General Overview
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.
Demographics
Only 15-20% of the total population of 4.041 million are U.A.E. citizens. The rest include significant numbers of other Arabs--Palestinians, Egyptians, Jordanians, Yemenis, Omanis--as well as many Iranians, Pakistanis, Indians, Bangladeshis, Afghanis, Filipinos, and west Europeans.
The majority of UAE citizens are Sunni Muslims with a small Shi'a minority. Most foreigners also are Muslim, although Hindus and Christians make up a portion of the UAE's foreign population.
• Country name: United Arab Emirates
• Capital Name: Abu Dhabi
• Population: 4,621,399
• Nationality: Emirati(s)
• Languages: Arabic (official), Persian, English, Hindi, Urdu
• Ethnic Groups: Emirati 19%, other Arab and Iranian 23%, South Asian 50%, other expatriates (includes Westerners and East Asians) 8% (1982)
Economy
The UAE has an open economy with a high per capita income and a sizable annual trade surplus. Despite largely successful efforts at economic diversification, nearly 40% of GDP is still directly based on oil and gas output. 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. The country's Free Trade Zones - offering 100% foreign ownership and zero taxes - are helping to attract foreign investors.
Higher oil revenue, strong liquidity, housing shortages, and cheap credit in 2005-07 led to a surge in asset prices (shares and real estate) and consumer inflation. Rising prices are increasing the operating costs for businesses in the UAE and adversely impacting government employees and others on fixed incomes. 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.
• GDP (purchasing power parity): $167.3 billion (2007 est.)
• GDP - real growth rate: 7.4% (2007 est.)
• GDP - per capita (PPP): $37,300 (2007 est.)
• Inflation rate (consumer prices): 11% (2007 est.)
• Exports: $156.6 billion f.o.b. (2007 est.)
• Imports: $101.6 billion f.o.b. (2007 est.)
Government
Administratively, the U.A.E. is a loose federation of seven emirates, each with its own ruler. The pace at which local government in each emirate evolves from traditional to modern is set primarily by the ruler.
Under the provisional constitution of 1971, each emirate reserves considerable powers, including control over mineral rights (notably oil) and revenues. In this milieu, federal powers have developed slowly.
The constitution established the positions of President (Chief of State) and Vice President, each serving 5-year terms; a Council of Ministers, led by a Prime Minister (head of government); a supreme council of rulers; and a 40-member National Assembly, a consultative body whose members are appointed by the emirate rulers. span>
• Administrative divisions: 7 emirates (imarat, singular - imarah); Abu Zaby (Abu Dhabi), 'Ajman, Al Fujayrah, Ash Shariqah (Sharjah), Dubayy (Dubai), Ra's al Khaymah, Umm al Qaywayn (Quwayn)
• Legal system: Based on a dual system of Shari'a and civil courts; has not accepted compulsory ICJ jurisdiction
• Constitution: 2 December 1971; made permanent in 1996
• Independence: 2 December 1971 (from UK)
References
Government of Dubai - Official Website
Central Intelligence Agency (CIA) - The World Factbook
Nation Master - World Data Center
Wikipedia - The Free Encyclopedia
The Library Congress - Country Studies
Lonely Planet - Travel Guidebook