United Arab Emirates Country Brief – January 2008

Political Overview

The UAE is a federation of seven Emirates (Abu Dhabi, Dubai, Sharjah, Ras Al Khaimah, Ajman, Umm Al Quwain and Fujairah) that federated in December 1971. Since that time, the UAE has developed rapidly into a nation with modern infrastructure and a high standard of living.

The current President is HH Sheikh Khalifa bin Zayed Al Nahyan, who is also ruler of Abu Dhabi Emirate. The Ruler of Dubai, HH Sheikh Mohammed bin Rashid Al Maktoum, is the Vice-President, Prime Minister and Defence Minister.

The UAE federal structure includes a Supreme Council (comprising the rulers of each Emirate), a Council of Ministers, a semi-appointed Federal National Council (half the members are elected) with advisory powers and an independent judiciary. Each Emirate is nevertheless still governed by its own ruler and has its own local government.

The UAE is a member of the Gulf Cooperation Council (GCC), which also includes Saudi Arabia, Kuwait, Oman, Bahrain and Qatar. It is a member of the Arab League, the Organization of the Islamic Conference, the United Nations and the WTO.

Economic Overview

The UAE has the world's third largest conventional oil reserves and fifth largest natural gas reserves and is a major player in world energy markets. These reserves are overwhelmingly located in Abu Dhabi. The UAE is the Middle East's second largest economy after Saudi Arabia.

In the medium term, the UAE economy will continue to rely on its huge oil and gas reserves - which account for around a third of GDP, 40 per cent of exports, and the bulk of government revenue - to underpin its economic development. Investment income is also substantial and provides a further element to economic activity. Dubai Emirate has used its oil reserves to fund a range of diversification efforts to establish itself as a tourism, ICT, re-export and financial hub. Taking full advantage of its position near the head of the Gulf, it has become the key regional entrepot. Dubai has developed prestige hotels, massive port facilities and a range of free trade zones to attract both manufacturing and services industries. Increasingly, other emirates are looking to emulate the Dubai model, albeit on a smaller scale. - http://www.dfat.gov.au/geo/uae/uae_country_brief.html