United Arab Emirates

UNITED ARAB EMIRATES

LOCATION, SIZE, AND EXTENT
TOPOGRAPHY
CLIMATE
FLORA AND FAUNA
ENVIRONMENT
POPULATION
MIGRATION
ETHNIC GROUPS
LANGUAGES
RELIGIONS
TRANSPORTATION
HISTORY
GOVERNMENT
POLITICAL PARTIES
LOCAL GOVERNMENT
JUDICIAL SYSTEM
ARMED FORCES
INTERNATIONAL COOPERATION
ECONOMY
INCOME
LABOR
AGRICULTURE
ANIMAL HUSBANDRY
FISHING
FORESTRY
MINING
ENERGY AND POWER
INDUSTRY
SCIENCE AND TECHNOLOGY
DOMESTIC TRADE
FOREIGN TRADE
BALANCE OF PAYMENTS
BANKING AND SECURITIES
INSURANCE
PUBLIC FINANCE
TAXATION
CUSTOMS AND DUTIES
FOREIGN INVESTMENT
ECONOMIC DEVELOPMENT
SOCIAL DEVELOPMENT
HEALTH
HOUSING
EDUCATION
LIBRARIES AND MUSEUMS
MEDIA
ORGANIZATIONS
TOURISM, TRAVEL, AND RECREATION
FAMOUS EMIRIANS
DEPENDENCIES
BIBLIOGRAPHY

United Arab Emirates

Al-Imarat al-'Arabiyah al-Muttahidah

CAPITAL: Abu Dhabi (Abu Zaby)

FLAG: The flag consists of a red vertical stripe at the hoist and three equal horizontal stripes of green, white, and black.

ANTHEM: The National Anthem is an instrumental piece without words.

MONETARY UNIT: The United Arab Emirates dirham (ud), introduced as the currency in May 1973, is divided into 100 fils. There are coins of 1, 5, 10, 25, and 50 fils and 1 and 5 dirham and notes of 5, 10, 50, 100, 200, 500, and 1,000 dirhams. ud1 = $0.27337 (or $1 = ud3.658) as of January 2003.

WEIGHTS AND MEASURES: The metric system and imperial and local measures are used.

HOLIDAYS: New Year's Day, 1 January; Accession of the Ruler of Abu Dhabi (Abu Dhabi only), 6 August; National Day, 2 December; Christmas, 25 December. Muslim religious holidays include Lailat al-Miraj, 'Id al-Fitr, 'Id al-'Adha', Hijra New Year, and Milad an-Nabi.

TIME: 4 pm = noon GMT.

LOCATION, SIZE, AND EXTENT

Comprising a total area of approximately 82,880 sq km (32,000 sq mi), including some 6,000 sq km (2,300 sq mi) of islands, the United Arab Emirates (UAE), in the eastern Arabian Peninsula, consists of seven states: Abu Dhabi, or Abu Zaby; Dubai, or Dubayy); Sharjah; Ra's al-Khaimah, or Ra's al-Khaymah; Fujairah, or Al-Fujayrah; Umm al-Qaiwain, or Umm al-Qaywayn; and 'Ajman. Comparatively, the area occupied by United Arab Emirates is slightly smaller than the state of Maine. Extending 544 km (338 mi) ne–sw and 361 km (224 mi) se–nw, the United Arab Emirates is bordered on the n by the Persian (or Arabian) Gulf, on the e by Oman, on the s and w by Saudi Arabia, and on the nw by Qatar, with a total boundary length of 2,185 km (1,358 mi), including a coastline of 1,318 km (819 mi).

In the late 1970s, Saudi Arabia and Qatar reportedly reached a boundary agreement according to which a narrow corridor of land was ceded by Abu Dhabi, thus allowing Saudi Arabia access to the Gulf near the Khawr Duwayhin and eradicating the former Qatar-UAE frontier. However, through 2005, no documents attesting to the accord had been submitted to the United Nations. The remainder of the boundary with Saudi Arabia is not yet fully demarcated. A 1999 border treaty with Oman was reportedly signed and ratified in 2003, but the contents of the agreement had not been published as of late 2005.

The UAE's capital city, Abu Dhabi, is located on the Persian Gulf.

TOPOGRAPHY

The United Arab Emirates consists mainly of sandy desert. It is bounded on the west by an immense sebkha, or salt flat, extending southward for nearly 112 km (70 mi). The eastern boundary runs northward over gravel plains and high dunes until it almost reaches the Hajar Mountains in the Ra's Musandam near Al 'Ayn. The flat coastal strip that makes up most of the United Arab Emirates has an extensive area of sebkha subject to flooding. Some sand spits and mud flats tend to enlarge, and others enclose lagoons. A sandy desert with limestone outcroppings lies behind the coastal plain in a triangle between the gravel plain and the mountains of the east and the sands of Saudi Arabia to the south. Far to the south, the oases of Al-Liwa' are aligned in an arc along the edge of dunes, which rise above 90 m (300 ft).

The main gravel plain extends inland and southward from the coast of Ra's al-Khaimah to Al 'Ayn and beyond. Behind Ra's al-Khaimah and separating Fujairah from the Persian Gulf is an area of mountains that rise over 900 m (3,000 ft) in height, with isolated cultivation. Finally, alluvial flats on the Gulf of Oman fill the bays between rocky spurs. South of Khor Fakkan (Sharjah), a continuous, well-watered fertile littoral strip known as the Batinah Coast runs between the mountains and the sea and continues into Oman. There are, in addition, many islands, most of which are owned by Abu Dhabi. These include Das, the site of oil operations, and Abu Musa, exploited for oil and red oxide.

