2. Brief History Of UAE
•The United Arab Emirates (UAE) is a country on the Arabian
Peninsula located on the southeastern coast of the Persian
Gulf and the northwestern coast of the Gulf of Oman. The UAE
consists of seven emirates and was founded on 2 December
1971 as a federation. Six of the seven emirates (Abu
Dhabi, Dubai, Sharjah, Ajman, Umm Al Quwain andFujairah)
combined on that date. The seventh, Ras Al Khaimah, joined
the federation on 10 February 1972. The seven sheikhdoms
were formerly known as the Trucial States, in reference to the
treaty relations established with the British in the 19th
•Century.
3.
4. • The strategic geographical location of UAE to the east of the
Arab world is very important for the security and stability of the
Arab world as a whole. The total area of the country is 83,600 sq
km. This includes an archipelago with an area about 5,900 sq km.
The total population in 1995 was 2,411,041. The city of Abu
Dhabi is the capital.
• The United Arab Emirates (UAE), is a federation of seven
independent states located in the south-eastern corner of the
Arabian Peninsula. It is bordered by the Arabian Gulf to the
north, Saudi Arabia to the south and west, and Oman and the
Gulf of Oman to the east. Its seven member states are Abu
Dhabi, Dubai, Sharjah, Ajman, Fujairah, Ras al Khaimah, and
Umm al Quwain. The UAE has Qatar and Bahrain to its west and
the Sultanate of Oman to its east.
5. Statistics
• Capital
Abu Dhabi
• Population
8.2 million
• Area (in sq. km)
83600 Sq km
• Year of Independence
1971
• Language(s)
Arabic
• Population growth rate
2.87%
• GDP per Capital
$49,800
• Human Development Index
0.846
Sources: UAE government statistics
6. Challenges
• The UAE HDI ranks among the highest in the Arab region,
second place after Qatar according to the 2013 global HDR,
and the country is on track to achieve its Millennium
Development goals by 2015.
• According to the International Monetary Fund, growth in the
UAE is estimated to have reached 4.3 percent by 2012 as oil
production levels have peaked and expanded by 5.2 percent
and non-oil growth, mainly driven by the service sectors, has
accelerated to 3.8%.
• Economic recovery in the UAE is gaining strength and has been
slowly recovering from the 2009 property market crisis, and
Inflation has remained subdued at 0.7 percent on average.
• The trend of rapid population growth, averaging 7% over the
last decade, has slowed in recent years as expatriate jobs have
been cut in the construction, real estate, tourism and financial
services sectors, but it is starting to pick up since 2012, with a
slow economic recovery.
7. • FDI inflows reached US$13.5B in 2011, which amounts to 27.4% of
gross fixed capital formation in the UAE, and according to UNCTAD
investment global prospects for 2011-2014, the UAE is in the top
ten destinations in the world to attract foreign investments.
• The banking sector has been strengthened through significant
capital injections, and some progress has been made in
restructuring the debt of government-related entities (GRE). The
ailing real estate sector is beginning to find bottom but, given the
ongoing oversupply, an early and broad-based recovery of the
sector remains unlikely.
8. • According to the Arab Competitiveness Report 2011-2012,
the UAE ranks among the top ten countries in more than 20
global competitiveness indicators,
9. Successes
• UAE IS AIMING TO RAISE THE STANDARD OF LIVING AND IMPROVE
THE QUALITY OF LIFE (The UAE is well on its way to achieve its MDGs
by 2015. Enrolment rates in primary education is 98%, and the
literacy rate among 15 - 24 year olds is 99%.
• The number of females in tertiary education is double the number
of males. Child mortality is 10.6 per 1,000 births and HIV/AIDS
prevalence rate is less than 0.2%.
• The country is a WTO member and is engaged currently in bilateral
trade negotiations with a number of countries that include the USA,
China and the EU.
The UAE, however, is under growing pressure to maintain its
competitive position and achieve advanced international standards
in areas such as public management, legislation, corporate
governance, and social welfare.
10. UAE GDP GROWTH
• UAE GDP GROWTH BY 2026: UP TO 5-6% WITH NON-OIL SECTOR
DOMINATING ECONOMY
• BY ASTREAMIDEAST
• APRIL 24, 2016
• Think about the UAE. What’s one thing among the wealth,
innovation and development that pops up in your mind? Oil sector
industry.
Well, keep in mind these numbers:
• 30 per cent in 2015,
• 20 per cent by 2021,
• zero per cent in the next 50 years.
• That’s the percentage of the oil sectors revenues in the
UAE’s GDP (gross domestic product).
•
15. • United Arab Emirates is one of the most developed countries
in the Arab Gulf and has high value of GDP per capita. The
country still 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.
• Yet, in order to diversify the economy and reduce the
dependence on oil revenues, UAE has been making huge
investments in the tourism, financial and construction sectors.
• In 2012, manufacturing activity accounted for 42% of output
growth, transport/communication for 23%, wholesale/retail
trade for 16.5% and restaurants/hotels for 15.5% while
construction and agriculture contracted.
16. • Of course Dubai will also be able to fall back on the financial
support of Abu Dhabi and the wider UAE. However, the fall in
oil prices is now taking its toll on the entire federation.
• According to the IMF, the UAE’s fiscal balance will turn
negative this year for the first time since 2009 with a deficit
equal to 2.3pc of GDP expected.
