The Imports And Exports Of Dubai Economics Essay
Aim
The aim of our survey is to demo UAE ‘s Imports and Exports flow through the state ‘s economic system and its influence on its providers, retail merchants, and consumer buying power. And to supply you with Dubai ‘s economic development in precise its function in UAE ‘s full economic system. We besides provide you with numerical statistics to demo the addition and lessening of UAE ‘s imports, exports, and GDP.
Introduction
UAE has been a really strong trade centre for many old ages, really celebrated for its trade in Cu, oil, and pearls. About 60 per centum of UAE ‘s petroleum oil and gas is exported to Japan, until it became the 3rd most of import re-exporter. Its population has been increasing in the past old ages consequently the demand is acquiring higher for importing and re-exporting demands taking an addition in the degree of single outgo.
Dubai Economy
Dubai ‘s economic system is one of the most singular economic systems in the universe. As in the free port responsibilities there are no revenue enhancements to be charged for imported goods and as in free zones such as Jebel Ali, Dubai marine metropolis, and Dubai Internet and Media City which have ever attracted a batch of foreign investors. It has recently combined the cyberspace and media zone to go TECOM ( Dubai engineering Electronic Commerce and media free zone ) . Within this topographic point you can happen multi international and national immense houses such as Microsoft, IBM, BBC, CNN, Sky intelligence and other associated imperativeness. Dubai ‘s Income has reached 17 % of one-year growing rate from 2000 to 2006 by 68.21 million and increased finally in 2009 to 68.397 million. The oil Industry has a noticeable portion while natural gas and crude oil contributed with less than 6 % . On the other manus what had the largest portion of all was the existent estate market. In add-on Dubai ‘s banking sector, including authorities services, hotels, eating houses, were elastic plenty during the economic systems depression.
Dubai broad economic policy and universe category installations helped develop it to be the Arabian Gulf Prime Minister concern centre and to be called the Hub City. It ‘s ideal attractive civilization pulled many local and expatriate concerns to settle at that place for its vibrant and forceful market economic systems. Many factors contributed in Dubai ‘s success, such as Dubai economic and politic stableness, minimal authorities control over the private sector, stable exchange rates, and universe category service sector with the best substructure installations every bit good as extremely utilised two havens, free zones, lading small town, international airdrome, in highly flexible, low-cost and efficient public-service corporations. The greatly living conditions which is Dubai ‘s private sector that includes occupants, commercial belongingss, and leisure installations, makes it the ideal location for superior life, along with a clean environment, modern life style, authorities tolerance and a broad scope of goods and services. Finally the rapid development of the fabrication sector had made it the most profitable sector with its major accomplishments in the foreign trade web giving investors extended pick in exporting merchandises such as metal merchandises, fabrics, gold and jewellery, electronics, refined crude oil, etc.
Foreign Trade in Dubai
At the late 2008 foreign trading was traveling down, Dubai ‘s economic system was booming. After the oils discovery it was the chief ground for UAE ‘s rapid development and by exporting it to other states due to its strategic location on the Persian Gulf. Dubai is located at the centre of two ports Port Rashid and the Jebel Ali Port, where extremely valued and low volume goods are being transported to all topographic points via extreme installations. Most of Dubai ‘s trade is over sea which is estimated to be about 152bn which is about 52 % of Dubai ‘s full foreign trade minutess. Even though Dubai is noted for its oil and gas production but sardonically it merely makes 5 % , while non0oil exports present 80 % in this country.
Dubai ( Imports & A ; Exports )
Addition in Population and demand both raised the value and sum of imports in UAE. This for certain increased the competition among the Asian states which has the biggest portion of the market and 2nd comes the European states and 3rd comes the US. Not to bury Dubai ‘s gold market, which was recorded to import about 360 dozenss of gold by 1998, but the bead in the Indian rupee against the American dollar affected the Indian demand on gold from Dubai after it has been at the top for many old ages in add-on to the Indian ‘s authorities new policy about leting European states to import gold straight from Switzerland, UK, S.Africa, Korea, and Russia.
