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Macroeconomics in
United Arab Emirates
Presented by Debarpan Haldar
CONTENTS
 UAE DEMOGRAPHY
 POLITICAL SYSTEM
 EDUCATIONAND HEALTHCARE
 ECONOMY OUTLOOK
• ECONOMIC TRENDS, Composition sectoral growth, Inflation, Unemployment, Per capita
income, Development index.
 INFRASTRUCTURE
 EXPO 2021
2
UAE Demography
3
The United Arab Emirates (UAE) is a federation of 7 states.
Abu Dhabi, Dubai, Sharjah, Ajman, Umm al-Qaiwain, Ras al-Khaimah, and Fujairah
🞑 Area: 71023.6 Sq. km.
🞑 Climate: desert; cooler in eastern mountains
🞑 Natural resources: petroleum, natural gas
 Capital: Abu Dhabi, also center for political
cultural & industrial activities.
 Official Language: Arabic (official), English,
Hindi, Urdu, Bengali.
UAE Demography
4
Currency: UAE Dirham (AED) = $3.67
Literacy: age 15 and over can read and write
Male: 93.1%
Female: 95.8% (2005 est.).
Life expectancy:
Male: 74.67 years
Female: 80.04 years (2015 est.)
Religion: Islam is the official religion.
The UAE National Day, 2nd Decembe
UAE Political System
5
1. Supreme Council of Rulers (7members)
(rulers of each Emirate), which elects the
president and vice president; prime minister is
selected by president.
2. The ruler of Abu Dhabi is President of the
United Arab Emirates, the head of states, and
the ruler of Dubai is the Prime Minister of the
United Arab Emirates, the head of
government.
3. Federal National Council (40 – members).
President Vice president
Education and Healthcare
6
Education
 Education at primary and
secondary levels is compulsory
(ninth grade).
 Schools divided in four age
groups, kindergarten (4 to 5
years) elementary (6 to 11 years)
intermediate (12 to 14 years)
secondary (15 to 17 years).
Healthcare
The country is home to 70 hospitals, 15 of
which are federal institutions, and more than
150 primary health-care centers and clinics.
There are also 11 school health centers, 10
centers for mothers and children and 110
special units for mothers and children in
hospitals and primary health-care centers.
No. of
schools
Public Private
UAE* 342 156
Abu Dhabi 265 186
Dubai 77 153
* Excluding Dubai andAbu Dhabi
Economic Outlook
10
 Since the UAE was established, its economy has grown 200-fold.
 The second biggest economy in the Arab world after Saudi Arabia, and
accounts for more than a quarter of the gross domestic product (GDP) of
the Gulf Cooperation Council (GCC).
 Nearly 14 % of the combined GDP of the countries in the Middle East/
NorthAfrica region.
 Growth in the UAE has averaged 4.8% over the last four years driven by
in (Services, Real estate and Infrastructure spending).
Source: UAE Yearbook2021
Economic Indicator (GDP)
11
Item 2018 2019 2020
W.RanK
(Nominal)
GDP (purchasing power
parity): in Billion
$645 $656 $613 32
GDP - real growth rate: 1.20% 3.4% -6.1% 34
GDP - per capita (PPP): $66968 $67119 $61951 21
Consumer price inflation +3.07% -1.93% -2.08%
Year 2013 2014 2015 2016 2017 2018 2019 2020
USD $Billion 59920 62452 65267 66510 67183 66968 68263 63299
12
Economic Indicators(Inflation)
The projected annual inflation rate in 2025 and 2027 is 2.13% and 2.22% with biggest increase in
housing expenditure by 2.48% due to increase in housing cost. However, inflation is still below its
historic average, which indicates that the economy is steadily growing with unemployment rate
Inflation Rate
2015 4.07%
2017 3.07%
2019 0.8789%
2021 0.8768%
2023 3.66%
2025 2%
2027 2%
13
Economic Indicators (Unemployment Rate)
Source:
https://www.macrotrends.net/countries/ARE/uae/unemployment-rate
Figure 26 presents the
unemployment trend
line in United Arab
Emirates in the long
term.
Forecasts show an
unemployment rate
assumed to be 3.36% in
year 2021.
14
Economic Indicators (Balance of Trade)
Balance of Trade: United
Arab Emirates has been
recording trade surpluses
since 2000, mostly due to
shipments of oil and
natural gas (40 percent of
total exports).
Economic Indicator(Population Growth)
15
Source: Trading Economics 2022/ All units are in million
The fact that the population and the
economic growth are related positively.
16
UAE Economy
17
Government Expenditure
UAE cabinet approved AED 49.1 billion-draft federal budget for the year 2018, an increase of 6.5% as compared
to 2021.
Economic Trends (Government
Expenditure)
AED
Million
Economic Trends (Trade)
18
Trade:
Exports, Imports and Re-Exports;
 The world’s twentieth
biggest exporter in
merchandise trade in 2019,
according to WTO.
