Running Head: Economic
policies and tools
The United Arab Emirates is made up of seven states namely:
Abu Dhabi, Ajman, Dubai, Fujairah, Ras al khaiman, Sharjah and Umm al Qaiwan, governed
by a supreme council of rulers, usually comprising of the seven emirs, who in
turn appoint the cabinet and a prime minister (Peters, 2004). The cabinet and
the prime minister of the united Arab emirates has been able to come up with
various goals, policies and also set tools that would ensure the sustainable
development of both the people and the economy as a whole. The following are
the goals set to be established by the government in the United Arab Emirates.
One of the major goals
was to achieve better economic incentives and institutional regimes (Abed,
2001). This meant that trade incentives would be rationalized to encourage
business and investments, in a bid to ensure that this goal was met, the
government of the United Arab Emirates came up with various economic polices
over the last 12 months just to ensure that it is able to comfortably provide
the basic minimum needs of its nationals (Almezaini,2012). Among them was to
set out a long term strategic development program that revolved around
diversification of the economy to ensure that growth not related to oil is able
to improve and even overtake the earnings obtained from oil. This program was
dubbed Abu Dhabi Economic vision 2030.This is in the sense that the government
seeks to create a sustainable oil related economy with other sectors accounting
for about 64% of the G.D.P not inclusive of the G.D.P earned from oil.
Another goal was to
achieve sustainable and balanced development in all regions of the state. In
this case, a policy to promote equitable and sustainable development across all
the regions was developed. The economy majorly depended on fishing and the
pearling industry but this changed with the discovery of oil in 1962 (Peters, 2004).Through
implementation of the diversification policy, there was an influx realized
through the number of foreigners visiting the U.A.E and thus furthered the
incorporation of foreign expatriates. This has consequently led to a boom in
the business sector particularly the tourist industry which has in turn helped
to develop the construction industry through the construction of many schemes,
with the Dubai business center standing out. U.A.E’S largest state Abu Dhabi
holds most of the country’s reserves in terms of oil and gas reserves, and most
especially also standing out in the world with the second largest oil reserves
after Saudi Arabia (Oxford Business Group, 2007).
Another goal was to provide the best standers of
living to all the UAE nationals’ .This goal has so far been sustainably met through
the implementation of the education and human resources policy, knowledge and
empowerment was able to be boosted. The main objective of this policy was to
ensure that the society was well versed with the necessary skills with major
creative capabilities presented with various opportunities for quality
education in relation to self employment and employment capacities (United Arab
Emirates, 2011).In the long run, this would lead to the development of the country
in the major aspects. It is also noted that there are efforts to improve the
current education system in the country in order to create better outcomes. The
U.A.E is also making up business links to partner with the leading link in the world
so as to strengthen the education system. This way, a first rate education
system would be fostered and the people would be in a better position to
alleviate their living standards.
Creating Sustainable Environment and
Infrastructure was another major goal for the government. This was to be done
through the implementation of policy aimed, in the strengthening
of the innovation system. This was in a bid to help create knowledge economies
so as to make better use of the available assets and the various capabilities
in areas where there were weaker links. In order to foster this link, there
have been various indicators in relation to royalty and license fees and patent
grants by the U.S patent offices among others. This goal was also met through
the establishment of a dynamic information and communications structure in
order to facilitate effective communication.
The need to create a
strong global standing in relation to foreign matters was also deemed very paramount.
Thus the foreign policy was able to come in handy. Its main was to ensure that
diplomacy and negotiation with other foreign nations is maintained (Salloum, 2001).
It was meant to promote coexistence with other international countries in
regards to peace stabilti8y and national security. To ensure that this goal was
met and achieved, the government established channels through which dialogue and
meaningful partnerships have been promoted and the government has in turn
achieved the role of a good global citizen (Busch, n.d). This has in turn led
to a shift in their diplomacy levels with international consulates being opened
in the regions of Africa, central and South America, and also in central Asia (Masson,
2004).
It was also the goal of
the country to ensure an increase in the imports levels and investment levels.
Through the realignment of its foreign exchange policies by pegging the dirham
with the U.S dollar, stronger monetary value was created as well as a good
monetary policy came into being. This way, there was an increase in the number
of imports and foreign influx in the country increased through the foreign
investments done (United Arab Emirates, 2011).
The various policies stated above were able to
improve the economic and institutional framework in order to develop an
atmosphere of macroeconomic and political stability coupled with fair policies
through the various regulatory policies that would enable the growth and
development of the entrepreneurship atmosphere in the country (Rabi, 2007).
This way, many people would be empowered in the establishment of their own
business ventures and thus help to reduce unemployment incidences in the
country by also employing other people.
The fiscal policy of the country according to the
international monetary fund, was contractionary especially in the period
2010,which was mainly due to the contraction of the non-hydrocarbon fiscal
deficit by 35.2 % in the period 2010 as
compared to 44% which was earned in the period 2009 (United Arab Emirates,2011).This
contraction was mainly attributed to the fact that the government of Abu-Dhabi failed to implement the projects it
had been allocated at the desired pace ,either through entities led by the
government and through low transfers that were submitted to the Dubai
Government related entities (Badr-el-din,2007). However, the central bank in
the country has also adopted a monetary policy that is able to accommodate
while sustainably supporting the economy. This has been particularly important
in curbing high inflationary tendencies in the country despite the global
financial crisis that started in 2008.The debt crisis is also an issue of
considerable interest in the region despite the fact that there has been a fall
especially in the cost of living in relation to the cost of housing despite an
increase in other areas of the market.
Reference list
Almezaini, S, K, (2012),The UAE and foreign Policy:
Foreign Aid, Identities and Interests, Newyork, Rouletdge
Oxford Business Group, (2007), The report: Abu Dhabi
2007, New York, Oxford publishers.
Abed, I, Hellyer, P, (2001), United Arab Emirates: A
New Perspective. Chicago, Trident press ltd.
Badr-el-din, I , A(2007), Economic Co-Operation in
the Gulf: Issues in the Economies of the Arab Gulf Co-Operation Council States,
Newyork, Rouletdge.
Salloum, H. (2001). Exploring the United Arab
Emirates. Contemporary Review, 278(1625), 364.
Rabi, U. (2007). The United Arab Emirates - A study
in survival. Middle Eastern Studies, 43(6), 1012-1014. doi:10.1080/00263200701576454
Littlefield, D. W. (1978). The United Arab Emirates
(Book). Library Journal, 103(17), 1978.
Peters, J. (2004). A Historical Atlas of the United
Arab Emirates (Book). Booklist, 101(7), 649.
Busch, B. C. (n.d). The United Arab Emirates (Book
Review). American Historical Review, 84(3), 818.
Masson, S. (2004). Rubbing the lamp. Quadrant
Magazine, 48(1/2), 58.
United Arab Emirates. (2011). Columbia Electronic
Encyclopedia, 6th Edition, 1.
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