Outstanding transformation within 30 years
From fishing, pearl production and agriculture to an outstanding example of globalisation the United Arab Emirates experienced an exceptional economic transformation after oil production and export started in 1962. Read a brief summary about about geography, history, culture, demographic, and governmental & economical facts.

Gate to the Middle East

Seven emirates subdivide the country: Abu Dhabi (capital city and largest emirate), Dubai, Sharjah, Ajman, Ras Al Khaimah, Fujairah and Umm Al Quwain. Abu Dhabi and Dubai are investing heavily into diversification and are the most interesting locations for foreign businesses and foreign direct investments.

The United Arab Emirates lie in the Near East on the Arabian peninsula bordering the Gulf of Oman and the Persian Gulf. Neighbouring countries are Oman, Saudi-Arabia and Qatar. The country’s 83,600 square kilometer mainly consist of dry sandy deserts which cover over 90 per cent of its area. Al Fujairah has the only mountainous area with the Hajar Mountains being the country's highest point.

The climate is arid subtropical with humidity exceeding 85% near the coast. Temperatures range from 35 to 50 degrees Celsius in the summer months and 10 to 25 degrees Celsius during the winter months (late October to beginning of April).

United Arab Emirates founded in 1971
Converted to islam in the 7th century the area became known as the Pirate Coast where raiders attacked foreign merchant ships. In 1853 a treaty with the United Kingdom was enforced in order to agree to a perpetual maritime truce.

In 1968, the UK announced its decision to end the treaty relationships with the nine Sheikhdoms (inlcuding Qatar and Bahrain) which had been under British protection. In mid-1971 the nine attempted to form a union of Arab emirates, but were unable to agree on terms of union. Qatar became independent in September and Bahrain became independent in August 1971. On December 2nd 1971, six of them formed a union called United Arab Emirates. Ras al-Khaimah as the seventh emirate joined in early 1972.

After oil export started in the sixties especially Abu Dhabi and Dubai showed an exceptional enonomic development. The Emirates managed to invest oil revenue into their own infrastructure and built diversified industry sectors to reduce oil depencency in the future.

Federation formed in 1971
The seven emirates Abu Dhabi, Dubai, Sharjah, Ajman, Fujairah, Ras al-Khaimah, and Umm al-Qaiwain formed the federation in 1971. Each Emirate has a seperate ruler for its local government whereas the United Arab Emirates have a federal president and a prime minister.

Executive Law: Consists of a Supreme Council of Rulers, which appoints the president and vice president.

Legislative law: Ccomprises of a consultative 40-member Federal National Council.

Judicial law: Islamic and secular courts

Sheikh Zayed bin Sultan Nahyan was the first president of the United Arab Emirates until he died on 2 November 2004. He was succeeded by his son Khalifa bin Zayed Al Nahayan who was elected by the Federal Supreme Council the next day.

The government's free and balanced economic policy is an essential driver of tremendous growth and permanently increasing foreign direct investments especially in Dubai and Abu Dhabi.

More than 100 different cultures living together in the UAE
Altogether more than 4.5 million people are living in the United Arab Emirates (2006 est.) with 1.3 million living in Dubai which is the UAE's most populated city.

The UAE has one of the most diverse populations in the Middle East. Emirati nationals represent the minority in their own country among expatriates from

India: 1.1 million
Pakistan: 750,000
Bangladesh: 400,000-500,000
Iran: 300,000-400,000
Jordan: 200,000
Philippines: 200,000
Sri Lanka: 150,000
Great Britain: 120,000
Nepal: 70,000-80,000
Lebanon: 60,000

Islamic culture and a modern lifestyle
Rooted in Islamic culture the UAE has strong ties with the rest of the Arab and Islamic world. The government preserves traditional forms of art and culture, primarily through the Abu Dhabi Cultural Foundation. Especially in the big cities one will find a western style of shoppingmalls and architecture due to the economic boom of the last decade.

Many churches are present in the UAE, as in several other Muslim countries that are tolerant of other religions. Due to the fact the many Asians have made UAE their second home, there is a variety of Asian restaurants and cultural centres. There also exist a few European centres and schools.

Religion: 96% Muslim
Languages: Arabic (official), English, Hindi, Urdu, Persian

UAE has one of the fastest growing economies in the world
Befor discovering and exporting oil in 1962 the UAE economy was dominated by fishing, pearl production, herding and agriculture. Since petrol prices began to rise in 1973, oil has dominated the economy accounting for most of its export revenue and providing significant opportunities for investment. Oil reserves of the UAE are estimated to last for at least the next 150 years (210 trillion cubic feet) at present production rates (2.5 million barrels per day). Main producer is the Emirate Abu Dhabi representing 94% of the UAE's total oil production.

Major increases in imports occurred in manufactured goods, machinery, and transportation equipment, which together accounted for 70% of total imports.

Over 200 factories operate at the Jebel Ali complex in Dubai, which includes a deep-water port and a free trade zone for manufacturing and distribution in which all goods for re-export or transshipment enjoy a 100% tax exemption. A major power plant with associated water desalination units, an aluminum smelter, and a steel fabrication unit are prominent facilities in the complex.

Except in its various free trade zones, the U.A.E. requires at least 51% local citizen ownership in all businesses operating in the country as part of its attempt to place Emiratis into leadership positions.

As a member of the Gulf Cooperation Council (GCC), the U.A.E. participates in the wide range of GCC activities that focus on economic issues. These include regular consultations and development of common policies covering trade, investment, banking and finance, transportation, telecommunications, and other technical areas, including protection of intellectual property rights.

Basic Indicators

Merchandise Trade