Oil & Gas reserves:

UAE has almost 10 percent of world’s oil (proven reserves), while the gas reserves amount to 4 percent of global reserves. According to Middle East government portal, these reserves can last well over 150 years. Recently when soaring oil prices took a toll on all and sundry, this part of the world remained mostly unscathed. Among the seven states, Abu Dhabi is the biggest producer, producing more than 80 percent of the total UAE oil and gas production. There’s hardly any chance that oil consumption and demand will go down in future, so the black gold will continue to fuel economic growth.

Construction & Real Estate:

Dubai has done remarkably well as far as real estate market is concerned. Grand projects like “The Palm”, “Burj ul Arab” or “The World” managed to draw investors from all over the world. Abu Dhabi and other states are also working in this sector. The demand will be much stronger than the supply even after the completion of ongoing projects. Real estate investors are now much more interested in UAE properties, after the credit crunch in US market, considering it a safer option than others.

High-Class Tourism Industry:

Biggest shopping mall, tallest building of the world, indoor ski resort, white beaches, deserts, man-made islands, some of the most luxurious hotels in the world, crime free environment, rich cultural heritage, international sports event, to sum up, UAE has got tourists attractions in abundance. Tourism industry contributes significantly in over all GDP and it will continue to do so in the coming years. Many development projects are in progress; world-class airports, bridges and other infrastructure programs are about to complete.

It’s not that UAE is somehow immune to whatever happens globally, but with ample oil reserves, strong real estate market, foreign investments and an exuberant tourism industry, UAE is better equipped to put up with such situations.

William King is the director of Pakistan Real Estate & Properties and Dubai Property Portal. He has 18 years of experience in the marketing and trading industries and has been helping retailers and startups with their product sourcing, promotion, marketing and supply chain requirements.

Article Source: http://EzineArticles.com/?expert=William_King

Not that the earlier estimates were wrong, and UAE economy is deemed to go down with the recession, but then we are living in a global village and you can’t just detach an economy from those who are having trouble. All things considered, UAE may well be able to put up with the ongoing recession, but this economic unrest will definitely weaken the economy pillars.

Real Estate & Construction:
In past three years, we saw magnificent growth in Dubai real estate market. Properties were sold like hot cakes; mega projects announced one after another, land reclamation projects, world’s tallest buildings, huge shopping malls and what not. Is it over? You’d ask. Well, certainly not, however the things (e.g. property flipping) are going to calm down to some extent. Construction will not come to a halt anytime soon but will surely drop (you’d have been reading a lot about those 25 percent of world total cranes operating in Dubai, a few of these giant machines can have a break now). Same is the case with real estate prices, they will continue to rise but not at that maddening speed.

Financial Market:
Hardly anyone would have suspected it to reach UAE, but the financial crisis that started from US has been spreading like jungle fire. Even now, the situation in UAE is not that dismal by any means, and it’s unlikely to get that worse (oil exports will keep bringing in the much needed capital, particularly in Abu Dhabi). But the banks and other conventional lenders are already panicked, which has resulted in high interest rates. Unavailability of finance will most likely be a problem that Dubai government has to sort out (Dubai has recently got a huge financial aid from Abu Dhabi).

Tourism:
It’s not much of a brainteaser for anybody to realize that recession will have a negative affect on tourism industry, especially when most of the tourists coming to the Emirates are from regions that are believed to be the most affected ones (UK, America or Europe). Instead of spending on traveling, people will be looking to save more for tough times ahead. Among all Emirates, Dubai will be hardest hit by this plunge in tourism.

Generally speaking, the picture may not be that rosy in UAE but it will look a lot healthier when judged against the wobbling economies of US or Europe.

William King is the director of UAE & Dubai Real Estate & Property Portal and Karachi Real Estate & Karachi Property. He has 18 years of experience in the marketing and trading industries and has been helping retailers and startups with their product sourcing, promotion, marketing and supply chain requirements.

