Advantages And Disadvantages Of Economy In Macroeconomics

858 Words4 Pages
CHALLENGES IN UAE’S MACROECONOMICS (CONCEPT #2) The United Arab Emirates started with very little economic exercises. Before being known as a country mainly run by oil and its tourism, it began with agricultural and fishing as its main economic exercises. When the oil economy grew and expanded, this resulted to taking 35% in the GDP of UAE. 2.4 million containers per day was said to be produced (in 2005). A huge 85% is coming from its capital, Abu Dhabi. Kudos to the admirable revenue of the oil industry, UAE was able to capitalize its amounts of money on various fields such as: Buildings, job opportunities and of course, education. Large development in their economic programs was done in the 1970s due to the increase of oil prices that gave not only the UAE but other GCCs to have the resources (financial) they need, which includes the labor from other nationalities. However, a dilemma happened 10 years later. There was a decrease in the prices while the population increased; this incident resulted to employee layoffs that increased unemployment. As stated a while ago, 70s was the time UAE took a turn into being one of the countries that are economically developed. Yet their problem was the lack of local labor force because most are situated only in public sectors. Thus, reliance on international labor force was the result. About 80% of the whole labor force in the middle of 1980s was encompassed with expatriates (According to Dev. Rep. – MENA). There was a noticeable

More about Advantages And Disadvantages Of Economy In Macroeconomics

Open Document