United Arab Emirates

Economic and political outline

Economic indicators | Foreign Trade in figures | Sources of economic information | Political outline

Economic indicators

The economy of United Arab Emirates (UAE) is largely dependent on oil and gas production (about 33% of GDP) and hence has been booming for last few years (especially from 2003 onwards) due to rise in global oil prices and increase in OPEC quotas. UAE has the fourth highest GDP per capita in the world. Out of the seven Emirates constituting UAE, two of them i.e. Dubai and Abu-Dhabi account for 80% of the total GDP. The GDP growth rate was 9.4% in 2006 and 7.7% in 2007. However, IMF forecasts a growth rate of 6.6% in 2008 as a result of softening of the oil prices. The inflation remains around 8% - a cause of concern. The government has increased spending on job creation and infrastructure expansion and is opening up its public-sector (especially utility services) to greater private-sector involvement.

GDP Indicators	2004	2005	2006	2007	2008
GDP (billions USD)	103.78	133.00	163.30	189.64e	215.34e
GDP (constant prices, annual % change)	9.7	8.2	9.4	7.7e	6.6e
GDP per capita (USD)	27,594.83	32,391.58	38,613.42	42,274.57e	45,228.31e
Inflation rate (%)	5.0	6.2	9.3	8.0e	6.4e
Current Account (billions USD)	10.34	24.32	35.94	42.78e	49.51e
Current Account (in % of GDP)	10.0	18.3	22.0	22.6e	23.0e

Source: IMF - World Economic Outlook Database

Note: (e) Estimated data

Main sectors of industry

Agriculture contributes less than 3% to the GDP. It is the 3rd largest producer of oil in the world. At present levels of production, oil and gas reserves should last for over 100 years. Despite higher oil revenues (70% of foreign exchange), government is adopting a policy of economic diversification. It is developing large free-trade zones to attract foreign investors. For the last five years, manufacturing activities have been in full swing, especially sectors like metal processing, furniture, food-processing and jewellery. The other most dynamic sectors are tourism, finance and banking, construction, and transport. The services sector accounts for nearly 45% of the GDP. Only 20% of the total population is native. Expatriates from India (the highest in number) perform a significant role in the local economy.

Breakdown of economic activity by sector	Agriculture	Industry	Services
Value added (annual % change)	6.0	6.9	10.1
Value added (in % of GDP)	2.3	55.7	42.0
Employment by sector (in % of total employment)	n.c.	n.c.	n.c.

Source: World Bank - World Development Indicators - last available data.

Monetary indicators	2002	2003	2004	2005	2006
Average annual exchange rate for 1 USD	3.67	3.67	3.67	3.67	3.67

Source: World Bank - World Development Indicators

Foreign trade in figures

The UAE market is very open and competitive. It is a member of GCC (Gulf Cooperation Council). The share of foreign trade in its GDP is nearly 150%. The top three export partners of UAE are: Japan, India and Iran. The commodities mainly exported are mineral fuels & oils, pearls & precious stones, electric & electronic equipment, and vehicles. The top three import partners are: India, China and Japan. UAE mainly imports pearls & precious stones, machinery, electric & electronic equipment, and vehicles.

Foreign trade indicators	2002	2003	2004	2005
Imports of goods and services (annual % change)	10.8	7.0	7.0	n.c.
Exports of goods and services (annual % change)	4.7	19.6	11.2	n.c.
Imports of goods and services (in % of GDP)	64.2	65.4	75.1	76.3
Exports of goods and services (in % of GDP)	72.9	78.9	89.9	94.3
Foreign trade (in % of GDP)	137.1	144.3	165.0	170.6

Source: World Bank - World Development Indicators

Main partner countries

Main customers (% of exports)	Comtrade, 2005.
Japan	24.2%
India	4.6%
Iran	3.5%

Main suppliers (% of imports)	Comtrade, 2005.
India	10.8%
China	8.5%
United States	6.3%
Japan	5.8%

Source: Comtrade, 2005.

Main products

Main exports (% of exports)	Comtrade, 2005.
Mineral fuels, mineral oils	44.6%
Natural or cultured pearls, precious or semi-precious stones	6.7%
Electrical machinery and equipment	4.3%
Vehicles other than railway or tramway	2.8%

Main imports (% of imports)	Comtrade, 2005.
Natural or cultured pearls, precious or semi-precious stones	17.1%
Electrical machinery and equipment	10.0%
Machinery and mechanical appliances	10.0%
Vehicles other than railway or tramway	8.3%

Source: Comtrade, 2005.

To see more products: More imports (Intracen Data)
More exports (Intracen Data)

Sources of economic information

Statistical Office: Dubai Statistics
Central Bank: Central Bank of the UAE
Stock Exchange: Bahrain Stock Exchange
Online newspapers: Emirates Today
Gulf News
Search Engines: UAE Internet pages
Fares

Political outline

Executive Power: Each one of Emirates is governed by an Emir who controls its administration. Each Emir manages independently the resources of his Emirate.
The Federal Supreme Council (FSC) consisting of the seven Emirs is the highest constitutional authority in the United Arab Emirates; it holds both executive and legislature powers.
The Emir of Abu Dhabi, the largest oil (petroleum) producing Emirate, was elected President of the U.A.E., and the Emir of Dubai, a commercial centre & a major oil producing Emirate, was appointed as the Vice-president and Prime Minister.
Legislative Power: The legislative authority called the Federal National Council (FNC) plays only an advisory role. Its members are appointed by the FSC to serve for a term of 2-years.
The participation of the citizens in the political activities is non-existent in the U.A.E. Since the creation of the federation in 1971, the FSC has not made any changes in its principle of delegation of powers within the federal government.
Main political parties: No political party exists in the U.A.E.
Current political leaders: President: Sheikh Khalifa bin Zayed al-Nahayyan (since November 2004)
Prime Minister: Sheikh Mohammed bin Rashid al-Maktoum (since January 2006)
Next election dates: Presidential election: 2009
Appointment of the members of the Federal National Council: 2011