The UAE succeeded in managing and directing its economy amid various global challenges, including sharp fluctuations in oil prices, through a package of flexible economic policies that enabled it to gradually disengage from oil, diversify sources of income and prepare its economy for the post-oil era, which dispelled any fears of Prices fell.
With the passage of time, the success of the UAE’s strategies in converting oil crises into opportunities for economic diversification, which gave it strong immunity against oil market shocks, and the ability to adapt to the new reality of the International Monetary Fund’s certification, were confirmed thanks to the rational management of oil revenues in times of rise, and sovereign funds that are a valve Safety for the post-oil era.
Through the policy of economic diversification, the UAE has succeeded in turning 5 decades into converting fears of total dependence on oil revenues into a blessing, those fears that are absorbing the negative effects of falling prices or optimal exploitation of the large flows of money earned from exporting oil.
The phrase “we will celebrate the export of the last barrel of oil” that His Highness Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander in Chief of the Armed Forces has always highlighted, in his speech at the government summit in 2015, especially at a time when global oil prices are at low levels.
The UAE proved that it is able to withstand various economic conditions, and continued to build investment markets through which it attracted foreign direct investments, which in turn contributed to enhancing GDP, and recorded clear progress and remarkable prosperity in a number of vital non-oil sectors, headed by industry, construction, and real estate, financial services, hospitality, tourism, and travel.
The gross domestic product, which is the true indicator of how strong or weak economic performance is, underlines the fact that the non-oil sector dominates the national economy by more than 70%, which makes the national economy one of the region’s most diversified and developed economies.
And the country’s success in diversifying its economy and nurturing its non-oil sectors has made it side by side as one of the largest oil producers, and one of the most open economies in the world, despite various economic challenges.
The opinions of economists and oil experts who surveyed the “economic statement” agreed on the ability of the UAE economy to overcome the impact of the decline in oil prices, demonstrating this by the economic diversification of the country, which earned it immunity and immunity against external economic shocks in general, where economic reforms over the decades have produced the desired results.
According to the International Monetary Fund, the country continues to adapt well to the new reality in oil markets. This adjustment is facilitated and protects the economy and the financial system that the Emirates possesses large financial reserves and a diversified economy, in addition to the strong policies applied by the authorities to confront these developments.