CLIMATE

The months between May and October are extremely hot, with shade temperatures of between 38–49°c (100–120°f) and high humidity near the coast. Winter temperatures can fall as low as 2°c (36°f) but average between 17–20°c (63–68°f). Normal annual rainfall is from 5–10 cm (2–4 in), with considerably more in the mountains; most rainfall occurs between November and February.

FLORA AND FAUNA

Apart from cultivated plants, there are two categories of plant life in the United Arab Emirates: the restricted salt-loving vegetation of the marshes and swamps, including the dwarf mangrove, and the desert plant community, which includes a wide range of flora that is most abundant after the fall of rain.

Animal and reptile life is similar to that of Bahrain, with the addition of the fox, wolf, jackal, wildcat, and lynx. Hedgehogs have been seen. More than 250 species of small birds have been seen in the United Arab Emirates, along with many of the larger birds—kites, buzzards, eagles, falcons, owls, and harriers. However, the number of breeding species in the country may be much less than 100. Sea birds include a variety of gulls, terns, ospreys, waders, and flamingos. Popular game birds include the houbara (ruffed bustard), as well as species of ducks and geese.

ENVIRONMENT

The clearing of natural vegetation, livestock overgrazing on range-lands, and extensive deforestation (in ancient times) have led to desertification. Overpumping of groundwater has brought a rise in soil salinity levels, and effluents from the oil industry have contributed to air pollution. In 1992, the United Arab Emirates ranked among 50 countries with the world's highest levels of industrial carbon dioxide emissions, which totaled 70.6 million metric tons, a per capita level of 42.28 metric tons. In 2000, the total of carbon dioxide emissions was at 58.9 million metric tons.

The nation has about 0.2 cu km of renewable water resources, with 67% of annual withdrawals used for farming activity and 10% used for industrial purposes. The nation's cities produce an average of 0.5 million tons of solid waste per year.

As of 2001, the nation had two land areas protected by environmental legislation. The Al 'Ayn zoological gardens contain some 280 species of wildlife, including the gazelle, which had been on the verge of extinction in the region. According to a 2006 report issued by the International Union for Conservation of Nature and Natural Resources (IUCN), threatened species included 5 types of mammals, 11 species of birds, 1 type of reptiles, and 6 species of fish. Endangered species in the United Arab Emirates are the peregrine falcon, South Arabian leopard, hawksbill turtle, gray wolf, Arabian oryx, Arabian tahr, green sea turtle, and desert monitor.

POPULATION

The population of United Arab Emirates in 2005 was estimated by the United Nations (UN) at 4,618,000, which placed it at number 115 in population among the 193 nations of the world. In 2005, approximately 1% of the population was over 65 years of age, with another 25% of the population under 15 years of age. There were 214 males for every 100 females in the country. According to the UN, the annual population rate of change for 2005–10 was expected to be 4.4%. Government development policies have resulted in large-scale immigration of foreign workers, contributing to the high growth rate; the government in 2005 viewed the immigration rate as too high. The projected population for the year 2025 was 6,875,000. The population density was 55 per sq km (143 per sq mi).

The UN estimated that 78% of the population lived in urban areas in 2005, and that urban areas were growing at an annual rate of 1.79%. The capital city, Abu Dhabi, had a population of 475,000 in that year.

MIGRATION

About 80% of the UAE's population originates from outside its borders. In the early 1980s, the government took steps to reduce the immigration rate by limiting the number of visas issued to foreign workers. By 2003, foreigners were 90% of the 1.7 million work force, with over 50% from India, and 400,000 foreigners arriving annually. The government aimed at nationalization of the workforce by prohibiting foreigners in some jobs, and by instituting a "cultural diversity policy" aimed at favoring Arabic-speakers over Asian.

In 2000, there were some 1,922,000 migrants living in the United Arab Emirates. This includes the small number of refugees. The net migration rate for 2005 was estimated as 0.84 migrants per 1,000 population, a considerable drop from 15.0 migrants per 1,000 in 1990.

ETHNIC GROUPS

Only about 19% of the population were native Emirati. South Asians accounted for 50% of the total population at last estimate, while other Arabs and Iranians made up 23%. Other expatriates, including Westerners and East Asians, totaled 8%. Jordanians, Palestinians, Egyptians, Iraqis, and Bahrainis are employed throughout the bureaucracy, including the educational system.

LANGUAGES

Arabic is the official and universal language. Hindi and Urdu are minority languages. English is widely used in business. Farsi is spoken in Dubai.

RELIGIONS

Islam is the official religion of all seven emirates. As such, about 76% of the population are Muslims, primarily Sunnis with a Shia minority. In emirates that officially recognize and grant legal identity to non-Muslim groups, only a limited number of Christian groups are granted this recognition. While recognizing the difference between Roman Catholic, Eastern Orthodox, and Protestant Christianity, the authorities make no other legal distinction between Christian groups, particularly Protestants. About 9% of the population are Christians. Other faiths include Hindus, Buddhists, Parsis, Baha'is, and Sikhs.

The constitution provides for freedom of religion within the scope of established customs. The government retains the right to enforce certain restrictions, such as a prohibition on proselytizing of non-Muslim faiths and limited rights of assembly. Many non-Muslims meet in private homes.

TRANSPORTATION

With most of the population concentrated in coastal towns and the Al 'Ayn oasis, road links between these centers have been given priority. There is now a paved coastal road linking Abu Dhabi, Dubai, Sharjah, 'Ajman, Umm al-Qaiwain, and R'as al-Khaimah. Roads linking the interior to the main towns have been constructed; of particular importance is the transpeninsular road from Fujairah through the Hajar Mountains. A six-lane, 209-km (130-mi) highway has been built between Abu Dhabi and Al-'Ayn, and two bridges connect Abu Dhabi island with the mainland. Another highway links the UAE coastal network with the Trans-Arabian Highway at As-Silah on the Qatar border. In 2002, there were 4,835 km (3,004 mi) of paved highways. Of registered vehicles in 2003, there were 240,573 passenger cars and 70,000 commercial vehicles in use. There are no railways or waterways in the United Arab Emirates.

