Economic of the UAE

Introduction

The United Arab Emirates is one of the most dynamic economies today People think that its fantastic growth is due to increasing prices of its petroleum reserves . A deeper look reveals that this federation of seven countries is driven by more than just oil and gas

Oil does contribute a lot to the growth of the federation but this growth is amplified by a booming private sector brought about by the government 's aggressive diversification efforts . These are efforts that try to veer from too much dependence on oil as a

source of revenue

The UAE economy , in fact , is considered a textbook example as to how the private sector can be developed in an oil-dependent economy

The factor considered as the key to the success of UAE is its liberal trade policies

By promoting a freer trade atmosphere the economy has attracted significant foreign direct investments . Liberal trade policies that are coupled with government investment have encouraged private sector development

Main strategies under these key policies have been the establishment of 'free zones ' which has transformed the UAE into business hub for the region . These zones grant attractive incentives like 100 percent foreign ownership and exemption from taxes , tarrifs and local regulations

Dubai is the showcase of this policy as it has moved into constructing industrial and service zones . The Dubai International Financial Centre is the latest and most ambitious project toward this end and the government hopes this will support the development of a regional capital market

History of the United Arab Emirates

The United Arab Emirates is a federation of seven countries . Located in the northeastern corner of the Arabian Peninsula the UAE is composed of Sharjah , Dubai , and Abu Dhabi - the three major emirates , and , Ajman Fujairah , Ras al-Khaimah and Umm al-Qaiwain

The UAE as a federation traces its roots in the early 1800s when it was loosely composed of a group of small sheikhdoms known as the Trucial States

Then considered as the backwater of Islamic civilization , the sheikhdoms ' topography was described as very dry , with little rain vegetation and animal life - the area came in contrast with its more progressive neighbors

When British colonists came in the 1820s , British-owned ships became regular targets of local pirates . Suspecting the pirates as coming from the Trucial States , the British Government initiated a pact with the local rulers which led to a treaty signed by 1853 . Under the agreement the federation promised to cease piracy and accepted British military protection

Since the signing of the treaty up until the 1950s , the federation existed with little attention from the outside world and its surroundings . When the British government started to hand over its control over the loose federation , it suggested that the Trucial States combine to form a single administrative bloc

The process of unification was further boosted with the discovery of oil

In December 1971 , the UAE was formally organized . The body created to run the federation as its highest authority is the Supreme Council of...