Article Source: http://EzineArticles.com/?expert=William_King

Significantly, the segment has grown at a time when nearly all other sectors are bleeding due to the ongoing economic turmoil. Motivated by the robust growth and increasing demand, Indian SMEs in the FMCG sector are eyeing foreign markets to expand their footprint.

The UAE has an open economy and a high per capita income. Owing to its rich oil resources, the Emirates have evolved into highly developed and industrialised markets for foreign investors, including Indian SMEs.

On the trading front, India is one of the foremost trading partners of the UAE. In 2007-08, India’s exports to the UAE stood at $15,634.56 million.** In recent times, the demand for Indian consumer goods has increased at a steady pace in the UAE. As a result, a large number of Indian FMCG exporters have established trade linkages with their counterparts in the Emirates to tap this burgeoning market.

UAE’s FMCG sector weathers recession

In recent times, the FMCG sector in the UAE has achieved phenomenal growth. It has remained largely insulated from the adverse impact of the global economic crisis.

According to trade analysts, the demand and consumption of consumer durables will continue to rise in the UAE in the near term. Hence, market experts foresee that the Emirates will emerge as a key export destination for Indian SMEs in the FMCG segment.

Indian SMEs can capitalize on the duty sops extended by the UAE government on the import of components required for manufacturing consumer durables by setting up their manufacturing units there. Furthermore, Indian FMCG companies can grab a significant market share of the UAE market by offering B2b Products at competitive prices.

However, it is imperative for Indian SMEs to assess the market thoroughly before venturing into it. These companies can also collaborate with FMCG players in the UAE market to achieve long-term growth.

With bilateral trade between India and the UAE poised to exceed $25 billion by 2010, Indian SMEs can cash in on the demand for consumer goods in the latter.

David Parks is a well known author and has written articles on B2b Yellow Pages, B2B Portal, Computers Manufacturers, suppliers, manufactures and many other subjects.

Article Source: http://EzineArticles.com/?expert=David_K_Parks

Although domestic demand and consumption have increased considerably in the past few months, Indian food manufacturers, especially the small-sized enterprises, are exploring new destinations to increase exports.

Market overview.
The UAE is among the world’s most economically developed countries. One of the largest producers of oil in the world, the UAE is a lucrative market for foreign investors. According to trade analysts, UAE’s economy will continue to grow even at a time when most developed markets are struggling due to the economic recession. This projection is attracting a growing number of small-sized Indian food companies to tap this burgeoning market.

The UAE imports around 60% of its food from Asian and African countries. Owing to the huge demand for cereals and other food products in the UAE, the country has approached Asian countries like India and Pakistan to supply rice, wheat and other food products.

Statistics reveal that over three-quarters of India’s food product exports are supplied to the Gulf region.[ii] India primarily exports vegetables, meat, dairy products and confectionery to the UAE.

Food for thought.
Food exports to the UAE are estimated at around $3 billion annually. To increase this volume and gain from the UAE’s business-friendly environment, Indian Food companies should offer high-quality products to consumers who have a high purchasing power.

To gain easy access to the UAE food market, several small-sized Indian food companies have collaborated with their counterparts in the region. Several trade fairs and conferences have also been organised in the UAE to help Indian SMEs explore the potential of the UAE’s food market. Indian exhibitors have recorded strong participation at Gulfood, one of the biggest food exhibitions in the region.

The Indian government is also looking at boosting trade in agro products with the UAE to help Indian SMEs capture market share in the region. Meanwhile, the UAE government has also shown interest in investing in the Indian agriculture sector.

With both countries showing a commitment to enhance the scope of mutual trade and investment, Indian food companies, particularly the SMEs, can look forward to a profitable outing in the UAE.

David Parks is a well known author and has written articles on Leather Manufacturers, B2B Portal, Toys Manufacturers, suppliers, Manufacturers and many other subjects.

Article Source: http://EzineArticles.com/?expert=David_K_Parks