The paper "United Arab Emirates Oil and its Effects on their Economy" is a perfect example of a macro & microeconomics case study. This paper presents an analysis of United Arab Emirates Oil and how it affects their Economy. The production, use and export of oil will be deliberated, as well as their economic influence, the government policies and future predictions. So as to deliberate in detail the different involvement of oil to the economy of UAE, it is imperative that the country is shortly defined principally in relation to the oil and its economy.
It is located on the south-east end of Saudi Arabia. The Arab Emirates is geographically located in the desert of Arabia implying that the climatic conditions of this country are harsh and mostly comprise sandy landscapes and desert outlines. Its climate is hot and dry with typical summer hotness of 40oC in the course of the day and 30oC in the course of the night. Additionally, the winter temperatures for day and night are correspondingly 23oC and 14oC. The above diagram shows the total energy use in the UAE relative to developing economies. 1.1 Contribution of Oil to GDP The UAE mainly relies on crude oil as its main export thus oil is the stronghold of the financial system.
Conversely, it does not fully rely on the export of crude oil and natural gas since it also exports dried fish and dates. Re-exportation of most of the goods also puts into the growth of the economy. This is conceivable, since the UAE is positioned laterally southern approaches to the Strait of Hormuz, and is then a vital conveyance point for instance for crude oil.
The key consumers are the Japanese who rely on the emirates for oil plus natural gas. In 2009, Japan acquired even 60% of the UAE’ s oil disseminates. The sum of all the export products generates an approximated total of about $142 billion annually. Since the United Arab Emirates is situated in the middle of the Arabian desert, it is obliged to purchase food by trading with the export of oil. They also import bulky quantities of equipment, transportation of apparatus and chemicals; they trade them with a variety of states.
As a result, the UAE can stand on its own without relying on other nations. It is estimated that the annual import value is about $90.2 billion. A large proportion of the UAE’ s manufactured oil is envisioned to be shipped to Eastern Asia and Japan.
El, M. R. (2011). The economic development of the United Arab Emirates. London: Croom Helm.
Gause, F. G. (2008). Oil monarchies: Domestic and security challenges in the Arab Gulf States. New York: Council on Foreign Relations Press.
Hitti, S. H., & International Monetary Fund. (2007). United Arab Emirates: Recent economic developments. Washington: International Monetary Fund.
Ramady, M. A. (2010). The Saudi Arabian economy: Policies, achievements, and challenges. New York: Springer.
Reinert, K. A., Rajan, R. S., Glass, A. J., & Davis, L. S. (2009). The Princeton encyclopedia of the world economy. Princeton: Princeton University Press.
United Arab Emirates. (2010). Petroleum in the United Arab Emirates. Beirut: Commercial & Industrial Press.