Exceptional Position of the UAE Economy
- 10 March 2015
Stable economic performance has been the main reason behind the UAE overcoming ramifications of the global economic crisis and protecting it from the stagnation, which hit many parts of the world including United States, Japan and the Euro Zone. The capacity acquired by its economy has, over the years, protected it from difficulties and helped the country emerge from slow progress in the beginning of the crisis to greater prosperity in the years that followed. This exceptional performance has attracted investors, capitalists, major corporations as well as those who seek secure and promising investment opportunities throughout the world.
Investors have been optimistic about the future of the UAE’s economy and have chosen to invest. The recent Emirates Investment Bank’s GCC Wealth Insight report has several indicators that testify to this. The report is based on a survey of High Net Worth Individuals (HNWIs) across the Gulf Cooperation Council (GCC) countries who have expressed their views on the future of the region as well as global economies. The survey reveals that 89 percent of the respondents are optimistic regarding the future of the UAE economy, which is ranked top among the GCC in this respect.
Investor satisfaction is one of the most important indicators for evaluating the economic performance of any country. Nowadays, this indicator is used as a tool to identify the opportunities of economic development which a country will acquire in the future. The optimism of HNWIs regarding the UAE’s future (which also indicates efficiency of its economic performance) is being viewed as the most significant stamp of approval for investment. Optimism regarding economic conditions of any country motivates them to increase their investment and this is bound to have further motivational impact on the overall growth.
The UAE economy’s stability has been the result of bold economic and monetary policies to which its leadership and government is committed. These policies have ensured continuity of the country’s spending on major projects in areas such as infrastructure, construction, renewable energy, industry, education and health. The UAE’s Central Bank has guaranteed the depositors’ money and propelled large sums of money under the disposal of national banks to be utilized whenever necessary. All necessary steps have been taken to assure investors about the future of their capital. These tools have helped the country’s economy emerge from the crisis, motivated it to grow and established its status among the investors.