The paper "Financial Sector in the UAE" is an outstanding example of a macro & microeconomics assignment. The economy in UAE is exceedingly developed with GDP per capital income serving as the main indicator. The banking industry is fully grown with about 50 banks among them half are foreign banks. Through the IMF report, the banks provide credit facilities to both public and private projects (Brenner 3). The interest developed from the profits on loans helps in lowering interest rates and exchange rates hence facilitating affordable life to the residents. The stock market in UAE is so grown with NASDAQ Dubai and Abu Dhabi securities serving as the main stock exchanges.
With the grown banking and stock market industry, UAE has been able to attract so many investors and business personnel. It has proved to be one of the best business stands in the globe. For decades, UAE has had a great overseas investment. Their assets are spread all over the world since they are dynamic in their investment strategy. Through the government, UAE has been an active partaker in the global financial market.
This has been a great boost to economic development hence the reason for UAE doing well financially. However, like every other country, the UAE’ s financial sector is not perfect. It has its own struggles in the equity markets. When the global inflation hit, UAE felt it more due to the openness it had to investors. According to the IMF report, the market for a long time lacked diversity which has made it so unstable (Brenner 3). There is a need for the UAE to open up further to foreign participation in the financial market so that their debt implement could get some security.
This will avoid panic like it happened when inflation hit and Dubai had not cleared its debts. There is therefore a great need for expansion in the capital markets to improve corporate governance and a safer environment for large investors. What is the significance of it? The financial sector in the UAE has so much significance to both the global and local economy. The high GDP per capita income has been serving best to stabilize the lives of the citizens locally.
This makes it easy for all citizens to access financial capital for development.
Brenner, Patricia. United Arab Emirates: Financial Systems Stability Assessment. IMF Country Report, No. 07/ 357. October 2007. Washington, DC: International monetary fund publication services, 2007. 1-30.
Farra, Aref, Ali. Investment Reforms in the UAE. Amman, 4 Sep, 2007. Web. 13 Jan 2012.
Hassanain, K. “Monetary Controls in the UAE” Middle Eastern Finace and Economics: EuroJournals Publishing, Inc. 1. 1 (2007): 36-41. Web. 13 Jan 2012.
Hunter, Gregory. UAE’s big Banks give financial sector something to cheer. The National, 27 April 2011. Web. 12 Jan 2012.
ICDT. United Arab Emirates (UAE). ICDT’s Member States Business Guide. < http://www.icdt-oic.org/Ressources/www.icdt-oic.org/Documents/Biz_Guide_AE.pdf>
Peak Oil. UAE-World likely to face severe oil crunch by 2015. Peak Oil News & Message Boards. < http://peakoil.com/production/uae-world-likely-to-face-severe-oil-crunch-by-2015 / >
Sensenbrenner, Gabriel, Cevik, Serhan, Da Silva, Arthur ,Ribeiro & Guzzo, Vincenzo. United Arab Emirates: Selected Issues and Statistical Appendix. IMF Country Report, No. 11/112. May 2011. Washington, DC: International Monetary Fund publication Services. 1-70.
UAE Embassy. The UAE Financial Sector. < http://www.uae-embassy.org/uae/economy/financial-sector>