Economical Analysis of different nations

Economic Growth of UAE

The UAE has been known to conduct a massive recovery in comparison with other developed markets. The nature of economy pertaining to UAE relies excessively on the aspect of its capacity to export oil successfully. Thus, the agencies in the context of UAE devote a great deal of attention on the aspect of different happenings taking place within the international energy markets (Al-Malkawi, & Pillai, 2013).

The UAE cannot successfully meet its economic targets without taking into account the intricacies within the international energy markets. The diverse happenings within the international energy markets have a huge contribution in shaping the process of successful oil export. The economic factors have a huge role to play in the context of shaping the overall success. Since the nature of changes taking place within an economy is highly uncertain, countries cannot predict the exact degree of implication they would be causing towards the economy as a whole. It has been observed that the ramifications arising out of global financial crisis significantly affected most of the economies.

If we take into account the economy of UAE, the effects from the global financial crisis were varied to a great extent. Since UAE is made up of different states and has different activities, the ramifications arising out of global financial crisis affected some states at an alarmingly high level while in some states it had a minimal impact (Hassan, & Halbouni, 2013). For instance, the state of Abu Dhabi, which is known to have a lion's share in UAE's oil reserves, the impact of global financial crisis was felt on a much smaller scale than Dubai. The reason Dubai suffered massively from the global financial crisis was that it relied excessively on the use of debt in shaping the infrastructure and other construction projects.

Dubai made a huge recovery in the year of 2013 due to its notable degree of resilience. For the success of UAE economy, it is favourable if there is a positive trend in the value of oil. It has a positive effect in shaping the success of UAE economy since it relies excessively on the aspect of oil exportation. Naturally, the declining value of oil would severely hamper the business activities of UAE since it would not be able to garner optimum output and profit from these activities. The debt crisis has been affecting the fortunes of UAE specifically Dubai to a great extent. It has only in the recent past made a significant recovery which has enhanced its economic efficiency. Abu Dhabi greatly assisted its debt ravaged partner Dubai by employing bailouts and thus is now considered as being a politically powerful state (Hassan, & Halbouni, 2013).

Political and economic risks

Looking at the current year in the context of Dubai's political and social environment, there has been a high degree of stability. The economy of UAE has moved rapidly from the complexities of 2011 Arab Spring as well as minimizing the risk of ...