Pakistan Economy: News & Discussion

[Kshatriya87]

UAE lives on oil money, not wise investment.

Common but big mistake. UAE doesn NOT just rely on oil. There are many other sources of incomes such as free ports, tourism, property, international banking, corporate taxes, manufacturing etc. Don't generalize middle eastern countries.

UAE ABSOLUTELY believes in wise investment and has already been doing it since decades.

 

[Advaidhya Tiwari]

Common but big mistake. UAE doesn NOT just rely on oil. There are many other sources of incomes such as free ports, tourism, property, international banking, corporate taxes, manufacturing etc. Don't generalize middle eastern countries.

UAE ABSOLUTELY believes in wise investment and has already been doing it since decades.

Again, wrong. Dubai tried to do this as the oil of this province had depleted. But it was realised to be unsustainable and eventually Abu Dhabi had to bail out Dubai by investment

 

[Kshatriya87]

Again, wrong. Dubai tried to do this as the oil of this province had depleted. But it was realised to be unsustainable and eventually Abu Dhabi had to bail out Dubai by investment

State the facts / statistics. You are talking about last decades statistics.

Only 1/3rd of UAE's GDP comes from Oil revenues now.

 

[Kshatriya87]

Dubai tried to do this as the oil of this province had depleted. But it was realised to be unsustainable and eventually Abu Dhabi had to bail out Dubai by investment

Galat Jawab.

In 2008-2009, the combination of falling oil prices, collapsing real-estate markets, and the international financial and banking crisis struck the UAE economy hard. Dubai was the hardest hit and needed to be bailed out by its rich neighbour, Abu Dhabi.

This was the reason, not Dubai's alternative attempts of income.

 

[Advaidhya Tiwari]

State the facts / statistics. You are talking about last decades statistics.

Only 1/3rd of UAE's GDP comes from Oil revenues now.

GDP involves lot of useless transactions from one hand to another. The root production of UAE comes from petroleum only. Without production, other things like services can't exist.

For example, I produce oil and sell it at $500. I pay salary of $300 to employees. The employees then use the money to get a facial massage. About $100 is spent on this. The massage parlour person then wasnts some services like tailoring and so on.

The money goes in a trickle down manner but at the end of the day, if oil was not produced, there will be no money for UAE for any of the other jobs

 

[Kshatriya87]

GDP involves lot of useless transactions from one hand to another. The root production of UAE comes from petroleum only. Without production, other things like services can't exist.

For example, I produce oil and sell it at $500. I pay salary of $300 to employees. The employees then use the money to get a facial massage. About $100 is spent on this. The massage parlour person then wasnts some services like tailoring and so on.

The money goes in a trickle down manner but at the end of the day, if oil was not produced, there will be no money for UAE for any of the other jobs

Oh bhai, tumse na ho payega.. Why you no share stats? Please just read this article and end this argument. There shouldn't even be an argument on this topic as it is a clear cut case.

UAE’s non-oil contribution to GDP to swell to 80% by 2021

Abu Dhabi: The UAE’s non-oil contribution to its GDP (gross domestic product) will jump by about 14 per cent in four years due to rapid diversification of the economy, Sultan Bin Saeed Al Mansouri, Minister of Economy, said on Monday.

Currently, the non-oil sector contributes 70 per cent of the UAE’s GDP with oil contributing the remaining. By 2021, the non-oil sector will contribute 80 per cent, he said.

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[republic_roi97]

GDP involves lot of useless transactions from one hand to another. The root production of UAE comes from petroleum only. Without production, other things like services can't exist.

For example, I produce oil and sell it at $500. I pay salary of $300 to employees. The employees then use the money to get a facial massage. About $100 is spent on this. The massage parlour person then wasnts some services like tailoring and so on.

The money goes in a trickle down manner but at the end of the day, if oil was not produced, there will be no money for UAE for any of the other jobs

Well UAE has been diversifying its economy now for a very long period as a result oil's contribution to the economy is on a decline.

 

[Advaidhya Tiwari]

Well UAE has been diversifying its economy now for a very long period as a result oil's contribution to the economy is on a decline.

Oh bhai, tumse na ho payega.. Why you no share stats? Please just read this article and end this argument. There shouldn't even be an argument on this topic as it is a clear cut case.

