Trading partners of the UAE
Top trading partners
Japan-At 17.2% Japan is the largest consumer of UAE goods(ciaworldfactbook). This is not a hard fact to when you take a look at Japans enormous economy and it's high need to produce the enrergy needed to keep that economy going. Coupled with the geographic location proximaty and like-minded economic philosophpy, you begin to understand why Japan is the top importer of the UAE.
Top exports
Top export of the UAE is, as you can imagine, oil. At 45% of all exports of the UAE, oil represents nearly half of total exports. The other half is represented by natural gas, reexports, dried fish and dates(ciaworldfactbook)
Top imports
Top imports of the UAE include, but are not limited to, machinery, transport equipment, chemicals and food.
Pattern of trade
The pattern of trade dovetails perfectly with the overall implications of comparitive advantage. The UAE is without a doubt the "Skipper" when it comes to oil output while much of the rest of the world must be secure in thier role as "Gilligan". As discussed in earlier pages, the specialized focus of the UAE on oil output is not the long-term solution they are seeking. With more investments on other areas of productions and alternate energy solutions the UAE can be much better off in the future. The UAE could be self-sufficient in many areas and be competetive, but to use limited resources, like labor and land to produce food or machinery would be exactly like the "Skipper" using all of his time to build huts and cook fish dinners. It is a much more efficient and profitable use of resouces to focus on oil output and to import machinery and food at lower costs.
Japan-At 17.2% Japan is the largest consumer of UAE goods(ciaworldfactbook). This is not a hard fact to when you take a look at Japans enormous economy and it's high need to produce the enrergy needed to keep that economy going. Coupled with the geographic location proximaty and like-minded economic philosophpy, you begin to understand why Japan is the top importer of the UAE.
Top exports
Top export of the UAE is, as you can imagine, oil. At 45% of all exports of the UAE, oil represents nearly half of total exports. The other half is represented by natural gas, reexports, dried fish and dates(ciaworldfactbook)
Top imports
Top imports of the UAE include, but are not limited to, machinery, transport equipment, chemicals and food.
Pattern of trade
The pattern of trade dovetails perfectly with the overall implications of comparitive advantage. The UAE is without a doubt the "Skipper" when it comes to oil output while much of the rest of the world must be secure in thier role as "Gilligan". As discussed in earlier pages, the specialized focus of the UAE on oil output is not the long-term solution they are seeking. With more investments on other areas of productions and alternate energy solutions the UAE can be much better off in the future. The UAE could be self-sufficient in many areas and be competetive, but to use limited resources, like labor and land to produce food or machinery would be exactly like the "Skipper" using all of his time to build huts and cook fish dinners. It is a much more efficient and profitable use of resouces to focus on oil output and to import machinery and food at lower costs.
