I don’t understand the UAE Economy

September17

UAE is the 7nth largest producer of Oil. We rank 17nth in term for GDP per capita. All this numbers suggest that people in Dubai have a lot of money. The local population comprises of 16.5% of the population, rest is expats.

The oil income goes to the government. This income is used for infrastructure. Majority of the big construction companies are owned by locals. Same with any other major industry. So basically the flow of money here is making Jobs for expats. This expats are keen to save and send the money to their country. They know sooner or later they have to settle there.

So a good part of the wealth is controlled by locals. Locals like to spend on luxury goods, the luxury goods store owner is again a local. As far as the needs of expats are concerned a lot of people are already doing it.

I am not sure what kind of business would thrive here. I am not sure if this is the rite business environment. I am not sure if this is the rite demographics.

 

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