Dubai Global Economy - Research Paper Example

Besides, Dubai is recognized as the most important emirate of UAE due to its leading reserves of oil and natural gas. The nominal GDP of UAE in the year 2008 was recorded as 815,318 (mn dirham) and real GDP 453,578 (mn dirham) which depicts a sustainable growth since the year 2002. Notably, the nominal GDP of UAE in 2002 was 272,856 (mn dirham) and real GDP 269,304 (mn dirham). In addition, Dubai is also the main trading area among other emirates of UAE, which offers a significant influence on the GDP of the economy (Sementelli, A, “Toward a Taxonomy of Disaster and Crisis Theories”).

Moreover, due to emergence of free-trade zones, Dubai became one of the imperative sectors of trade for the western producers, which offered significant support for the growth of financial condition within the economy of UAE. However, due to the recession of 2009, Dubai faced substantial challenges which also affected UAE to a significant extent (refer to figure 1) (Vietor, R. H. K. & Forrest, N. “Dubai Global Economy”). Focusing on these aspects, it can be stated that Dubai is among the most important emirates and the strategies should be considered as credible being fair and constitutional.

Figure 1 UAE profile (2008) Dubai Profile (2008) GDP: 84% GDP: 152% Reserves: N/A Reserves: N/A Official Reserves: 46 $ billion Official Reserves: N/A External Debt: 211 $ billion External debt: 115 $ billion Source: (Vietor, R. H. K. & Forrest, N. “Dubai Global Economy”, pp. 6) Question 2 According to Astley (2009), the most important reason which resulted in this financial disorder was the erroneous monetary policies of the United States. The monetary policies mainly concentrated on the activities of the Central Bank or any other dictatorial authorities of the country that significantly helped in determining the extent and rate of growth of fiscal supply (Sibert, “Global Imbalances and the Financial Crisi