Despite all what Dubai ‘s economic system is traveling through, India remains Dubai largest spouse in both imports and exports, adverting Iran as the largest export finish through free zone, while China comes to be Dubai ‘s top import spouse. It has been recorded that by 2005 Dubai authorities about invested about 11 billion in undertakings, which raised the foreign trade from 112 to 280 billion dirhams from between 2001 and 2005, increasing Dubai ‘s GDP from 170 % to 200 % . Dubai ‘s ideal port makes it the best location for foreign trade, Including the first category, good equipped airdromes and monolithic sea port to ease all kinds of imports and exports. Dubai oil and gas production makes merely 2 % of the province ‘s economic system, while it contributes in 82.2 % of non-oil exports. Such as dried fish, day of the months, and bit metals which are shipped to states such as Japan, India, Taiwan, China and US.
US Census Bureau foreign trade statistics
U.S. Imports from United Arab Emirates by 5-digit End-Use Code
2005-2009
( In 1000s of dollars )
End-Use Code
Value 2005
Value 2006
Value 2007
Value 2008
Value 2009
( 00000 ) Green java
0
0
0
0
111
( 00110 ) Dairy merchandises and eggs
0
6
2
0
68
( 00120 ) Fruits and readyings, including frozen juices
1,014
738
789
649
529
( 00130 ) Vegetables and readyings
688
1,381
2,014
6,262
5,289
( 00140 ) Nuts and readyings
402
367
10
228
45
( 00150 ) Food oils and oil-rich seeds
6
25
22
78
520
( 00160 ) Bakery and confectionary merchandises
3,179
3,637
3,516
1,561
793
( 00170 ) Tea, spices, and readyings
146
149
187
286
496
( 00180 ) Other ( soft drinks, processed java, etc. )
1,118
1,438
1,888
2,770
2,655
( 00200 ) Feedstuff and nutrient grains
1,676
1,809
1,442
7,816
8,041
( 01000 ) Fish and shellfish
28,655
25,701
21,178
10,806
7,049
( 10000 ) Petroleum
230,748
157,355
232,633
161,603
688,428
( 10010 ) Fuel oil
0
8,156
5,380
34,831
854
( 10020 ) Other crude oil merchandises
18,499
44,150
34,079
7,700
13,867
hypertext transfer protocol: //www.census.gov/foreigntrade/statistics/product/enduse/exports/c5200.html U.S. Exports and Imports to United Arab Emirates, Retrieved on April 28th 2010 1:00 am
U.S. Exports to United Arab Emirates by 5-digit End-Use Code 2005-2009
( In 1000s of dollars )
End-Use Code
Value 2005
Value 2006
Value 2007
Value 2008
Value 2009
( 00000 ) Wheat
2,590
1,534
40,772
7,561
19,132
( 00010 ) Rice
2,393
2,386
3,331
8,701
8,337
( 00100 ) Soies
53
35,472
32,566
133
222
( 00110 ) Oilseeds, nutrient oils
7,848
6,896
30,822
41,473
23,008
( 00200 ) Corn
4,058
11,327
13,087
17,782
22,526
( 00210 ) Sorghum, barley, oats
847
8
1,875
14
47
( 00220 ) Animal provenders, n.e.c.
6,870
9,775
17,095
40,904
171,463
( 00300 ) Meat, domestic fowl, etc.