UAE’s non-oil contribution to GDP to swell to 80% by 2021

Abu Dhabi: The UAE’s non-oil contribution to its GDP (gross domestic product) will jump by about 14 per cent in four years due to rapid diversification of the economy, Sultan Bin Saeed Al Mansouri, Minister of Economy, said on Monday.

Currently, the non-oil sector contributes 70 per cent of the UAE’s GDP with oil contributing the remaining. By 2021, the non-oil sector will contribute 80 per cent, he said.

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Just give me statistics of production in UAE of goods. Isn't most of it imported? What is the point of having 70% GDP in non-oil sector if you have no goods? Please understand that the fundamental source of economy is production. Service must not be considered an economic activity in real sense. Please tell me only production by discounting services

 

[republic_roi97]

Pakis are asking for somewhere around $6 billion. They have received the same amount the last time IMF bailed them out. I guess in 2013 or some such.

Is $6 Billion enough ??? They are in so much debt that IMF will itself think twice, but i guess they might help considering the fact that it is a nuclear power and therefore it shouldn't destabilise, which I guess it always has been

 

[Flame Thrower]

Oh bhai, tumse na ho payega.. Why you no share stats? Please just read this article and end this argument. There shouldn't even be an argument on this topic as it is a clear cut case.

UAE’s non-oil contribution to GDP to swell to 80% by 2021

Abu Dhabi: The UAE’s non-oil contribution to its GDP (gross domestic product) will jump by about 14 per cent in four years due to rapid diversification of the economy, Sultan Bin Saeed Al Mansouri, Minister of Economy, said on Monday.

Currently, the non-oil sector contributes 70 per cent of the UAE’s GDP with oil contributing the remaining. By 2021, the non-oil sector will contribute 80 per cent, he said.

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No point bro.

When I read his reply on UAE's making money out of oil, I decided that it's waste of time to explain as he already made his mind. No amount of proofs would help.

 

[republic_roi97]

Just give me statistics of production in UAE of goods. Isn't most of it imported? What is the point of having 70% GDP in non-oil sector if you have no goods? Please understand that the fundamental source of economy is production. Service must not be considered an economic activity in real sense. Please tell me only production by discounting services

I said its on a decline, I didn't say UAE is out of its dependence on oil. It still has a lot to do, although Dubai is the only city that doesn't depend on oil.

Have this conversation in some other thread lets stick to the topic here.

 

[Kshatriya87]

Is $6 Billion enough ??? They are in so much debt that IMF will itself think twice, but i guess they might help considering the fact that it is a nuclear power and therefore it shouldn't destabilise, which I guess it always has been

More debt means more leverage on the country. But I hope USA doesn't let IMF bail them out this time.

 

[Kshatriya87]

No point bro.

When I read his reply on UAE's making money out of oil, I decided that it's waste of time to explain as he already made his mind. No amount of proofs would help.

Yeah. I gave up. Its a head in the sand kind of debate.

 

[Kshatriya87]

Stats prove jack $#it....

Gajab Bakchodi !!

reality is ''if OIL prices are dropped or World shifted to alternate energy sources these desert barbarians start killing each other because they won't find anything except SAND there''.

These barbarians have survived there since thousands of years. Remind me, when was oil discovered again?

Showing 1 picture doesn't change the reality. Its like showing a picture of poverty in India and saying you will only find poor people in India. And India's GDP proves "jack shit". Is that true?

Fact is, UAE has realized long back that oil isn't going to last long. They started investing in foreign markets, carried out trade deals, started free ports, invited manufacturers and gave them incentives, invested in tourism, created property which btw billionaires all across the world have bought.

Their imports are less than their exports. And I haven't even counted oil in exports here. Most of the "goods" are being manufactured locally now. UAE has constructed massive desalination plants along the coast which supplies way more water than needed in UAE. So effectively they have almost stopped importing water in the
country.

Other ME countries such as KSA have taken lessons from UAE and are walking the same path already.

You can live in your bubble if you want. Fact is, even if world stops using oil right now, there will be an economic crisis in UAE along with the entire world, yes but UAE will survive easily.

 

[Advaidhya Tiwari]

No point bro.

When I read his reply on UAE's making money out of oil, I decided that it's waste of time to explain as he already made his mind. No amount of proofs would help.

Yeah. I gave up. Its a head in the sand kind of debate.

You people are incapable of giving me a simple answer about production. I always speak about production, not GDP. Services have to be subtracted. Agriculture and manufacturing is the only thing that I am considering as economy. Why are you two acting as people who are incorrigible and then blaming on me?

