Economic Analysis of Uae
Economy
The following section provides details regarding the economic environment present in the United Arab Emirates. The economic indicators listed below help us conclude what state the economy is in and whether or not a Harris expansion into the UAE is a good business decision. Overall, the UAE has an economy that is comparable to that of the United States. This is beneficial for Harris because there will be less risk moving into a sturdy economic environment. The UAE dirham is pegged to the currency of the US and has not fluctuated in many years. This reduces much of the exchange rate risk that Harris would normally face as a company looking to expand internationally. As demonstrated below, the UAE is an economically stable country that has good trade relations with the US and has a strong and capable workforce.
Historical Economic Aspects – The Discovery of Oil
The United Arab Emirates (UAE) formed in 1971 after obtaining its independence from Britain. Before the 1950s’ discovery of oil, the UAE’s economy greatly relied on fishing and was stuck in a declining industry. The oil discovery transformed an undeveloped, impoverished region into an upscale modern state with a high standard of living. In 1962 Dubai became the first of the emirates to begin exporting oil. Since then, the country’s society and economy have transformed (“United Arab Emirates,” 2012).
The president of the UAE at its beginning, Sheikh Zayed, was quick to seize the potential of the oil industry. Zayed supervised the emirates and concentrated oil revenues into improving healthcare, education, and the national infrastructure. The growing oil industry affected the population of the UAE by attracting a large entry of foreign workers. Together with the colonials, these foreigners now make up three fourths of the population. The discovery of oil has allowed the UAE to develop into one of the Middle East’s most important economic centers (“United Arab Emirates,” 2012).
Description of the
The following section provides details regarding the economic environment present in the United Arab Emirates. The economic indicators listed below help us conclude what state the economy is in and whether or not a Harris expansion into the UAE is a good business decision. Overall, the UAE has an economy that is comparable to that of the United States. This is beneficial for Harris because there will be less risk moving into a sturdy economic environment. The UAE dirham is pegged to the currency of the US and has not fluctuated in many years. This reduces much of the exchange rate risk that Harris would normally face as a company looking to expand internationally. As demonstrated below, the UAE is an economically stable country that has good trade relations with the US and has a strong and capable workforce.
Historical Economic Aspects – The Discovery of Oil
The United Arab Emirates (UAE) formed in 1971 after obtaining its independence from Britain. Before the 1950s’ discovery of oil, the UAE’s economy greatly relied on fishing and was stuck in a declining industry. The oil discovery transformed an undeveloped, impoverished region into an upscale modern state with a high standard of living. In 1962 Dubai became the first of the emirates to begin exporting oil. Since then, the country’s society and economy have transformed (“United Arab Emirates,” 2012).
The president of the UAE at its beginning, Sheikh Zayed, was quick to seize the potential of the oil industry. Zayed supervised the emirates and concentrated oil revenues into improving healthcare, education, and the national infrastructure. The growing oil industry affected the population of the UAE by attracting a large entry of foreign workers. Together with the colonials, these foreigners now make up three fourths of the population. The discovery of oil has allowed the UAE to develop into one of the Middle East’s most important economic centers (“United Arab Emirates,” 2012).
Description of the