Main Industry SectorsEconomic OverviewForeign Direct Investment [FDI]FDI Government MeasuresCountry Strong PointsCountry Weak PointsForeign Trade Overview
Agriculture contributes to less than 3% of the GDP. Raw material exploration accounts for nearly 36% of the GDP. United Arab Emirates is the 3rd largest oil producer in the world, with large reserves. UAE Oil and gas reserves are estimated for 100 years of exploitation. Manufacturing activities have witnessed an unprecedented growth in the last five years,particularly in sectors such as metal processing, furniture, industrial preparation of food stuffs,aluminum production, cement and construction materials, fertilizers, petrochemical industry,fiberglass and finally real estate. As for tertiary sector, it contributes around 40% of the GDP and is dominated by internationaltrade, air transport, tourism and financial activities.
The GDP growth rate was very high during the last decade, as it tripled in 5 years, from87 to 275 billion USD. The UAE have the fourth highest per capita GDP in the world.The GDP is dominated by the economic power Abu Dhabi (60%), especially by itshydrocarbon production (this emirate hold 9% of the world oil reserves and 5% of theplanets natural gas reserves) and by its control of nearly all the countrys savings.Dubai contributes to up to 26% of the GDP and constitutes the Emirates commercialplatform, mostly due to its port and airport infrastructures.The government is trying to develop new sectors, such as tourism, financial services andreal estate.In this perspective, the Emirate of Dubai has multiplied the creation of free zones and isbecoming a platform for re-export in the region.A number of great cultural projects (museums, especially an annex of the Louvremuseum) and sport projects (Formule 1). Moreover, the country has decided to diversifyits energy sources by building a fleet of nuclear power plants by 2017 and massivelyinvesting in renewable energies, with 22 billion USD for the Masdar project.
UAE was nevertheless hit hard by the global economic crisis, which has caused a feltslowdown of the countrys growth.Different factors are at cause: falling oil prices, a contraction of private sector activity, thebursting of the housing bubble in Dubai because of overinvestment, the scarcity ofsupply of bank credit.Dubai was the hardest hit, due to its position of a highly globalized platform and veryhigh borrowing rates.The authorities have reacted.The banking sector was consolidated through state guarantees on deposits, introductionof liquidity, recapitalization of banks, and an expansionary fiscal policy (to preserveinvestments and enhance competitiveness).
UAE is the primary recipient of direct foreign investments on the Arabian Peninsula. The main investors in the UAE are Great Britain, Japan and India. The FDI flow increased in 2007, it decreased in 2008 and especially in 2009. This trend continued in 2010. FDI stocks are concentrated in hydrocarbons and water and electricity production. The advantages of the Emirates are the countrys easy access to oil resources, lowenergy costs, willingness to diversify the economy and high purchasing power. The absence of direct tax on companies (excluding banks, oil companies and telecomoperators) and people, of exchange controls and any limitations on repatriation ofcapital, as well as the existence of a banking sector that is both solid and profitable and alarge pool of expatriate workforce constitute its undeniable benefits. UAEs main weakness is the small size of its domestic market.
UAE government announced a certain number of measures, for example removal of theobligation of the capital holding of 51% by a national or even the opening of banking andinsurance sectors for foreign investors. Till now not much progress has been made. However you can notice the flexibility of rules ofaccess to real estate property for foreigners in Emirates of Dubai, Sharjah and Abu Dhabi.
The strengths of the country are: Not directly taxing corporations (apart from oil, banking and insurance sectors) andindividuals; Absence of exchange control or of any constraint relating to repatriation of funds; A solid and profitable banking sector and favorable regulations for foreign investments The geographical situation of the country makes it a potential platform to influence the whole of the Gulf, Iran, Asia and Middle-East; UAE has a cheap foreign labour force, very good transport and production infrastructures (financed by hydrocarbon income) and an access to low cost energy.
There are legal obstacles for foreign investments. The interdiction (except for free zone) of more than 49% of shareholdingof a local company for a foreign investor constitutes a significant hindrance. The obligation for recourse to a local service agent for the branches andrepresentative offices of foreign companies represents a limit.
United Arab Emirates are amongst the worlds most dynamic markets in terms of foreign trade. UAE is amongst the worlds 25 primary exporters and 30 primary importers of commodities. UAE imports have grown at a rate higher than 20% on average per year from 2003. Despite the sharp slowdown in trade in 2009, the UAE is considered a central business hub of theGulf countries, Iran, South Asia and East Africa. United Arab Emirates has displayed a large commercial surplus in both 2009 and 2010, due to theraising oil prices. The main UAE trade partners are Japan, South Korea, Thailand, Singapore, China and Pakistan. The main products exported by the country are hydrocarbons, natural gas, dried fish and dates. Its main suppliers are India, China, the United States, Germany and Japan. The United Arab Emirates mainly imports machinery, transport equipment, chemical products and food stuffs.
Visit us to download for related reportsMarket Opportunities of products and Services in UAE.Export and investment sector opportunities in UAE.Overview of Trade Regulations, Customs and Standards UAE.UAE Investment guide for beginners.Business and Project Financing in UAE.Business Travel Advisory in UAE.
China Australia Mexico Germany United States France India Spain Canada South Korea Russia Vietnam Hong Kong Saudi Arabia Colombia Poland Brazil South Africa Turkey Nigeria Indonesia Argentina Egypt UAE Singapore Netherland United Kingdom Sweden Italy Thailand Japan Israel and more…. Buy 2 reports get 1 report FREE
International Market Research Report on 300+ topics over 100 countries Instant online Delivery Need additional reports ? Market Share Distribution and business practices Market Size Statistical data Market Trends End user analysis Market access Import and Export strategies information Market Analysis Competitions Domestic production Best sales prospects Tariffs and Trade shows and regulations contact points
Thanking for downloading For more information visit uswww.worldresearchreport.com Or Email email@example.com