United Arab Emirates
The United Arab Emirates is a nation located on the Arabian Peninsula and bordered by Iran, the Persian Gulf and Bahrain. The United Arab Emirates has a total population of 3 million people with most of them being males and expatriates. The Nation is dominantly a Muslim nation, and Arabic is the official language of the United Arab Emirates. The United Arab Emirates has seven emirates, and each is headed an Emir. The position of the Emir is Hereditary. Among the seven Emirates, include Abu Dhabi, Dubai, Sharjah, Fujairah, Ajman, Ras-al-Khaimah and Umm al-Quwain. The Capital of the United Arab Emirates is Abu Dhabi, which is the political and commercial capital of the UAE. The discovery of oil in the UAE in 1962 spurred economic growth. Initially, oil was the main export from the United Arab Emirates. However, there has been the coming up of new forms of industries, which have also spurred growth. Construction, manufacturing, Hospitality, trade and other economic activities have made the UAE an exceptionally attractive and plum investment destination. The UAE government has also undertaken measures, which are meant to spur growth, and these include the development of the duty free port, free trade zones the offsets programme have been among the key areas through which UAE has been able to position itself (Bin Haman 118).
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Mining
The Mining industry is the foundation of the UAE economy. Presence of oil and natural gas reserves in the UAE are responsible for growth in the mining industry. Industry estimates that the UAE has oil deposits that could last several centuries. Oil production and subsequent exportation represented more than a third of the GDP. This implies that most of the government revenue was because of mining in the oil industry. The UAE also has immense reserves of natural gas, which are a representative of 4% of the world total gas reserves. The need for the oil and gas reserves is usually tremendously large internally, and the domestic market has been relatively massive. Other minerals that have been able to spur growth in the UAE are the presence of manganese, which is in sizeable commercial quantities (Bin Haman 118).
Trade
The setting up of Free Trade Zones in the UAE by the Government spurred local foreign partnerships and subsequently doubled trade between the UAE and other countries. Trade in Dates, clothing and textile rapidly increased with this initiative and foreign corporations quickly set shop. Banks, insurance firms, ICT Firms, Logistic and substantial construction companies opened offices in the Emirate. This then catapulted the UAE into a regional investment hub. The project was an enormous success for the economy and lead to significant gains being made. The UAE position as leading trade hub continues to gain acclaim. Tourism, Real Estate and Construction (Mohammad 323).
Manufacturing
The United Arab Emirates has continually invested in industrial development spurring the creation of more factories and presenting billions of dollars in the form of direct investments. The manufacture of plastics and chemicals and aluminium for the oil industry dominate the manufacturing industry. The surplus aluminium from this industry forms 65% of UAE’s non-oil exports. The other investments made in the manufacturing industry include the manufacture of petrochemicals for oil refining. Investors seeking to set shop in manufacturing receive enormous incentives from the government, which has been a contributing factor in the increased foreign direct investment in the manufacturing industry (Mohammad 322).
UAE has been able to transform itself into a plum tourist destination and features among others horse, and camel races, desert expeditions and excellent hotels in the Dubai Metropolis., UAE has been able to organize shopping festivals thereby attracting visitors. The UAE also has long beaches, and this has seen it have more vacationers. With the setting of shops by various corporations and vacationing citizens, the real estate sector sparked. Over time, The UAE has experienced a building boom with the ever-rising need for offices and homes in the Emirs such as Dubai and Abu Dhabi. The UAE boasts of having the best hotels in the world, which is particularly noteworthy since its Tourism sector is at its peak. The largest firms in the United Arab Emirates based on market capitalization engage in construction, banking and insurance to manufacturing such as mineral water and in the real estate and hospitality industry. The UAE has traditionally depended on oil and gas revenues to spur growth. Over the years, UAE has been able to create alternative industries such as banking and insurance, construction, technology, healthcare, media and education take over and contribute significantly to the GDP. The government is well aware of the need to see the nation balance its revenues from the oil industry and revenues from other sectors of the economy. The below table shows how the UAE has been working towards ensuring that there is a balance between the real estate and other sectors of the economy. This has not only spurred growth in the other sectors but has also ensured that there is a balance in the economy (Mohammad 322).
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| UAE GDP | ||
| Economic Activity | 2009 | 2010 |
| Mining | 65,124 | 83,930 |
| Manufacturing | 8327 | 9226 |
| Construction | 21,610 | 22,050 |
| Real Estate | 13,685 | 14,554 |
| Financial Sector | 8216 | 9400 |
| Total | 145,862 | 169,024 |
The above table shows how that all other industries of the economy experienced increased growth as a comparison for the years 2009 and 2010.
The United Arab Emirates diversification program led to the rise of non-oil sectors that contribute significantly, to UAE’s GDP as below manufacturing (12.6 percent), commerce and hotels (11.4 percent), real estate (9.1 percent), construction (8.6 percent), transportation (7.3 percent), and finance and insurance (6.4 percent). The Impact of the diversification of the economy on foreign direct investments in UAE cannot be underestimated. UAE overtook Saudi Arabia and Kuwait as the gateway to the Middle East. Most of the Foreign Corporations consider UAE an epitome of their entrance into the Middle East. The UAE boosted investor confidence by coming up with sound economic policies which are supposed to boost investor confidence. Investors cannot also talk of the emerging market powerhouses without taking into consideration the impact of the UAE.
The Top Companies in the United Arab Emirates based on the industries are
| Industry | Position 1 | Position 2 |
| manufacturing | Dubai Refreshments Co | Ras Al Khaimah Cement Co |
| Commerce | Emirates Integrated Telecommunications | Abu Dhabi Commercial Bank
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| Hotel | Abu Dhabi National Hotels | Rotana Hotel Management Corp |
| Real Estate | Abyaar Real Estate Development | Emaar Properties |
| Construction | Fujairah Building Industries | Dubai Investments |
| Transport | Abu Dhabi Aviation | Aramex |
| Finance and Insurance | Gulf Finance House | Tamweel |
The Emirate set up a department to promote investment and ensure that the foreign investments made for the government of UAE. The question of what makes UAE exceptionally attractive to the investors cannot be overshadowed. The Emirate has laid down excellent infrastructure in the form of a working road and rail network. The other factor is the chance of growth for any company in the UAE as the economy has a wide array of industries. The other hugely significant factor that has led to the growth of the UAE economy is the presence of an enabling environment created which ensures that the government supports foreign investments. This has seen capital and entrepreneurs rush to Use to ensure that they set up shop and enjoy the superb business environment. The devolution of the UAE cities where they can independently work and attract their own investors has also seen the Emir Spur growth first.
References
Mohammad, N. C. (2003). Globalization and cultural industries in United Arab Emirates. Wall street Journal , 3(1), 323-323.
Bin Haman (2012). The Middle East Outlook: United Arab Emirates Outlook 2013. Wallstreet Journal, 45, 117-124.
