diversifying the economy recently; which reduced the based oil and gas GDP’s portion to 25%. Furthermore, the government is investing more in the banking sector in order to boost it and generate more liquidity. Dubai was hit very harshly by the crisis and there was a huge doubt whither it is going to overcome the problem or not due to the drastic decline of real estate prices. However, with the help of Abu Dhabi Government and the UAE Central Bank, the city recovered with the least possible costs. On the other hand, the country has also reduced social spending such as minimizing fuel subsidies. Nonetheless, creating more jobs, improving the private sector, and enhancing economic diversification all have been promised by the government.


Reflection:

I think the UAE should be a role model for the neighboring Gulf and Arab states at large. The UAE has a successful story that most be honored, especially when we talk about Dubai and how it evolved dramatically. It is interesting to see a city in the middle of the Arabian peninsula becoming a global tourism destination that attracts millions of tourists annually. I see there is a two way equation, the successfulness of Dubai is tied to the central UAE government and vise versa. The luxurious life that is enjoyed by the residents of the UAE is dreamed by many, even in rich oil states like Saudi Arabia. I know many Saudis who moved to live in Dubai or its neighboring cities like Sharjah, and the numbers are expected to increase. In response to that, the Saudi government should carefully examine what makes Dubai so attractive, and try to follow its model in order to restrain the youths from leaving the country. We might see some improvement in the coming years as promised by vision 2030, could we see another Dubai in Saudi, this is the question.

Dubai Economy

This page by Dubai government offers data about the socio-economic indicators of Dubai. It provides explanation of the attributes of dubai that makes it an excellent investment location. The page also goes in details about Dubai’s key advantages like having a stable politics and economy for example.


Summary:
Three decades ago, Dubai was nothing like how it it today. The rapid development it encountered made it a business center today. Dubai has a strategic location which makes it the biggest re-exporting center in the Middle East. Many foreign investors are attracted to Dubai due to the liberal government policies, and the excellent infrastructure it has. Many attributes distinguish Dubai from other major cities in the region. Dubai is rank as the Arabian Gulf’s leading multi-purpose business center. It has a dynamic economy and it is an important re-export center. Warm welcoming is offered by the government to new businesses and investment. Moreover, it showed positive trends in economic diversification over the past few years. Dubai is also a thrilling tourism destination. All these facts make Dubai the first international business center in the Arabian Gulf. The competitive cost structure in Dubai triggers the attention of many international companies. For example, there are no controls over foreign exchange and no trade barriers or quotas. Residents of Dubai enjoy many advantages regarding the high quality of life. The private sector in Dubai has improved many real estates such is hotels and recreational 
and leisure facilities dramatically over the past few decades. All these factors made Dubia a unique city in the heart of the Arabian peninsula.

Reflection:

I think the UAE gained its popularity after the development of Dubai. Mohammed bin Rashid Al Maktoum, the governor of Dubai, is very ambitious man who is realy unique, and he is admired for his continues effort to enhance the city and they country consequentially. I noticed many things beyond expectations in Dubai. for example, the police where driving Lamborghinis, BMWs and Mercedes. That gives an indication of how financially satisfied the country is, although I think it is an exaggeration because their are some sectors worth more investment than police cars. Whenever I tell anybody here that I am from the Gulf, they immediately think I am from Dubai, that has the tallest skyscraper in the world and the most luxurious hotels. I even learned from those foreigners about few places and facts about Dubai that I have not known before, and I always have to shock these curious people about the difference between Saudi Arabia and Dubai. Dubai is gaining the biggest attention, not to say that other parts of the UAE are disappointing, indeed, I have like the city of Sharjah more due to the fact that it is more quiet while beautiful and interesting. In terms of the economy, the UAE has exceeded neighboring countries with it free market and it looks like they will have to follow its steps to survive in the coming days.

 

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