China And UAE Capitalizing On Global Economic Opportunities

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.

There’s 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.

As 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 2020.

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.