17,341
20,265
37,996
84,953
72,819
( 00310 ) Dairy merchandises and eggs
4,803
4,286
9,135
15,180
10,200
( 00320 ) Fruits, frozen juices
26,935
30,232
35,146
58,265
74,444
( 00330 ) Vegetables
14,177
11,455
9,786
27,061
20,453
( 00340 ) Nuts
57,166
86,682
111,449
104,869
179,737
( 00350 ) Bakery merchandises
14,832
26,085
26,780
29,096
34,053
( 00360 ) Other nutrients
36,889
29,737
40,195
54,823
63,941
( 00370 ) Wine and related merchandises
4,668
4,415
5,637
6,056
4,852
( 01000 ) Fish and shellfish
2,426
3,610
4,931
5,628
4,852
( 01010 ) Alcoholic drinks, excepting vino
2,682
4,098
4,386
7,143
5,703
hypertext transfer protocol: //www.census.gov/foreigntrade/statistics/product/enduse/exports/c5200.html U.S. Exports and Imports to United Arab Emirates, Retrieved on April 28th 2010 1:00 am
Trade with United Arab Emirates: 2009
Note: All figures are in 1000000s of U.S. dollars, and non seasonally adjusted unless otherwise specified.
Calendar month
Exports
Imports
Balance
January 2009
1,116.0
73.2
1,042.8
February 2009
1,144.0
110.8
1,033.2
March 2009
1,314.9
89.8
1,225.1
April 2009
904.5
137.6
766.9
May 2009
944.0
138.3
805.7
June 2009
970.3
183.3
787.1
July 2009
849.0
360.3
488.7
August 2009
794.8
114.1
680.7
September 2009
784.6
64.3
720.3
October 2009
1,134.2
62.5
1,071.7
November 2009
1,057.1
87.5
969.6
December 2009
1,093.8
75.2
1,018.6
Sum
12,107.3
1,496.8
10,610.5
Trade with United Arab Emirates: 2008
Note: All figures are in 1000000s of U.S. dollars, and non seasonally adjusted unless otherwise specified.
Calendar month
Exports
Imports
Balance
January 2008
953.4
80.5
873.0
February 2008
1,049.4
134.7
914.7
March 2008
836.8
129.0
707.8
April 2008
1,108.7
110.0
998.6
May 2008
1,180.0
101.9
1,078.2
June 2008
1,174.8
96.7
1,078.1
July 2008
1,109.3
202.3
907.1
August 2008
1,559.1
84.5
1,474.6
September 2008
1,068.7
83.7
985.0
October 2008
1,329.2
108.5
1,220.6
November 2008
1,532.5
67.9
1,464.6
December 2008
1,515.5
86.5
1,429.0
Sum
14,417.4
1,286.2
13,131.2
hypertext transfer protocol: //www.census.gov/foreign-trade/balance/c0007.html Trade with United Arab Emirates, , Retrieved on April 28th 2010 1:00 am.
Dubai Markets
Dubai Financial Market
DWTC ( Dubai World Trade Center ) which is the Middle East ‘s prima finish for all conferences, exhibitions and events. Which includes DIFC ( Dubai International Finance Center ) is one of Dubai ‘s most celebrated stock market sites, which gives you the chance to go to the largest minutess and cardinal undertakings held in the metropolis. In add-on to all kinds of important exhibitions held in the DICEC ( Dubai international convention and exhibition centre ) .
Dubai Tourism Market
Emirates Airlines is Dubai ‘s national local air line that has over 37 flights daily from north to east. Tourism in Dubai has been estimated to hold over 100,000 visitants to come in daily for touristry and willing to remain for more than a hebdomad. Dubai has provided visitants with all kinds of amusement which include sea trips, chopper drives, beach parties, broad shopping scope Malls, desert campaign, and a epicurean assortment of hotels, nines, and important sites to be visited.
Dubai Film Market
Has been really keen where Dubai holds its well known movie festivals that make it possible for the universe ‘s film and transnational films, managers and histrions to garner in one topographic point stressing the international movie production and trade. Besides the procedure of bring forthing high Cinetech digitized movies and docudramas.
Dubai Flea Market
It ‘s a 2nd manus market where people can purchase and sell everything used, such as family merchandises, furniture, fabrics, electrical equipment, apparels, etc.
