UAE In The Past And Present

UAE IN THE PAST AND PRESENT 4

UAEIn The Past And Present

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UAEin the Past and Present

Theeconomy and political structure of the UAE have tremendously changedfor the past 20 years. IT has influenced many investors fromdifferent parts of the globe since the discovery of oil thuscontributing to increased wealth. In the past, the economy of UAE wasdistorted, and poverty was rampant especially in the small Trucialstates, which practiced herding, fishing, and agriculture. However,after the British government united the Sheikhdoms states, theireconomic status changed because of increased trade and high-incomeper capita. In the past, each emirate had a ruling family structureand local government, but they current have a federation of sevenstates. The federation of these states was formed after independencefrom Britain thus, the UAE is now a sovereign government(Fox,Mourtada-Sabbah,&ampMutawa,2006).&nbspSincethis sovereignty, the UAE became among the wealthiest states becauseof abundant petroleum oil that they export to other countries. TheUAE is currently the wealth states due to increased investment in thecountry and high economic activities such as tourism, financial,construction and real estate services. However, the economy heavilyrelies on the natural gas and oil, the revenue from exports thusenabling the government to finance infrastructure developmenteffectively.

TheNeed to Unite The Sheikhdoms or Trucial States and Its Advantages

Therewas a need to unite the sheikhdoms or the Trucial states of UAE toend dependency. The 40th National Day in UAE was a good occasion forthe transition process that led seven trucial states to enter theworld stage as one independent federation. The advantages of unitingTrucial states include the contribution of economic progress andpolitical stability that marked the beginning of success. The Britishregime initiative contributed to the independence of the Trucialstates(Fox,Mourtada-Sabbah,&ampMutawa,2006).It became apparent that the seven Trucial states were too minor toexist as autonomous states without foreign protection(Fox,Mourtada-Sabbah,&ampMutawa,2006).Increased poverty among these states was rampant, but the creation offederation and unity led to their economic growth. The vast oilwealth in UAE played a key role by offering the Sheikdoms withnecessary economic resources for physical development.

Reference

Fox,J. W., Mourtada-Sabbah, N., &ampMutawa, M. A. (2006).&nbspGlobalizationand the Gulf.London:

Routledge.