GDP of the UAE
In class we have been discussing traits, causes, and patterns related to a nation's Gross Domestic Product (GDP). During class we viewed the GDP per capita (GDP based on population) rankings of different countries, and I was surprised to see that the United Arab Emirates was not closer to the top
due to its high output of oil. In addition to the booming city of Dubai the nations hotspot for both population and economic growth. Dubai is a growing tourist destination filled with real-estate,
aviation, and financial services. Lets not forget the recourse factor that should throw the UAE to the top of the GDP per capita chart. The nation not only possesses extensive access to oil, but its shared border with the Persian gulf supplies the nation with means of immense exporting capabilities.
The truth is due to the concentration on oil, which accounts for more than 85% of the nations exports. The United Arab Emirates possesses very few manufacturing companies which causes less exports and more imports. As a result the nation does not have much economic diversity. Out of the 9.27 million people living in the UAE just 72,000 residents control 42% of the nation's wealth. This means that the rich get richer and the poor just don't.
Because 72,000 people in the UAE are so wealthy they are able to afford lavish goods. For this reason much of the wealth acquired in the United Arab Emirates is spent on goods outside of the UAE as a result of a lack in supply of manufactured goods and a high demand for these products.
As a result of the UAE’s focus on oil as a source of revenue the government plans to lessen the nation's dependence on oil by the year 2030. They plan to do this by investing in luxury hotels to increase tourism, as well as allowing property rights to non-citizens to both add wealth to the construction, real-estate, and tourism market. They also plan to further involvement in international finance.
In short the UAE is a nation full of wealth, but do to its limited outputs and high imports the GDP per capita of the UAE remains lower than some may think at first glance.
“Economy of the United Arab Emirates.” Wikipedia, Wikimedia Foundation, 24 Jan. 2018, en.wikipedia.org/wiki/Economy_of_the_United_Arab_Emirates.
Reporter, Cleofe Maceda Senior Web. “Millionaires Control 42% of Wealth in UAE.” GulfNews, Gulfnews, 7 Sept. 2016, gulfnews.com/business/money/millionaires-control-42-of-wealth-in-uae-1.1892419.
“The United Arab Emirates.” Global Finance Magazine, www.gfmag.com/global-data/country-data/the-united-arab-emirates-gdp-country-report.