Uae Economic Outlook

In: Business and Management

Submitted By masood18
Words 18648
Pages 75
Economy
September 2010

UAE Economic Outlook 2010

UAE Economic Outlook 2010

 GDP expected to grow in 2010  Inflation expected to drop to 0.4% in 2010  UAE struggled to post a budget surplus in 2009  Dubai World reaches agreement to restructure its debt
 UAE GDP expected to grow by 0.6% in 2010 The global recession, which started in Q4-2008, halted UAE‟s economic growth significantly. After a 7.5% growth in real GDP in 2008, UAE‟s GDP increased by only 1.3% to reach AED515bn in 2009. Despite the global recession, the non-oil GDP grew by 8.4% in 2009. Due to the decrease in oil prices and production, the non-oil sector contributed 71% of the GDP in 2009 compared to 66% during the previous year.  Overall Broad Money supply decreased by 0.3% as of Q2-2010; grew by 5.4% in 2009 The UAE government implemented expansionary monetary and fiscal policies to stimulate aggregate demand in 2009. Due to the effects of the recession on the economy, the UAE government wanted to expand the money supply and encourage growth. Money Supply (M1) and Broad Money (M2) grew by 3.7% and 2.2% respectively, while the overall broad money (M3) decreased by 0.25% as of Q2-2010 due to a decrease in government deposits.  UAE maintained a budget surplus for its fifth consecutive year The budget surplus in recent years was largely credited to high gas and oil profits due to high oil prices. Total government revenue was almost AED293bn for 2009, a decline of 35% from the previous year, while hydrocarbon revenues contributed 74% of it. Total expenditures increased by 14% in 2009 to AED289bn, compared to AED254bn the previous year. Current expenditures was the largest contributor of expenditures as it represented 68% of total expenditures. Consequently, UAE‟s budget generated a surplus of AED3.6bn in 2009, a decrease of a staggering 98% from 2008.
Nominal & Real GDP Performance
1200…...

Similar Documents

. Economic and Financial Market Outlook

...Article 1. ECONOMIC AND FINANCIAL MARKET OUTLOOK (June 2012) No replay of 2011 in the cards for Canadian and US economies Part 1. Summary of the Article First article that I chose is the outlook for advanced economic and financial market particularly US, European union, Canadian and Chinese market that are strongly influence to the world market. Source of the Information and analysis are IMF World Economic outlook and RBC Economic research for year 2012 and forecast for year 2013. This paper includes several economic issues such us economic recession and growth, risk, Labour market and Inflation additionally monetary policies for central banks. Researcher and forecasters compared those issues for different countries and they aim to differentiate and discuss for each of the countries and market situation. Overall, the world economy faces significant challenges in the recent years and is expected to grow by 3.5% this year. Authors stated some significant issues and problems and explained them in detail. For example, paper includes several subtitles about European risk and recession situation, Finding the right policy for Europe, China is in slow growth stage, Canada and US economic situation and factors that impacted in positive and negative ways on the economy, Labour market volatility, Housing market, Households income and debt status, Consumer spending shift, Businesses that are supporting market, Canada’s dollar appreciation, Fed and other central bank policy,...

Words: 933 - Pages: 4

Talent and Competitiveness in the Uae

...Partners FZ-LLC 2012 © Contents Foreword by Matthew Lewis – Boyden Global Executive Search Executive Summary: ‘The Two Page Version’ 1. Introduction 2. The Economics of Talent 3. People Power 4. Acquiring Talent Olympic Potential Opportunity for the UAE An Example More Money, More Problems pg 14 pg 20 pg 28 pg 34 5. Managing Talent 6. Making Decisions 7. Final Remarks Investing in People Better by a Margin Starting the Process pg 48 pg 64 pg 72 3 Aleron Partners FZ-LLC 2012 © 4 Aleron Partners FZ-LLC 2012 © Foreword by Matthew Lewis Much has been written about the Macro and Socioeconomic impact on the UAE and its economy since the global financial crisis – the oil price, the Arab Spring and on-going Middle East instability are all valid factors in this regard. What we have not seen until now is the resultant effect and impact on the often overlooked but most important assets of any business – its people and their productivity. Our research seeks to fill that omission. The period from 2008 to 2012 has seen a cataclysmic shift in the fundamental areas of demand, quality and flexibility of the talent pool in the UAE. High costs of expatriation and the regional pressure of localisation have put more focus on the productivity of people working within shrinking organisations. Many UAE employees, not having previously worked in a constant change environment and under unfamiliar circumstances, are struggling to perform with fewer......

