Before digging deep into the topic, there is a question that has to be answered- When can we say a nation is economically stable? Let us keep UAE apart for a while and focus on this question. Undeniably, lots of factors contribute to economic stability. But when there is more productivity, increased efficiencies and lower unemployment rates, very little or no inflation economic stability is almost achieved. Stable growth in economy is yet another factor that can be taken into consideration.
A country must thrive for economic stability
and brilliance. In short all the factors contributing to the economic progress should be maintained without any unpredicted major and frequent fluctuations. Economic stability should never be confused for an ideal situation where there isn’t a single recession within the country. That’s not just practical. There can be some recessions, recoveries and then the climbing back to the top phase. But if there are major and unpredictable gap and huge differences between these stages, the country’s economy isn’t stable.
If you keep a constant eye on the UAE Currency exchange rate is has remained quite stable after the economic recession of 2009. But can we really blame UAE for that? No, we cannot. The recession was global and it affected even the United States of America in 2008. UAE’s economy still did pretty well for that time and by the end of the year the economic crises has almost vanished and 2011 again marked peak for UAE. Companies, which provide Business Consultations such as Garant Business Consultancy DMCC, – very important service provider for those who are planning invest money to UAE.
What is Dubai’s present economic Situation?
Although Dubai’s economic crisis 2009 had a different story all together. Unlike UAE, the nation as whole, Dubai wasn’t affected by oil or gas. It is often referred as “debt crisis” by the economists. The emirate had many ongoing real estate and civil projects that landed the state in debt to the rest of the emirates. And that’s when the world’s tallest skyscraper previously called as Burj Dubai became Burj Khalifa- the ruler of Abu Dhabi as Dubai owed Abu Dhabi a fair ransom of amount. Now that Dubai has had a real estate boom, it has become not only world’s most desired tourist destination but also a residential and business hub.
Even if you see the currency exchange rate it has quite maintained itself. In the year 2015 the Gross Domestic product of UAE increased at a rate of 3.90 percent and ever since then it has been constantly growing. However, some doubt the economic stability as 2012 had a GDP raise of 7.8 percent after which it dropped down to an average of 4 percent. As of now the economy remains quite stable and constantly growing.