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Description United Arab Emirates by rbd.me
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The Trucial States of the Persian Gulf coast granted the UK control of their defense and foreign affairs in 19th century treaties. In 1971, six of these states - Abu Zaby, 'Ajman, Al Fujayrah, Ash Shariqah, Dubayy, and Umm al Qaywayn - merged to form the United Arab Emirates (UAE). They were joined in 1972 by Ra's al Khaymah. The UAE's per capita GDP is on par with those of leading West European nations. Its generosity with oil revenues and its moderate foreign policy stance have allowed the UAE to play a vital role in the affairs of the region. For more than three decades, oil and global finance drove the UAE's economy, however, in 2008-09, the confluence of falling oil prices, collapsing real estate prices, and the international banking crisis hit the UAE especially hard.
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Location
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Middle East, bordering the Gulf of Oman and the Persian Gulf, between Oman and Saudi Arabia
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Area - comparative
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slightly smaller than Maine
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Natural resources United Arab Emirates
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petroleum, natural gas
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Population United Arab Emirates
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4,975,593
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Religions United Arab Emirates
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Muslim 96% (Shia 16%), other (includes Christian, Hindu) 4%
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Languages
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Arabic (official), Persian, English, Hindi, Urdu
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Education United Arab Emirates expenditures
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1.3% of GDP (2005)
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Government United Arab Emirates type
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federation with specified powers delegated to the UAE federal government and other powers reserved to member emirates
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Independence
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2 December 1971 (from the UK)
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United Arab Emirates Economy - overview
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The UAE has an open economy with a high per capita income and a sizable annual trade surplus. Successful efforts at economic diversification have reduced the portion of GDP based on oil and gas output to 25%. Since the discovery of oil in the UAE more than 30 years ago, the UAE has undergone a profound transformation from an impoverished region of small desert principalities to a modern state with a high standard of living. The government has increased spending on job creation and infrastructure expansion and is opening up utilities to greater private sector involvement. In April 2004, the UAE signed a Trade and Investment Framework Agreement with Washington and in November 2004 agreed to undertake negotiations toward a Free Trade Agreement with the US, however, those talks have not moved forward. The country's Free Trade Zones - offering 100% foreign ownership and zero taxes - are helping to attract foreign investors. The global financial crisis, tight international credit, falling oil prices, and deflated asset prices caused GDP to drop nearly 4% in 2009. UAE authorities have tried to blunt the crisis by increasing spending and boosting liquidity in the banking sector. The crisis hit Dubai hardest, as it was heavily exposed to depressed real estate prices. Dubai lacked sufficient cash to meet its debt obligations, prompting global concern about its solvency. In February 2009, Dubai launched a $20 billion bond program to meet its debt obligations. The UAE Central Bank and Abu Dhabi-based banks bought the largest shares. In December 2009 Dubai received an additional $10 billion loan from the emirate of Abu Dhabi. Dependence on oil and a large expatriate workforce are significant long-term challenges. The UAE's strategic plan for the next few years focuses on diversification and creating more opportunities for nationals through improved education and increased private sector employment.
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Investment United Arab Emirates
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47.2% of GDP (2009 est.)
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Industries United Arab Emirates
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-6.7% (2009 est.)
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Airports United Arab Emirates
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2.922 million (2008)
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