The paper "Economics of the UAE" is a wonderful example of a report on macro and microeconomics. The United Arab Emirates is known for its fast-growing economy as compared to the economies of other nations in the global market. This nation has gone through huge economic development and growth since its foundation due to external and internal factors. The economy of any nation is very important as it affects very many aspects of the nation. This includes the living standards and stability in the nation. (Bonne, 1992) Purchasing power parity is used to measure the economic Gross Domestic Product in the United Arab Emirates.
This paper, therefore, discusses two main internal factors that contributed to its growth. It has however been noted recently that some of the sectors have been negatively affected. (Bonne, 1992) This paper also shows the sectors that have been negatively affected. Oil prices have also shown dramatic changes over the years. The OPEC was formed and tried to influence the global oil market. The effectiveness of OPEC in the achievement of its overall objectives is questionable and different events had an effect on OPEC and oil prices in general.
The activities of OPEC have also been analyzed in this paper. (Roll, 1939) This includes the role of these activities and their successes or failures. There are variously internal and external factors that influenced oil prices that also affected the state of the UAE economy. Finally, the repercussions of the current OPEC policies are explained in this paper. 2.0 Economic growth in the UAE An overall analysis of the United Arab Emirates shows that it is one of the most developed economies that are also growing at a very fast rate as compared to that of other nations.
This is basing on the HDI, the energy consumption per capita, and GDP per capita. (Roll, 1939) United Arab Emirates’ GDP is currently rated to be third in the Middle East and fourteenth in the global arena. The rate at which the economy of the United Arab Emirates is growing is enviable. In the year 2006, the economy in this nation grew by 35%. In fact, the research shows that between the years 2005 and 2006, the United Arab Emirates had the fastest growth in GDP in the whole world.
Bonne, A. (1992): The economic development of the Middle East; New York; Prentice Hall
Lord, F. (2009): UAE economy; retrieved from; www.tradingeconomics.com; accessed on 8-10-09
Roll, E. (1939): History of Economic Thought, Englewood Cliffs; Prentice Hall
Sader, F. (2009): Crude oil prices; www.wtrg.com; accessed on 8-10-09