The United Arab Emirates is well provided with port facilities. Dubai's Port Rashid, with its deep-water berths and warehouses, is one of the largest artificial harbors in the Middle East. Other ports are the Jabal 'Ali complex, also in Dubai, completed in 1980. Abu Dhabi's Port Zayid; Sharjah's Port Khalid; and the deepwater port at Ra's al-Khaimah. Sharjah constructed a new port at Khor Fakkan in the early 1980s; the Fujairah port became fully operational in 1983. Jabal 'Ali in Dubai is the largest man-made port in the world. In 2005, the merchant fleet consisted of 56 ships of 1,000 GRT or more, totaling 578,477 GRT.

In 2004, there were an estimated 35 airports. As of 2005, a total of 22 had paved runways, and there were also two heliports. A new international airport in Abu Dhabi, on the mainland across from the island, opened in 1982. The other international airports in the United Arab Emirates are in Dubai, Sharjah, and Ra's al-Khaimah. In July 1991, a "cargo village" opened at Dubai Airport, designed to handle 250,000 tons of cargo per year by 1997. The village operations can transfer cargo received at the port into air containers ready for airlift in three hours, and have the facilities to handle frozen and hazardous goods. In 2003, about 11.384 million passengers were carried on scheduled domestic and international airline flights.

HISTORY

Although the Trucial Coast has for centuries been situated on one of the main trade routes between Asia and Europe, very little is known about the early history of the states that now make up the United Arab Emirates. The northern states of the United Arab Emirates, and in particular Ra's al-Khaimah, first came into historic prominence during the period of Portuguese occupation in the 16th and early 17th centuries, when Portugal used the territories as a base to fight a rear guard action against Persia. At that time and down to the mid-18th century, neighboring Oman played an integral role in the history of the maritime states.

Abu Dhabi island was settled by its present ruling family, Al Nahyan, toward the end of the 18th century, and Dubai was founded by an offshoot of the same family in 1833. The late 18th and 19th centuries brought the division of the area between the Nahyan and the Qawasim, who ruled Ra's al-Khaimah and neighboring territories and whose clashes with British and Indian shipping led to British naval expeditions against what came to be known as the Pirate Coast. Treaties concluded in 1820 and 1835 established a formal relationship between the states of the southern Gulf and Britain that was to last until 1971. In 1853, the sheikhs agreed to a "perpetual maritime truce" to be enforced by the British navy. Under a treaty signed in 1892, the United Kingdom promised to protect the Trucial Coast from all aggression by sea and to lend its good offices in case of land attack. In 1955, the United Kingdom effectively intervened on the side of Abu Dhabi in the latter's dispute with Saudi Arabia over the Buraymi oasis, control of which is now shared by Abu Dhabi and Oman.

When, in 1968, the United Kingdom announced its intention to withdraw its forces from the area, a decision to establish a federation of Arab emirates—embracing the seven Trucial States, Bahrain, and Qatar—was agreed on in principle. However, it proved impossible to reconcile the differences among all the members. Six Trucial States (excluding Ra's al-Khaimah) agreed on the establishment of the United Arab Emirates, which was officially proclaimed a sovereign, independent nation on 2 December 1971, with Ra's al-Khaimah joining in early 1972.

Externally, the move to independence in 1971 placed the United Arab Emirates in difficult straits with its two powerful neighbors, Saudi Arabia and Iran. Saudi Arabia asserted a territorial claim on a group of oases in the south of the United Arab Emirates, and Iran laid claim to its offshore islands. In 1974, a border agreement on the Liwa' oases was signed with Saudi Arabia, but apparently has not been fully recognized by the rulers of either country. The dispute with Iran over the Abu Musa and Tumb Islands became tense when Iranian forces unilaterally asserted control over the UAE section of Abu Musa in 1992. In 1996, Iran rejected a proposal by the Gulf Cooperation Council (GCC) to put the dispute over the islands to the International Court of Justice (ICJ) for arbitration. In 2005, Iran still occupied the islands. In the dispute, the United Arab Emirates has received support from the GCC, UN, and the United States.

The United Arab Emirates became a founding member in 1981 of the Gulf Cooperation Council (GCC), a political and economic alliance directed, at least implicitly, against Iran. During the Iran-Iraq war, the United Arab Emirates gave aid to Iraq but also maintained diplomatic relations with Iran and sought to mediate the conflict.

In the Gulf War, forces from the United Arab Emirates participated with allied troops and the government gave some $4.5 billion to the coalition war effort. Subsequently, the United Arab Emirates has increasingly looked to the GCC, the United States, and friendly Arab states for its security protection. The UAE's generosity with foreign aid to Arab states made it a significant player in the affairs of the region. In the years immediately after the war, the United Arab Emirates accepted the stationing of US troops on its soil.

During the Yugoslav civil war, the United Arab Emirates airlifted wounded Bosnian Muslim women and their families to Abu Dhabi, where they were given free medical treatment and housing, and financial support for one year. The country has also given heavily to Red Crescent relief organizations in Bosnia. Unlike its neighbors and partners in the GCC, Oman and Qatar, the United Arab Emirates did not establish liaison offices in Israel—although it relaxed the Arab-wide boycott of Israel in the hope that lasting peace between the Palestinians and Israel would be forthcoming as a result of the Oslo Accords.