Words: 13872 - Pages: 56

Global Business Analysis of Uae

...culture in the UAE The elements and dimensions of culture include communication (language), religion, ethics, values and attitudes, manners, customs, and social structures and organizations. The understanding of these principles, relative to culture, is imperative to the success of international businesses, marketing scholars, and practitioners alike. Within this insight lies approved goals and objectives to meet the needs of merchants and consumers internationally. Social Structure of the UAE The UAE is one of six members belonging to the Gulf Corporate Council (GCC). It is also a member of the United Nations (UN), International Monetary Fund (IMF), Oil Product Exporting Countries (OPEC) and the World Trade Organization (WTO) (Rees, C. J., Mamman, A., & Braik, A., 2007). Compared to other nations in the Middle East, the UAE is regarded as the most politically stable (Akoum, 2008). After declaring its independence from British parliament in 1971, the UAE formed a federation of seven independent emirates (Akoum, 2008). Those emirates are: Abu Dhabi, which is the largest city and capital of the UAE, Dubai, Sharjah, Ajman, Umm Al Qaiwain, Ras Al Khaimah, and Fujairah. Governed by Hereditary rule, each emirate consists of a Sheikh from the supreme council of rulers who work alongside a Crown Prince and a deputy ruler (Rees, et. al., 2007). These rulers control general policy and federal laws. Values and attitudes In keeping with Islamic tradition, families in the UAE......

Words: 4265 - Pages: 18

Scare Economic Resource in Uae

...Discuss any economic resource which is scarce in UAE or a well-known country. Then analyze the pros and cons of the government procedures which have been carried out toward this problem. In your opinion, what are the most effective suggestions to solve this scarcity problem? INTRODUCTION: Economic resources are the land, labor, capital and entrepreneurial ability that are combined to produce outputs in order to meet the ever-changing needs and wants of individuals and society as the whole. They earn, rent, wages, interest, and profit, respectively as their resource payments. Good and services that are scarce are economic goods. Scarcity is the basic economic problem that is unlimited human needs and wants, in a world of limited resources. UAE is oil rich country which is in a serious danger of losing its water resource in the coming 50 years. Abu Dhabi is one of the richest emirates swallow around 550 liters of water per day by per person which is comparatively quite more as compare to other countries in the world.UAE government incurs lot of money on the energy cost as desalination plants are set up in order to provide fresh water. Desalination plants costs $18 million a day, apart from this they also have huge environmental impact. The arid climate of the country plays a significant role in the water resources availability. Rainfall, which is a main source of recharge for different water resources, such as surface water and groundwater, is scanty and extremely......

Words: 1521 - Pages: 7

Economics of the Uae

...SHARJAH HIGHER COLLEGES OF TECHNOLOGY PROJECT COVER SHEET- (ASSESSMENT 2) [20%] Course Name | ECON N400 | Faculty Name | Angelo Olo | Project Title | Outlook of the UAE Economy | Due Date | Nov. 4, 2012 | Section | | Date Submitted | 3-11-2012 | Student Name | --- | Student ID | --- | This assessment will assess the following Learning outcomes: This assessment will assess the following learning outcomes: * LO 2: Analyze patterns of economic activity in the UAE from an oil-based economy to development of the non-oil sector. * LO 3: Evaluate the role of the non-oil sectors on the UAE economy. Declaration; Individual: * No part of this assignment has been copied from another source, (not from another group or student, an internet source or a book). * When another person’s words are used, this is shown in the text with “…” and referenced. * No part of this assignment has been written for me by any other person. * I have a copy of this assignment that I can produce if the first copy is lost or damaged.Name ………………………………………………… Signature …………………………………………….Declaration; Group: * No part of this assignment has been copied from another source, (not from another group or student, an internet source or a book). * When another person’s words are used, this is shown in the text with “…” and referenced. * No part of this assignment has been written by anyone other than the members of the group named below. * We have a copy of this assignment......

Words: 2063 - Pages: 9

Economics in Uae

...United Arab Emirates and Economics Institution United Arab Emirates and Economics Introduction The United Arab Emirates is a capitalist country which gives the private investors an opportunity to manage, and maintain commercial and industrial sectors in order to ensure growth and development. The economy has one of the highest Gross Domestic Product (GDP) per capita worldwide. Thus, this allows many people from different parts of the world entering and investing in the economy and also gives them the opportunity to leave whenever they feel like without engaging in various formalities. The country can also be viewed as one that has a liberal market philosophy and which comprises small amounts of corruption in most of the public sectors. Capitalism refers to a system of raising, spending and conserving a given set of monetary value in a given market. Under this economic system, there are three key markets that are the money or financial market, the labor market and the product market. Labor providers are paid wages and salaries depending on the nature of employment. They make products that are sold by the firms, companies and corporations to the consumers. Money market is involved in both the supply and demand for money. Money supply is mostly undertaken by the central banks of various countries while demand is determined by the speculative transaction and precautionary motives respectively. The money market......

