Economy of the UAE - Essay Example

Insert full names Instructor’s name Insert Course name 31st March 2012 Table of Contents Economy of UAE 2 Introduction 2 Oil Production 3 Emirates Airline and Etihad Airways 4 Tourism 6 Conclusion 6 Works Cited 7 Economy of UAE Introduction The United Arab Emirates (UAE) is an Arabic Country that is located in the southeast of the Arabian Peninsula; it borders Saudi Arabia to the south and Oman to the East. It also shares Sea Boarders with Qatar to the west and Iran to the north. The Country is estimated to cover about 83,600 square kilometers, Abu Dhabi is its capital city but the largest city in the UAE is Dubai. Arabic is the official Language in the UAE. The population of the United Arab Emirates was estimated to be 7.5 million in the year 2010 translating to about 99/km2 . The official religion in the UAE is Islam. The Population of UAE is composed of different ethnic groups, 16.6% are Emirati, 23% are other Arabs and Iranian, and 60.5% are South Asians, Indians, Pakistanis, Bangladeshis, Chinese, Filipinos, and westerners. (United States Energy Information Administration) The economy of United Arab Emirates depends on three major pillars, these are, Oil production, airline industry and tourism. The gross domestic product (GDP) of UAE was estimated to be $363.82 in the year 2011 ranking the position two in the Cooperation Council for the Arab States of the Gulf (CCASG) after Saudi Arabia and 38th in the World. In the year 2006 according to the report by the ministry of finance and industry, the nominal GDP grew by 35 per cent to $175 billion compared with $130 billion in 2005. Oil Production The UAE depends on petroleum and natural gas export as a source of revenue. The UAE oil reserves are ranked 6th in the World, it possess nearly 10% of the world’s total reserves. Revenue from oil export continues to provide the income for both economic growth and expansion of social services. In 2000 proven recoverable oil reserves were put at 98.8 billion barrels and 6 trillion cubic meters. This makes the UAE gas reserves the fourth largest in the world after Russia, Iran and Qatar. (United States Energy Information Administration) The UAE oil production was in the region of 2.3m barrels per day (bpd) in 2010 and the Country was expecting to boost production to 3m bpd. The graph below shows UAE crude oil export from 1984 to 2009 by thousand barrels per day. In the UAE Petroleum and natural gas was the major export in 2009 and more than 85% of its economy was based on the export. The Abu Dhabi National Oil Company (ADNOC) is the governmental company and has the authority of all the oil that is located on emirates soil. The Emirates took its place in the oil production industry. (United States Energy Information Administration) Emirates Airline and Etihad Airways The Emirates has two of the largest airlines in world. Emirates Airlines Etihad Airways are very competitive in the airline industry. Emirates Airlines is the largest operator of Boeing 777 with a 53 777/300ER and 95 left in order. Also, they operate with 15 A380 and have 75 left in order. Furthermore, in 2004, Etihad made an order of 41 Boeing 787-9 dream liners, which is considered the largest order in of the dream liners to its day. Emirates Airline is based in Dubai and is the largest airline in the Middle East, operating over 2,500 flights per week. It operates a mixed fleet of Airbus and Boeing wide-body aircraft and is one of only nine airlines in the world to operate an all wide body aircraft fleet. The Airline has won numerous awards in the industry thus putting its name in the global market. This has enabled the Airline to be known worldwide therefore in the same manner marketing UAE. The fact that Emirates has built up a strong brand name in the aviation industry it has continued to be the major employer in the UAE. The Company has a policy to employ the UAE citizens first in every department before seeking foreigners. This has lead to a reduction in the unemployment rate in UAE thus helping in economic growth and development. On the other hand Etihad Airways is the flag carrier of the UAE; it operates more than 1,200 flights per week to over 82 destinations Worldwide. It also operates Etihad Holidays and Etihad Crystal Cargo whereby Customers are invited to UAE for holiday thus earning the country foreign exchange. The UAE is diversifying its Economy from depending on export of petroleum products and natural gas to construction, manufacturing, services and tourism. Tourism is a major economic pillar in the UAE and the United Arab Emirates is known for having multiple tourism hotspots. Dubai is known for having the largest festivals in the world including shopping, food, and traditional. The Dubai mall is largest mall in the world that contains the largest aquarium. Jebel Ali Free Zone is a free economic zone that is located in the Jebel Ali area at the far western end of Dubai to provide ready built facilities to customers. This has encouraged many tourists to visit UAE and helping the country earn foreign exchange. Tourism In the UAE there are many established Museums, the most famous is the Sharjah with its Heritage District containing 17 museums. Abu Dhabi’s cultural foundation is very important for the presentation of indigenous and foreign art. The area of Al Quoz has for years attracted a number of art galleries. This has for many years attracted tourist to UAE thought the year therefore earning the country revenue from foreigners. Sport is also a major tourist attraction entity; the main sporting activities are football, cricket, golf, camel racing, falconry, tennis and formula one. Formula one in particular is a major tourist attraction activity; it has attracted many tourists in the United Arab Emirates. It is annually held at the picturesque Yas Marina Circuit. It is the first ever Grand prix to start in daylight and finish at night. Conclusion It can be concluded that UAE economy depends mainly on three major pillars. Oil, that is petroleum and gas product are the major revenue earners in the economy. UAE exports oil products than any other product. Tourism industry has really improved in the UAE and many tourists are visiting UAE because of the many tourist attraction sites. The two biggest Airlines, Emirate Airline and Etihad Airways have proved to be a major employer in the United Arab Emirates. They have created employment to thousand of UAE citizens. The airlines have helped ship thousands of tourists to UAE thus enabling the Country host many tourist. Works Cited United States Energy Information Administration. United Arab Emirates Crude Oil Exports by Year .Web. 31 March 2011.http://www.indexmundi.com/energy.aspx?country Read More