In 1991, the Bank of Commerce and Credit International (BCCI), which was based in the United Arab Emirates and largely owned by the ruling family of Abu Dhabi, collapsed, causing repercussions all around the world. Accused of fraudulent dealings, the bank was officially liquidated in 1996, and the UAE cabinet resigned the following year. A sharp decline in oil prices in 1998 strongly affected the economy of the United Arab Emirates, which recorded a drop of almost 6% in its GDP. At the end of 1999, the United Arab Emirates celebrated the 25th anniversary of its founding, and the 30th anniversary of rule its president, Sheikh Zayid bin Sultan Al Nahyan.

Following the 11 September 2001 terrorist attacks on the United States, the United States called upon the nations of the world to implement counterterrorism measures. In November, the United Arab Emirates ordered financial institutions in the country to freeze the assets of 62 organizations and individuals suspected by the United States of supporting terrorist movements.

During 2002 and into 2003, the United Arab Emirates, along with the other countries of the Persian Gulf, were confronted with the situation of a potential US-led war with Iraq. In November 2002, the UN Security Council passed a resolution calling on Iraq to immediately disarm itself of weapons of mass destruction (WMD) and to allow the immediate return of International Atomic Energy Agency (IAEA) and UN weapons inspectors. The United States and the United Kingdom began amassing troops in the region, and by the end of February 2003, the number of troops in the Persian Gulf was approximately 200,000. At a 1 March 2003 Arab League summit held at Sharm el-Sheik, Egypt, Sheikh Zayid bin Sultan Al Nahyan called upon Iraqi president Saddam Hussein to relinquish power and leave Iraq in exchange for immunity from prosecution. Iraq would be placed under the tutelage of the UN and the Arab League until a new government could be formed. Bahrain and Kuwait supported the UAE proposal. However, on 19 March 2003, the United States launched air strikes against Baghdād, and war began.

Sheikh Zayid bin Sultan Al Nahyan, founder of the UAE and its first president, died on 2 November 2004. He was succeeded by his eldest son, Sheikh Khalifa bin Zayid Al Nuhayyan. A 40-day period of mourning was held for Sheikh Zayid, who was much loved by the people.

GOVERNMENT

According to the provisional constitution of the United Arab Emirates, promulgated on 2 December 1971, the executive branch of the UAE government consists of the Federal Supreme Council, headed by the president, and the Council of Ministers. The Federal Supreme Council (FSC), composed of the hereditary rulers of the seven emirates, has responsibility for formulation and supervision of all UAE policies, ratification of federal laws, and oversight of the union's budget. Sheikh Zayid bin Sultan Al Nahyan, emir of Abu Dhabi, was elected president upon independence and was continuously reelected to five-year terms until his death on 2 November 2004. His eldest son, Sheikh Khalifa bin Zayid Al Nahyan, was unanimously elected by the FSC to succeed his father. The president is assisted by the Council of Ministers, or cabinet, headed by the prime minister. Sheikh Maktum bin Rashid al-Maktoum, ruler of Dubai, served as vice president and prime minister since 1990, succeeding his father upon the latter's death. His positions were reaffirmed in January 2006. The member states are represented in the cabinet in numbers relative to their size and importance.

After extending the 1971 interim constitution at five-year intervals for 25 years, the Supreme Council and the Federal National Council approved a measure removing the term "interim" in 1996, making the document a permanent constitution. The Federal National Council, consisting of 40 delegates from the member emirates, appointed by their respective rulers for two-year terms, can question cabinet ministers and make recommendations to the Supreme Council, but it has no legislative powers. The constitution stipulates the distribution of the 40 seats as follows: Abu Dhabi and Dubayy, 8 each; Sharjah and Ra's al-Khaymah, 6 each; and 'Ajmān, Umm al-Qaywayn, and Al Fujayrah, 4 each. The Supreme National Council meets only occasionally.

Most of the emirates are governed according to tribal traditions, including open meetings in which citizens express themselves directly to their rulers.

POLITICAL PARTIES

No political parties exist in the UAE. Arab nationalist feeling has developed, however, and there is growing sentiment, particularly among urban youth, in favor of political liberalization and accelerated economic development. Several small clandestine groups with ties to radical Arab organizations or militant Islamic groups are believed to be active and are watched closely by the federation's security services.

LOCAL GOVERNMENT

The major institutions of local government are the municipalities of Abu Dhabi town, Al-'Ayn, Dubayy, Sharjah, Ra's al-Khaymah, Al Fujayrah, 'Ajmān, and Umm al-Qaywayn and a handful of traditional councils known as majalis and amiri diwans.

JUDICIAL SYSTEM

Abu Dhabi, Dubai, and Sharjah have developed relatively sophisticated judicial systems based, as in other Gulf states, on a combination of Shariah laws and contemporary legal codes. The 1971 constitution established a Federal Supreme Court and an indeterminate number of courts of first instance. The Supreme Court consists of a president and a maximum of five judges, all of whom are appointed by presidential decree upon approval of the Federal Supreme Council. The Supreme Court president and member judges are deemed independent of the executive and legislative branches; once appointed, they cannot be removed. In 1983 a comprehensive law governing the federal judiciary was issued, creating a full federal judicial system, though the member emirates retain significant and varying degrees of judicial autonomy. The federal system consists of primary courts, appeals courts, and the Supreme Court.

Shariah courts in each emirate are subject to review in the Federal Supreme Court. There is no separate national security court system. Military tribunals try only military personnel and apply a system based on Western military judicial procedure.

Court systems in the Emirates of Dubai and Ra's-al-Khaymah function independently of the federal system. Each system has multiple levels of appeal and verdicts in capital cases are appealable to the president.

