The UAE Economic Crisis

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The UAE is the federation of 7 Emirates in which they are Dubai, Ajman, Umm Al-Quwain, Sharjah, Abu Dhabi, Al-Fujayrah and Ras Al-Khaima. All these Emirates are governed and ruled by the Federal Supreme Council. Dubai as well as Abu Dhabi not only they are the richest but they dominate UAE economy. In UAE the oil was discovered about 35 years ago and starting from that time, UAE was no longer a desert; it became a modernistic country with high criterion of living. After the economic crisis, the economy of UAE has shrinked in 2009 where oil prices decreased and narrowed international credit. The UAE has responded to the crisis by increasing and boosting liquidity in the banking sector. Moreover UAE strategic plan for coming years is focusing on diversification and providing for its people more job opportunities by improving education.  Level of economy: UAE recorded one of the highest economic development rates in the Arab region due to its on-going economic diversification, growing gas and gas exports. UAE is the second largest economy in the Arab region. Between 2004 and 2008, the economy increased by 145% to reach 261.4$ billion. On the contraire and in result of slump in the world oil market, the nominal GDP decreased by 12% to become 230$billion.  Inflation: Inflation in the UAE has settled down in the range of 1.3% to 3.2% in the years 2000 to 2003 and right after it increased. Consumer price inflation increased to become 11.7% in 2007 and 11.5% in 2008. This led to depreciation of the US Dollar against the world most major currencies, increase in prices of non-oil imported goods priced in Euro, Japanese Yen, or British Pound Sterling and increasing domestic demand pressures. Although rents, high food prices, and ... ... middle of paper ... ...y where its economical largest sector is services such as education health and public services which placed a 68% of its GDP. Considering that Germanys economy is export driven (manufacturing sector) which is also an importing sector for its growth that represent a 25% of its GDP. • Educational Level Accounting and auditing education is governed by legal rules and regulation and was one of the best accountancy education system in the world for quite a long time and by it compliance with the International Federation of Accountants IFAC strategy there was high demand over its accounting education, but it might lose its reputation if it didn't adapt with the changes in the accounting environment as soon as other countries. however Germany. However the accounting and auditing profession requirement in Germany is known to be the toughest comparing to other countries.
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