Words: 3019 - Pages: 13

Apple, Inc Economic Outlook

...the industry average. Apple’s stock hovers in the low to mid $500 dollar per share range whereas the industry average is around $131 per share.5 Apple’s financial ratios for the most part overshadows the industry average. ROE is 4.72% higher than industry, Net Profit Margin is over 7% higher and Dividend Yields exceed industry averages by .2%5 AAPL Industry Market Cap 462.24B 533B P/E 13.05 14.7 Net Profit Margin 21.28% 14.10% ROE 28.82% 24.10% Dividend Yield 2.30% 2.10% 3All components of CAPM were found on http://finance.yahoo.com 4Fama-French factor data http://mba.tuck.dartmouth.edu/pages/faculty/ken.french/data_library.html#Research 5http://finance.yahoo.com 6AAPL Annual Report, http://www.apple.com Economic risk, Business risk, and Financial risk Apple continues to beat revenue and EPS forecasts but slower sales of the iPhone 5c speaks to the risk the company needs to take head on. Apple recognizes, to sustain stable earnings and convince investors of its growth potential, their focus must be on developing new innovative products. Apple is focusing on developing not just new products but entire product categories. For example, in the new space of wearable devices, Apple is expected to introduce the iWatch. Analysts estimate sales could account for “10% plus revenue growth in the first year of iWatch sales.”7 In addition, Apple CEO Tim Cook in an earnings call stated that one of Apple’s key focus is to build something for the......

Words: 897 - Pages: 4

Economic in Uae

...In: Business and Management Uae Economic Outlook Economy September 2010 UAE Economic Outlook 2010 UAE Economic Outlook 2010  GDP expected to grow in 2010  Inflation expected to drop to 0.4% in 2010  UAE struggled to post a budget surplus in 2009  Dubai World reaches agreement to restructure its debt  UAE GDP expected to grow by 0.6% in 2010 The global recession, which started in Q4-2008, halted UAE‟s economic growth significantly. After a 7.5% growth in real GDP in 2008, UAE‟s GDP increased by only 1.3% to reach AED515bn in 2009. Despite the global recession, the non-oil GDP grew by 8.4% in 2009. Due to the decrease in oil prices and production, the non-oil sector contributed 71% of the GDP in 2009 compared to 66% during the previous year.  Overall Broad Money supply decreased by 0.3% as of Q2-2010; grew by 5.4% in 2009 The UAE government implemented expansionary monetary and fiscal policies to stimulate aggregate demand in 2009. Due to the effects of the recession on the economy, the UAE government wanted to expand the money supply and encourage growth. Money Supply (M1) and Broad Money (M2) grew by 3.7% and 2.2% respectively, while the overall broad money (M3) decreased by 0.25% as of Q2-2010 due to a decrease in government deposits.  UAE maintained a budget surplus for its fifth consecutive year The budget surplus in recent years was largely credited to high gas and oil profits due to high oil prices. Total government revenue was almost AED293bn......

Words: 358 - Pages: 2

Economic Outlook

... FIGURE 1.1 FIGURE 1.2 FIGURE 1.3 FIGURE B1.1.1 FIGURE 1.4 FIGURE 1.5 FIGURE 1.6 FIGURE 1.7 FIGURE B1.3.1 FIGURE B1.3.2 FIGURE 1.8 FIGURE 1.9 FIGURE 1.10 FIGURE 1.11 FIGURE 1.12 FIGURE 1.13 FIGURE B1.4.1 FIGURE B1.4.2 FIGURE B1.8.1 FIGURE B1.8.2 FIGURE 1.14 FIGURE 1.15 FIGURE 1.16 FIGURE 1.17 FIGURE 1.18 FIGURE 1.19 FIGURE 1.20 FIGURE 1.21 FIGURE 1.22 FIGURE 1.23 FIGURE 1.24 FIGURE 1.25 FIGURE B1.9.1 Despite some Q1 weakening, business sentiment in Europe and the US signals further expansion Economic activity is strengthening from very weak levels in Europe Inflation and unemployment trends are on divergent paths across major economies Net capital flows and net financial exposures (width of arrows proportional to amounts in billions of U.S. dollars) Developing country activity is strengthening but at a modest pace Manufacturing surveys are pointing to continued expansion in East Asia and South Asia Output gaps remain small in most developing regions Capital flows have recovered strongly after a steep fall in February Currency depreciations were more modest during the winter turmoil among countries that reduced external imbalances Distribution of changes in developing country bilateral exchange rates with the US$ Most developing country equity markets have fully recouped losses since mid-2013 Borrowing costs have fallen since the start of the year for developing countries Metal prices have extended their falls while food prices have turned up Commodity exporters have......