Dubai Real Estate Market
The flourishing existent estate sector has ever been Dubai ‘s trade, where it had been the first metropolis to build the tallest khalifa tower, and the adult male made thenar, and the celebrated seven star Burj Al Arab. But after Dubai ‘s fiscal crisis Abu Dhabi has lent Dubai $ 25bn to assist wrap up their duties and even belongings monetary values have fallen up to 60 % merely to promote people on purchasing more belongings in order to assist advancing the market.
Dubai Fund market:
Fund market specialized in publishing and exchange short term fiscal tools which are able to interchange into fiscal liquidness and the day of the month of adulthood wage ability to these documents which are the most utile during three months or to a whole twelvemonth.
Fund sedimentations are a good manner for low hazards investings to accomplish regular income and maintain the chief value to money.
Fund market in Dubai faces a large crisis during planetary fiscal crisis and this petition is from international fund to happen a speedy solution to Dubai national group loans that need to get the better of this crisis and re-schedule it.
The connexion between the Emirate DH and American dollar offered mean stableness in Dubai.
Dubai Predial markets:
It makes personal rating because there is no cardinal market to Predial circulation despite the usage of Predial transition. Predial Dubai markets are more attractive to the holders and merchandising is raised in predial market in Dubai in a rate of % 0.7 at the terminal of 2009. It stabled during the first one-fourth of 2010, entered 30000 abode units to Dubai market in 2010.
Dubai Free zone Trade:
The Dubai Government worked to set up a free zone in Dubai Airport and other country in Jebel Ali to ease the investings in comparatively simple processs. And opening a concern in free zones in Dubai is really suited for companies that wished to utilize Dubai as a fabrication and regional distribution topographic point. As most of the gross revenues in Dubai that will travel out of the state. And the most of import aim of set uping Dubai ‘s free zones is to lend to the development and growing procedure.
The characteristics of Dubai Location:
% 100 foreign belongings.
Exemption from all import responsibilities.
% 100 turning the capital and net incomes abroad.
Free of system revenue enhancements which applied in Dubai in add-on to warrant of regenerating the rental contract for 15 old ages.
A plentiful of inexpensive energy.
The installations of employment that offer a high labour competition with good experient people.
To promote employment and cut down unemployment.
Some of the negatives:
The possibility to turn some countries from exporting to outside the state is to smuggling merchandises inside the state.
The possibility of the dominant of the capitals from certain nationalities in these countries because of the installations that deprived the national economic system from these investings inside it.
GDP growing Rate in UAE
What is GDP?
The gross domestic merchandise is the consequence of the measuring of all the goods and services that a state produces over a specific period of clip, normally a twelvemonth. The GDP focuses on the market value of the goods and services in order to make to a figure that is used to govern the growing rate of the state ‘s economic system.
Why GDP is of import?
It helps each state to mensurate the growing of its economic system and this is the chief importance of GDP.
GDP is of import to compare the growing of the economic system among different clip periods like comparing the economic system ‘s growing in the current one-fourth with a old one-fourth in the old twelvemonth that can assist in comparing or finding in which period the economic system was confronting much growing.
Calculating the GDP makes it easier to compare the size and growing Rate of any state in a short clip.
The Federal Reserve uses the GDP to find whether to lift up the involvement rates or to fall them down in order to promote or keep the economic system.
The GDP growing rate in the UAE:
The UAE ‘s gross domestic merchandise increased in the last two old ages 2008 and 2009 and faced a wider addition in the current twelvemonth 2010.
In 2008 and 2009, the GDP growing rate was 23.25 % from a sum of 163 billion dollars or 0.26 % of the whole economic system in the universe.
The UAE is non merely a really unfastened state and has a high per capita income for its population, but besides it has a big annual excess for its trade that was a chief ground for promoting the variegation of the economic system. As a consequence, the UAE ‘s GDP will turn and boom and lift up.
After detecting oil, everything in the UAE has changed, including the GDP has increased because of the success of economic system, which made the state more successful and prosperity.
