Project 1

Economic Development in the UAE

Introduction

Thirty years ago the UAE was one of the least developed countries of the world. Today, it has achieved an income level comparable to that of the industrialized nations. The UAE did not pass through hard development that most developed countries did. Rather, its large oil revenues allowed it to go to the next level and make the country develop fast step by step, stage after stage. It has developed because of its massive oil revenues which have enabled the UAE to short-cut the usually difficult and lengthy process of saving and capital accumulation that is necessary for economic development. The UAE is rich from oil & gas and has embraced resource-based industries (RBI) as a development strategy, an industrial strategy that is based on utilization of natural resources; there has been a deployment and large windfall of income. The social and economic infrastructure has enabled the UAE to achieve a significant degree of economic development within the very brief timeframe of 1973 to 1982, a period of relatively high oil prices.

Economic and institutional constraints

Before the discovery and export of oil, the economy depended on exporting fish and pearls and the UAE was known for its pearls and depended mainly on subsistence agriculture, nomadic animal husbandry, the extracting of pearls and the trade in pearls, fishing, and seafaring. The period before the discovery of oil, therefore, reflected the country’s limited natural resources, and resulted in a simple subsistence economy.

The economic development in the UAE

The federation’s formation on 2 December 1971 meant the establishment of its formal economic, social, and political institutions, coinciding with a massive increase in oil production and oil exports, followed by the explosive rise in oil prices in 1973.

Political and Social Stability

Since its formation in 1971 the UAE has enjoyed political stability. The existing political structures appear to suit the tribal society of the UAE, and the distribution of huge oil revenues in the form of social and economic infrastructure, high salaries, a high standard of social services, such as health and education, has raised the standard of living for UAE citizens and considerably reduced the likelihood of internal political and social unrest. The UAE is an active member of many regional and international associations such as the Arab league, the United Nations, the Non-aligned Movement, the Arab Gulf Cooperation Council, and the Organization of the Islamic Conference.

Population and Labor Force

The UAE population is essentially a small one. However, after the discovery of oil and its export in the last four decades, it has experienced very rapid growth.

Educational Institutions

A positive relationship between education and economic growth is well-established Education and training are viewed as major determinants of increasing productivity, and as a factor diffusing growth. Education is considered a key element in developing the necessary skill levels for growth and modernization in the UAE. The UAE Government offers free education to UAE citizens.

Health services

The UAE offers free public clinics for UAE citizens plus free insurance, for instance: Thiqa – Daman; even if you have an injury that needs an operation overseas the government will pay for it. The UAE is getting the best technologies to the hospitals & the best doctors from the entire world.

Conclusion

The UAE is a very wealthy country, mainly due to its population base and huge oil resources. The large budget that the UAE has made it develop fast & progress has been favorable in social and economic development. Now the UAE is a leading tourist destination. What was mainly barren desert 40 years ago is now a high-technology society with first-class hotels and facilities for both residents and visitors.

Bibliography

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"UAE News and information - United Arab Emirates." UAE News and information - United Arab Emirates. N.p., 2 Nov. 2012. Web. 7 Nov. 2012. <http://www.uaeinteract.com>.

" Home - دائرة التنمية الاقتصادية." Home - دائرة التنمية الاقتصادية. N.p., 3 Nov. 2012. Web. 7 Nov. 2012. <http://www.adeconomy.ae>.