Go Native has expanded into the UAE.  For any companies or individuals looking at doing business in the UAE here is a snapshot of their economy.

Economy an Overview
The United Arab Emirates (UAE) is a federation of seven Middle-Eastern states, formed in 1971. Of these states, Abu Dhabi and Dubai are by far the most well known. These two states, alone, are responsible for around 85 per cent of the UAE’s GDP. Over the last forty years, the UAE has grown to become one of the Middle East’s economic centres. This rapid growth has been funded by vast oil riches. The UAE has a per capita GDP that rivals those of leading Western European nations and is one of the most developed and open economies in the Middle East. Over the past decade the UAE has been one of the fastest growing economies in the world; however, the global recession has slowed growth.

Growth and Trade
Between 2005 and 2007 the UAE economy boomed. Oil revenues were high, and housing shortages, along with cheap credit and strong liquidity, led to a surge in asset prices (shares and real estate) and a boom in construction (particularly in Dubai). The global financial crisis, the resulting freeze in credit markets, and falling oil prices have slowed the UAE’s growth. In December, 2009 Abu Dhabi had to bail out Dubai after the government was unable to pay large foreign debts that had accrued during the boom years. Abu Dhabi is the more stable of the UAE’s two prominent states because it still has sizable oil reserves. Dubai’s oil reserves are greatly diminished.

The UAE has a sizable annual trade surplus, mostly because of its vast oil exports. The federation is a member of the WTO, OPEC and the Cooperation Council for the Arab States of the Gulf. The country has free trade zones in both Abu Dhabi and Dubai which have helped attract foreign investment. The UAE has a trade agreement with the US and is looking to negotiate a free trade agreement. The Abu Dhabi Investment Authority is one of the largest sovereign wealth funds in the world and manages a large portfolio of overseas investments.

Industry
The UAE has the world’s 7th largest oil reserves. Oil is, obviously, a major industry; however, both Dubai and Abu Dhabi have managed to diversify their economies. Only around 25 per cent of GDP is based on oil and gas output. The authorities that govern Abu Dhabi and Dubai have worked hard to nurture business services, tourism and construction sectors. Construction and tourism in particular have boomed. During the credit boom of the 00’s Dubai sought to turn itself into a financial centre to rival New York, London and Hong Kong. Dubai has also undertaken numerous high profile and increasingly ambitious construction projects; however, the property market has experienced a major downturn in 2008/2009.

Government Policy
Over the years, the oil industry has attracted an influx of foreign workers and expatriates who now make up more than three quarters of the population. Part of the countries long-term strategy is to reduce dependence on foreign nationals and improve education and employment opportunities for UAE nationals. Diversification efforts will continue and increased privatisation of utilities is likely to occur. In recent years the UAE has increased spending on job creation and infrastructure expansion. The global financial crisis has hit Dubai harder than, oil-rich, Abu Dhabi. There is speculation that the balance of power in the UAE could shift back to its traditional political centre (Abu Dhabi). Real GDP growth for 2009 is forecast to be around 2 per cent. GDP growth is expected to rise to about 4 per cent in 2010.

Go Native in the UAE

Any requirements you may have for Serviced Apartments in the UAE can be directed through our Country Manager Alessandro Cernuschi.