Development Case Studies: The UAE
Geography: KS3, topic 19.1.7
Development in the UAE
The economy of the United Arab Emirates changed dramatically with the discovery of oil reserves. These reserves have resulted in great wealth but also lack of economic diversity.
Historical economy
- During the 1950s, the United Arab Emirate’s economy was driven by farming and fishing.
- The discovery of oil reserves has resulted in a significant rise in GDP.
GDP
- In 2014 GDP was estimated at 1.46 million AED (Arab Emirates Dirham).
- The extraction of crude oil and natural gas accounted for 34% of the country’s GDP.
- The UAE’s Gross National Income in 2016 was 675 billion dollars.
Business
- The UAE has established free trade zones which have provided foreign investors with 100% foreign ownership, as well as zero taxes.
- This has propelled the country to 31st in Forbes Best Counties in Business list.
Diversification
- Recent fluctuations in oil prices on the global stock market and reserves have forced the UAE to diversify its economy over the last decade.
- They have increased investment in the tourism industry to establish the country’s economy in the future.
Test yourself on Development Case Studies: The UAE
What is the currency of the United Arab Emirates?
Due to the free trade zones the UAE introduced, what is it's ranking in Forbes Best Counties in Business list?