UAE to recover fast from the global recession

The United Arab Emirates (UAE), a federation of seven emirates that include Abu Dhabi, Dubai, Sharjah, Ajman, Umm al-Quwain, Ras al-Khaimah and Fujairah, has been a major contributor to the Middle East's economic progress. Rich in oil and natural gas, the UAE has gained from the direct foreign investment that entered the region in the 1970s. To date, the UAE has achieved a world-class status for its various economic and political achievements. The federation's GDP per capita is currently the 14th in the world and 3rd in the Middle East after Qatar and Kuwait as measured by the CIA World Factbook, or the 17th in the world as measured by the International Monetary Fund. It is currently one of the fastest growing economies in the world fed by a massive construction boom, an expanding manufacturing base, and a thriving services sector. Construction projects have been estimated at over $350 billion, and included such major projects as the Burj Dubai, which is slated to become the world's tallest building, Dubai World Central International Airport which, when completed, will be the most expensive airport ever built, and the three Palm Islands, the largest artificial islands in the world. While the repercussions of the global financial crisis affecting economies around the world have caught the Gulf region by surprise that the emirates are now trying to cope with such condition, the oil revenues and the fact that most of the emirates have diversified their industries are creating some sort of immunity from the harsh effects of the global recession. Economy Minister H.E. Sultan bin Saeed Al Mansouri, who just wrapped up a tour of the United States, said that the UAE economy was undergoing a huge expansion and diversification "which requires a clear understanding of impact of that growth on our desert environment." In his presentation in the United States, he stressed that the UAE is facing many challenges prompting the implementation of new initiatives. Most analysts believe so. The UAE is now reaping the benefits from its non-oil industries and is now in a better position for an early recovery than other countries in the Gulf region by the end of the year. Adding to the positive factor is the federation's vast wealth and experience in crisis management. While the UAE economy is projected to grow by 3% ? 5% this year, other regions in the world could still wallow in economic decline. An ideal investment site There is no denying that the UAE has become one of the best investment destinations and most liberal economies in the world. International reports ranked the country 24th in terms of foreign direct investment and 15th in terms of economic freedom. In the Arab world, the UAE has topped the list in terms of economic freedom. These are accomplishments that reflected economic strength and political stability in the wake of a global economic crisis. And even in the event of falling world crude prices, the UAE is still being projected to recover and gain momentum in the second half of this year due to its huge oil revenues, sound policies and strong financial structure. The two-day 2nd UAE Global Investment Forum held in April this year reflected the sentiments of most analysts on the UAE becoming a favourable destination. With the adoption of balanced economic policies and appropriate legislative environment under the leadership of President HH Sheikh Khalifa bin Zayed Al Nahyan, the UAE has remained a competitive environment for investors. Foreign direct investments' annual flow into the UAE is currently around $19 billion, and increased of another 10% in the Emirate of Abu Dhabi to $5 billion in 2007. In 2008, Dubai became the number one city in the world for FDI, surpassing London, Shanghai and Beijing. Downtime is best time The UAE's industrialisation drive gathered momentum after a long lull in 2001, when the first steel produMercurial X Proximo