The second economy of the Arab world continues to develop successfully, overcoming the effects of the economic crisis and falling hydrocarbon prices. UAE GDP is steadily increasing, overcoming critical dependence on the oil industry. The country's authorities are determined to reduce the influence of the sector to 5% in the foreseeable future.
Economic review
An open market Arab state with a significant foreign trade surplus. In terms of GDP, the UAE in 2017 ranked 31st (at 357.27 billion). In terms of per capita GDP of $ 68,717.03, the United States is in 8th place. An indicator of the high competitiveness of the economy is also the fact that 53.8 thousand dollar millionaires live in the country, of which 778 people have a personal fortune of more than $ 30 million. The UAE is in 6th place in terms of the number of millionaires.
The main industry of the Emirates is the production and export of hydrocarbons, annually about 2.2 million barrels of oil are produced in the country. Confirmed oil reserves are estimated at 200 billion barrels, natural gas approximately 5,600 billion cubic meters. m. Abu Dhabi produces the most oil, followed by Dubai and Sharjah. About 70% of the UAE’s GDP is now produced in other sectors, including the production of aluminum and building materials, hospitality and trade.
Business Infrastructure
One of the first countries where the concept of creating free economic zones was created and successfully tested was the UAE. Currently, 22 specialized SEZs operate enterprises of priority sectors, including finance, communications, and public health media. About 50% of attracted investments fall on these clusters.
The legislation of the country provides: the opportunity to conduct business in accordance with the best international standards, protection of the rights and interests of businessmen and investors, especially in the case of long-term investments.
One of the best transport infrastructure in the world has been built in the emirates, favorable conditions for doing business have been created. Dubai’s largest airport, serving more than 70 million passengers a year, will be able to receive 200 million after reconstruction. Jebel Ali Port has become the busiest Gulf port and the largest in the world. It is planned that by 2030 it will become the largest container handling facility in the world. The infrastructure and quality of seaports are considered one of the best in the world.
Oil and economics
In the 50s, when the Emirates were still a protectorate of Great Britain, the main industries were fishing and pearl mining. In the same years, oil production began to develop, foreign investment began to come into the country. In 1962, Abu Dhabi was the first among the emirates to export oil. In 1971, the UAE was formed. In 1973, the country's economy began to develop rapidly, oil prices began to skyrocket.
In the years 70-80, the share of oil in the UAE's GDP was about 90%. Thanks to high revenues from the sale of hydrocarbons and sound economic policies, the country has gone through an accelerated development path. A well-developed infrastructure was built here. For a short historical period, the UAE has gone from tents in the desert to the construction of the tallest buildings in the world.
From the first decades, the government, accumulating oil revenues, invested them in diversifying the economy. Currently, the share of oil and gas indicators in the UAE's GDP is slightly less than 30%. In the next 10 years, it is planned to reduce the figure to 20%. Good positive dynamics became possible due to the rapid development of non-oil sectors. Of which the most developed industries are re-export, trade, finance and tourism. The government plans to further enhance the role of innovation, financial services, and the hospitality industry in the UAE economy.
National currency
The official currency of the UAE is the dirham (denoted by AED), which is equal to 100 fils. It was put into circulation in 1973, until that time, the country used Indian rupees, then rupees of the Persian Gulf (which were also issued by the Bank of India) and Saudi riyals.
Thanks to a stable developed economy, fluctuations in the exchange rate of the dirham against the dollar are very insignificant. In the past 10 years, most of the period for 1 US dollar was given by 3.67 dirhams, very rarely the rate dropped to 3.66.