Words: 103843 - Pages: 416

Uae: Economics

...U.A.E: The Success Story The emergence of the UAE as an economic powerhouse is an example of a country going through a tremendous transformation. From a tiny country with a nomadic society to building the most modern city in the world. The city being Dubai of course. Dubai is the crown jewel of the UAE and the arab world as a whole. Now one of the most sought-after tourist destinations and business hubs for citizens of the world, Dubai’s success story has made many other Middle Eastern nations take notice. In a survey done by the Arab Youth organization, young arabs chose the UAE as “the country they would most like to move to… and the country they would most like their country to emulate” (Badam). The UAE was ahead of 20 other countries, including the United States, Germany and Britain, as young people’s top country to live in. What led to the UAE’s astronomical rise? What policies led to the resources from oil revenues being spent in the most efficient fashion in comparison to other nations? These are the questions I will tackle in this paper. The UAE was established in 1971 when the rulers of the seven independent emirates agreed to instill a unifying constitution. The ruler of Abu Dhabi at the time , Zayed bin Sultan Al Nahyan, was chosen to lead the country. Since then, the ruler of Abu Dhabi is President of the United Arab Emirates, the head of state, and the ruler of Dubai is the Prime Minister of the United Arab Emirates, the head of government. This......

Words: 2622 - Pages: 11

Uae Economy

...Economic and Social Report On United Arab Emirates List of Tables and Graphs LIST OF TABLES | Table | Page no. | 1.Macroeconomic Indicator | 7 | 2.Sectoral Contribution | 8 | 3.GNI over the years | 13 | LIST OF GRAPHS | Graphs | Page | 1.GDP Over Years | 6 | 2.Sector Wise Contribution(2005-09) | 9 | 3. Average retail rents/region Comparitive Hotel Occupancy Rates | 11 | 4. Comparitive Hotel Occupancy Rates GNI of UAE over the years | 11 | 5. GNI of UAE over the years | 14 | 6. GNI per capita of UAE over the years | 15 | 7. Unemployment Rate 2006-2012 | 16 | 8. Unemployment and UAE Nationals Participation in the labour market. | 17 | * 9. Inflation in UAE in recent times | 18 | * 10. Average Retail Rents/Region * | 19 | * 11. Current Account Balance of UAE 2004-2014 | 20 | Contents Topic | Pageno. | 1.Introduction | 4 | 2.GDP of UAE | 6 | 3.Factors affecting GDP | 6 | 4.Contribution of different sector | 8 | 5.GDP of UAE in 2013 | 9 | 6.Hydrocarbon Sector | 11 | 7.GNP of UAE | 13 | 8.Unemployment rate in UAE | 16 | 9.Implication of unemployment rate | 17 | 10.Inflation | 18 | 11.BOP | 20 | 12.Fiscal Policy | 21 | 13.Monetary Policy | 21 | 14.Analysis of exchange rate | 22 | 15.Recovery from global Recession | 23 | 16.Conclusion | 24 | INTRODUCTION Thirty years ago the United Arab Emirates was......

Words: 5738 - Pages: 23

Uae Economy

...Emirates Uae Economics Essay In less than four decades, the United Arab Emirates, a relatively young country, changed from a huge desert to a country that is known today as one of the best in the world to live in. The UAE is a federation of seven monarchies: Abu-Dhabi, Dubai, Sharjah, Ajman, Fujairah, Ras AL- Khaimah and Umm al-Qaiwain. The country is located in the Middle East and is part of the Gulf Cooperation Council which is an economic alliance of six countries bordering the Arab Gulf. Its law is based on Sharia but the UAE is one of the most liberalized countries in the GCC: others beliefs and religions are tolerated. The economy is heavily depending on oil wealth despite the government's efforts to diversify the sources of income. The population is mostly comprised of expatriates (88.52% of the total population in 2010 as per the National Bureau of Statistics estimates). Abu Dhabi, which is known as the driving force in economic, political and decision making process, account for about 90 percent of the oil production, and oil contribute 56% of the entire GDP of the emirates. Dubai is actually the main responsible for the remarkable growth witnessed in the majority of the UAE non-oil sector, Dubai serves as the financial hub in the whole middle east, with commerce, transportation, services and tourism as the driven force of the economy. Its GDP has experienced an exponential growth of around 245% from 2000 to 2011. In the UNDP's Human Development Report 2011, the......

