A REVIEW OF ECONOMIC PROBLEMS FACING THE UAE

This review explores the major economic challenges currently facing the UAE. Monopoly power in key sectors like telecommunications and energy restricts competition, leading to higher consumer prices and less innovation. Economic inequality is rising, driven by stark contrasts between high-earning expatriates and low-wage migrant workers. Migrant labor, essential to the UAE’s economic growth, presents social and economic challenges, including wage disparities and limited labor rights. Housing prices, especially in Dubai, remain a concern due to fluctuations and issues of affordability. Despite efforts to diversify its economy, the UAE’s heavy dependence on oil leaves it vulnerable to global market shifts. Additionally, rapid urbanization has raised significant environmental concerns, including pollution and resource depletion, prompting the need for sustainable development. Together, these interconnected issues present long-term challenges for economic stability and social development in the UAE. KEYWORDS: Vision 2021 - A national agenda to position the UAE as a top global nation by its 50th anniversary in 2021 Vision 2030 - Abu Dhabi’s plan for economic diversification and sustainable urban growth by 2030 COP28 - The UAE-hosted 2023 UN climate summit to discuss global actions for limiting climate change Etisalat (e& UAE) - The UAE’s largest telecom provider, rebranded as e& in 2022 for digital transformation ADNOC - Abu Dhabi National Oil Company, one of the world’s leading energy producers and oil exporters DEWA - Dubai Electricity and Water Authority, responsible for energy and water infrastructure in Dubai Kafala System - A labor sponsorship system that governed foreign workers’ employment and residency in the UAE