The United Arab Emirates has a population of approximately 9.8 million people and a GDP of $421 billion in 2020. The top five industries contributing to GDP growth are: 1. Tourism - Dubai receives 66% of UAE's tourism with Abu Dhabi receiving 16% 2. Oil and gas - Accounted for 26% of GDP in 2018 3. Real estate - Development has increased tourism contribution to GDP from 3% to 16.5% 4. Business and finance - UAE offers a stable environment and good infrastructure 5. Trade - UAE is the US' 30th largest trading partner with $24.3 billion in goods trade Other factors like political stability, non-

1. S. R. LUTHRA INSTITUTE OF
MANAGEMENT
SUBJECT- Managerial Economics
(MGMB11106)

2. UAE
United Arab Emirates
Group No : 8
PREPARED BY :
BHAVYA SHAH (115) SUBMITTED TO:
HARSH VARDHAN SHARMA (119) RANJAN SABHAYA
JIGAR POKHARNA (95)
DEEP SHAH (116)

3. Introduction
 The United Arab Emirate is a country in Western Asia located at the
eastern end of the Arabian Peninsula . Islam is the official religion and
Arabic is the official language.
Content
President of UAE Khalifa bin Zayed Al
Nahyan
PM of UAE Mohammed bin
Rashid Al Maktoum
Capital Abu Dhabi
Currency The Emirati Dirham

4. Introduction of UAE’s GDP
 The economy of the United Arab Emirates (or UAE) is the fourth largest in the Middle
East with a GDP of US$421 billion in 2020.
 United Arab Emirates has a commodity-based economy, with shipments of oil and
natural gas accounting for 40 percent of total exports and for 38 percent of GDP.

5. Number of items contributing for
growth of GDP
1. Tourism:- Tourism acts as a growth sector for the entire UAE economy. Dubai is the
top tourism destination in the Middle East. Dubai holds up to 66% share with Abu
Dhabi having 16% and Sharjah 10% of the UAE’s tourism economy.
2. Oil and Gas:- In 2018, the oil and gas sector
contributed 26% to overall GDP. The introduction
of the VAT has provided the Government with an.
additional source of income – approximately 6%
of the total revenue in 2018.

6. 3. Real estate:- The development in the real estate and infrastructure sectors during the
recent year has contributed in making the country a global touristic destination. The contribution
of tourism in the Emirati GDP increased from 3% in the mid-1990s to more than 16.5% by the
end of 2010.
4. Business and Finance:- The UAE offers businesses a strong enabling environment: stable
political and macroeconomic conditions, a future-oriented Government, good general
infrastructure and ICT infrastructure.
5. Trade:- UAE is currently our 30th largest goods trading partner with $24.3 billion in total (two
way) goods trade during 2019. Goods export totaled $20 billion. Goods import totaled $4.3
billion.
Other factors
Local
market
and
export
Political and
Social
stability
Non-oil
sector
growth

7. Current GDP Condition
 Currently , GDP value of the United Arab Emirates represents 0.37 % of the
world economy.
 The UAE’s competitiveness ranking remained unchanged in 2021 despite
the outbreak of Covid-19 ,as strong responses from the government to
contain the pandemic paid off well.

8. Reasons for growing UAE’s GDP in
last few years
Non-oil
sector
growth
Private
sector hiring
plans
UAE’s
fiscal
surplus
Infrastructure
spending

9. Inflation
Types of
Inflation
Demand
pull
Inflation
Built in
Inflation
Cost –
push
Inflation

10. The rate continuously increases from more than 3% (2001) to around 13% (2008).In 2020, the
inflation rate of the United Arab Emirates was at 1.25% compared to the previous year.
This increase is caused by an increase in prices of raw materials, oil, and imports in addition to
depreciation of US dollar exchange rate. The report added that the rent was the highest factor
influencing inflation in which the weight of rent takes more than 40% of the consumer basket.

11. PRODUCTION GROWTH SECTOR
WISE
1) Agriculture Sector :
 UAE contains 1,60,000 acres cultivated area for agriculture.
 Today, there are more than 30,000 farms in the UAE, an exponential increase from around
4,000 farms in the early 1970s. The rapid development of was seen during the 1980s, when
country started using up to 30% of its food requirements.
 Recently, agriculture in the UAE has made a shift towards modern irrigation systems to
replace the traditional flood irrigation, Organic farming practices have also been adopted.
 Currently, there are more than 50 organic vegetation farms in the UAE, as well as three animal
production farms and one manufacturing facility.

12. 2. Service sector:-
 Service sector includes Real estate and business services, Hospitality,
Transport, Communication, Personal & Social Services. These all accounted for
37.2% of total GDP. Hospitality services sector however is the fastest growing
sector for the last three years.
 Service sector holds 49.2% of GDP.
Source :- Global Economy.com

13. 3. Industrial sector:-
 The UAE was the only Arab nation to receive a ‘high performance’ rating in the
index and ranked third in the Middle East after Turkey and Israel.
 The country reached 30th in the world in the 2021 United Nation’s Industrial
Organisation’s (UNIDO) Competitive Industrial Performance Index (CIP) report,
which tracks 152 countries.
 The UAE is now up to 28th globally for manufacturing value added per capita,
while also rising eight places for the share of its manufactured goods in its total
export mix, moving up to 107th from 115th last year.

14. THANK YOU