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1. Inflation in that existing economy then suggested an applicable solutions to cope these statement

• Political and Social Stability
• Oil and Mineral Resources
• Agricultural Resources

2. Evaluate advantage and disadvantages of the current fiscal policy and monetary policy being implemented in the chosen country

3. Find out and explain the effectiveness of various economic growth reforms that were carried out in the past years

• Dubai to sustain % GDP growth in 2014
• DH953.2 Billion GDP estimates at current 2013
• Abu dhabi’s GDP up 5.6% in 2012
• Contribution of extractive industries to Abu Dhabi’s GDP amounted to 5% in 2011

4. Examine the effect of the balance of payment on the exchange rates in the chosen country explaining. How the chosen country manages its foreign debt

1. Inflation in that existing economy then suggested an applicable solutions to cope these statement

Thirty years back the UAE was one of the slightest created nations of the world. Today, it has attained a wage level practically identical to that of the industrialized countries. The UAE did not pass through the speculative advancement “organizes” that most created nations appear to have encountered. Rather, its extensive oil incomes have permitted her to jump these stages to the phase of high mass utilization. Monstrous oil incomes have empowered the UAE to alternate way the normally troublesome and long procedure of sparing and capital amassing important for financial improvement. Given a wealth of common asset blessings (oil and gas), the UAE has grasped asset based commercial ventures (RBI) as an advancement procedure, a mechanical technique that is focused around use of characteristic assets. There has been a sending of windfall wage, to a great extent coordinated at a ‘for the last time’ help to the social and investment foundation, which empowered the UAE to attain a critical level of investment advancement inside the exact concise time period of 1973 to 1982, a period of moderately high oil costs (Kandil, & Morsy, 2011). Prior to the disclosure and fare of oil, the economy of the Trucial States (which today structure the UAE) depended predominantly on subsistence farming, itinerant creature cultivation, the concentrating of pearls and the exchange pearls, angling, and marine. The period before the revelation of oil, hence, reflected the nation’s restricted regular assets, and brought about a basic subsistence economy (Kandil, & Morsy, 2011).

Political and Social Stability

Since its shaping in 1971 the UAE has appreciated a political steadiness. The current political structures seem to suit the tribal pop culture of the UAE and the dissemination of immense oil incomes as social and financial base, high compensations, an elevated expectation of social administrations, for example, wellbeing and training has raised the expectation for everyday comforts for UAE nationals and impressively decreased the probability of inward political and social turmoil. It is worth saying that the UAE Government has kept up a generally decent record on human rights since the creation of the state. This thus has pushed political and social strength (Al‐mulali, Sab, & Binti, 2011). The UAE is a dynamic part of numerous provincial and universal affiliations, for example, the Middle Easterner League, the United Nations, the Non-Aligned Movement, the Arab Gulf Cooperation Gathering, and the Organization of the Islamic Conference.