Of class, when the production of the state becomes more, the entire GDP of the whole state will go more. And besides some of the analysts studied the growing rate of gross domestic merchandise in the UAE from the twelvemonth of detecting oil and gas tell the twelvemonth of 2009 and found out that in the last 30 old ages the UAE was n’t halting looking for more beginnings of income and that ‘s why the entire GDP of the state is lifting in a high per centum.
GDP growing Rate in the UAE in 2010:
There are many points of position about the per centum of the whole GDP growing in the UAE in 2010. Most of the analysts recognized that the UAE gross domestic merchandise is traveling to turn with a per centum between 3 % and 3.2 % , but few of them was stating that the entire GDP growing will non make to more than 2.5 % in the twelvemonth of 2010.
The analysis was stating that the chief ground for this low outlook was the fiscal crises that happened to the UAE ‘s economic system and stock market that reduced the sum of production and the per capita income for everyone which led to a really slow growing in the GDP rate. And particularly in Dubai:
Dubai is one of the UAE ‘s seven emirates and it was the best metropolis that accompanied the development that happened in the state. Dubai was seeking to be the first metropolis in production and development and it has achieved the hoped end. Since the find of oil and gas, Dubai was turning in a really high per centum in everything. It could hold the authorization to be the first metropolis in the whole UAE.
But after the fiscal downswing that happened in 2009, Dubai faced a really immense lessening in the entire GDP growing Rate that had reached to 0.6 % . Most of the companies were detaining on the stocks that they were purchasing and selling in the stock market in order to complete a undertaking or open a concern. But after that everything was damaged and Dubai was merely seeking to pay the debts that it has been implicated in it. They are holding a GDP growing rate of 0-1 % in the current twelvemonth and anticipating to acquire out of this job in the following months and being able to acquire back to hold a really high GDP growing rate in the hereafter.
Drumhead
UAE has been celebrated for its trade in Cu, oil, and pearls. About 60 per centum of UAE ‘s petroleum oil and gas is exported to Japan, until it became the 3rd most of import re-exporter ; its population has been increasing in the past old ages. Dubai ‘s economic system is one of the most singular economic systems in the universe. As in the free port responsibilities there are no revenue enhancements to be charged for imported goods and as in free zones. The oil Industry has a noticeable portion while natural gas and crude oil contributed with less than 6 % . In add-on Dubai ‘s banking sector, including authorities services, hotels, eating houses, were elastic plenty during the economic systems depression. Dubai broad economic policy and universe category installations helped develop it to be the Arabian Gulf Prime Minister concern centre and to be called the Hub City. Dubai has four different markets, which are Dubai Financial Market, Dubai Tourism Market, Dubai Film Market, Dubai Real Estate Market, and Dubai Real Estate Market. Foreign trade in Dubai is increasing twenty-four hours by twenty-four hours ; it includes free zones, imposts warehouses. The increasing monetary value of oil is playing a really of import function in the field of foreign trade in Dubai. This leads to the addition in authorities grosss and the attendant public disbursement on development undertakings. Construction roar and the tourer and commercial development are cardinal functions in this affair. Gas is going more and more of import, both for export, and for run intoing local demand, from consumers and from power coevals and H2O desalinization workss. Increase in the Population and demand both raised the value and sum of imports in UAE. This for certain increased the competition among the Asian states which has the biggest portion of the market and 2nd comes the European states and 3rd comes the US.
Despite all what Dubai ‘s economic system is traveling through, India remains Dubai largest spouse in both imports and exports, adverting Iran as the largest export finish through free zone, while China comes to be Dubai ‘s top import spouse.
Decision
Dubai had ever the advantage of being a clip zone span to link Far East and west states with its strategic location. Its turning population besides plays a immense function in turning the mean trade by 11 % per twelvemonth and liberalisation demand hiking farther. While its diverseness leting the handiness of merchandise providers and re-exporters to happen their chances and bring forthing their import demands by suiting them with over 120 transportation lines and via 85 air hoses to more than 130 finishs, with no exchange controls nor trade barriers.
