Kazim - Department of Mechanical Engineering United Arab Emirates University

The economy of the United Arab Emirates since it joined the OPEC 30 years ago has significantly influenced by tying its oil exports with the inconsistent US Dollar. In this paper, we propose an effective measure to overcome the negative impact of oil pricing on the economy of the United Arab Emirates, which is one of the 11 OPEC members as a result of fluctuations of the US Dollars against other major currencies. Our findings indicated that we could have achieved a total current saving of at least $11.5 billions Dollars if we implemented linking oil pricing with basket of currencies from 1970 to 2000. This saving is equivalent to at least 1 year of the country’s current oil export.

United Arab Emirates, OPEC, oil export, oil price, basket of currencies