Economy of China and the United Arab Emirates?

Question

What are similarities in economic growth of China and the United Arab Emirates?

Answer 1

Economy of China and UAE are in no way same - but there are few similarities. Let me eloborate few points that they have in common:

1) Both CHINA and UAE enjoy a highly industrialised economy.

2) The type of Govt at both end is non-democratic. This gives an advantage to State Owned Corporations (like Tangsteel in China and Dubal in UAE)

3) Chinese economy (companies and govt) over last 5 years has invested over $500 billion in Western countries and so has companies and private individuals of UAE

4) Major financial service providers of CHINA are based in HONGKONG giving it an advanced outlook which is as good as western financial world - whereas UAE has its financial providers in Dubai.

5) As mentioned above, HongKong is an export hub as good as Dubai

6) Hongkong and Dubai are 100% TAX FREE. Which gives an advantage as imports from anywhere in the world are cheaper.

7) China and Dubai both are major Car-Manufacturers and Exporters

8) The property market in both countries is extraordinary. China has all its major development in commercial sector while UAE has it in residential sector.

There are many more. If you want some more definite and specific points or elobaration please let me know.

Thanks

Madhav

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You got to become my fan after this - as I have had to go to Library to get these data:

1) Both UAE and CHINA had nearly same "Inflation Index" between 2000 - 2007 (i.e. 100 in 2000, 110 in 2005 , 125 in 2007)

2) China's GDP grew 1.5x than that of UAE's but compared to the size and population - it is almost equal

3) Both country has a high Purchasing Power Parity ratio - which is almost similar at 0.5 Local Money to $1

4) At $168 Billion GDP UAE ranks 2nd in Gulf Region as an economic power house and at $180 Billion China ranks second in Far Eastern countries.

5) UAE has had 6% Inflation rate in Feb 2008 where as China has 8% Inflation rate

Moreover, the interest rates of Central Banks in both countries has has similar change between 2005- Jan 2008.

Thanks

Madhav