What is the UAE economic system?

The United Arab Emirates [UAE] keeps getting a handful of spotlights on various sectors. The UAE which is a country located in the Middle East, sharing borders with Oman and Saudi Arabia has been identified as a flourishing ground for an economic boom, therefore has attracted tons of investments which creates a chain reaction down to its citizens. 

Today the United Arab Emirates is one of the richest and fastest-growing countries in the world. Having enjoyed rich oil production over 50 years ago, the UAE has grown from being an arid land to an Eldorado with visible and incredible results sought out as a model to make a profit from. 

We shall carefully discuss in today’s article the UAE economic system, types of trades in the UAE, the stability of the UAE, and possible projections of the UAE amongst others. 

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The UAE economic system has been made up of notable sectors that have played active impacts on the strength of its GDP [Gross Domestic Products] 

The UAE is identified as an open economy with a positive surplus and high standards of living. It has experienced a GDP growth of more than 190 times since 1971; this means that it grew from 6.5 billion to over 1.2 trillion dirhams. Remarkable! 

In 2011, it was recorded that UAE had a GDP per capita of 48,500.00, while the inflation rate was only 2,5%. this growth projected UAE to the level of developed countries, making the Arab country even more attractive for living and doing business. 

One of the first questions or research conducted by prospective investors is understanding the stability of the country. Over the years, the UAE has proven to be a stable economy for both investors and residents; it has also enjoyed gradual growth from varying sectors thereby giving a lift in its GDP. 

The UAE has been considered one of the most stable countries in the Middle East since 2019, with its ranking increasing further this year as a result of growth enjoyed in public services, economic sustainability, and human capital, amongst others. 

The UAE has enjoyed bloom from varying sectors either in their local consumption, or its exports. 

While it's easy to say that the UAE's robust economy is supported by its strategic position, substantial financial reserves, wealth fund, attractive investor home economies, continuous government expenditure, the progressive strategy of economic diversification, free trade zones, and rising foreign direct investment. 

Examples of contributors to the economy of the UAE are listed below. 

Since 1997, the UAE's proved crude oil reserves have been certified by Oil & Gas Journal to be 97.8 billion barrels. The country would continue to produce at present rates for at least the next 80 years. Few discoveries have occurred in the last two decades, and the deployment of Enhanced Oil Recovery (EOR) techniques has been able to sustain production capacity, therefore proving reserve levels from an economic recovery standpoint. 

The UAE, particularly Dubai, has evolved into a tourist destination center. The city launched an intensive marketing push to promote and sell Dubai and the UAE as distinct tourism destinations. Many visitors from the area and beyond visit Dubai to experience a post-modern metropolis, indulge a bit, and shop at relatively inexpensive costs, whether they are purchasing gadgets, jewelry, or fashion goods. 

Despite the country's severe desert environment, agriculture remains a sustainable addition to the UAE's economy. Modern irrigation techniques, water from deep underground aquifers, and desalination have enabled the cultivation of huge areas of land. Agriculture is supported by the government through the free transfer of acreage, significant price guarantees, and subsidies. Currently, approximately 800 businesses are engaged in agriculture, primarily in the richest emirates such as Abu Dhabi and Dubai. 

The UAE is one of the open economies in the world with a diversified chain of trade to lessen its reliance on oil and change its economy from a traditional, labor-intensive economy to one based on information, technology, and skilled labor. 

These spread across, Agriculture, Tourism, Transportation, and industries.

 

The UAE’s GDP will expand 2.1% this year and 4.2% in 2022, according to the central bank, as the Gulf state recovers from the coronavirus crisis.  

For more information on what makes UAE stand out, why Dubai is the hub for tourism, and more, you can always rely on The Watchtower - Web Design Agency Dubai.