Infrastructure Developing and Economic Growth in United Arab Emirates

Weal Arafat, Zhang Ya Bing, Omar Al-Mutawakel

Abstract


In the past thirty years, the United Arab Emirates non oil sector's contribution to GDP has been rising, the rise of a number of advantages of the industry, such as real estate, trade, tourism, construction, finance, shipping, processing industries. This led to the prosperity of the UAE economic market. UAE has a stable political environment and security community, and keep a good relationship with the major countries. Although the UAE is involved in some areas of conflict, but it has no impact on the overall situation. It has a wealth of oil and gas resources, is one of the most affluent countries in the region and the world, of which the government develop a comprehensive development strategy and efforts to develop non oil and gas industry.

Although UAE has the most diversified economy in the GCC, the UAE's economy remains extremely reliant on petroleum(oil). With the exception of Dubai, most of the UAE is dependent on oil revenues. Petroleum and natural gascontinue to play a central role in the economy, especially in Abu Dhabi. More than 85% of the UAE's economy was based on the oil exports in 2009. While Abu Dhabi and other UAE emirates have remained relatively conservative in their approach to diversification, Dubai, which has far smaller oil reserves, was bolder in its diversification policy. In 2011, oil exports accounted for 77% of the UAE's state budget.

The United Arab Emirates attaches great importance to infrastructure construction, and regard it as the basis of economic and social development. Since 70s, the UAE government has invested heavily in the construction of infrastructures, so as to create a favorable environment for foreign capital to enter Dubai. The United Arab Emirates as the most important financial and traffic center of the area, perfect legal system, has clean government and a good investment environment. Although affected by the 2009 Dubai debt crisis and the 2014 international oil prices and other unfavorable factors, but the overall economy is still maintained growth momentum. As an important hub in the Middle East, and the ancient maritime Silk Road of the important station, United Arab Emirates has "The Belt and Road" strategic prospects. In the context of oil prices, the United Arab Emirates non oil economic development is still strong, the development of infrastructure gets maintain stable growth, and investment risk is low.


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DOI: https://doi.org/10.5296/ber.v8i1.12355

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Business and Economic Research  ISSN 2162-4860

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