Mankind has progressed with a blazing fast velocity. Transformation of the existing destinations and the admittance of mutated terrains have amazed the entire world. Books of history recounting the tyranny of the brutal leaders adjudged democracy as the ‘best of the worst’ governance as no authorities have ever succeeded in pleasing the natives. However, the financial position of a one leader nation has just torn the proven psychologies of the past. United Arab Emirates, a monarchy is sitting in the lap of luxuries. Jeffrey Born, the professor of finance and insurance at Northeastern University elucidated some eye popping facts behind this implausible turnaround.
He echoed the dull days of 1970s when in an area of the Arabian Peninsula on the south coast of the Persian Gulf lied seven sheikdoms that formed a confederation known as the United Arab Emirates (UAE), when a 100- year protective treaty with Great Britain expired. Dubai is the second-largest emirate and it adopted its name from the major port city located on the Gulf. Oil, discovered in the early 1960s, accounts for 25 percent of the UAE’s total GDP, which rose to $206 billion in 2008. For comparison, when formed, the UAE had a GDP of approximately $1.5 billion.
The accomplishments of the oil dependent nation cannot be concealed from anyone but the dark truths exploring the intricate are hard to accept. UAE can be renamed as the most leveraged state in the world owing to its borrowings amounting to one hundred billion dollars, roughly three times the GDP of the emirate. With microscopic and rapidly dwindling oil and gas reserves, Dubai has to toil hard to match wits with the developed nations.
Harminder Singh