Overview on Australia's and Uae's Economy

1- Introduction

In This report we will be discussing, analyzing and comparing the economies of the United Arab Emirates and Australia in a period of 8 years (2003 to 2011). The main goal of the report will be to study the GDP growth, as an important factor of comparing how an economy is doing. it will allow us to compare GDP's and ignore the difference in size and population as it is a percentage value. GDP per capita will also illuminate the factor of scaling and will make comparing economies with different population and income easier, it will also show the indusial contribution to the economy. we will use this two factors along with unemployment rates and show how Australia and UAE economies behaved and how did they recovered in the global financial crisis and we will discuss the future option for growing the economy in these two countries

1.1 UNITED ARAB EMIRATES

The UAE is located on the Persian gulf. Just like any of the GCC countries UAE income is manly from the oil rents in exporting .UAE currently has one of the fastest growing economies in the world nominal GDP rose by 20.8% in 2012 to $360 billion

Although the United Arab Emirates is trying to depend less on natural resources(oil and gas ) by developing other sectors such as construction sector, (currently there is a $350 billion worth construction projects)1 recently the UAE is started to look for other sources of revenue's such as High-class tourism as well as developing free zones like financial , internet, and media free zones in order to attract investments but still 85 % of UAE economy is based on oil and gas exporting. In fact we can clearly see from figure 1 and figure 2 how the GDP of UAE is in proportional relation with oil prices

The UAE government has concentrated on spending on infrastructure expansion, and in building up utilities to support private sector. a study was conducted by ADCED (ABU DHABI COUNCIL FOR ECONOMIC DEVELOPMENT) shows that the non-oil industry contribution will reach around 64% of the UAE economy by the year 2030 and that is a huge change since all world summits and all researches are putting a lot of effort on renewal energy this step will require a lot of spending on green constructions and environment friendly power source. So Moving to non-oil sectors will be a smart idea now.

1.2 Australia

We can say that the Australian economy was very stable for the last 20 years low unemployment and low inflation also for 15 years the Australian economy was growing with an average annual rate of 3.6 %

Australia has many natural resources mineral and energy resources such as coal

Australia depending have taken advantage of the developing of china and India in order to export the raw materials from it is natural resources recently Australian economy have benefited from the china ambitions in expanding and taking huge projects in the middle east and Africa an economist at the International Monetary Fund, estimates that roughly 12% of Australia's GDP growth during the past 10 years can be attributed to trade with China in fact trading with china is the what saved Australia from facing recession after the 2008 financial crisis The Australian economy now also moving towards the service sector ( tourism , education ..etc. )

2. Variables

For comparing this two countries we have chosen 3 variable the GDP growth / GDP per capita and unemployment rates. Studying the GDP growth and the GDP per capita will give us a very clear idea about the how this two economies works and it will make it easier to find similarities and differences These variables will give us a clear picture about how did these two economies behaved in the crisis and how they recovered and whether there is a future risk on their economy or not

2.1 GDP Growth

The GDP growth of the UAE has started to fall by the beginning of 2007 and that is due to the oil price falling and since UAE's economy is mainly depends on oil as well as the investments in the USA

in 2009 the GDP starts to grow again but at very slow rate this growth was due to the efforts the government of UAE have but to recover from the crisis they have increased the expenditure on tourism and on non-oil sectors in general. Recovering from the crisis is not easy huge construction started to take place recovering from the crisis was easy on UAE than other countries due to the small population and the amount of liquidized assets in the country

Australia in