“Introduction
Gross Domestic Product is a macro economic concept considered to be a strong indicator of a countrys standard of living. Usually it recognizes the final products that are produced in a country within a given time frame. GDP measures a countrys produce in all sectors of the economy. In the calculation of GDP some components have to be considered. They include consumption (denoted as c) private investments (i) government expenditure (g) and the net exports (nx). Thus the equation can be summed up to GPD= C+I+G+NX (Solmon 1980). Consumption relates to income and usually consists 70 percent of GDP. Consumption is directly related to income. In this case high income is associated with a high level of productivity. Private investments and the foreign direct investors are attracted by enhanced infrastructure and tax regulations. Government spending is largely in the development of infrastructure. However the net exports are derived from the difference between the exports and imports. The gross domestic product provides a conclusive measure of the changes in an economy with regards to the value of products.
The UAE GDP
The UAEs GDP is in line with most of the western European countries (Adams 2009). The UAE has vast income emanating from the oil industry. This has enhanced the GDP of the UAE making it a prominent player on the global front during the past three decades. Oil was discovered in the UAE about 30 years ago. Since then immense transformation has been attained with high standards of living being noted. In addition government spending has been increased with a keen focus on infrastructure development. It is also the governments responsibility to ensure that sufficient job opportunities are created through enhanced private sector involvement. The UAEs tax policies are also attractive to many potential investors. In this case the UAE is a free trade zone and offers 100 percent foreign ownership and zero taxes. The UAEs GDP has not always been bliss. For instance in 2008 the global financial crisis greatly constricted the economy (Report: Dubai 2008 2008).
However the UAE tried to avert additional harm by boosting liquidity in the banking sector. The economys GDP is expected to continue with the slow rebound to the initial grid. The long term challenges expected include the growing inflation pressure and the large expatriate workforce. There exists a strategic plan to keenly focus on diversification. In addition the UAE seeks to create extra opportunities for the nationals by improving the private sector and the educational framework (Carpenter & Marshall Cavendish Corporation 2006).
With regards to growth rate the UAEs gross domestic product has expanded by a 3.30 percentage which was attained in 2011. On average the UAEs gross domestic product has achieved a 6 percent growth rate from 2000 to 2011. However it experienced an all time high of 11.9 percent in 2003 and a low of -1.6 in 2009. When the GDP growth rate is used to evaluate an economys performance the aggregate value of the change in goods and services produced by an economy is clearly depicted. Notably the UAE has a large trade surplus and a relatively high per capita. Over the years the UAE has been trying to reduce the portion of the GDP that is attributed to oil. As per 2011 25 percent of the countrys output was attributed to oil and gas (Ghosh & Prelas 2009).
Conclusion
The gross domestic product is an economic element that seeks to measure changes in the value of goods and services in a given country. The UAEs gross domestic product has been observed to achieve steady growth in the past. The main product has been crude oil. However due to recent diversification strategies the portion of GDP has been reduced. Free trade has also encouraged traders and investors from the global scene. These aspects have greatly enhanced the UAEs gross domestic product to attain stable growth.”

  

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