There are no jury trials. Under the Criminal Procedural Code, the accused has a right to counsel in capital cases and in those involving a possible penalty of life imprisonment. Due process rights are uniform under both the civil court and the Shariah court procedure.

ARMED FORCES

The armed forces of the UAE were placed under a unified command in 1976, and the forces of Abu Dhabi, Dubai, Ra's al-Khaimah, and Sharjah were merged. In 2005, the combined forces totaled 50,500 active personnel. The Army had 44,000 soldiers including the Royal Guard. Equipment included 469 main battle tanks, 76 Scorpion light tanks, 113 reconnaissance vehicles, 430 armored infantry fighting vehicles, 860 armored personnel carriers, and over 501 artillery pierces. The Navy was comprised of an estimated 2,500 personnel. Major naval units included 2 frigates, 2 corvettes, and 14 patrol/coastal vessels. The Air Force had 4,000 active personnel and was outfitted with 146 combat capable aircraft, including over 57 fighter ground attack aircraft. The service also had 30 attack helicopters.

Many military personnel are expatriates from Oman, Jordan, and other countries. The US maintained a 1,300-manned military presence in the UAE. The defense budget for 2005 totaled $2.65 billion.

INTERNATIONAL COOPERATION

On 9 December 1971, shortly after achieving independence, the United Arab Emirates became a member of the United Nations, and it now belongs to ESCWA and several nonregional specialized agencies, such as the World Bank, the IAEA, FAO, UNESCO, UNIDO, and the WHO. The country is a member of G-77, WTO, the Arab Bank for Economic Development in Africa, the Arab Fund for Economic and Social Development, the Arab League, the Arab Monetary Fund, the Gulf Cooperation Council, the Islamic Development Bank, the Organization of the Islamic Conference (OIC), OAPEC, and OPEC. The UAE is part of the Nonaligned Movement.

In environmental cooperation, the United Arab Emirates is part of the Basel Convention, the Convention on Biological Diversity, CITES, the London Convention, the Kyoto Protocol, the Montréal Protocol, and the UN Conventions on Climate Change and Desertification.

ECONOMY

The economy of the UAE centers primarily on oil and oil-based industries, but the share of this contribution to the GDP fell from 70% in 1980 to an estimated 22% in 1998. This was principally the result of falling oil prices, but also reflected the growth in other sectors of the economy, such as manufacturing, finance and insurance, real estate, and government services.

In 2002, the oil industry's share was at 24%, but manufacturing had reached 15.1% of GDP from only 3.8% in 1980. The oil industry accounts for about 30% of exports and provides 70–80% of government revenues. In Abu Dhabi, by far the wealthiest of the seven emirates, oil revenues are supplemented by income from a huge investment fund. Dubai joined the ranks of the oil producers only in 1971, and entrepôt trade continues to play a major role in its economy. In 2000, Abu Dhabi completed a capacity expansion program has increased the UAE's crude oil production capacity to 2.6 million barrels per day (million barrels per day). Third quarter production in 2002 was 1.99 million barrels per day, somewhat over the official OPEC quota of 1.89 million barrels per day.

Although 'Ajman has a small shipbuilding and ship repair yard and a cement company, and Umm al-Qaiwain has a fish hatchery, a cement plant, and some small handicraft operations, these poorer emirates depend on federal aid—in effect, on revenue sharing by Abu Dhabi and Dubai. Oil production in Sharjah began in July 1974, and manufacturing and tourism there have been expanded. The number of factories in Sharjah rose from 74 in 1974 to 931 in 2000, increasing 13.4% from 1998. Ra's al-Khaimah has six large cement plants (three built since 1998), a pharmaceutical factory, a lime kiln, and the gulf's first explosives plant. Fujairah remains predominantly agricultural, but the emirate's government has also been developing an industrialization program, with emphasis on establishing mining-based industries. In 2002 it had 33 factories, a third producing nonmetallic metal products.

In 2003, the GDP growth rate was 7.0% (up from 1.9% in 2002), but by 2004 it fell to 5.9%; in 2005, it was expected to grow back to 6.8%. Inflation has remained fairly constant, at around 3%. There is no recent data for the unemployment numbers, although the unemployment rate is believed to be somewhere around 2.5%.

INCOME

The US Central Intelligence Agency (CIA) reports that in 2001 the United Arab Emirates' gross domestic product (GDP) was estimated at $51 billion. The per capita GDP was estimated at $21,100. The annual growth rate of GDP was estimated at 5.6%. The average inflation rate in 2005 was 10.5%. The annual rate of GDP growth between 1988 and 1998 was about 4.2%. The CIA defines GDP as the value of all final goods and services produced within a nation in a given year and computed on the basis of purchasing power parity (PPP) rather than value as measured on the basis of the rate of exchange. Petroleum extraction accounts for approximately 34.2% of GDP; manufacturing, 11%; wholesale and retail trade, 10%; government services, 9.6%; business, 8%, and construction, 7.4%. Foreign aid receipts amounted to about $1 per capita.

LABOR

In 2005, the United Arab Emirates' (UAE) workforce was estimated at 2.8 million. As of 2001, (the latest year for which data was available) the service sector provided jobs for 78% of the workforce, with industry amounting to 15%, and agriculture 7%. For that same year, the unemployment rate was 2.4%. Around 74% of the UAE's population, between the ages of 15 and 64 years, is made up of foreign nationals.

The UAE leans heavily on skilled labor, technology, and management abilities provided by foreigners. Non-UAE Arabs are employed at all economic levels, including the government bureaucracy and civil service. Manual labor is largely performed by Pakistanis and Iranians, while many Indians are to be found in clerical positions. Most domestic servants are women from Sri Lanka or the Philippines. There is a high proportion of Europeans at management levels. The large influx of immigrants was insufficient to cope with labor needs. A 1984 decree guarantees UAE nationals priority in hiring, in order to reduce dependence on expatriates.

