The Financial Sector of the UAE Name University Name Introduction The financial sector of the UAE works as the economic backbone of the UAE’s economy. And, the GDP of the UAE is mostly and largely contributed by the financial sectors of Abu Dhabi and Dubai, aggregately both accounted for 40.7% and 41.7% from 2007 to 2008 respectively…
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Subsequent to that, financial sector, employment and UAE’s GDP have been elaborated. Then, monetary policy effectiveness has been included. Inflation is provided before the balance of payments; and, before the summary, trade has been described. Financial Sector of the UAE The financial sector works as the backbone of the UAE’s economy. The financial services sector plays a pivotal role and has significantly contributed towards the diversification of the UAE’s economic strategy. And, Abu Dhabi and Dubai’s financial sectors, which are the main contributors of the UAE’s economy, from 2007 to 2008, registered their contribution of 40.7% and 41.7 % respectively (KAMCO Research, 2011). However, the subsequent wave of the global financial crisis greatly affected the profitability of the financial sector and at the same time, credit conditions also shrunk to a considerable extent. And, this fact can be authenticated by the provided contribution of the financial sector in the year of 2007 was 7.1% and which declined in 2008 to the level of 6.8 %. Its implications appeared in the shape of a decline in liquidity levels along with the reduction in the ability of the financial institutions to provide the same level of credit facilities that they used to provide before the emergence of the global financial crisis; and, the impacts of the crisis were so severe that the leaders of Abu Dhabi were required to intervene and provide financial assistance to Dubai; whose share of the financial sector declined and reached to the level of 39.7 % whilst Abu Dhabi’s inclined to 41.4% in the year of 2008; and, the same year observed in the reduction of foreign lending activity as well. However, despite the impacts of the global financial crisis and the subsequent reduction of the financial sector towards the UAE’s economy, the parallel growth in the non-oil sector even in the crisis period, the UAE’s budget surplus and the export earnings, which provide a considerable portion of economic output, have provided a fundamental source of the funding, necessary to feed the needs of the existing infrastructure and developments projects. Financial Sector, Employment and UAE’s GDP The service sector in the UAE contributes employment to 58 percent of the total workforce (Shihab, 2001). And, the service sector consists of trade, restaurants, transport, hotels, communication, storage, finance, real estate, insurance, community, business service, personal and social services. And, this highlights the importance of the financial sectors towards employment in the country. And, the rest of section of employment is provided by the oil industry; which is the main source of inflows. And, the level of employment provided by the oil sector can also be understood from the fact that the UAE’s is third largest oil producing country in the world. Undoubtedly, this highlights the significance of the financial sector, in which a considerable number of foreign and local banks serve in the country, for the GPD of UAE in terms of employment. And, in terms of GDP distribution by the seven emirates, the contribution of Abu Dhabi towards the UAE’s GDP is the biggest; and, is followed by the emirates of Dubai and Sharjah respectively. During the period of 2004 to 2008, Abu Dhabi’s aggregate contribution for the UAE’s GDP remained 53% to 57% during the period. In the year of 2008, Abu Dhabi’
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(Financial Sector in the UAE Essay Example | Topics and Well Written Essays - 1750 Words)
“Financial Sector in the UAE Essay Example | Topics and Well Written Essays - 1750 Words”, n.d. https://studentshare.org/macro-microeconomics/1440981-financial-sector-in-the-uae.
UAE’s economy ranks fifteenth in the list of economies arranged in terms of their purchasing power per capita and sixth in terms of GDP per capita. It was almost five decades ago when oil was first discovered in UAE. At that time, UAE was merely an impoverished and tribal region situated in the middle of deserts.
However, UAE’s economic development did not undergo the known hypothetical development stages that were the characteristics of most of the developed nations. Notably, the availability of the large amount of exploitable oil provided revenues that led her to leap over numerous stages due to the large amount consumption of the exploited oil (United Arab Emirates 49).
Thereon, the strengths and weaknesses in the economy of UAE have been addressed in this study. In this context, the discussion concentrates upon the drivers of economic performance in UAE taking into account its Gross Domestic Product (GDP) performances, inflation rates, population rate, unemployment scenario along with the Balance of Payment (BoP) aspects.
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This paper examines oil nd energy industry in UAE and investigates implications for macroeconomic performance.
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This part of text looks into the business functioning in the United Arab Emirates (UAE). It tries to identify the strengths and weaknesses of three randomly selected companies to a way of generalizing the business environment of the UAE. The three randomly picked businesses in the UAE that have been used to characterize the business atmosphere are, namely: Zouari hair salon, Emirates airways and Pic N Save hypermarket.On visiting the Pic N save hypermarket located in Dubai, the hypermarket appeared well stocked with essential products.
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ory of their financial regulators (central Banks, commercial banks, other financial authorities), the development of Islamic financial regulations and the evolution of their respective financial sectors. During the first part of the 20th century, the governments and rulers of
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