UAE Economy

Introduction

The economic development of the UAE and China make these developing nations excellent choices for overseas expansion, globalization and foreign direct investment (FDI). Globalization of developing nations strengthens their economies and global distribution channels. The UAE is now considered one of the wealthiest and fastest developing nations worldwide. China is fast becoming an economic leader and manufacturer in the world, famous for its cheap labor factory workers. The UAE’s wealthy economy has been increasing at a rapid pace due to its real estate boom attracting huge FDI. China has eliminated many of its trade barriers and now has an open free trade economy that appeals to many global nations seeking new target markets and consumers for their products. Both the UAE and China are quickly becoming significant growth economies that attract global FDI from countries all over the world wanting to expand and find new import/export partners for their goods.

UAE PEST Analysis

(P)olitical

The UAE Government is made up of a Federation of the seven Emirates ruled by President, Sheikh Khalifa bin Zayed Al-Nahyan, who is also the ruler of Abu Dhabi. The UAE government is very supportive of their free trade open society and encourages FDI and globalization. The court system is still being established since its rulings are not always enforceable due to the large foreign population. The legal regulations are similar to the western world and becoming stricter each year (Ahmed, 2007, 1-2).

(E)conomic

The UAE population consists of three million people and 60% of them are in the workforce. The UAE population growth rate is currently 9.4%, with only 13% of UAE Nationals making up the workforce and 87% foreigner expatriates taking over the Emirates market. With such a large expatriate workforce (87%) entering UAE due to the real estate development and investments in the region. The UAE GDP increased by 15% to 450 billion dirhams in 2007, and the economy grew even faster at a pace of 16.7%. Its GDP real growth rate is 10%, and it shows $99 billion in oil revenues, and $121 billion in non-oil revenues.