Unionization is prohibited by law. Collective bargaining provisions do not exist, and strikes are strictly prohibited in the public sector. Rather, all labor contracts are reviewed by the Ministry of Labor to ensure that the pay will satisfy the employee's basic needs and secure a means of living.

There is no minimum wage. A standard workweek of eight hours per day, six days per week and minimum occupational health and safety requirements are not effectively enforced. Foreign workers are especially vulnerable to abuse. Widespread and credible reports indicate that foreign workers have had their passports confiscated, pay withheld, and are forced to work excessively long days far beyond the statutory maximum. Women working as domestic servants have also reported being sexually and physically abused. Foreign workers have little redress for their grievances. UAE administrative bodies virtually never rule against a UAE employer, and UAE employers can prevent a foreign worker from switching to another employer.

AGRICULTURE

Only about 81,000 hectares (200,000 acres) of land are cultivated. About 24% of cultivated land is used to grow vegetables, 30% fruit, 10% feed crops, and 36% for other uses. The most productive region is Ra's al-Khaimah, which receives underground water supplies from the nearby mountains of Oman and which enjoys the most plentiful rainfall. The main crops are tomatoes, melons, and dates.

The Digdagga Agricultural Trials Station in Ra's al-Khaimah is central to all agricultural research and training efforts in the UAE. Abu Dhabi has two large wheat farms at Al 'Ayn, and experimental farms at Rawaya and Mazaid (near Al 'Ayn) are designed to encourage local Bedouins to take up settled farming. The Abu Dhabi Arid Land Research Center on Sadiyat Island produces vegetables through special irrigation and hydroponic techniques. In 2004, UAE agriculture produced 506,400 tons of vegetables and melons, and 786,000 tons of fruit. Produce includes citrus, mangos, tomatoes, celery, potatoes, cucumbers, lettuce, melons, peppers, and fodder crops.

Crop production during 2002–04 was down 40% from 1999–2001. Dates, traditionally grown on oases by nomads, are becoming less important because of vegetable and fruit production. In 2004, the UAE produced 760,000 tons of dates. The UAE satisfies about 60% of its domestic fruit and vegetable demand; bans on imports of certain vegetables and government incentives and subsidies are used to encourage domestic production. Roses and chrysanthemums are grown for export to Europe.

ANIMAL HUSBANDRY

Livestock production has risen sharply in recent years. In 2005, the UAE had 1,520,000 goats, 570,000 sheep, 250,000 camels, and 115,000 head of cattle. Dairy farming is centered in Ras al-Khaimah, with other dairy farms in Al Ain, Umm Al Quwain, Sharjah, and Dubai. The UAE produces about 90% of its dairy needs. Local poultry and egg production satisfy 27% and 40% of domestic demand, respectively. Five major producers account for 75% of the domestic chicken production. The poultry farm at Fujairah has the capacity to supply over 15% of domestic demand for broilers and eggs. Ras al-Khaimah and Al Ain are other centers of poultry production. Production of poultry meat reached 36,000 tons in 2005, with imports of poultry meat (mainly from France, Denmark, the United States, and Brazil). The UAE also re-exports poultry meat, mostly to Oman, former Soviet republics, and Iran.

FISHING

Fishing is an important source of domestic food and fodder. Per capita annual consumption of fish and shellfish in the UAE is more than any other country in the Middle East. UAE coastal waters abound in fish and shellfish, and the country borders two high-potential fishing regions, the Persian Gulf and the Gulf of Oman. Many varieties of fish are caught, including rock cod, tuna, mackerel, sardines, anchovies, jack, marlin, red mullet, bream, and snapper. Over 70% of the catch typically is dried and processed into animal feed and fertilizer. The fish catch in 2003 was 97,450 tons, which supplied about 50% of local demand. Modern fishing techniques have been introduced with government assistance, and two new ports permitting the use of larger fishing boats were opened in 1981. The government also provides facilities for ship maintenance pro bono, as well as interest-free loans for the purchase of fishing boats and equipment. More than 3,000 fishing vessels annually operate in UAE waters. Umm Al Quwain is the site of a new 1,300 sq m marine farm which will research fish breeding. A fishmeal plant is in operation in Ra's al-Khaimah.

FORESTRY

Natural woodland is scarce, apart from palm groves along the northern and eastern coasts. Forested areas covered 321,000 hectares (793,000 acres), or about 3.8% of the total land area in 2000. The Forestry Department planted 80 million trees during 1980–95, at a cost of over $3 billion, resulting in a 2.8% increase in the forested area during 1990–2000. Imports of forest products totaled $322.7 million in 2004.

MINING

Apart from oil and natural gas, the minerals sector included fertilizer production and production of construction materials, marble, and stone quarried from the Hajar Mountains. Copper and chromium have been found in Fujairah and Ra's al-Khaimah. In 2003, an estimated: 10,000 metric tons of chromium; 421,000 metric tons of ammonia (nitrogen content); and 400,000 metric tons of urea (nitrogen content) were produced. Lime, gypsum, hydraulic cement, and, presumably, common clays, diabase, gravel, limestone, marble sand, and shale were also produced.

ENERGY AND POWER

The United Arab Emirates (UAE), a federation of seven emirates, contains almost 8% of the world's proven oil reserves and is ranked fifth in the world by the size of its natural gas reserves. The UAE is also a significant exporter of liquefied natural gas (LNG) and a member of the Organization of Petroleum Exporting Countries (OPEC).

