Gusak R. G., Poturaeva L. V., Gaponenko S. A.

Oles Honchar Dnipropetrovsk National University


In recent years, the UAE (United Arab Emirates) have been gaining strength as a center of business and commerce. At international exhibitions, which are held here, conferences and seminars in the country attract businessmen from all over the world. As a free trade zone, the country is also very attractive to employers. Besides, the UAE is a great place for children, family and health-improving rest.

UAE economic growth is one of the highest in the world. In the last five years the economy has come up average by 9.3%, thanks to high oil prices. In 2007, the rapid growth in construction, tourism and banking sectors played the key role in raising the nominal GDP(Gross Domestic Product) of the UAE by 16.5%. Real GDP grew by 7.4%. Proceeds from the sale of oil and gas have given 35% of the country's GDP. According to the UAE Central Bank estimates , economic growth in 2008 was 6.6%. CCI Abu Dhabi (Chamber of Commerce) gave a more optimistic rate – 8.2% in 2009 and 13% in 2010. Based on these growth rates Dubai has a strategic plan for the development of the economy by 2015, Abu Dhabi – 2030.

The United States of America is one of the leading countries in the world. The level of the annual income per capita allegedly amounts to 41.930 million. According to the investment bank, "Merrill Lynch," the UAE houses to 78,000 millioners, the total state of whom exceeds $ 160 billion. UAE budget for 2010 was a record 43.6 billion derhamiv (12.1 billion dollars. U.S.), the revenue is about 8, 5 thousand million dollars. The U.S. budget deficit under is 3%. The increase in expenditure side of the budget compared to the previous year is due to an increase in defense spending ($ 1.6 billion, or 26% of the budget), as well as social needs, especially for the construction of free housing for indigenous inhabitants ($ 1.22 billion) [3].

Compared to 2009, the volume of the UAE's oil exports in 2010 increased by 23% and re-exports by 13%. It should be noted that in 2009, the overall export and re-export of the country amounted to 209.6 billion dollars. As for the export of UAE, it involves the sale of products and materials, such as gold, diamonds, oil, aluminum and steel.

UAE imports on average grow up by 7-10%. In 2009, imports amounted to 193.5% billion of USA. The list includes such imported goods as machinery, industrial equipment, agricultural products and automobiles.

The economy of UAE is interesting, because there is well-built political system, the stability of the economy and the pace of economic growth. This country has a free economic zone. In 2010, economic growth in the UAE reached record levels – 284,5 billion derham (77, 5 billion), which is in excess of 43 times of a gross proceeds since the country creation 33 years ago [2].

The increase in oil production in the United Arab Emirates in 2008 led to the profit in this sector which amounted to 37.6 billion dollars, while retaining the positive balance of foreign payments and control of inflationary tendency.

The largest economy after Saudi Arabia, the economy of Arab region will be the more successful, better the government can organize the distribution of incoming capital investments between various objects. Diversification is the foundation of economic doctrine and strategy development. The Member country in terms of oil production in the world's top ten, managed to build an advanced infrastructure on the basis of its existing vast hydrocarbon reserves. It is this infrastructure that will provide the development of other manufacturing and service industries, which, in turn, is determined to diversify their sources of income. The country took the top as for tourist destinations and now attracts millions of tourists from around the world [4].

A large-scale campaign of economic diversification (formerly the main and almost the only was the oil sector), and a massive investment "attack" with the new strategy of multisectoral allocation of resources, given the results in the last four decades of the UAE's tourism industry have made almost tenfold somersault [5].

40 years ago, the tourist industry was 1%, today this figure reaches 10.4%. Nowadays, the tourism is on the same level as the key sectors, that are not in the oil block in terms of their participation in the formation of the UAE's GDP. Emirates Hotels Chain is unparalleled in the region, both in the quality of tourism services, and, at its leading facilities.

Family holiday and adventure tourism do not lag behind: their equipment is also on the level of the highest world standards.

The increase the flow of tourists contributed to the development of such industry as civil aviation. Active (10–12% per year) growth rate of tourists promoted the fact that only in 2009 the number of passengers recorded in the airport of Dubai was close to 50 million. The role of national airlines (including, «Emirates», «Etihad Airways» and «Air Arabia») is appreciated highly. Thanks to carriers the country not only received the status of the world's largest transport interchange, but also got into a list of preferences of tourists, who estimated it as available to any citizen of the world, irrespective of his or her residence, which also contributes to the structure of the national economy.

The UAE is a major player in the global capital markets through investment agencies such as the Board of Investment of Abu Dhabi, "Dubai World Ports", "Dubai Holding" and the International Petroleum Investment Company of Abu Dhabi (IPIC) [1].

The country has a number of opportunities in the future to reach a higher level of development. While many current suppliers of oil reserves are rapidly being depleted, the UAE are provided with the proven reserves for at least a hundred years (at current production volumes of liquid fuels). In addition, due to the development of SEZ (Special Economic Zone), diversified exports, greater involvement of foreign tourists, the country can develop alternative oil sectors of the economy, to some extent, to eliminate possible negative economic effects of fluctuations in the world market prices of crude oil. Finally, the banking system, including Islamic banks, provides income for the fact continues to rise, the state and society. Thus, we can say that the UAE national economy as a whole has a real prospect to achieve even higher levels of economic and social development.

The list of references:

1. Centre for Strategic Research and Initiatives UAE (ESCCR)

2. Ministry of Finance and Industry, UAE [Web resource]. – Access mode:

3. Business and politics // Russian Emirates. – 2008. – № 1–6.

4. UAE business portal contains a wealth of information on free economic zones [Web resource]. – Access mode:

5. General information on the United Arab Emirates [Web resource] // Internet magazine "Russian Emirates". – Access mode: