Question: Explain how UAE economy has evolved from a traditional economy (during 1960s) to the current modern levels in terms of GDP and growth.

Expert answer

Since the 1960s, the UAE's economy has undergone a dramatic transformation. From a traditional economy based on agriculture and fishing, the UAE has become one of the world's leading oil-exporting nations and a modern, diversified economy with a strong focus on tourism and trade.

Over the past 50 years, the UAE's GDP has grown exponentially, reaching AED 1.4 trillion (US$386 billion) in 2014. This growth can be attributed to the country's vast oil reserves, which were discovered in the late 1960s. Oil exports quickly became the main source of income for the UAE government and helped to finance large-scale infrastructure projects across the country.

Today, oil exports still play an important role in the UAE economy, but the government has worked to diversify its income sources in recent years. The UAE is now a leading global hub for trade and tourism, and its economy is supported by a growing number of industries including finance, construction, manufacturing and hospitality.

The UAE's economic success is reflected in its strong GDP growth rates. The country's GDP grew by 4.6% in 2014, and is expected to continue growing at a similar rate in the coming years. This growth is underpinned by the UAE's stable political environment, pro-business policies and strategic location between Europe, Africa and Asia.

Looking to the future, the UAE government has set ambitious goals to further diversify the economy and reduce its dependence on oil revenues. The country's Vision 2021 plan sets out a roadmap for economic diversification and sustainable growth, and includes targets to increase the contribution of non-oil sectors to GDP, create new jobs and attract foreign investment.

The UAE's economy has come a long way in the past 50 years, evolving from a traditional agriculture-based economy to a modern, diversified powerhouse. Thanks to its rich natural resources, strategic location and pro-business environment, the UAE is well-positioned for continued economic growth in the years ahead.