Ways the Government is Trying to Encourage Economic Growth ~ United Arab Emirates
There are several different ways the government of the UAE is trying to help economic growth. One major idea that is being put to place is the building of a new railroad. The etihad railroad is expected to be finished in 2021. This is an example of an economic concept called capital deepening. This means there is a process of increasing the amount of capital per worker. For this railroad a lot of imports are being made from other countries. With more physical capital, workers have more availability for tools and other resources to build this railroad. This new structure will help transport work at a faster rate, in other words goods and services can be moved from one place to another quickly. The next economic concept is investment, income not used for consumption. One way the government of the United Arab Emirates wants to increase their economic growth is by maintaining strong financial reserves. This then allows room for investment by firms and consumers. Also, UAE is keeping banks durable so others can invest safely. The funds that are used for long-term investment help capital deepening.