As of 2017, the United Arab Emirates (UAE) had a Gross Domestic Product (GDP) of an astonishing $382.6 billion*. This figure, relative to the history of the UAE, shows an astounding growth and depicts a country that has experienced, and is still experiencing, a business phenomenon. The UAE has the second largest economy in the Middle East, behind Saudi Arabia who held a GDP of $683.8 billion* (2017), nonetheless, per capita in 2017, the UAE held the lead with $40,698.85* against Saudi Arabia`s GDP per capita of $20,760.91*. The Middle East as a whole has grown drastically since the 1970s, yet if we draw our attention to the United Arab Emirates, we are able to understand the very evolution within the business sector that took place decade by decade. The UAE has been a place for fruitful investments and its economy indicates a robust foundation for further future investments.
We can begin our assessment of the evolution of the UAE from the 1970s. During this period, each of the 7 emirates that make up the United Arab Emirates peninsula were responsible for their economy. Thus, the substance of the economy at this point laid in pearl diving, seafaring and fishing. Eventually, the UAE learned of their available commercial oil quantities. It was this factor that allowed for a robust financing of developmental projects within the peninsula. The oil revenue was a giant step for a prosperous future.
This period was a strong turning point and an indicator of the strong wits within the UAE. The country acknowledged that it couldn`t simply rely on petroleum and had to diversify the economy. So what was the main focus now? The UAE had their hearts set on logistics, trade and shipping. This vision led to the inevitable introduction of the Dubai International airport, Jebel Ali ports and the establishment of Port Rashid. These outlets would facilitate the new face of trade within the region. From 1975-1985 the GDP of the UAE soared from $14.72 billion to $40.6 billion respectively. This era also saw the UAE set foot into the real estate industry, although dealing with a global financial crisis at the same time, the industry continued to grow.
As we jump forward to the 21st century the UAE has evolved magnificently. The economy was sustained through newer methods of generating power, solar energy was one of the positive influences within this sector. The development of alternative renewable energy strategies grew and the UAE became an icon, leading the way forward in alternative energy sources. This initiative sustained their budget, allowing for more focus on growth. Furthermore, the UAE correctly ventured into small-scale manufacturing which positively impacted the economic development. This inevitably led to a focus on entrepreneurial developments, such as the automotive industry. The evolution of the UAE was strategic, forward-thinking and affluent.
With the recent success in their economy, the internal growth of developments and forward thinking, the UAE turned its focus to domestic learning. Their investments in education rose and accounted for 22.5%
of their government`s budget. This willingness to train and develop their own people contributed significantly to the UAEs efforts of venturing into other industries. From 2010 to the present day, this rise in a skilled population grew other sectors monumentally. Their 100% Emirati made satellite, KhalifaSat, is a delightful example of success that the UAE has experienced (see here
for further information)
The diversified economy of the UAE has gifted the region with the ability to continuously develop in many sectors. A huge effort has recently been directed towards labour-intensive activities and a stronger focus on technology, skilled labour and overall knowledge. Additionally, the governments within the UAE endorsed tourism, aviation, telecommunications and re-export commerce. This prosperous country shows enriching insights and continuous growth that any astute business person could utilise. With the ever-growing industries that the UAE are branching into, the robust economy, fuelled by many various aspects, the UAE is, arguably, a breeding ground for growth and success.
Take the First Steps - With Cedar Rose
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*** The sole purpose of the article above is to generate public discussion, it has no intention to constitute legal advice. ***