As of 1 January 2005, the UAE's proven reserves of crude oil totaled 97.8 billion barrels, according to the Oil and Gas Journal. Of that amount, the emirate of Abu Dhabi holds 94%, or around 92.2 billion barrels, followed by the emirate of Dubai with an estimated 4 billion barrels, and the emirates of Sharjah with 1.5 billion barrels and Ras al-Khaima with 100 million barrels of oil. In 2004, oil production was estimated at 2.76 million barrels per day, of which crude oil accounted for 2.38 million barrels per day. Domestic consumption of oil in that year averaged an estimated 430,000 barrels per day, with net exports estimated at 2.33 million barrels per day. As a member of OPEC, the UAE is subject to OPEC's crude oil production quota. As of March 16, 2005, the quota was set at 2.50 million barrels per day, which is total production capacity. In 2004, Japan accounted for an estimated 60% of the UAE's crude oil exports, with the rest of Asia accounting for 20%. As of 1 January 2005, the UAE's crude oil refining capacity was estimated at 514,250 barrels per day.

The UAE's proven natural gas reserves, as of 1 January 2005, were estimated at 212 trillion cu ft, according to the Oil and Gas Journal. The largest reserves are located in the emirate of Abu Dhabi, with 196.1 trillion cu ft, with smaller reserves in the emirates of Sharjah (10.7 trillion cu ft), Dubai (4.1 trillion cu ft), and Ras al-Khaimah (1.2 trillion cu ft). In 2002, the UAE's output of natural gas was estimated at 1.28 trillion cu ft, with exports that year estimated at 0.25 trillion cu ft. Domestic consumption of natural gas has been spurred by a growing demand from the country's petrochemical and electric power industries.

All electricity is thermally generated from oil or natural gas. Electric power production was 39.622 billion kWh in 2002. Consumption of electricity that year was 36.848 billion kWh. Total installed capacity in 2002 was 5.820 million kW.

INDUSTRY

The process of industrialization gathered momentum after the formation of the federation in 1971. By 2002, manufacturing was second only to the oil sector in contributions to economic output. To diversify the economy, in the early 1990s the UAE introduced new industries, including aluminum, cement, pharmaceuticals, fabricated metals, processed foods, fertilizer, and explosives. Manufacturing as a percentage of GDP rose from 3.8% in 1980 to 7.7% in 1990 to 8.7% in 1995 to 15.1% in 2002.

The Ar-Ruwais industrial complex in Abu Dhabi includes an oil refinery with a processing capacity of 120,000 barrels per day; a fertilizer factory, with a production capacity of 1,000 tons of ammonia and 1,500 tons of urea per day; and a gas liquefaction installation. In June 2002 agreement was reached on a contract to expand the refinery capacity Ruwais refinery to 500,000 barrels per day to be completed by 2005. The UAE has five other smaller refineries: In Abu Dhabi, a 88,5000 barrels per day capacity facility run, like the Ruwais refinery, by the Abu Dhabi National Oil Company (ADNOC); in Fujairah, a 90,000 barrels per day refinery run by Metro Oil; in Dubai, the 120,000 barrels per day Jebel Ali condensate refinery run by the Emirate National Oil Company (ENOC), first opened in 1999; near Jebel Ali, a 40,000 barrels per day second-hand gasoline unit run by ISO Octane, opened May, 2000; and in Sharjah, another second-hand unit with 71,250 barrels per day capacity opened in 2001 and run by the Sharjah Oil Refining Company (SORC). The UAE's crude oil refining capacity as of January 2001 was 514,750 barrels per day.

Near Umm An-Nar, a large plant belonging to National Chlorine Industries produces salt, chlorine, caustic soda, and hydrochloric acid. In Dubai the industrial port complex at Jebel 'Ali is the largest manmade port in the world and includes the largest dry dock in the world with capacity of one million tons. The Jebel Ali Free Zone (JAFZ) is the UAE's most developed free trade zone, including close to 200 factories, prominent among them being a major power plant with water desalination units, a steel fabrication plant, and an aluminum smelter, built in 1979, producing 290,030 tons of aluminum products per year. Plans have been announced to expand the Dubai Aluminum Company's capacity to 372,600 tons per year. Dubai's older industrial zone of Rashidiya is the site of some 40% of the emirate's processing industries. The other emirates have developed industries that produce construction-related materials such as cement, asphalt, and concrete blocks.

According to the statistics of UAE's Ministry of Finance and Industry (MOFI), there were 2,153 registered industrial establishments in 2000 (up from 1,261 in 1995) employing 176,260 people. Forty percent of the units—854—were in Dubai, which also accounted for 46.7% of industrial investment ($3.6 billion of $7.76 billion). Abu Dhabi accounted for 25% of investment ($2 billion) but only 10% of industrial units (235). Sharjah and Ras Al-Kaimah had industrial investment of $790 million and $763 million, respectively, each about 10% of the total. Outside of the oil sector, chemicals commanded the largest portion of investment (14.5%), with food and beverages second (11.2%). Metal production accounted for 3.6% of industrial investment and garments 0.8%.

Industry made up 58.5% of the economy in 2002, and employed around 15% of the population—which indicates that this sector is highly productive; agriculture participated with 4% to the overall GDP, and employed approximately 7% of the working population; services contributed with 37.5% to the economy, and represented around 78% of the labor force.

SCIENCE AND TECHNOLOGY

Advanced technology in the United Arab Emirates has been imported mostly by foreign oil companies and is limited largely to heavy industry. Nearly all of its technological specialists are foreigners. In the 1980s, the United Arab Emirates took major steps to decrease its reliance on foreign scientists and technicians. The Ministry of Agriculture and Fisheries has a research center in Ra's al-Khaimah. United Arab Emirates University, founded in 1976 at Al Ain, has faculties of sciences, engineering, agricultural sciences, medicine and health sciences. Ajman University College of Science and Technology was founded in 1988, Etisalat College of Engineering at Sharjah in 1989, and the Higher Colleges of Technology at Abu Dhabi in 1988. In 1987–97, science and engineering students accounted for 24% of college and university enrollments. High technology exports in 2002 were valued at $17 million, or 2% of all manufactured exports.

