UAE vs Kuwait - Economy

The Economic Growth

UAE	2009	2010	2011
GDP In Billion	270.335	302.039	360.1
GDP per capita (USD)	48,900	47,900	48,800
GDP growth (% year)	-3.3%	0.9%	4.9%

Kuwait	2009	2010	2011
GDP In Billion	109.463	132.569	176.7
GDP per capita (USD)	39,900	40,100	42,200
GDP growth (% year)	-5.2%	3.4%	8.2%

The economy of the UAE is stronger compared to the economy of Kuwait as shown in the chart. The GDP of UAE is higher in 2009, 2010, and 2011. In 2011 the GDP is 360.1 billion compared to 176.7 billion in Kuwait. The GDP per capita in UAE is also stronger and higher in all three years, 48,800 in UAE to 42,200 in Kuwait in 2011. The growth rate in UAE was lower compared to Kuwait, in all three years the growth rate of Kuwait was higher and better than tin UAE, but the standard of living in UAE is much better.

Stable Prices

UAE	2009	2010	2011
Inflation Rate % (CPI)	1.6	2.2	0.9

Kuwait	2009	2010	2011
Inflation Rate % (CPI)	4	3.8	4.7

The inflation rate in UAE kept fluctuating from 2009 to 2011 which is said to be the same in Kuwait as well. In UAE the inflation rate decreased from 2009 to 2011 and reached to 0.9 percent, while in Kuwait it increased from 4 to 4.7 percent. The decrease in CPI means that the currency is appreciating so in UAE the currency is getting stronger which is bad for exports, but in Kuwait the CPI is increasing which means the opposite is happening to its currency which is getting weaker and this will attract exports. Also when the CPI increases consumer price (goods/services) will increase as well.

Unemployment

UAE

Population (Millions)	5,314,317
Labor Force (Millions)	4.1
Unemployment rate (% of Labor Force)	4.3%

Kuwait

Population (Millions)	2,646,314
Labor Force (Millions)	2.243
Unemployment rate (% of Labor Force)	2.2%

The number of population in UAE is higher than in Kuwait around three million in difference. The unemployment rate in UAE is 4.3 percent which is fair or good considering its labor force and population. Expatriates in the UAE got the most percentage of employment and is much higher than locals because it is cheaper. In Kuwait the unemployment rate is very low one of the best rates in the world which is 2.2%. Around 84 percent of the population is considered to be labor force which is a very high number and the low percentage if unemployment in Kuwait is great considering the high percentage of labor force.

Balance of Trade

Year	2011
UAE Exports (USD)	252.6 Billion
Kuwait Exports (USD)	104.3 Billion
UAE Imports (USD)	185.6 Billion
Kuwait Imports (USD)	21.96 Billion

UAE exports in 2011 is 252.6 billion US dollars, while in Kuwait is 104.3 billion US dollars which is around 150 billion US dollars in difference in favor of the UAE. This shows that UAE depends a lot in exporting its good to other countries while in Kuwait the amount of money got from exports is fair and is not bad. In the other hand Kuwait does not import as much as the UAE. In 2011, Kuwait imports’ is 21.96 billion US dollars while in UAE is 185.6 billion US dollars with a bid difference around 160 billion US dollars.