The Wealth of the UAE has historically come from the Oil Deposits in Abu Dhabi (The Capital of UAE). If Abu Dhabi runs out of Oil, the UAE economy will collapse. To what extent do you agree or disagree?
One wonders what would happen if the UAE taps last of its oil – a traditional source of prosperity. Even though some doomsayers predict catastrophic outcomes, the chances seem far less that one would expect.
The probability of the collapse of the economy of the UAE is remote. The regime has woken up to the reality of life without crude; thus, they have decided to divert into other profitable venues of capital generation that would lead to a stable economy. Abu Dhabi and Dubai are being promoted as industrial hubs, proving to be a prudent move as major global giants companies have shown their interest and started transferring their operations into this Middle East nation. This has boosted employment as they have started hiring locals, bolstering the job market tremendously.
Furthermore, tourism is another sector that has grown exponentially and is expected to become a multi-trillion dollars industry over the next two decades. These two domains cumulatively will be able to match the earnings of oil extraction, ruling out the possibility of this economy being shattered once the oil is exhausted.
However, despite holding little substance, the view of an imminent collapse being propagated is based on certain unproven assumptions that propose that, up to now, whatever has been earned by drilling and selling crude will be lost, by virtue of this country not focusing on any other sector. Other businesses established are simply ancillary to oil industry. Nevertheless, these speculations will hardly prevail once the diversified economy of this Arab country starts to churn out colossal economic performance.
Overall, after assessing the statement in detail, I strongly feel that the economy of the this nation will endure and instead prosper by being driven by other upcoming sectors, and all the forecasts will fall flat.
