Thesis: Effect of Global Economic Crisis on UAE

Sample Thesis Paper

The recession caused significant implications on the UAE Financial Markets as fluctuations showed tendencies towards sharp declines, contributing to a decrease in market capitalization and the price earning ration at the Abu Dhabi Securities Market (Central Bank of the United Arab Emirates 2009). The overall implication on the UAE financial market was that the share prices came down to levels lower than those observed in other emerging economies.

As a result of the global recession, economic growth fell to almost 3.4% in 2008. Advanced economies that are powered by strong industrial infrastructures experienced a decline in the rate of growth. In 2008, the USA’s growth came down to 1.1% to 2.0% while the rate of growth in Japan came down to 0.3% from 2.4%. France experienced a decline from 2.2% to 0.8% with Germany recording a decline from 2.5% to 1.3% (Central Bank of the United Arab Emirates 2009). Economies that were following the Euro experienced a decline from 2.8% to 2.5% in terms of economic growth while the UK fell from 3.0% to 0.7%. Asian Economies also experienced a decrease where the average economic growth fell from 5.6% to 2.1%. The implications of the recession were also observed in the area of global trade of goods and services. Trade across the world experienced a downward turn when it was recorded at 3.9% in 2008 as opposed to 5.0% in 2007.

The recession in the UAE remained less violent in its impact since high oil prices provided the UAE with vital funds alongside the Central Bank’s decision of allowing companies based in the UAE access to liquidity support facilities. These measures were taken by the Central Bank in collaboration with the Ministry of Finance (Central Bank of the United Arab Emirates 2009).

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