 25th largest export economy in
the world according to (ECI).
 The UAE is the world’s third-
largest re-export market
(trailing only Hong Kong and
Singapore) and trades with
more than 220 countries.
 24th largest importer in the
world (2021).
UAE Export Products (Made in UAE)
19
Agriculture Products
Dates Vegetables Watermelons Poultry Eggs Dairy Products Fish
Industry Products
Petroleum
and
petrochemica
ls
Aluminum. Cement. Fertilizers. Commercial
ship repair.
Construction
materials.
Handicrafts. Textiles.
Economic Trends
20
Banking and Financing:
 The sector is governed by
UAE central Bank
established in 1980
Banks No
Local Banks 23
Foreign Banks 28
Total 51
The UAE’s financial sector largely escaped the buffeting felt
by international banks in 2020 in the wake of the euro-zone
crisis. Indeed national banks performed better in 2012, with
their net earnings increasing by around 11.4 per cent.
Economic Trends
21
Equity Markets:
 The UAE was upgraded from ‘frontier’ to
‘EMERGING MARKET’ status by Morgan
Stanley Capital International in June 2013,
joining countries such as China, Brazil and
Turkey and opening up new source of
longer-term investment flows.
 The UAE has three separate stock exchanges:
 Abu Dhabi Securities Exchange (ADX).
 Dubai Financial Market (DFM).
 NASDAQ Dubai, a bourse which operates
International Financial Centre (DIFC).
out of the free zone of the Dubai
Infrastructure Transport and Logistics
22
 Airports and Seaports
Item Number
Airports 43
Seaports 6
Telecommunication and Digital Economy
25
 The UAE ranks third in the Arab World in the
World Economic Forum’s Network Readiness
Index (NRI) for 2011-12, and thirtieth out of 142
countries assessed.
 The UAE has a mobile penetration rate of
168% one of the highest in the world.
 Satellites, Thuraya, the world’s first
GSM/Satellite dual-mode satellite phone, and the
XT-Hotspot, the world’s fastest handheld hotspot.
Al YahSat Satellite Communications Company,
owned by Mubadala, is the region’s first hybrid
military and commercial satellite firm.
Dubai Expo 2021
• DUBAI CONFIRMED AS WORLD EXPO HOST IN 2021
• Dubai: Five key industries:
• hospitality, transportation, retail, banking
27
and finance as well as real estate and
infrastructure will witness key growth and
so will need to expand. Source: Gulf News
Thank You.
30

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economics UAE country.pptx

  • 1. Macroeconomics in United Arab Emirates Presented by Debarpan Haldar
  • 2. CONTENTS  UAE DEMOGRAPHY  POLITICAL SYSTEM  EDUCATIONAND HEALTHCARE  ECONOMY OUTLOOK • ECONOMIC TRENDS, Composition sectoral growth, Inflation, Unemployment, Per capita income, Development index.  INFRASTRUCTURE  EXPO 2021 2
  • 3. UAE Demography 3 The United Arab Emirates (UAE) is a federation of 7 states. Abu Dhabi, Dubai, Sharjah, Ajman, Umm al-Qaiwain, Ras al-Khaimah, and Fujairah 🞑 Area: 71023.6 Sq. km. 🞑 Climate: desert; cooler in eastern mountains 🞑 Natural resources: petroleum, natural gas  Capital: Abu Dhabi, also center for political cultural & industrial activities.  Official Language: Arabic (official), English, Hindi, Urdu, Bengali.
