Case Study $2$: Economic Development in the United Arab Emirates $($UAE$)$

The United Arab Emirates $($UAE$),$ a federation of seven emirates established in $1971,$ has undergone a remarkable transformation from a desert landscape with a primarily subsistence economy to one of the most prosperous nations in the Middle East. Known for its vast oil reserves, the UAE has diversified its economy beyond oil, leveraging its strategic location, political stability, and visionary leadership. Historically reliant on fishing, pearling, and trade, the discovery of oil in the late $1950$s and early $1960$s marked a turning point in the UAE's economic fortunes. The subsequent oil boom of the $1970$s provided the financial resources for rapid infrastructure development, healthcare, and education. However, the UAE's leadership recognized early on the risks of over$-$reliance on oil for economic stability and growth. This foresight led to concerted efforts towards economic diversification, aiming to build a sustainable economy that could thrive even as global oil markets fluctuated.

Question $2$a: According to the case above, how can you define $$Economic Development$?($CLO $2,1$ mark$).$

Question $2$b: Give $3$ key factors that can be used to determine the economic development of UAE $($CLO $2,6$ mark$).$