Measuring UAE Bank Efficiency - Dissertation Example

Therefore, it is significant that such banking institutions be subjected to measurement and evaluation of their economic efficacies and performances in order to enable them to survive in the global competitive financial market. The UAE is one the economies that have made significant efforts of achieving a sustainable economic growth. The UAE economy has been following a stringent diversification strategy that focuses on the outward-oriented growth policy. The UAE macroeconomic policy helps to unwind the fiscal stimulus of current years and reduce the currently high fiscal breakeven oil prices without undermining the economic recovery.

UAE define itself as the regional financial center and international trading hub, which is being realized as a result of both increased oil production. The massive oil production has contributed to an increased economic growth, and it has contributed to the stabilization of the financial sector. Moreover, high financial productivity filters the economy into high levels of gross domestic and sustained remarkable economic growth. Varied economic indicators simply substantiate the efficiency and progression of the present UAE economy.

 The macroeconomic indicators employed in focusing the health of the UAE economy comprises of the GDP (Gross Domestic Product), FDI (Financial Direct Investment) development, inflation Foreign trade, labor force and other significant variables of the economic relevance. Assessing diverse aspects of the UAE economy at the macroeconomic level is significant. This is because it facilitates an understanding of the current UAE economy and provides an apparent picture of its buoyancy and overall affluence.