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 Dhabi, '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 high 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. The UAE has essentially avoided the "Arab Spring" unrest seen elsewhere in the Middle East, though in March 2011, political activists and intellectuals signed a petition calling for greater public participation in governance that was widely circulated on the Internet. In an effort to stem potential further unrest, the government announced a multi-year, $1.6-billion infrastructure investment plan for the poorer northern Emirates.

Middle East, bordering the Gulf of Oman and the Persian Gulf, between Oman and Saudi Arabia

24 00 N, 54 00 E

Middle East

slightly smaller than Maine

1,318 km

desert; cooler in eastern mountains

flat, barren coastal plain merging into rolling sand dunes of vast desert wasteland; mountains in east

petroleum, natural gas

2,300 sq km (2003)

0.2 cu km (1997)

frequent sand and dust storms

lack of natural freshwater resources compensated by desalination plants; desertification; beach pollution from oil spills

strategic location along southern approaches to Strait of Hormuz, a vital transit point for world crude oil

Emirati 19%, other Arab and Iranian 23%, South Asian 50%, other expatriates (includes Westerners and East Asians) 8% (1982)

Arabic (official), Persian, English, Hindi, Urdu

Muslim (Islam - official) 96% (Shia 16%), other (includes Christian, Hindu) 4%

5,314,317 (July 2012 est.)

3.055% (2012 est.)

15.76 births/1,000 population (2012 est.)

2.04 deaths/1,000 population (July 2012 est.)

16.82 migrant(s)/1,000 population (2012 est.)

ABU DHABI (capital) 666,000 (2009)

12 deaths/100,000 live births (2010)

2.38 children born/woman (2012 est.)

2.8% of GDP (2009)

1.93 physicians/1,000 population (2007)

1.9 beds/1,000 population (2008)

urban: 98% of population

rural: 95% of population

total: 97% of population

urban: 2% of population

rural: 5% of population

total: 3% of population

0.2% (2001 est.)

NA

NA

33.7% (2000)

1.2% of GDP (2009)

federation with specified powers delegated to the UAE federal government and other powers reserved to member emirates

7 emirates (imarat, singular - imarah); Abu Zaby (Abu Dhabi), 'Ajman, Al Fujayrah, Ash Shariqah (Sharjah), Dubayy (Dubai), Ra's al Khaymah, Umm al Qaywayn (Quwain)

2 December 1971 (from the UK)

Independence Day, 2 December (1971)

2 December 1971; made permanent in 1996

mixed legal system of Islamic law and civil law

has not submitted an ICJ jurisdiction declaration; non-party state to the ICCt

limited; note - rulers of the seven Emirates each select a proportion of voters for the Federal National Council (FNC) that together account for about 12 percent of the native Emirati population

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 four-year terms);

Union Supreme Court (judges are appointed by the president)

none; political parties are not allowed

NA

ABEDA, AfDB (nonregional member), AFESD, AMF, BIS, CAEU, CICA, FAO, G-77, GCC, IAEA, IBRD, ICAO, ICC (national committees), ICRM, IDA, IDB, IFAD, IFC, IFRCS, IHO, ILO, IMF, IMO, IMSO, Interpol, IOC, IPU, ISO, ITSO, ITU, LAS, MIGA, NAM, OAPEC, OIC, OIF (observer), OPCW, OPEC, PCA, UN, UNCTAD, UNESCO, UNIDO, UPU, WCO, WHO, WIPO, WMO, WTO

three equal horizontal bands of green (top), white, and black with a wider vertical red band on the hoist side; the flag incorporates all four Pan-Arab colors, which in this case represent fertility (green), neutrality (white), petroleum resources (black), and unity (red); red was the traditional color incorporated into all flags of the emirates before their unification

golden falcon

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 country 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, and deflated asset prices constricted the economy in 2009. UAE authorities 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. 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, a large expatriate workforce, and growing inflation pressures 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.

$271.2 billion (2012 est.)

$260.7 billion (2011 est.)

$247.8 billion (2010 est.)

$361.9 billion (2012 est.)

4% (2012 est.)

5.2% (2011 est.)

1.3% (2010 est.)

