Economics of the U.A.E.
The U.A.E has neither a command, traditional, market nor mixed economy; it has an open economy system. An open economic system is an economic system which involves the trading of goods and services with other nations in a global system of trade. The U.A.E has a high per capita income and a sizable annual trade surplus.
The primary economic activity in the U.A.E is the oil and natural gas sector. The U.A.E produces 48.4 billion c um. That is the total natural gas produced in cubic meter. The U.A.E exports 7.01 billion c um. The U.A.E produces 2.813 million bbl/day of oil. That is the total of oil produced in barrels per day including crude oil and oil products. The U.A.E exports 2.395 million bbl/day. It is the 4th exporter of oil in the world. The U.A.E’s main export partners are Japan, India, Iran, and South Korea.
The natural resources of the U.A.E are oil, natural gas, fisheries, pearl, camel, and recently strawberries.
The primary economic activity in the U.A.E is the oil and natural gas sector. The U.A.E produces 48.4 billion c um. That is the total natural gas produced in cubic meter. The U.A.E exports 7.01 billion c um. The U.A.E produces 2.813 million bbl/day of oil. That is the total of oil produced in barrels per day including crude oil and oil products. The U.A.E exports 2.395 million bbl/day. It is the 4th exporter of oil in the world. The U.A.E’s main export partners are Japan, India, Iran, and South Korea.
The natural resources of the U.A.E are oil, natural gas, fisheries, pearl, camel, and recently strawberries.
The U.A.E has been spending billions of dollars on infrastructure. Electricity and Water- The Federal Electricity and Water Authority (FEWA) is the organization responsible for overseeing the whole country’s water and electricity needs. Although, they are other organizations that deal with the water and electricity needs of an individual emirate such as Dubai Water and Electricity Authority(DEWA), and Sharjah Water and Electricity Authority (SEWA). The U.A.E is developing a peaceful nuclear energy program to generate electricity. The U.A.E also plans to build 68 rechargeable dams in the coming 5 years, to help provide for the growing population. Communications- Communications externally and internally are doing well for the U.A.E. There are 371,969 internet hosts in the U.A.E. An internet host is a computer connected directly to the internet. The number of hosts is one indicator of the extent of internet connectivity. There are 1.48 million main lines telephones in use. The U.A.E is currently serviced by two telecommunication operators; Etisalat and Emirates. Transportation- The U.A.E has an extensive road network that connects all major cities and towns. However, roads in the western and southern regions are still relatively undeveloped. The total length of road network of the U.A.E including paved and unpaved is 4,080km. There are still highly dangerous gravel road passing through desert regions. That has resulted in the continued use of airplanes as the main or alternative mode of transportation for residents. The U.A.E is the home of the largest airline in the Middle East--- Emirates Airline. That makes transportation by airplanes even more convenient. Welfare System- The Welfare System offers womb-to-tomb free state services for all nationals. They are benefitted with high quality health care, education up to university level, social security, family allowances, and housing for low-income groups. This is a way of distributing oil wealth among the nationals. The immigrant population also receives some benefits, but specifically in regard to the medical health care.
The GDP of the U.A.E is $360.2 billion, by the 2011 estimate, The GDP per capita is $48,500. The GNP of the U.A.E is $112 billion. The per capita GNP of the U.A.E is $17,870.
The U.A.E’s development level is on the higher level of ‘stable’. In 2012, out of the maximum score, 120, the U.A.E scored 48.9. In comparison to the world the U.A.E is ranked 140th out of 177 countries.