  • 4. UAE Demography 4 Currency: UAE Dirham (AED) = $3.67 Literacy: age 15 and over can read and write Male: 93.1% Female: 95.8% (2005 est.). Life expectancy: Male: 74.67 years Female: 80.04 years (2015 est.) Religion: Islam is the official religion. The UAE National Day, 2nd Decembe
  • 5. UAE Political System 5 1. Supreme Council of Rulers (7members) (rulers of each Emirate), which elects the president and vice president; prime minister is selected by president. 2. The ruler of Abu Dhabi is President of the United Arab Emirates, the head of states, and the ruler of Dubai is the Prime Minister of the United Arab Emirates, the head of government. 3. Federal National Council (40 – members). President Vice president
  • 6. Education and Healthcare 6 Education  Education at primary and secondary levels is compulsory (ninth grade).  Schools divided in four age groups, kindergarten (4 to 5 years) elementary (6 to 11 years) intermediate (12 to 14 years) secondary (15 to 17 years). Healthcare The country is home to 70 hospitals, 15 of which are federal institutions, and more than 150 primary health-care centers and clinics. There are also 11 school health centers, 10 centers for mothers and children and 110 special units for mothers and children in hospitals and primary health-care centers. No. of schools Public Private UAE* 342 156 Abu Dhabi 265 186 Dubai 77 153 * Excluding Dubai andAbu Dhabi
  • 7. Economic Outlook 10  Since the UAE was established, its economy has grown 200-fold.  The second biggest economy in the Arab world after Saudi Arabia, and accounts for more than a quarter of the gross domestic product (GDP) of the Gulf Cooperation Council (GCC).  Nearly 14 % of the combined GDP of the countries in the Middle East/ NorthAfrica region.  Growth in the UAE has averaged 4.8% over the last four years driven by in (Services, Real estate and Infrastructure spending). Source: UAE Yearbook2021
  • 8. Economic Indicator (GDP) 11 Item 2018 2019 2020 W.RanK (Nominal) GDP (purchasing power parity): in Billion $645 $656 $613 32 GDP - real growth rate: 1.20% 3.4% -6.1% 34 GDP - per capita (PPP): $66968 $67119 $61951 21 Consumer price inflation +3.07% -1.93% -2.08% Year 2013 2014 2015 2016 2017 2018 2019 2020 USD $Billion 59920 62452 65267 66510 67183 66968 68263 63299
  • 9. 12 Economic Indicators(Inflation) The projected annual inflation rate in 2025 and 2027 is 2.13% and 2.22% with biggest increase in housing expenditure by 2.48% due to increase in housing cost. However, inflation is still below its historic average, which indicates that the economy is steadily growing with unemployment rate Inflation Rate 2015 4.07% 2017 3.07% 2019 0.8789% 2021 0.8768% 2023 3.66% 2025 2% 2027 2%
  • 10. 13 Economic Indicators (Unemployment Rate) Source: https://www.macrotrends.net/countries/ARE/uae/unemployment-rate Figure 26 presents the unemployment trend line in United Arab Emirates in the long term. Forecasts show an unemployment rate assumed to be 3.36% in year 2021.
  • 11. 14 Economic Indicators (Balance of Trade) Balance of Trade: United Arab Emirates has been recording trade surpluses since 2000, mostly due to shipments of oil and natural gas (40 percent of total exports).
  • 12. Economic Indicator(Population Growth) 15 Source: Trading Economics 2022/ All units are in million The fact that the population and the economic growth are related positively.
  • 14. 17 Government Expenditure UAE cabinet approved AED 49.1 billion-draft federal budget for the year 2018, an increase of 6.5% as compared to 2021. Economic Trends (Government Expenditure) AED Million
  • 15. Economic Trends (Trade) 18 Trade: Exports, Imports and Re-Exports;  The world’s twentieth biggest exporter in merchandise trade in 2019, according to WTO.  25th largest export economy in the world according to (ECI).  The UAE is the world’s third- largest re-export market (trailing only Hong Kong and Singapore) and trades with more than 220 countries.  24th largest importer in the world (2021).
  • 16. UAE Export Products (Made in UAE) 19 Agriculture Products Dates Vegetables Watermelons Poultry Eggs Dairy Products Fish Industry Products Petroleum and petrochemica ls Aluminum. Cement. Fertilizers. Commercial ship repair. Construction materials. Handicrafts. Textiles.
  • 17. Economic Trends 20 Banking and Financing:  The sector is governed by UAE central Bank established in 1980 Banks No Local Banks 23 Foreign Banks 28 Total 51 The UAE’s financial sector largely escaped the buffeting felt by international banks in 2020 in the wake of the euro-zone crisis. Indeed national banks performed better in 2012, with their net earnings increasing by around 11.4 per cent.
  • 18. Economic Trends 21 Equity Markets:  The UAE was upgraded from ‘frontier’ to ‘EMERGING MARKET’ status by Morgan Stanley Capital International in June 2013, joining countries such as China, Brazil and Turkey and opening up new source of longer-term investment flows.  The UAE has three separate stock exchanges:  Abu Dhabi Securities Exchange (ADX).  Dubai Financial Market (DFM).  NASDAQ Dubai, a bourse which operates International Financial Centre (DIFC). out of the free zone of the Dubai
  • 19. Infrastructure Transport and Logistics 22  Airports and Seaports Item Number Airports 43 Seaports 6
  • 20. Telecommunication and Digital Economy 25  The UAE ranks third in the Arab World in the World Economic Forum’s Network Readiness Index (NRI) for 2011-12, and thirtieth out of 142 countries assessed.  The UAE has a mobile penetration rate of 168% one of the highest in the world.  Satellites, Thuraya, the world’s first GSM/Satellite dual-mode satellite phone, and the XT-Hotspot, the world’s fastest handheld hotspot. Al YahSat Satellite Communications Company, owned by Mubadala, is the region’s first hybrid military and commercial satellite firm.
  • 21. Dubai Expo 2021 • DUBAI CONFIRMED AS WORLD EXPO HOST IN 2021 • Dubai: Five key industries: • hospitality, transportation, retail, banking 27 and finance as well as real estate and infrastructure will witness key growth and so will need to expand. Source: Gulf News