UAE Economy vs the Qatar Economy

Low unemployment
The rates of unemployment in both Qatar and the UAE are relatively low. For example, according to a report by Trading Economics (2012), in 2011, the rate of unemployment in was 0.6. This represents an increase in the rate of unemployment considering that it has averaged at 1.00 percent for nearly a decade. On the other hand, according to the CIA World Factbook (2012), the rate of unemployment rate in Qatar stood at 0.4 percent in 2011, down from 0.5 percent in 2010. In contrast, another report by the CIA World Factbook (2012) on the UAE indicates that the rate of unemployment in the country stood at 2.5 percent in 2001, while Qabbani and Shaheen (2011) report that in 2011, the UAE had a 13 % percent rate of unemployment.

Stable Prices
Since 2011, property prices in Qatar have remained fairly stable, after two years of turbulent housing prices that was largely occasioned by the global financial crisis (Delmendo 2012). For example, in the fourth quarter of 2011, a new apartment in Qatar averaged US $ 4,254 per sq. This represents an almost 28% drop in price compared to the same time two years earlier (Delmendo 2012). The overall property market in the UAE is also fairly stable, according to a report by Property Wire (2012). For example, in 2012, the prices of apartments in Dubai have increased by an average of 4.9 percent, a trend that is expected to continue for the reminder of the year (Property Wire 2012). At the same time, the rental value of apartments in Dubai has increased by 6.8%. In January 2012, the average price of a high end villa was AED 1,100 per square foot. In September 2012, it has increased to AED 1,300 per square foot.

Economic Growth
In 2011, Qatar’s GDP grew by 18.7 percent, compared with the 16.6 and 12 percent growths in GDP recorded in 2010 and 2009, respectively (CIA World Factbook 2012 ). On the other hand, the UAE economy grew by an average of 3.3 percent in 2011, compared with the 3.2 percent and -3.2 percent real growth rates in GDP realised in 2010 and 2009, respectively (CIA World Factbook 2012 ).

Balance of Trade
In 2012, Qatar had a trade surplus of nearly 67.5 billion QAR (Trading Economics 2012). The best trade surplus that Qatar has ever recorded was in September 2011, when it reached 84459.00 Million QAR. On the other hand, in June 2005, Qatar recorded its worst ever trade surplus of 7385.00 Million QAR (Trading Economics 2012). In contrast, the UAE reported an admirable balance of trade surplus in 2011 of 292 Billion AED. The best trade surplus that the UAE has ever recorded was 291951.00 Million AED. This was in December 2011 (Trading Economics 2012). In December 2001, the UAE recorded its worst ever trade surplus of 42160.00 Million AED. In both countries, natural resources play a key role in the country’s economy.

Based on the analysis of Qatar and the UAE conducted above, the Qatar economic appears to be doing well, in comparison with that of the UAE. For example, the rate of unemployment in Qatar is relatively lower in comparison with that of the UAE. In addition, the property market in Qatar is more stable that in the UAE. In terms of economic growth, Qatar has been recording a significantly higher rate of economic growth that the UAE. Qatar’s balance of trade is also more impressive compared to that of the UAE.


Reference List
CIA World Factbook 2012, Qatar Economy 2012, viewed 12 November 2012,
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CIA World Factbook 2012, United Arab Emirates Economy 2012, .
Delmendo, L 2012, Qatari property prices now stable, outlook positive, viewed 12 November 2012,
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Property Wire 2012, Dubai property market prices generally stable, says latest Cluttons report, viewed 12 November 2012,
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Qabbani, B & Shaheen, K 2011. Unemployment rate for Emiratis stands at 13%, viewed 12 November 2012,
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Trading Economics 2012, Qatar balance of trade, viewed 12 November 2012,
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Trading Economics 2012, Qatar unemployment rate, viewed 12 November 2012,
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Trading Economics 2012, United Arab Emirates Balance of Trade, viewed 12 November
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