UAE is a country located in the Middle East bordering the Gulf of Oman and the Persian Gulf. Its neighbouring countries are Saudi Arabia & Oman. Its strategic location ranges from southern approaches to Strait of Hormuz, the transit point for world's crude oil. United Arab Emirates economy is an open market economy where the prices of goods and services are determined in a free price system. United Arab Emirates is also a member of the Council of Arab Economic Unity (CAEU).
2. The aim of this project is to discuss the diversification of the economy of UAE In non-oil sector mainly the tourism and financial sector and to investigate on which factors the economy of the country is being dependent. UAE's economic condition before and after the discovery of the oil has changed a lot. The aspects which has also been covered in this project are the UAE's foreign economic relation. Its import and export, finance and banking and all the factors which somehow or the other influences the economy of the country have been mentioned.
3. ECONOMY Overview: In the 20 years since the oil was discovered and was exported, since then UAE has been distorted from pearling, fishing, herding, and agriculture to the modern state with higher per capita income and substantial type of trade surplus. The wealthiest and the largest of the emirate, Abu Dhabi, is the principal type of petroleum producer and is considered as the financier of this alliance. Dubai, is the second major emirate, which derives wealth from tourism, construction, the telecommunications, media, the real estate, and financial services and altogether, these two emirates provide around more than 75 to 80 % of the whole economy of the UAE. The key of the economics is the policy regarding the decisions which is completed at the various emirate levels with the coordination's which are among the seven of the emirates.
UAE's current macroeconomic performance and near term outlook seems favourable.
