United Arab Emirates Economic Review
By: Kevin Joseph • Term Paper • 4,394 Words • February 2, 2015 • 823 Views
United Arab Emirates Economic Review
UAE-Macroeconomic Review |
[pic 1] SECTION A – GROUP 8 Karthika Das SMBA14029 Kevin Joseph SMBA14030 Mathew M Paattam SMBA14035 Rumaila Abdulla SMBA14084 Rizwan Shareef SMBA14085 Submitted to :- Dr. K.S.Sujith
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Table of Contents
INTRODUCTION
ABOUT UAE
GOVERNMENT AND POLITICAL SYSTEM
THE ECONOMY
NATIONAL INCOME ACCOUNTS
OTHER MACROECONOMIC AGGREGATES
CONSUMER PRICE INDEX AND INFLATION
PRODUCER PRICE INDEX
UNEMPLOYMENT RATES
FISCAL AND MONETARY POLICY OF UAE
BALANCE OF PAYMENT
CONCLUSION
BIBLIOGRAPHY
INTRODUCTION
ABOUT UAE
The United Arab Emirates is a consists of seven emirates: Dubai, Abu Dhabi, Sharjah, Ajman, Umm Al-Qaiwain, Ras al-Khaimah and Fujairah. The federation was formally established on 2nd December 1971, by Sheik Zayed, the father of UAE. The United Arab Emirates (UAE) occupies an area of 83,600 square km along the south-eastern tip of the Arabian Peninsula. UAE has Qatar to the west, Saudi Arabia to the south and west, and Oman to the north east. The capital and the largest city in UAE is Abu Dhabi, located in the emirate of the same name.
The main source of income for the country is crude oil, but the country has an open economy and successful economic diversification helped to reduce the GDP contribution from the oil sector to 25%. The United Arab Emirates, especially the emirate Dubai is one of the world's fastest growing tourist destinations and has all the right ingredients for an unforgettable holiday,unbeatable shopping, top-class hotels and restaurants, an enticing traditional culture, and a safe and welcoming environment. Apart from UAE’s image as a tourist destination, the country has set up many Free Trade Zones - offering 100% foreign ownership and zero taxes - to attract foreign investors.
GOVERNMENT AND POLITICAL SYSTEM |
Since the establishment of the federation in 1971, the seven emirates that comprise the United Arab Emirates (UAE) have forged a distinct national identity through consolidation of their federal status and enjoy an enviable degree of political stability. The UAE's political system, a unique combination of the traditional and the modern, enhanced this political success, enabling the country to develop a modern administrative structure while maintaining preserving and adapting best of the tradition. Each of the emirates already had its own existing institutions of government before forming the federaion and, to provide for the effective governing of the new state, the rulers agreed to draw up a provisional Constitution specifying the powers that were to be allocated to the new federal institutions, all others remaining the prerogative of the emirates. Areas of responsibility assigned to the federal authorities, under Articles 120 and 121 of the Constitution, were foreign affairs, security and defense, nationality and immigration issues, education, public health, currency, postal, telephone and other communications services, air traffic control and licensing of aircraft, in addition to a number of other topics specifically prescribed, including labor relations, banking, delimitation of territorial waters and extradition of criminals. The Constitution also stated in Article 116 that 'the Emirates shall exercise all powers not assigned to the Federation by this Constitution'. This was reaffirmed in Article 122, which stated that 'the Emirates shall have jurisdiction in all matters not assigned to the exclusive jurisdiction of the Federation, in accordance with the provision of the preceding two Articles'. |
THE ECONOMY
The UAE which is the world’s eighth largest oil producer has a free-market economy with little or no restrictions on private-sector activities, international trade and capital movements. inspite the impact of the global economic downturn, the UAE’s economy has showed a remarkable growth.
increasing oil prices, increased government spending and a noteworthy developent in tourism, transport and trade have contributed to the improvement in the economy. In addition, the successful restructuring of debt owed by high-profile companies, unity among the emirates and accommodative monetary and fiscal policies have all lead to stability in the market.