Economy in the Uae

Good Essays
What type of economy is the UAE. List the features that are typical of this type of economy and provide a detailed discussion as to why you have chosen this classification.
The economy of a country is the economic systems of a country which consists of the labor, capital and land resources that it has. An economy has economic agents that are the consumption of goods, production, distribution and exchange.
The United Arab Emirates is considered as an “open economy”, it consists in having economic activities within the country and outside the country, which is the flow of funds on an international scale for the exchange of goods and services. This economy consists in having an international trade. The United Arab Emirates Dirham (current
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The UAE government are creating substantial opportunities for foreigners to invest and doing business in the UAE. Tourism creates jobs in the tertiary sector, but also on the secondary and primary sectors of the industry as well. This creates the multiplier effect, which proves how the money spent by tourists circulates in the country’s economy, from one hand to the other, therefore tourism directly helps the development of the hospitality industry but also indirectly in other sectors of the economy. For instance, a number of tourists spend money in the hotel, the hotel needs to buy linen from a supplier, the supplier needs to buy raw material from his supplier, etc.

Dubai 's economic structure (share of GDP), 2004 pg 20
We could see on the graph that Dubai invests in infrastructures and facilities that are directly affected and indirectly affected to the tourism industry. For instance the transport is directly in contact with the tourism industry whereas the Manufacturing is indirect.

Dubai international tourist arrivals, 1985-2005 pg 20
On this graph, we can clearly see the growth of inbound tourists arrivals, the most significant years were 1995 with an annual growth rate of 29.2% and 2002 with an annual growth rate 31.1%. The less successful years were 2003 with an annual
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