Words: 1512 - Pages: 7

Economic Outlook

...Economic Outlook | | | | | Antonia Sumpter-FI 561 Mergers & Acquisitions | 9/8/2010 | | After taking a beating in the recession, the U.S. is in the process of stabilizing this shaky economic recovery. It is indeed a rather slow process. The chart below gives a snapshot of the progress. GDP, CPI and other key economic reports Updated 9/1/2010   | This week | Month ago | Year ago | Gross Domestic Product (billions) | 14575.0 | 14597.7 | 14143.3 | Housing Starts (thousands) | 432 | 454 | 490 | Producer Price Index | 178.7 | 178.4 | 171.7 | Consumer Price Index | 217.6 | 216.9 | 214.5 | Purchasing Managers Index | 56.3 | 55.5 | 52.9 | Retail Sales | 362688 | 360156 | 342309 | Unemployment Rate | 9.6 | 9.5 | 9.7 | Statistics include: the unemployment rate, the level of monthly retail sales, price changes for businesses and consumers as measured by the Producer Price Index and Consumer Price Index, monthly housing starts, and the quarterly Gross Domestic Product, which measures the value of all goods and services produced in the U.S. in a given calendar quarter. In order to have an economic recovery unemployment has to ease. Consumer spending, which makes up 70 percent of the economy, will not increase until the unemployment has decreased. In today's challenging economy, mergers and acquisitions are becoming commonplace as a way for firms to expand geographically and obtain profitable growth. The climate is heating up. The......

Words: 341 - Pages: 2

Performance Appraisal at the Department of the Economic Development in the Uae

...Performance Appraisal At Department of Economic Development How Performance appraisal is being implemented in the DED Introduction Department of Economic Development (DED) is a department that is established by Abu Dhabi government to have an economic dimensions and influences on the investors who are giving the trust to invest in Abu Dhabi. The department is very important for each investor in the UAE because whenever they want to establish any company or factory they have to go and check what are the policies and regulations with the commercial affairs in order to build up a company with a developed economic environment that would attract both the foreigners and locals. It has more than 50 branches in Abu Dhabi, Al Ain and Al Gharbiya. DED’s objective is to achieve the best economic development by its commercial affairs and the economic regulation for the best interest of the country. The research paper will talk about how the performance appraisal will be applied in this government department and how do they deal with it through an economic development environment. On the other hand, we’ll be able to analyze what are the differences between what we’ve studied through this course and what it is implemented through the department. As I am working in the HR department at DED and that always deal with doing the performance appraisal and checking if there is any difficulties that the employees would face it while they are giving their opinion about performance......

Words: 1412 - Pages: 6

World Bank Economic Outlook

...will only result in a minor setback to the global outlook, with global growth at 3.5 percent in 2012 and 3.9 percent in 2013, marginally lower than in the April 2012 World Economic Outlook. These forecasts, however, are predicated on two important assumptions: that there will be sufficient policy action to allow financial conditions in the euro area periphery to ease gradually and that recent policy easing in emerging market economies will gain traction. Clearly, downside risks continue to loom large, importantly reflecting risks of delayed or insufficient policy action. In Europe, the measures announced at the European Union (EU) leaders’ summit in June are steps in the right direction. The very recent, renewed deterioration of sovereign debt markets underscores that timely implementation of these measures, together with further progress on banking and fiscal union, must be a priority. In the United States, avoiding the fiscal cliff, promptly raising the debt ceiling, and developing a medium-term fiscal plan are of the essence. In emerging market economies, policymakers should be ready to cope with trade declines and the high volatility of capital flows. A better Q1, a worse Q2 Global growth increased to 3.6 percent (seasonally adjusted annual rate) in the first quarter of 2012, surprising on the upside by some ¼ percentage point compared with the forecasts presented in the April 2012 World Economic Outlook (Figure 1, Table 1). The upward surprise was......

Words: 4768 - Pages: 20

Playstation Plus 12 Meses Suscripcion Ps4 (Leer Descripcion) | Mary Murphy | Lizzie Bluray Download free