United Arab Emirates : Center Of Global Investment

Introduction

United Arab Emirates has changed dramatically over the last three decades, becoming a major business centre with a more dynamic and diversified economy. The country enjoys a strategic location and serves an important melting hub in the Middle East.

Its excellent infrastructure, international outlook and liberal government policies are attracting investors in a big way. Activities such as trade, transport, tourism, industry and finance have shown steady growth and helped the economy to achieve a high degree of expansion and diversification.

Government and Key Political Figures

The United Arab Emirates is a constitutional federation of seven emirates:

The largest one is Abu Dhabi which contains the nation's capital city, Dubai, Sharjah, Ajman, Umm al-Qaiwain, Ra's al-Khaimah and Fujairah.

Each of the seven emirates has its own local government the complexity of which differs according to the size and population of each emirate. Each follows a general pattern of municipalities and departments.

The Presidency and Premiership of the United Arab Emirates is de facto hereditary to the Al Nahyan clan of Abu Dhabi and the Al Maktoum clan of Dubai. Sheikh Khalifa bin Zayed Al Nahyan was elected as President of the UAE on 3 November 2004, following the death of Sheikh Zayed bin Sultan Al Nahyan, who held the post from the foundation of the State on 2 December 1971 until his death on 2 November 2004.

The term of elected office for the Vice-President is also five years, and the post is presently held by Sheikh Mohammed bin Rashid Al Maktoum, who was elected following the death of his brother, Sheikh Maktoum bin Rashid Al Maktoum, in early 2006.

The federal system of government includes09:

The Supreme Council, made up of the rulers of each emirate, is the top policy-making body in the state. They meet at five-year intervals to reaffirm the existing President or elect a new one.

The Council of Ministers or Cabinet headed by the Prime Minister, is the executive authority for the federation.

The 40-member Federal National Council has both a legislative and supervisory role.

Introduction of indirect elections in December 2006 and the participation of 9 women in the parliament is intended to be the first phase of a process designed to enhance public participation and the role played by the FNC in government.

Traditional Government still plays an important part in the government of the UAE, with the institution of the majlis (or majalis) maintaining a role in ensuring that the people have free access to their rulers.

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 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. 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

• Main Industries

Petroleum and petrochemicals; fishing, aluminium, cement, fertilizers, commercial ship repair, construction materials, some boat building, handicrafts, textiles

• Import Commodities

Machinery and transport equipment, chemicals, food

• Import Partners

China 12.8%, India 10%, US 8.7%, Japan 6.1%, Germany 5.9%, UK 5.3%, Italy 4.6% (2007)

• GDP AS OF 2009

GDP purchasing power parity of $293.5 billion in 2009 according to the Internationally Monetary Fund.

Economic Indicators

Gross Domestic Product

GDP per Capita 2004.................................................................... Dh 74,917
GDP in Current Prices 2004 (Dh billion).......................................... 378.76
GDP Non-oil Sectors (Dh billion) 2004 (current prices)..................... 255.50
GDP Non-oil Sectors (Dh billion) 2004 (constant 2000 prices).. .........230.00

Trade Figures

Total Exports & Re-Exports 2004 (Dh billion)................. 303.9
Crude Oil Exports 2004 (Dh billion).............................. 108.79
Total Re-Exports 2004 (Dh billion)................................ 101.78
Total Imports 2004 (Dh billion)..................................... 199.04
Trade Balance 2004 (Dh billion) .................................. 104.86

Oil & Gas

UAE Oil Reserves (billion barrels)................................ 97.8
Abu Dhabi’s Oil Reserves (billion barrels)..................... 92.2
UAE Natural Gas Reserves (trillion cubic feet)............... 213.5
Abu Dhabi’s Natural Gas Reserves (trillion cubic feet).... 198.5

Social Development

Employees (000s) 2004................................................ 2,649
Literacy (%)................................................................ 90
Life Expectancy at Birth ............................................... 78
Infant Mortality Rate 2004 (per 1000 live births)............. 7.7
Primary & Secondary Students 2003/2004..................... 612,098
Public & Private Schools 2003........................................ 1,207
Higher Education Registrations 2004/2005...................... 10,459
Social Welfare Beneficiaries 2003.................................. 77,000
Government Hospitals................................................... 34
Primary Health Care Centres.(2004).............................. 115
Hospital Beds (both Government and Private)......over 7000

Infrastructure Development

Total Installed Electricity Generating Capacity (MW)..... 12,800
Total Water Production 2004 (bn gallons)..................... 195
Fixed Line subscribers 2003 (million)............................ 1.209
Mobile Phone Subscribers (million).............................. 4.068
Estimated Internet Users (million)................................. 1.25
International Airports..................................................... 6
Commercial Ports........................................................... 15
Paved Highways (km)..(2004)....................................... 4030
Vehicles (000s).(2004).................................................. 792