Report on the United Arab Emirates Essay

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Report on the United Arab Emirates The UAE is the second-largest Arab economy and the world's fifth-biggest oil exporter. From its inception UAE has worked towards building their accumulation of external financial assets, with Abu Dhabi taking the lead on managing the country’s oil wealth and Dubai’s push for economic diversification. The UAE government is in the form of a monarchy with the president of the UAE and ruler of Abu Dhabi, …show more content…
Currently the GCC countries are negotiating a free trade agreement (FTA) with the EU and the UAE continuing with its strengthening of its economic plans is negotiating an FTA with the United States.
According to the Minister of Economy H.E. Sultan Al Mansouri, the UAE GDP for 2007 is at 6.3% increasing by 7.4% from last year’s figures. It has been approximated that the non-oil sectors have contributed towards 64.1% of the total UAE GDP for 2007. It has been estimated that the UAE GDP will grow by 7.7% during 2008 which is lower than the 9.4% in 2006 and 8.2% in 2009. The UAE's current account balance has been in surplus owing to its large surplus in the merchandise trade balance. The current account surplus has widened substantially in recent years with rising world oil prices and growing non-oil exports. As a result, in 2005 and 2006, the current account surplus rose to 15.8 percent of GDP and 16.2 percent of GDP, respectively, from 10 percent of GDP in 2004. International reserves also increased substantially, to US$27.6 billion in 2006 from US$21 billion in 2005.
Inflation in 2007 has been estimated at an average of 14%, the main cause for this hike is due to the shortage of housing and excessive

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