U.S. - UAE TRADE AND POLICY

United Arab Emirates investment in United States and policy reforms

United Arab Emirates investment in United States and policy reforms

Introduction

United Arab Emirates (UAE) is the constitutional federation of seven states in Middle East. The federation was established at the end of 1971. Abu Dhabi is the capital of UAE.

As UAE main driver of the economy is petroleum reserves. But it is noted that UAE is not only depended on its oil trade but also persuaded trade linearization, free marketing policies to shape the economy in a way which distributes the dependence solely on fossil fuel. It is noted that there is a rapid growth in nonoil trade is noted, and it has reduced the share of oil trade from 60 percent of GDP in 1980 to around 39 percent in 2007. In 2004, United State (U.S.) and UAE entered in to trade agreement to promote and increase the trade activities between both states, named Trade and Investment Framework Agreement (TIFA) (U.S. Trade, 2013).

UAE currently holds 34th position in trading with U.S. and their trading partnered around $18.3 billion. In this total trade the exports of UAE to U.S totals of $ 2.4 billion. In trades with U.S., UAE is the 65th largest supplier of goods to U.S. in 2011. It was approximately 113% increase from 2010, the major exports consist of; aluminium, iron and steel products, precious stones and other special mineral fuel and crude oil (U.S. Trade, 2013). It is a good sign for both countries as their increase in trade would bring more scope for business and commercial relationship among both countries.

U.S. and UAE enjoy the forceful trade and investment relationship with little dependence on oil trade between them. This is among one of the rapid growing economic partnership with U.S. UAE is one ...