Since 1974, the United Arab Emirates has been one of the world’s largest producers and distributors of crude oil. They are second only to Saudi Arabia, and oil profits make up over 25% of the country’s annual income (CIA World Factbook). Before oil was discovered in the 1950’s, the United Arab Emirates’s economy was reliant upon few other resources. But when these resources started to run out, the UAE’s economy experienced a small crash, resulting in major job loss. The government is now aiming to avoid a similar outcome by decreasing it’s reliance upon few resources, and creating jobs outside of oil businesses. Their efforts have been sufficient, as they have been able to take advantages of opportunities in construction, banking, and most significantly, tourism (BBC). at the rate which their economy is expanding, the United Arab Emirates’s move to decrease their dependence on oil profits will be successful. By the end of 2018, tourism will be the next big business.
ACADEMIC LITERATURE: Billions of dollars have been spent on building the astonishing city of Dubai. Real estate construction worth billions of dollar is complete or is in the process of completion. It is a product of combined strategies of local businesses and innovative marketing. The projects include hotels, offices, entertainment complexes and huge shopping malls. The construction of landmark buildings and the city’s love for superlatives has placed it on the world’s property map.
...ties in the world. It is home to the world's tallest building and to the world's largest mall. Unfortunately, Dubai did not get there without consequence. That consequence is the debt burden that they are currently under. As a result of Dubai's insatiable spending they piled up an exorbitant amount of debt and are still paying it off. The outcome of Dubai's debt race could spell the future for many other emerging countries. If Dubai, who at first looked so perfect, is overcome by debt, investors will be less likely to take a risk by investing in a developing country and will instead keep their money where it is safe. But in the end, if Dubai continues to spend it's money instead of paying back its debt there could be severer implications in the future such as a loss of international interest and it could even revert back to the desolate desert it used to be.
The United Arab Emirates has a rapidly growing economy that outranks the United States economy. According to Princeton University, “the United Arab Emirates currently has one of the fastest growing economies in the world.”3 The Ministry of Finance and Industry further proves this notion by showing that the nominal GDP increased by 35% to $175 billion in 2006. The United Arab Emirates has been able to allow their economy to grow due to their imports and export...
The government of UAE has always played a crucial role in the country’s economy. Supported by the high price of oil, coupled with its abundant supply of the natural resource, the government has been able to diversify its economy. It has invested $52.7 billion into the travel and tourism sector of the country only in 2013. In recent years, the UAE has become a popular tourist destination.
The city shown in the background of the photograph is Dubai, the second largest city in the state of United Arabs Emirates. However, one may be wondering, how a city came to be in that desert environment. The answer is in the natural resources the country has. The oil boom in the Middle East has led to great economic growth making some Arabian nations to become more westernized and industrialized.
Dubai is becoming a popular destination for tourists. It is the second largest Emirate in the United Arab Emirates. Dubai is the United Arab Emirates, tourism capital. Dubai's economy is largely based on trade, manufacturing and tourism and only 20% of the city's revenue comes from the sale of oil. It is a very safe city with a low crime rate. There are stiff penalties for crime. Drug smuggling and rape are punishable by death. In the United Arab Emirates death is by firing squad unlike Saudi Arabia where they use the sword.
Presently Bahrain, Egypt, Iraq, Iran, Israel, Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia, Syria, United Arab Emirates, and Yemen are the 14 nations in the Middle East. The majority of Middle Easterners share in common the Arab culture, language and religion. It is especially important to take note of the Islamic belief. "Islam means the act of giving one's self to God or Allah" (Harris & Moran, 2000, p.385). Visitors and business people must understand the powerful religious and cultural force of Islam to appreciate or comprehend this country. Although this paper focuses on establishing and doing business in the United Arab Emirates (UAE), the writers have also given attention to the demographics and culture of this intriguing country.
After the crisis UAE’s economy suffered from 2008-2009 the economy has diversified itself and does not depend solely on oil anymore but also on other sectors such as tourism. The inflation rate of Dubai is 0.33% which is also significantly low (Dubai Statistics Centre,2016).The small medium enterprise does not want to take a risk where there are fluctuations in price level thereby effecting the buying power of people and also the demand and supply of the Al-Simpkin’s product. Furthermore,the government encourages foreign investment and besides the agent there are free zones such Jabel Ali which is the largest
Have you ever wanted to see the world’s richest country? That is covered with exotic beaches. Food that will defiantly cure your taste buds. Luxurious cars everywhere you turned your head. Seeing different people from all over the world coming to visit. A place that’ll for sure entertain you. To get a taste of this lifestyle that’s overseas, you need to visit Dubai.