Economic Report for United Arab of Emirate (UAE) Essay

Economic Report for United Arab of Emirate (UAE) - Essay Example The massive oil consumption in UAE has enabled it to reduce the usual lengthy and difficult process of accumulating capital as well as saving towards developing any economy. The enormous endowment of the natural resources, particularly exploitable oil and gas in the UAE have led to quick development of resource based industries (RBI), which has led to strategy development. The strategies that have emerged are industrial strategies that are geared at elevating the utilization of natural resources. Additionally, the UAE have deployed the use of windfall income that has enabled it to achieve magnificent economic development, particularly with the period between 1973 and 1982. This period was marked with high economic development of the UAE countries and it as well marked the period of relatively high oil and gas prices. Before the discovery and exploitation of natural oil and gas in the UAE, the UAE nations depended majorly on subsistence agriculture, animal husbandry, extraction and tr ading on pearls, seafaring, and fishing (Abed and Peter 11). Therefore, before the discovery of oil in the UAE, the UAE nations depended on limited natural resources that only made them have a subsistence economy. The first development of the UAE economy started in the early 1970s, and it was referred to the UAE’s First Development Decade. ... It is worth noting that, since 1973, UAE nations have enjoyed expedite political stability. The established formal political institution of the 1971 seems suitable for the existing tribal UAE society. Additionally, this political society has boosted the UAE economy by supporting an elaborate distribution of oil revenues in social and economic infrastructure forms, averagely high salaries, highly standardized social services including education, and social services that have since then raised the living standard of the inhabitants of UAE (El 74). Moreover, the UAE community has since then enjoyed a reduced likelihood of the occurrence of social and political unrest. In fact, since the formation of the state, the UAE government has maintained a high degree or ethical record pertaining to human rights; thereby, promoting political and social stability (International Monetary Fund 24). The UAE has actively become a member of numerous regional and international associations including the United Nations, Arab league, the Non-Aligned Movement, the Islamic Conference Organization, and the Arab Gulf Cooperation. The relationship that the UAE have built with many countries in the world, especially those within the West have been naturally warm. Usually, political and social stability goes hand in hand with the liberty in trade policies (International Monetary Fund 162). This notion has paved way for both domestic and international investment in the UAE’s industrial sector by other nations of the world; thus, improving the economy of UAE. The united states of Arab are blessed with the enormous oil reserves that are located both at onshore and off shore. In addition, UAE enjoys production of gas that is associated with the crude oil production. Furthermore, UAE