The global economy has doubled in size since the turn of the century. Thanks in large part to the rise of the world’s emerging markets. It is not surprising that many of these emerging markets have had help from foreign investments mainly from the UAE and other Arab Gulf nations and China as well. The two common denominators between the two regions is cash money. Both China and the oil-rich Gulf States have plenty of money reserves to invest and they have not been shy in doling it out.
an old saying that “money talks.” When it comes to the growth of the
global economy in the last decade, China and the UAE in particular, have
been taking advantage of the growth opportunities and have invested
trillions of dollars around the world and have put themselves in a
strong position to dictate the direction of world trade in the future.
There is no doubt all participants stand to benefit greatly from these
massive investments and unfortunately it all comes at the expense of the
former global economic leaders, the United States and Western Europe.
They are inevitably losing their status as leading global economic
superpowers and by the time they right their fiscal financial ships,
China and the UAE will have sailed on by on the strength of theirs. A
new world economic order is no doubt beginning to take shape and as a
result, creating appealing investment opportunities.
it stands today, China, the UAE and all the other emerging markets are
expected to have annual GDP growth rates of between 7-10% in the next
five years, whereas the U.S. and the European Union are looking at
between 1-2%. Both western Europe and the U.S. are still struggling to
revive their economies ever since their past investment mistakes came
back to haunt them starting in 2008. As a result, they only have limited
resources on which to build the proper infrastructures in order to be
more competitive as the global economy head towards an economic boom by
Both China and the UAE have invested heavily into the former
economic giants but the western economies must grow naturally as a
result of their government policies to create a strong foundation once
again on which to re-build. It makes no sense to invest in declining
markets and it makes no money either. Investing in growth markets has
been the particular theme that China and the UAE have followed in recent
years and it is already paying off in the short term and is expected to
for many years into the future. Money makes the economic world go
around. These days and for the foreseeable future, it looks like investments from China
and the UAE will inevitably buy the gas that’s needed to power the
world’s economy. It’s a good thing they have the money to invest and
have done so or the global economy and all these emerging markets would
be in rough shape today and similar to the current state of the western
economies. I cannot see how that would not be good for anyone anywhere
in the world.