Introduction
The United Arab Emirates is the most powerful country at the Middle East. Together with some other countries, it exports 65 % of world needs for oil and gas gaily, therefore, political stability of the country is vitally important for the whole Middle East; it is also the issue of concern for many other countries like the United States of America, China, Russia, and many European countries.
Political stability of The United Arab Emirates depends upon economy politics which are developed and implemented by the government. In this particular case regime of the country is not of such importance as economic prosperity – there are several countries at the Middle East which exercise various regimes and they cannot reach stability in politics as their economic performance is poor.
Political stability is the most powerful tool to promotion of economics in the whole Arab world and income of the countries is the key issue in its promotion. Most incomes are received by The United Arab Emirates from gas, oil, and other goods which are produced from oil and other minerals.
As Paul Rivlin and Shmuel Even report, “the very sources of stability in Arab countries were also those of economic malaise. The first was the role of rents. During 1980-2000. The region earned about $ 2.5 trillion in rents, 90 per cent from oil. This was possible with very limited economic activity within the region: fewer than one million people were employed in the oil, refining, and petrochemical industries. Oil revenues along with foreign aid went to the state or to the ruler.”
Thus, importance of economic development and application of innovative approaches should not be disregarded in order to make the political situation in the country even more stable on the basis of growing incomes and benefits (Rivlin, Even, 2004).
Reasons
The United Arab Emirates supplies oil globally and almost 10 per cent of the overall supply of oil is made by the country. The oil supply brings nearly 30 per cent of the whole gross domestic product of the United Arab Emirates.
The country is also a very important supplier of energy, even despite the fact that the country itself starts consuming more and more electricity. The tradition of production of energy is continued in the country as it contributes to development of the economy of the United Arab Emirates, it also impacts the process of acceleration of the development of additional reserves of hydrocarbon; moreover, implementation and development of alternative sources of energy are also dependent upon usage of traditional energy.
However, currently there appeared concerns in the country considering further production of oil and energy. The reason is that the natural resources of oil and gas cannot last forever and they are not renewable.
The United Arab Emirates continue increase of oil products production and supply to the global markets. Moreover, within the last 5 years the production and supply of oil products increased by 30 per cent. The increase can be seen on the graph below:
The situation became even more problematic after the government of …