Recent Events that Might Impact the Economy ~ United Arab Emirates
Dubai has experienced a downfall with their debt as it goes down to a loss of $26 million. The emirate could not keep the deal of giving $25 million to investors, causing Dubai to build up a bad reputation. This occurred just a few years ago during November, 2011. This relates to the economic concept of quantity supplied, the amount a supplier is willing and able to supply at a specific rate. Dubai was more than willing to pump gallons upon gallons of oil from their reserves but as time came near to giving the money to investors, they were just not able to sell the amount needed.
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Another impact in the UAE's economy took place in Abu Dhabi on November 3, 2016. As previously mentioned, oil is one of the most abundant resource that can be found in the United Arab Emirates. After years of being in debt, the capital of the UAE made a record number of 2.8 million gallons of oil per day. Their five year plan of making 3.5 million barrels of oil per day is going extremely well. Now the UAE is making very good progress with exporting oil across the world and it allows them to earn millions of dollars. The microeconomic concept that relates to this occurrence is GDP, gross domestic product. The dollar value of all final goods and services produced within the country's borders in a given year is GDP. Since the emirates were able to produce and exports tons of oil, their GDP of 2016 would rise at a drastically higher amount. The oil was produced within UAE, it is a final good meaning it is not part of another good, and all of these barrels were produced in the year of 2016. This makes it legible to be part of the recent year's gross domestic product.