I would like to thank by heart to My Friend Ujwal Ghimire who have done such a great job which is really appreciated. I hope this article will be very much fruitful to those people who are interested in UAE or planning to check their luck in UAE. UAE is really moving faster and faster towards one of the best city of the world. But it’s still remaining to have a comprehensive study of it’s impact in the economy of the other Asian Countries. Hope in future, the overall analysis will be done and it will also be more beneficiary to those people who are studying about the global economic impact.
United Arab Emirates (UAE)
(Country and Economic Overview)
With an area of 83,600 Sq. Km and Population of around 5 Million, UAE is today one of the most developed country in the world based on various socio economic factors such as per capita, energy consumption per capita. The country has liberal social and economic policy and its foreign policy is based on pro western cultures. It consists of 7 emirates and culture stems from a deep-rooted belief in Islam. Arabic is the official language in UAE and English, Hindi, Urdu and Persian are the other language spoken. UAE is currently the member of UN, Arab League and OPEC.
Before the rise of oil price in 1973, economy of UAE is dominated by the pearl production, fishing, agricultural and hardens. As being the membership of OPEC, UAE exports 62% of its crude Oil and Gas to Japan. At present production level, supplies of oil would last over 150 years. In 2006, production was about 2.8Mio barrel/day. Currently, the market share in OPEC is 7.34% and it is expected to be 10.69% by the year 2010. Apart from oil, high class tourism, and international finance are the new sector starting to develop as a new source of revenue. Cement, building materials, aluminum, garments, furniture’s, paper, plastic, fiber glass, processed metals and gold are the major business in UAE.
Although UAE is becoming less dependent on natural resources as a source of revenues, petroleum and natural gas exports still play and important role in the economy. Massive construction boom, expanding manufacturing base and thriving service sector is helping the UAE to diversify the economy. Today UAE is one of the top re-exporters countries in the world after Hong Kong and Singapore. More than 40% of imports are for re-exports. The Major import in UAE is form Asia, Europe, America and Africa.
Only 20% of total populations are UAE citizens, major foreigners are also Muslim and Hindu, Christians and Persians. The education system of UAE is highly standard, many foreign university of US, Australia and UK are operating through out the country. The Booming markets of UAE is also providing high class of Banking and financial service. There are almost 23 Local banks, 28 foreign bank, 2 investment bank, 16 finance co., 80 representative offices and 105 money exchanges operating currently.
The Country is achieving tremendous growth since 1 decade and the growth rate is around 9.7%, GDP with $ 42,934 (per capita) and inflation level is around 13%-15%. There are around $ 350,000,000,000 (in 2006) worth active constructive projects in UAE. Many Projects of Modern architectural building, metro train(target 2009), road, cargo village expansion, port expansion, green house projects, Dubai autodrome, business park, hydrofoils hotel( under the sea) are the upcoming projects in UAE. Dubai is highly developed state of UAE with world only 7 star hotel Burj Al Arab, Palm Jumairah, Burj Dubai, Dubai Festival and many wonderful projects and modern architectural building. Dubai is considered to be a home of 15% -25% of world 125,000 constructive cranes.
Recent liberalization in the property market allowing non citizens to buy free hold land has resulted in major boom in the constructive and real estate sectors. Country is attracting the people around the world due to no any provision of income tax to the individual. Since 2002, 100,000 UK residents had purchased the property in UAE. UAE requires 51% local citizens ownership in all business operating in a country as part of its attempt to place emirates (UAE Nationals) into leadership position, Effort to increase UAE Nationals in labor force is priority by Gvt. for the year 2008/09. UAE has been a key partner in the war on terror, UAE port host more US navy ships, any port outside US. It is having a strong formal diplomatic relation with US. If Iran issues comes out it would be hard to balance commercial interest with Iran due to strong tied up with US.
Information collected By:
Representative Officer (Middle East
Laxmi Bank Ltd. , Nepal
Currently in UAE