• Although this isn’t calamitous and the UAE as a whole has
billions of foreign currency reserves the falling oil prices is
clearly a major risk.
18. UAE Budget for 2016
• UAE budget for 2016
to have an AED46.1 billion– The emirate increased its
expenditure by 12 per cent, compared with its 2015 figure of
AED41 billion
• – Revenue from government services, which represents 74
per cent of total government revenue, increased by 12 per
cent compared with 2015
• – General and administrative expenses, capital expenditures
and grants and subsidies accounted for 45 per cent of total
government spending in 2016
19.
20. • 2016 budget was set at 48.56 billion dirhams ($13.2 billion)
with a zero deficit, down from this year's 49.1 billion dirham
budget plan.
• The UAE federal budget traditionally accounts for only around
14 percent of total fiscal spending in the country; the seven
individual emirates, mainly oil-producing Abu Dhabi, provide
the rest.
21. The deficit
• The deficit since 2009 with a deficit equal to 2.3pc of GDP
expected.
• was envisaged at AED882 million in 2014 and AED1.5bn during
2013, but last year’s budget had broken even and eliminated
the gap.
• “The break-even point between government revenues and
expenditures has come as a result of
• 1- strict financial policies of the Supreme Fiscal Committee,
chaired by His Highness Sheikh Ahmed bin Saeed Al Maktoum,
Chairman of the Committee,” says Abdulrahman Saleh Al
Saleh, Director General of Government of Dubai’s Department
of Finance, in a statement.
22. UAE and Saudi Arabia Deficit
•The economies of the UAE and Saudi Arabia slowed further
last year, according to monthly trackers of business activity
published, as falling oil prices and a stumbling global
•economy hit the region.
Saudi ArabiaUAE
Saudi Arabia hit its second all-time low
in two months as public spending cuts
added to the effects of falling oil
prices. It recorded a purchasing
managers’ index score of 53.9.
The UAE purchasing managers’ index,
which surveys businesses across the
country, recorded a score of 52.6.
While any score above 50 indicates
that the economy is expanding, this is
the index’s lowest score since March
2012.
23. Creditors Of United Arab
Emirates
(By Origin via Credit Suisse citing Bank for International
Settlements):
• United Kingdom: $50.2 billion
France: $11.3 billion
Germany: $10.6 billion
United States: $10.6 billion
Japan: $ 9.0 billion
Switzerland: $ 4.6 billion
Netherlands: $ 4.5 billion
24. Creditors Of United Arab
Emirates
(By Entity via Credit Suisse, citing Emirates Bank Association):
• HSBC Bank Middle East Limited: $17.0 billion
Standard Chartered Bank: $ 7.8 billion
Barlays Bank Plc: $ 3.6 billion
ABN-Amro (RBS): $ 2.1 billion
Arab Bank Plc: $ 2.1 billion
Citibank: $ 1.9 billion
Bank of Baroda: $ 1.8 billion
Bank Saderat Iran: $ 1.7 billion
BNP Parabas: $ 1.7 billion
Lloyds: $ 1.6 billion
25. Revenues
• Tourism is one of the main sources of revenue in the UAE,
with some of the world's most luxurious hotels being based in
the UAE. A massive construction boom,.
• Dubai does not impose tax on wages and income salaries.The
Major sources are Government fees (62%) and Tax revenues
(23%).
Here are the various tax revenues:
Oil companies pay a 55% in addition to paying royalties.
• Foreign Banks: 20% corporate tax.
• Hotels and entertainment : 5% on rooms,foods services etc.
• Luxury imports: 10% on luxury and 4% on other items.
•Alcohol: 30% sales tax
26.
27. Expenditure
• On the expenditure side, wages and salaries represent 36 per
cent of total government spending, a one per cent decrease
over the previous year. The government will, however, create
3,000 new jobs for citizens in 2016
28. • Meanwhile, general and administrative expenses, capital
expenditures and grants and subsidies account for 45 per cent
of total government spending in 2016, while infrastructure
projects have been allocated 14 per cent of the budget, a one
per cent increase over 2015. The overall spending on
transport and economy has been maintained at 36 per cent.
• To service the government’s debt, bond and interest payments
have been allocated five per cent of the budget while 21 per
cent of government spending has been earmarked for
security, justice and safety.
29.
30. Sustainable Development Goals
• Eradicate extreme poverty and hunger
• Achieve universal primary education
• Promote gender equality and empower women
• Reduce child mortality
• Improve maternal health
• Combat HIV/AIDS, malaria and other diseases
• Ensure environmental sustainability
• Develop a global partnership for development
•
31. How UAE grew too fast
• Abu Dhabi, the oil-rich capital of the UAE and the richest
emirate, has opted for a more conservative – and, some say –
prudent approach to growth that contrasts with Dubai's giddy
expansion.
• But it boasts 95% of the UAE's oil reserves and more than half
of its GDP, and regional experts predict it will overtake Dubai
as the destination of choice for westerners in the Middle East.
• Dubai, which has barely a trickle of oil in comparison, is
projecting a 42% increase in public spending on infrastructure
projects, to compensate for vanishing private investment. But
it cannot go it alone. Abu Dhabi is increasingly expected to bail
out its poorer neighbor, and the two ruling families are
meeting regularly to decide how to transfer cash into Dubai's
ailing economy.
