The paper "An Economic Profile of the UAE" is a great example of a research proposal on macro and microeconomics. The increasing economic development in the UAE has made it an excellent nation for people interested in foreign direct investment or expanding overseas. Globalization helps strengthen its distribution channels and economy. The country has strived to eliminate several trade barriers and have adopted free-market systems that attract several businessmen globally who look for consumers and target markets globally too (Nasser, 2005). This paper analyses the qualitative and quantitative data relating to the various economic indicators of the country including the balance of payments, the GDP, government policies, and associated financial markets, and use the information to come up with a simple economic model with its accompanying prospects. Results and Discussion The UAE Balance of Payment Because of huge reserves of wealth and a strong financial position, UAE has never required financial aid from the International Monetary Fund or the World Bank despite a being member of the same.
The balance of payments (BoP) records all the financial transactions between one country and the rest of the nations by comparing the difference in the value of exports and imports of fiscal transactions, products, and services in terms of dollars for a specified period of time usually per year.
In the case of the UAE, the BoP stood at $10,065,799,904 for the year 2014 driven by the oil, real estate, construction, and the tourism industry. The BoP of the country has to be made considering three major accounts. The current account tracks the country’ s assets encompassing trades of services and goods and transactions to the country from foreign countries (Nasser, 2005).
The diagram below shows the current account of the UAE over a period of time. As could be seen from the graph below, the current account balance fell sharply in 2015 and it is expected to fall further in 2016 due to the dynamic oil prices whose price is now a fourth of that in 2013. It is projected that oil prices will remain low till the mid of 2017 whereby a uniform rate of $45 per barrel is expected.
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