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Video: UAE GDP is becoming less dependent on oil
2024 Author: Henry Conors | [email protected]. Last modified: 2024-02-12 02:41
The second economy of the Arab world continues to develop successfully, having overcome the consequences of the economic crisis and falling prices for hydrocarbon raw materials. The UAE's GDP is growing steadily, having overcome its critical dependence on the oil industry. The country's authorities are determined to reduce the sector's influence to 5% in the foreseeable future.
Economic Review
Arab state with an open market economy with a significant foreign trade surplus. In terms of GDP, the UAE in 2017 ranked 31st (at 357.27 billion). In terms of GDP per capita of 68717.03 dollars, 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 dollars. The UAE is in 6th place in terms of the number of millionaires.
The main industry of the Emirates is the extraction and export of hydrocarbon raw materials, about 2.2 million barrels of oil are produced annually in the country. Proven oil reserves are estimated at 200 billionbarrels, 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 industries, including the production of aluminum and building materials, hospitality and trade.
Infrastructure for doing business
One of the first countries where the concept of creating free economic zones was created and successfully tested was the UAE. Currently, enterprises of priority sectors, including finance, communications, he althcare and the media, operate in 22 specialized FEZs. About 50% of attracted investments are in these clusters.
The country's legislation provides: the opportunity to do 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.
The emirates have built one of the world's best transport infrastructures and created favorable conditions for doing business. The largest airport in the country - Dubai serves more than 70 million passengers a year, after reconstruction it will be able to receive 200 million. The port of Jebel Ali has become the busiest port in the Persian Gulf 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 among the best in the world.
Oil and economy
In the 50s, when the Emirates were still a protectorateGreat Britain, the main sectors of the economy were fishing and pearling. In the same years, oil production began to develop, foreign investments began to come to the country. In 1962, Abu Dhabi became the first emirate to export oil. The UAE was formed in 1971. In 1973, the country's economy began to develop rapidly, oil prices began to skyrocket.
In the 70-80s, the share of oil in the GDP of the UAE was about 90%. Thanks to high revenues from the sale of hydrocarbon raw materials and a well-thought-out economic policy, the country has passed an accelerated path of development. A developed infrastructure was built here. In 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 the diversification of the economy. Currently, the share of oil and gas indicators in the GDP of the UAE is slightly less than 30%. In the next 10 years, it is planned to reduce the indicator 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 AED), which is equal to 100 fils. Introduced into circulation in 1973, until that time the Indian rupees were used in the country, then the rupees of the Persian Gulf(which was also issued by the Bank of India) and Saudi riyals.
Due to the stable and developed economy, the exchange rate fluctuations of the dirham against the dollar are very small. In the last 10 years, for most of the period, 1 US dollar gave 3.67 dirhams, very rarely the rate went down to 3.66.
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