section_path: Economy
section_name: Economy
paragraph_text: Economy
  
  The United Arab Emirates has developed from a juxtaposition of Bedouin tribes to one of the world's wealthiest states in only about 50 years, boasting one of the highest GDP (PPP) per capita figures in the world. Economic growth has been impressive and steady throughout the history of this young confederation of emirates with brief periods of recessions only, e.g. in the global financial and economic crisis years 2008–09, and a couple of more mixed years starting in 2015 and persisting until 2019. Between 2000 and 2018, average real gross domestic product (GDP) growth was at close to 4%. It is the second largest economy in the GCC (after Saudi Arabia), with a nominal gross domestic product (GDP) of US$414.2 billion, and a real GDP of 392.8 billion constant 2010 USD in 2018. Since its independence in 1971, the UAE's economy has grown by nearly 231 times to 1.45 trillion AED in 2013. The non-oil trade has grown to 1.2 trillion AED, a growth by around 28 times from 1981 to 2012. Supported by the world's seventh-largest oil reserves and aided by prudent investments coupled with a resolute commitment to economic liberalism and strong governmental oversight, the UAE has witnessed its real GDP increase by more than three times over the past four decades. Presently, the UAE is among the wealthiest countries globally, with GDP per capita nearly 80% higher than the OECD average.
  
  As impressive as economic growth has been in the UAE, the total population has increased from just around 550,000 in 1975 to close to 10 million in 2018. This growth is mainly due to the influx of foreign workers into the country, making the national population a minority. The UAE features a unique labour market system, in which residence in the UAE is conditional on stringent visa rules. This system is a major advantage in terms of macroeconomic stability, as labour supply adjusts quickly to demand throughout economic business cycles. This allows the government to keep unemployment in the country on a very low level of less than 3%, and it also gives the government more leeway in terms of macroeconomic policies – where other governments often need to make trade-offs between fighting unemployment and fighting inflation.
  
  Between 2014 and 2018, the accommodation and food, education, information and communication, arts and recreation, and real estate sectors overperformed in terms of growth, whereas the construction, logistics, professional services, public, and oil and gas sectors underperformed.
  
  As for competitiveness, in June 2024 it was reported that the UAE has moved up three place to the 7th place among the top 10 countries in the IMD World Competitiveness. This ranking is issued by the World Competitiveness Centre of the Institute for Management Development (IMD) in Switzerland.