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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.
note:estimate is based on the results of the 2005 census that included a significantly higher estimate of net immigration of non-citizens than previous estimates (July 2010 est.)
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)
chief of state: President KHALIFA bin Zayid al-Nuhayyan (since 3 November 2004), ruler of Abu Zaby (Abu Dhabi) (since 4 November 2004); Vice President and Prime Minister MUHAMMAD BIN RASHID al-Maktum (since 5 January 2006)
head of government:
Prime Minister and Vice President MUHAMMAD bin Rashid al-Maktum (since 5 January 2006); Deputy Prime Ministers SAIF bin Zayid al-Nuhayyan (since 11 May 2009) and MANSUR bin Zayid al-Nuhayyan (since 11 May 2009)
cabinet:
Council of Ministers appointed by the president
note:there is also a Federal Supreme Council (FSC) composed of the seven emirate rulers; the FSC is the highest constitutional authority in the UAE; establishes general policies and sanctions federal legislation; meets four times a year; Abu Zaby (Abu Dhabi) and Dubayy (Dubai) rulers have effective veto power
elections:
president and vice president elected by the FSC for five-year terms (no term limits) from among the seven FSC members; election last held 3 November 2009 upon the death of the UAE's Founding Father and first President ZAYID bin Sultan al Nuhayyan (next election NA); prime minister and deputy prime minister appointed by the president
election results:
KHALIFA bin Zayid al-Nuhayyan elected president by a unanimous vote of the FSC; MUHAMMAD bin Rashid al-Maktum unanimously affirmed vice president after the 2006 death of his brother Sheikh Maktum bin Rashid al-Maktum
unicameral Federal National Council (FNC) or Majlis al-Ittihad al-Watani (40 seats; 20 members appointed by the rulers of the constituent states, 20 members elected to serve two-year terms)
elections:
elections for one half of the FNC (the other half remains appointed) held on 18-20 December 2006; the new electoral college - a body of 6,689 Emiratis (including 1,189 women) appointed by the rulers of the seven emirates - were the only eligible voters and candidates; 456 candidates including 65 women ran for 20 contested FNC seats; one female from the Emirate of Abu Dhabi won a seat and 8 women were among the 20 appointed members
note:the FNC reviews legislation but cannot change or veto
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.
general assessment: modern fiber-optic integrated services; digital network with rapidly growing use of mobile-cellular telephones; key centers are Abu Dhabi and Dubai
domestic:
microwave radio relay, fiber optic and coaxial cable
international:
country code - 971; linked to the international submarine cable FLAG (Fiber-Optic Link Around the Globe); landing point for both the SEA-ME-WE-3 and SEA-ME-WE-4 submarine cable networks; satellite earth stations - 3 Intelsat (1 Atlantic Ocean and 2 Indian Ocean) and 1 Arabsat; tropospheric scatter to Bahrain; microwave radio relay to Saudi Arabia
registered in other countries:
313 (Bahamas 23, Bahrain 1, Belize 5, Cambodia 2, Comoros 7, Cyprus 9, Dominica 1, Georgia 1, Gibraltar 3, Hong Kong 1, India 6, Indonesia 2, Iran 1, Jordan 13, North Korea 8, Liberia 23, Malta 5, Marshall Islands 15, Mexico 1, Netherlands 5, Panama 109, Papua New Guinea 6, Philippines 1, Saint Kitts and Nevis 18, Saint Vincent and the Grenadines 9, Saudi Arabia 1, Sierra Leone 8, Singapore 12, Somalia 1, Turkey 1, UK 9, unknown 6) (2008)
boundary agreement was signed and ratified with Oman in 2003 for entire border, including Oman's Musandam Peninsula and Al Madhah enclaves, but contents of the agreement and detailed maps showing the alignment have not been published; Iran and UAE dispute Tunb Islands and Abu Musa Island, which Iran occupies
the UAE is a drug transshipment point for traffickers given its proximity to Southwest Asian drug-producing countries; the UAE's position as a major financial center makes it vulnerable to money laundering; anti-money-laundering controls improving, but informal banking remains unregulated
The online Factbook is updated bi-weekly. ISSN 1553-8133
For additional information on government leaders in selected foreign countries, go to World Leaders.
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