 

[Kshatriya87]

You people are incapable of giving me a simple answer about production. I always speak about production, not GDP. Services have to be subtracted. Agriculture and manufacturing is the only thing that I am considering as economy. Why are you two acting as people who are incorrigible and then blaming on me?

Have you even read the article I posted, or my previous posts at least? Count the number of times I have mentioned booming manufacturing industry there.

Don't just read my posts bro. Try to understand them as well. Situation is very clear, oil counts for somewhere around 1/3rd of UAE's income only now.

You are trying to link other non oil incomes as incomes dependent on oil production. This is not true in its entirety. Many other sources of incomes are independent of oil production.

 

[Haldiram]

Stats prove jack $#it.... reality is ''if OIL prices are dropped or World shifted to alternate energy sources these desert barbarians start killing each other because they won't find anything except SAND there''.

They have been investing in tourism and allied businesses. Sure, the money they used to set this up is all oil money but they manage to successfully transition to a service-based "mixed economy" ecosystem just like other emerging economies.

It requires only a few economic hubs within a country to power the whole economy. Even China has a major portion of its landmass as desert. That didn't stop their top tier cities from bringing in 20 trillion $ a year in GDP figures. Even Australia is desert, Texas is desert, Canada is snow-clad, Russia is snow-clad, Israel is desert. People find a way.

 

[Advaidhya Tiwari]

You are trying to link other non oil incomes as incomes dependent on oil production. This is not true in its entirety. Many other sources of incomes are independent of oil production.

This is my point. I am saying that oil income is the root cause of other incomes.

They have been investing in tourism and allied businesses. Sure, the money they used to set this up is all oil money but they manage to successfully transition to a service-based "mixed economy" ecosystem just like other emerging economies.

It requires only a few economic hubs within a country to power the whole economy. Even China has a major portion of its landmass as desert. That didn't stop their top tier cities from bringing in 20 trillion $ a year in GDP figures.

Tourism of Dubai failed as it was a hot desert and none like to come here as a result. Beach is hot, towns are hot and people have to stay indoors in AC room!

Tourism works in some places like Mecca/Medina due to obvious reasons. But otherwise tourism is not simple. Moreover, non-obligatory tourism relies heavily on transportation which in turn on oil price and availability.

 

[ezsasa]

Gajab Bakchodi !!



These barbarians have survived there since thousands of years. Remind me, when was oil discovered again?

Showing 1 picture doesn't change the reality. Its like showing a picture of poverty in India and saying you will only find poor people in India. And India's GDP proves "jack shit". Is that true?

Fact is, UAE has realized long back that oil isn't going to last long. They started investing in foreign markets, carried out trade deals, started free ports, invited manufacturers and gave them incentives, invested in tourism, created property which btw billionaires all across the world have bought.

Their imports are less than their exports. And I haven't even counted oil in exports here. Most of the "goods" are being manufactured locally now. UAE has constructed massive desalination plants along the coast which supplies way more water than needed in UAE. So effectively they have almost stopped importing water in the
country.

Other ME countries such as KSA have taken lessons from UAE and are walking the same path already.

You can live in your bubble if you want. Fact is, even if world stops using oil right now, there will be an economic crisis in UAE along with the entire world, yes but UAE will survive easily.

Hypothetically if world stops using oil, UAE will not survive.

The premise of business in UAE is that it is equidistant air travel from Europe and Asia via emirates. If their airports shuts down, chapter close.

 

[Flame Thrower]

You people are incapable of giving me a simple answer about production. I always speak about production, not GDP. Services have to be subtracted. Agriculture and manufacturing is the only thing that I am considering as economy. Why are you two acting as people who are incorrigible and then blaming on me?

Then you need a good economic teacher.

It is your assumption that only agriculture and manufacturing is the economy. But it is not, there is a whole world out there. Manufacturing company setting up a customer care call center or outsourcing those sources. Food manufacturing company making deal with logistics and farms to make sure the raw materials.

In just two examples you have missed two industries that giving opportunities and there are tonnes of such cases.

Can you give me one good reason why do you consider only Manufacturing and Agriculture are the only two industries as economy of a country!!?? Will you stop this nonsense, if I show how other sectors help in their business or create business on their piggy backing on the products of agriculture and manufacturing!!??