$49,000 (2012 est.)

$48,500 (2011 est.)

$47,500 (2010 est.)

4.337 million

2.4% (2001)

19.5% (2003)

28.5% of GDP (2012 est.)

36% of GDP (2012 est.)

4.5% of GDP (2012 est.)

40.4% of GDP (2012 est.)

45.9% of GDP (2011 est.)

1.1% (2012 est.)

0.9% (2011 est.)

NA%

$80.53 billion (31 December 2012 est.)

$71.9 billion (31 December 2011 est.)

$234.7 billion (31 December 2012 est.)

$224.8 billion (31 December 2011 est.)

$313.7 billion (31 December 2012 est.)

$293.2 billion (31 December 2011 est.)

$93.77 billion (31 December 2011)

$104.7 billion (31 December 2010)

$109.6 billion (31 December 2009)

dates, vegetables, watermelons; poultry, eggs, dairy products; fish

3.2% (2010 est.)

$26.76 billion (2012 est.)

$30.65 billion (2011 est.)

$300.6 billion (2012 est.)

$281.6 billion (2011 est.)

crude oil 45%, natural gas, reexports, dried fish, dates

Japan 16.2%, India 13.5%, Iran 10.9%, South Korea 5.6%, Thailand 5.5%, Singapore 4.4% (2011)

$220.3 billion (2012 est.)

$202.1 billion (2011 est.)

machinery and transport equipment, chemicals, food

India 19.8%, China 13.7%, US 8.1%, Germany 4.6% (2011)

$43.77 billion (31 December 2012 est.)

$37.27 billion (31 December 2011 est.)

$158.9 billion (31 December 2012 est.)

$156.3 billion (31 December 2011 est.)

$91.56 billion (31 December 2012 est.)

$83.36 billion (31 December 2011 est.)

$58.1 billion (31 December 2012 est.)

$55.6 billion (31 December 2011 est.)

Emirati dirhams (AED) per US dollar -

3.673 (2012 est.)

3.673 (2011 est.)

3.6725 (2010 est.)

3.673 (2009)

3.6725 (2008)

calendar year

83.31 billion kWh (2010 est.)

74.12 billion kWh (2009 est.)

0 kWh (2010 est.)

0 kWh (2010 est.)

23.25 million kW (2009 est.)

100% of total installed capacity (2009 est.)

0% of total installed capacity (2009 est.)

0% of total installed capacity (2009 est.)

0% of total installed capacity (2009 est.)

3.087 million bbl/day (2011 est.)

2.036 million bbl/day (2009 est.)

0 bbl/day (2009 est.)

97.8 billion bbl (1 January 2012 est.)

346,900 bbl/day (2008 est.)

572,100 bbl/day (2011 est.)

452,400 bbl/day (2008 est.)

377,300 bbl/day (2008 est.)

51.28 billion cu m (2010 est.)

60.54 billion cu m (2010 est.)

7.65 billion cu m (2010 est.)

16.91 billion cu m (2010 est.)

6.089 trillion cu m (1 January 2012 est.)

199.4 million Mt (2010 est.)

1.825 million (2011)

11.727 million (2011)

except for the many organizations now operating in Dubai's Media Free Zone, most TV and radio stations remain government-owned; widespread use of satellite dishes provides access to pan-Arab and other international broadcasts (2007)

.ae

337,804 (2012)

3.449 million (2009)

42 (2012)

5 (2012)

condensate 458 km; refined products 212 km; gas 2,352 km; liquid petroleum gas 220 km; oil 1,437 km (2010)

Al Fujayrah, Mina' Jabal 'Ali (Dubai), Khor Fakkan (Khawr Fakkan), Mubarraz Island, Mina' Rashid (Dubai), Mina' Saqr (Ra's al Khaymah)

United Arab Emirates Armed Forces: Critical Infrastructure Coastal Patrol Agency (CNIA), Land Forces, Navy, Air Force and Air Defense, Border and Coast Guard Directorate (BCGD) (2012)

18 years of age for voluntary military service; 18 years of age for officers and women; no conscription; 16-22 years of age for candidates for the UAE Naval College (2009)

3.1% of GDP (2005 est.)

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