The Mysteries of the Colonized Cedi

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Parent Category: Our Country

Category: Business & Finance

Created on Wednesday, 05 March 2014 00:00

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The Mysteries of the Colonized Cedi

Review: Measuring The True State of Ghana Economy Through Prudent Application of Basic Economic Theories: Demand & Supply; Scale of Preference; Opportunity Cost; The Economies of Scale and The Bloomberg FT’s recent Economic Predictions on the Falling Ghanaian Cedi

DUBAI: ECONOMIC OVERVIEW

“The economy of Dubai is one of the most unique and unusual in the world. As an entrepôt, (or free port or porto franco) duties and taxes are not imposed on imported goods. Dubai has numerous free zones including Jebel Ali free zone, Dubai Maritime City, Dubai Internet City, and Dubai Media City. The free zones in Dubai have attracted considerable foreign direct investment (FDI). Combined, the internet and media free zones are called TECOM (Dubai Technology, Electronic Commerce and Media Free Zone Authority). Within them are large multi-national firms such as Microsoft, Oracle Corporation, IBM, and EMC Corporation; BBC, CNN, Reuters, Sky News, and the Assoiated Press are in the media free zone. While many believe Dubai's economy is totally driven by oil and gas, that sector only comprises less than 6% of Dubai's economy. In fact, Dubai's portion of natural gas revenues in the United Arab Emirates is only about 2%. Dubai's oil production is estimated to be about 240,000 barrels per day. By the height of the boom years in 2007, Dubai had come to epitomise 'bling' or extravagence on a national scale. It contains the largest building in the world (the Burj Khalifa), and many other largest/ biggest/ deepest projects, such as the seven start Burj al-Arab hotel and the man-made Palm Islands. However much of this construction boom has been financed by debt. By the start of 2010, the emirate as a whole owes anywhere between $80 billion and $120 billion. Government-linked Dubai World almost defaulted on its debts at the end of 2009, and was saved only by oil-rich neighbour, Abu Dhabi. Its biggest challenge now will be riding out the debt repayment and confidence challenges to take advantage of the fantasy-like infrastructure it has built.” (http://www.economywatch.com/world_economy/dubai) As a resident Ghanaian how do you measure the true state of the county’s current economic indicators?