United Arab Emirates (UAE) is a dynamic country with a population of 9,441,129, ranking 94th globally, just behind Israel. Located in the Middle East, it spans 98,647.9 square kilometers, ranking 104th in the world, just below Korea, Republic of.
The United Arab Emirates (UAE) holds a strong economic position in 2022, with a GDP of $507,063,968,273.313, ranking 28th globally. It follows Israel, whose GDP stands at $525,002,447,652.773. The GDP per capita in the UAE is $53,707.9801, placing it at the 19th position worldwide, trailing behind Israel with a GDP per capita of $54,930.9388.
The UAE’s economy is diverse, with a focus on oil exports, tourism, and financial services, contributing to its robust economic standing on the global stage.
What are the economic activities of United Arab Emirates?
- Primary activities: 0.9% of GDP.
- Secondary activities: 49.8% of GDP.
- Tertiary activities: 49.2% of GDP.
Primary Sector of United Arab Emirates
The primary sector in the United Arab Emirates, particularly its agricultural activities, is influenced by the arid desert climate and limited natural resources. With 5.51% of the land dedicated to agriculture, the country produces a variety of crops and animal products including dates, cucumbers/gherkins, camel milk, goat milk, tomatoes, eggs, goat meat, milk, chicken, and camel meat.
Despite contributing only 0.9% to the GDP, agriculture plays a crucial role in the UAE’s economy by providing employment opportunities, ensuring food security, and preserving traditional practices. The diverse range of agricultural products highlights the resilience and innovation within the country’s agricultural sector, contributing to its cultural heritage and sustainability efforts.
The country boasts diverse geological formations, leading to abundant natural resources. Its primary sector thrives on petroleum and natural gas extraction, driving the economy through export revenues and industrial growth.
The United Arab Emirates ranks 15th in the world for natural gas production, with 57,000 million m³ produced in 2020. This significant output fuels the country’s economic activity, contributing to export revenues and industrial expansion.
Secondary Sector of United Arab Emirates
What is the secondary sector or what are secondary activities?
The secondary sector involves industries that transform raw materials into finished products for consumption. In the United Arab Emirates, main industrial products include petroleum, petrochemicals, aluminum, cement, fertilizer, commercial ship repair, construction materials, handicrafts, and textiles.
Manufactures in the total exports of the United Arab Emirates in 2023 accounted for only 9.71%, indicating their relatively minor significance in the country’s export sector.
Tertiary sector of United Arab Emirates
What is the tertiary sector or what are tertiary activities?
The tertiary sector in the United Arab Emirates encompasses various services where individuals provide knowledge and time to enhance productivity and meet needs. This sector includes intangible goods like advice, expertise, and attention, catering to both consumers and businesses. Key tertiary activities in the UAE are healthcare and medical care, banking and finance, tourism and hospitality, transportation and logistics, telecommunications, and security and protection.
In particular, The tourism industry plays a crucial role in the economy of the United Arab Emirates. With over 25 million annual arrivals, contributing significantly to the GDP, it showcases the nation’s allure. Dubai and Abu Dhabi stand out as iconic destinations, captivating visitors with their stunning architecture, vibrant culture, and world-class attractions.
Another example of tertiary economic activity is the mobile cellular sector, boasting over 20 million subscriptions. This extensive connectivity fosters technological growth, enabling innovation and enhancing digital services across industries.
Military Activities and Economic Sectors of United Arab Emirates
The military is a good example of many economic activities. In the primary sector, the military needs resources like oil and metals for equipment. The secondary sector includes the manufacturing of weapons and vehicles. The tertiary sector involves services like training and logistics. The quaternary sector focuses on research and development for new technologies, while the quinary sector deals with high-level decisions and military strategies.
In 2023, the United Arab Emirates spent $25 billion on its military, which is 4.93% of its GDP. The active military force has 63,000 personnel, resulting in about 19.9 active military members for every 1,000 people in the country.
Biggest company in United Arab Emirates
Which is the biggest company in the United Arab Emirates? It’s International Holding Company, with a market value of $108.6 billion. Founded in 1990, it operates in the Food and Beverage industry within the tertiary economic sector, focusing on various consumer goods.
International Trade of United Arab Emirates
Import Activities of United Arab Emirates
The import activities of the United Arab Emirates are relatively low, accounting for only 0.07% of the GDP in 2023.
The United Arab Emirates engages in significant import activities, with key partners including China, India, the US, the UK, and Saudi Arabia. Major import commodities include gold, broadcasting equipment, refined petroleum, diamonds, and cars.
Exports Activities of United Arab Emirates
The United Arab Emirates heavily relies on exports, accounting for 79.28% of its GDP in 2023, totaling $402 billion. This high percentage highlights the critical importance of export activities in driving the country’s economy.
The United Arab Emirates primarily exports crude petroleum, refined petroleum, gold, broadcasting equipment, and natural gas. Its top export partners are India (13%), Japan (10%), China (8%), Saudi Arabia (7%), and Iraq (5%).
United Arab Emirates economy challenges in 2024
United Arab Emirates faces challenges in 2024 as it shifts from oil to trade, facing economic slowdown due to strained ties with Israel amidst Gaza conflict.
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