UAE economy has evolved from when it depended solely on subsidence to the modern days when it is driven by innovation. Economic development in the UAE has been growing steadily, thanks to its massive petroleum deposits and oil revenues. Apart from oil, the UAE’s economy depends on other resources like tourism. The availability of revenues, however, rides on suitable development policies and strategies by the country aimed at spurring it to even greater heights. The marvelous economic growth and development has made the UAE a center of focus for economic diversification among policymakers. The following discussion argues that economic development in the UAE has impacted the country, both positively and negatively, posed challenges and presented opportunities to leaders and policymakers, and influenced the domestic and international security.
Overview of the UAE Economic Development
The UAE’s economy, number two in the Arab world, is expected to grow by up to 3.2% by the year 2021[1] The UAE GDP as of 2018 stood at $414,179 million, making it the 30th in the world.[2] The expected GDP growth is 3.5% by 2019.[3] Even in the face of steady and sure growth, the government continues to implement several other initiatives and policies aimed at maintaining the rate or even increase it. The federal government has joined hands with the local governments in the Dh50 billion economic stimulus package to improve the business environment in the country and raise the non-oil GDP[4] Improving both the oil and non-oil GDP will ensure that the overall GDP of the UAE climbs in leaps and bounds over the coming years, making it a world economic powerhouse in the level of countries like the U.S. and China.
Impacts of Economic Growth on the UAE