Dubai has an open economy with a high per capita income, and a pretty good annual trade surplus. Although Dubai has reduced their GDP based on oil and gas output by 25%. This could be due to them trying to conserve their oil outputs or due to them just running out of oil and gas. The GDP has also dropped 4% because of the global financial crisis, falling oil prices, and deflated asset prices. They have made successful efforts at making their economy diverse in tyring to make up for this deficit. Dubai has increased job creation by trying to expand on their country. Due to the high Standard of living, jobs have opened up to expand on infrastructure expansion. Dubai also has Free Trade Zones, which offers 1005 foreign ownership and zero taxes, trying to attract foreign investors.
Out of all the United Arab Emirates, the global crisis has hit Dubai the hardest. It lacked the sufficient cash to meet its debt obligations, so it launched a twenty billion dollar bond program so it could meet its obligation. Dubai's dependence on oil has been a significant long-term challenge. They are trying to focus on diversification and creating more opportunities.
I like how you tied in what we have been talking about in class in your blog. I didnt know they had free trade zones that is very interesting. Very good post.
ReplyDeleteGreat post, Dubai is facing some serious problems witht their extreme debt and lack of oil reserves. What can they do to overturn this potentially negative economic future? I think they need to do more than build infrastructure and increase tourism, I personnally do not want to visit to a hot desert to ski indoors.
ReplyDeleteVery interesting post! I always thought it would be cool to visit Dubai, and see the tallest structure in the world! i do believe though that with their oil reserves running out that they will take a major blow to their economic goals. I was surprised when i looked up the biggest economies in the world and saw the United Arab Emirates so high on the list. Great post again!
ReplyDeleteIt is incredible how the world's economy has decayed, i been thinking that Dubai is one of the most powerful and rich countries and now im surprised that they also have economic problems. I mean it makes sense, hopefully like you said there will be more jobs opportunities to help the country and i bet that will also help the rest of the world.
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