Financial Sector in the UAE Essay Example | Topics and Well Written Essays - 1750 words

Financial Sector in the UAE - Essay Example Subsequent to that, financial sector, employment and UAE’s GDP have been elaborated. Then, monetary policy effectiveness has been included. Inflation is provided before the balance of payments; and, before the summary, trade has been described. Financial Sector of the UAE The financial sector works as the backbone of the UAE’s economy. The financial services sector plays a pivotal role and has significantly contributed towards the diversification of the UAE’s economic strategy. And, Abu Dhabi and Dubai’s financial sectors, which are the main contributors of the UAE’s economy, from 2007 to 2008, registered their contribution of 40.7% and 41.7 % respectively (KAMCO Research, 2011). However, the subsequent wave of the global financial crisis greatly affected the profitability of the financial sector and at the same time, credit conditions also shrunk to a considerable extent. And, this fact can be authenticated by the provided contribution of the finan cial sector in the year of 2007 was 7.1% and which declined in 2008 to the level of 6.8 %. Its implications appeared in the shape of a decline in liquidity levels along with the reduction in the ability of the financial institutions to provide the same level of credit facilities that they used to provide before the emergence of the global financial crisis; and, the impacts of the crisis were so severe that the leaders of Abu Dhabi were required to intervene and provide financial assistance to Dubai; whose share of the financial sector declined and reached to the level of 39.7 % whilst Abu Dhabi’s inclined to 41.4% in the year of 2008; and, the same year observed in the reduction of foreign lending activity as well. However, despite the impacts of the global financial crisis and the subsequent reduction of the financial sector towards the UAE’s economy, the parallel growth in the non-oil sector even in the crisis period, the UAE’s budget surplus and the export ea rnings, which provide a considerable portion of economic output, have provided a fundamental source of the funding, necessary to feed the needs of the existing infrastructure and developments projects. Financial Sector, Employment and UAE’s GDP The service sector in the UAE contributes employment to 58 percent of the total workforce (Shihab, 2001). And, the service sector consists of trade, restaurants, transport, hotels, communication, storage, finance, real estate, insurance, community, business service, personal and social services. And, this highlights the importance of the financial sectors towards employment in the country. And, the rest of section of employment is provided by the oil industry; which is the main source of inflows. And, the level of employment provided by the oil sector can also be understood from the fact that the UAE’s is third largest oil producing country in the world. Undoubtedly, this highlights the significance of the financial sector, in w hich a considerable number of foreign and local banks serve in the country, for the GPD of UAE in terms of employment. And, in terms of GDP distribution by the seven emirates, the contribution of Abu Dhabi towards the UAE’s GDP is the biggest; and, is followed by the emirates of Dubai and Sharjah respectively. During the period of 2004 to 2008, Abu Dhabi’s aggregate contribution for the UAE’s GDP remained 53% to 57% during the period. In the year of 2008, Abu Dhabi’

Global ,societal,and contemporary lssues Research Proposal

Global ,societal,and contemporary lssues - Research Proposal Example Regarding global economy, the engineering profession is likely to change in the next 20 years due to developments in the global economy. The energy consumption in the world is expected to rise because of rapidly increasing population. Thus, the major source of fuel that is fossil fuel may diminish and fail to provide enough energy to cater for the population. At the same time, more emphasis is on the development of energy from renewable sources in order counter the effects of global warming caused by use of fossil fuels (Wuestenhagen 2689). Therefore, electrical engineering will change to accommodate the need to produce energy from alternative sources other than fossil fuels. These alternative sources include solar energy, geothermal energy, and wind energy. Concerning societal impact, the electronic engineering profession has documented a number of inventions and technological developments that have had impacts on societies and cultures. For instance, cell phones have eased communication across places and countries, even in the remotest regions of the world. This faster communication is of great advantage because it enhance faster transfer of information, and allows individuals to connect with family members who are far. At the same time, cell phones have had negative impacts on communities including contributing to anti-social behaviors among friends and family members (Baron 5). Thus, interaction between individuals has become digital more than physical leading to introduction of digital culture. Contemporary technical issues in engineering include nanotechnology, which plays an important role in the society. Nanotechnology is a combination of science and engineering disciplines that deal with units larger than molecules and atoms, but fall in the range of 1-100 nanometers (BBC 2). Nanotechnology has been applied in several aspects of life including medicine to