subject: United Arab Emirates [print this page] United Arab Emirates United Arab Emirates
United Arab Emirates is a country located in the Eastern part of the Arabian Peninsula. It extends along some parts of Gulf of Oman and to the southern coast of the Persian Gulf. The purpose of this report is give analysis of the economic progress that has been established in United Arabs Emirates stressing on the patterns of world and the contribution of different models of international trade. It also geared towards explaining the reason why United Arab Emirates engage in trade and what factors enhances its national competitiveness with other nations. The report is also to carry out assessment on the role played by multinational enterprises in determining the pattern of world trade through foreign direct investment and globalization of production networks. It is also aimed at carrying out examination on the influences factors that drives international labor movements and the impact of labor flows on the economies of both sourcing and hosting countries in reference to unites Arab Emirates. The paper is also aimed at evaluate the impact of different trade policies on economic agents in both developed and developing economy as in the case of United Arab Emirate.
It is also aimed at giving brief overview on the historical, geography and demographical nature of united emirates as well as its Gross Domestic products
Country Overview
United Arab Emirate is a loose federation consisting of seven emirates of which each has its own ruler. It covers a geographical area of 82,880 square kilometer. It has population of about 4.4 million people and a population growth rate as was estimated to be about 4 percent in 2007 report. It has ethnic groups ranging from citizens from all over the world with the genuine citizens ranging to about 15 to 20 percent. It economy is characterized by activities such as production of pearl, fishing activities, agriculture and livestock production. Due to 1973 rise in petroleum prices, petroleum production has been the key dominant to the economy. It is currently recognized as among the countries in the world with fast growing economy. In the year 2006, the Gross Domestic Product of United Arab Emirate was about 175 billion U.S dollars as compare to GDP of 2005 which was about $130 indicating an increase of about 35 percent. Its economy is ranked 38th in the world based on the Gross Domestic Product, energy consumption and Human Development Index (Heritage Foundation, 2009).
History
United Arab Emirates was founded by tribal based organized group of Arabian peninsular Sheikhdom. It was originally inhabited by oceangoing people who later were in seventh century were converted to Islamic religion. After sometimes a group known as Carmathians formed a strong and powerful Kingdom which managed to conquer the Mecca. This caused the disintegration of sheikdom kingdom which made its people to be transformed into pirates The pirates caused the British to intervene because of their piracy activities which was frustrating the sultanate of Muscat and the Oman in early 19th century. The British managed to impose a partial treaty in 1982 and a permanent treaty in 1953. The British as well managed to protect the seven states but did not carry out any administration as colony. After the withdrawal of British in 1971, the Trucial states were converted into federation known as United Arab Emirates, but two of the Trucial states namely Bahrain and Oman decided not to be part of the UEA and remained independent
Government
United Arab Emirates has a federation which was formed in the year 1971 by seven trucial states namely, the Abu Dhabi, which is the largest, Dubai, sherjah, Ajman, Fujairan, Ras al Khaimah, and Umm Al- Qaiwain. The UEA has a federal president and a prime minister along side a separate rule in each state whose role is to govern their respective Trucial States (U.S Department of State, 2007).
Geography and Demography.
It is located in the eastern region of Arabian peninsular and it boundary also extends to some parts of Gulf of Oman and to the southern coast of Gulf of Persian. It has a neighborhood of Saudi Arabia to the west and southern region; Qatar found to the northern regions and Oman found to eastern region. United Arab Emirates has a land which is mostly barren and sandy. United Arab Emirates have a population of about 4.4 million people of which the greatest percentage consist of immigrants from some parts of the world mostly Asia, Middle East, Africa and western countries. The population is estimated to be consisting of only 15 to 20 percent of United Arab Emirates citizens. Most of the citizens of U.A. belong to Sunni Muslims whereas minority group consist of the Shi'a. Most of the foreigners also became Muslims even though immigrant from India maintains the Hindu religions and some foreigners also maintained their Christianity. There has also been greater improvement in the education sector among the United Arab Emirate in which the citizens and the immigrants have taken advantage and utilized the improved educational standards in the country. For instance in the year 2004, the University of Al Ain had about seventeen thousand students. In the year 2007, the University of Sharjah had over 4500 foreign students (U.S Department of State, 2007).
Economic Strategies
For a period of forty years, United Arab Emirates economy has transformed from a desert economy which was dependant on mostly fishing and pearl trading to a greater opportunity with thriving economic sectors which ranges from real estates construction to important sectors like tourism and hospitality industry. They have also well developed mass communication including a well established shipping and logistic industry. The economy is also characterized by well organized retail system and developed financial systems. The success in economic growth draws its roots from model known as an innovative state-led capitalist growth. There has been an argument that even though the economic diversity of United Arab Emirate has led to less dependency on the oil production, the innovative economic policies have played a major role alongside the economic diversification in steering economic growth and development in United Arab Emirates. This therefore means that the economic instability is dependant on the business cycle of those sectors which are in action together with the present global financial crunch. United Arab Emirates was estimated have economic freedom score of about sixty five percent and is ranked to be the fifty four in economic freedom study index of 2009. This showed an improvement of about 2.2 as compared to the study that was carried in 2008. It has been estimated to have an average economic growth of about eight percent as for the analysis carried out for the past five years. It also scored above the world average standards in analysis that was done on specific economic sectors such as fiscal, government, labor, corruption and trade freedom. The study shows that U.E.A do not have federal level income and neither do they have corporate taxes. The tariff charges are generally low though there several non tariff barriers that inhibit total trade freedom. The labor market was also found to be very flexible and posses a very low corruption rate. They are aiming at being the regional financial core. The study also shows that Unites Arab Emirate has business, investment and property rights freedom which is very weak. This is because there is restriction in foreign investments (UAE free zones, 2009).
