Having seen that the UAE as an outfit is a conglomeration of seven nations, it is plain obvious that the constitution of each and every nation has a direct effect on the performance of the UAE exports. This is because, each and every individual country even in the face of global and regional partnership seeks to ensure that there is a favourable balance of trade. This attempt to ensure that the import to exports ratio is minimal, is bound to adversely affect the rate at which the products and services of UAE.
This may not auger well with the export rates of the UAE. UAE Policies that encourage international trade. It is through the adoption adoption of the international policy that is aimed at bolstering the cause of international trade that the UAE has been able to consolidate its rank as the the third largest producer of oil in the world. It is also because of these policies that the UAE has been able to found a free or liberal economy that has ever since its inception, remained expansive.
It is also because of the UAE open or liberal economic policies that the UAE was able to conduct a non oil commercial undertakings that from 1986 to 1993 has been increasing its annual rate, having realised a 17% increase in the profit margin. This realisation of profit totaled 17. 5 US billion dollars. The prospects of the UAE realising more profit is not dwindling either. On the contrary, the UAE showed a continuity in its profiteering when in 2004, it realised a 62. 7 billion US dollars profit.
This is according to World Bank (2002, 211). It is on this backdrop that the UAE member states have continued to also maintain their rank as the world’s chief centres of exports, courtesy of the fact that these seven member states take to serve a market that comprises over one billion individual clients, with the Middle East, the former Union of the Socialist Soviet Russia and countries that are found in the sub continent of India, making up the vast pool of the clients’ base.
Other clients come from the South and East Africa. However, there are others who see the increment in the UAE welfare (sustainability, probability and expansion) as merely having been propagated by the Second World War. The scholars and others in this group who see lucidity in these sentiments posit that it is not fortuitous that the Trucial States otherwise known as the Trucial Oman were formed under the tutelage and participation of the Great Britain.
At this time, Great Britain was a major participant in the Second World War. This is because the agreement merely took place at the close of the 19th century, an epoch that ushered in the 20th century, whose first quarter was marked with war at a global level. It did not take more than three decades when the Second World War erupted. These theorists posit that the underpinnings of the UAE success is chiefly political, though this political factor cuts across the international spectrum.
To this party, the sole intention behind the formation of the UAE was chiefly, the increase of the Great Britain’s economic and political might, a feat that was perfected through the formation of the Allies by the Great Britain herself. Scholars such as Khan and Pal (2006, 88) who are staunch proponents of this thought, continue to elucidate that the cause of the two World Wars championed the sustainability, profitability, success and the expansion of the UAE.
This group points out that behind the growth of UAE, there was a demand for energy materials and resources such as oil, resources whose availability were very important during the First World War, the Second World War and the Cold War. This state of global affair really needed the resources that these countries in the Arabian Peninsula had. Some of these resources that were now needed were oil and oil resources together with other sources of energy such as uranium.
It is held by International Relations Committee (1996, 187) that this catapulted the UAE into a place of prominent importance. Others in the field have made postulations that the prospects of realising any sustainability, profitability and progress for the UAE are purely matters that are pegged on the manner in which the logistics of the UAE are set. At the same time, this body continues that the way in which the UAE policies are ratified and executed are the very reasons that can be blamed or accredited for the success of the UAE.
This group maintains that the better the policies and the more feasible and harmonious the rules and regulations of the UAE are, the greater the chances for the UAE realising its goals will be (Linden 2003, 62). This team, consisting of scholars and key practitioners in the business and corporate sectors point at the stand offs that undercut the UAE member states, causing this regional outfit to forfeit a lot of profit, during the 1970- 1980s dispute that pitted Abu Dhabi and the rest of the UAE member states against each other.
These spates of stand offs was seen to have hampered almost all forms of communication channels and avenues of correspondence. This state of affairs was epitomised by the UAE taking to participate in the global coalition during the War of the Persian Gulf that took place in 1991. Sassen (2002, 56) points out that this development was marked by a deep deficit on the side of the UAE, a state that prevailed upon the UAE to reconsider its stance over her diplomatic relations with the Persian Gulf and Abu Dhabi.