DOMESTIC TRADE

Dubai remains the most important center of trade and commerce, both for the nation and the region. Many food importers also serve as wholesalers, distributors, and retailers. There are about four or five large companies controlling most of the food retail sector. Franchising has become very popular in a variety of retail sectors including, restaurants, clothing, hardware supplies, beauty products, health care products, toys, sporting goods, etc.

Business hours tend to vary, although general hours of 8 am to 1 pm and 4 to 7 pm are observed; most offices are closed Thursday afternoon, and Friday is the weekly holiday. Banks are open from 8 am to noon, Saturday through Thursday.

FOREIGN TRADE

UAE's commodity exports were crude oil (45%), natural gas, reexports, dried fish, and dates as of 2000. Imports include machinery, vehicles, electrical equipment, aircraft, cosmetics, tobacco, steel, furniture, plastics, chemicals, and food products.

In 2004, UAE's exports grew to $69.5 billion (FOB—Free on Board), while its imports followed from behind at $46.7 billion (FOB). Export commodities mainly went to Japan (which received

Country	Exports	Imports	Balance
World	32,668.9	30,544.3	2,124.6
Japan	9,932.0	182.9	9,749.1
Areas nes	6,328.4	73.0	6,255.4
Other Asia nes	6,116.4	50.8	6,065.6
Kuwait	820.1	…	820.1
Bahrain	537.5	…	537.5
India	519.3	658.1	-138.8
Other Africa nes	344.2	…	344.2
Iran	225.7	520.6	-294.9
United States	210.7	206.0	4.7
Saudi Arabia	142.5	394.6	-252.1
(…) data not available or not significant.

24.9% of total exports), South Korea (9.9%), India (5.4%), and Thailand (5.2%). Imports chiefly came from China (10%), India (9.8%), Japan (6.8%), Germany (6.5%), the United Kingdom (6.2%), France (6.1%), and the United States (6%), and included machinery and transport equipment, chemicals, and food.

BALANCE OF PAYMENTS

Oil and natural gas exports have allowed the UAE to sustain a trade surplus for many years, but changes in oil prices cause the surplus to fluctuate widely from year to year. In the early 2000s traders in the UAE were beginning to seek out new markets in locales such as Russia, the Central Asian states, and East and South Africa. The government does not provide statistics for workers' remittances, investment income, oil and gas export revenues, foreign direct investment transactions, and capital transactions, which seriously compromises the compilation of balance of payments statistics.

The US Central Intelligence Agency (CIA) reported that in 2000 the purchasing power parity of the United Arab Emirates' exports was $47.6 billion while imports totaled $28.6 billion resulting in a trade surplus of $19 billion.

Exports of goods and services reached $82.7 billion in 2004, and were expected to grow to $103.7 billion in 2005. Imports were expected to reach $60.2 billion in 2005, up from $54.2 in 2004. The UAE have thus managed to keep both a positive resource balance ($28.5 billion, and $43.5 billion respectively), and a positive current account balance ($12.7 billion in 2004, and an expected $26.2 billion in 2005).

BANKING AND SECURITIES

The UAE Currency Board came into existence with its issuance of the UAE dirham in May 1973. In 1975–76, statutes came into force providing for the board's gradual transformation into a central bank, including powers to impose minimum liquidity ratios and other credit regulations. The board was replaced in 1980 by the UAE Central Bank, with enhanced authority to regulate the banking system. Capitalized at $81.7 million, the bank was granted additional capital of $2 billion from the government in 1982, which was to increase by 20% per year until a total deposit of $4 billion had been reached.

The oil boom of the 1980s brought with it the proliferation of commercial banks, making the UAE one of the most overbanked countries in the world. By 1987, strains were beginning to show and two banks collapsed. Bad loans were prevalent and some borrowers used the Islamic prohibition on riba (interest) as an excuse not to repay debts.

UAE banks were hit hard by the invasion of Kuwait in 1990, when partial withdrawals amounted to an estimated ud7 billion ($1.9 billion), or 7% of total deposits. In 1991, the Bank of Commerce and Credit International (BCCI), based in the United Arab Emirates and owned in large part by the ruling family of Abu Dhabi, was accused of fraudulent dealings, and closed, damaging the credibility of the UAE banking system. However, because of improvements in the banking system, in 1999 the government cleared the way for establishment of an offshore banking center to be based in the free zone on Saadiyat Island, to enable UAE to compete with Bahrain. Also in 1999, the merger of two banks—National Bank of Dubai and Emirates Bank International—was announced. The International Monetary Fund reports that in 2001, currency and demand deposits—an aggregate commonly known as M1—were equal to $10.7 billion. In that same year, M2—an aggregate equal to M1 plus savings deposits, small time deposits, and money market mutual funds—was $42.6 billion.

As of 2000, the United Arab Emirates was planning a stock exchange as part of the financial center on Saadiyat Island in Abu Dhabi.

INSURANCE

Because of tightening federal regulations, the number of insurance companies declined from 126 in 1980 to 56 in 1987. The Federal Insurance Companies and Agents Law of 1984 requires all insurance companies established in the UAE to be public joint-stock companies, with equity wholly owned by UAE nationals. Companies already established in the country can obtain a concession from the local equity provision. Minimum capital must be ud10 million. In 2003, the value of all direct insurance premiums written totaled $971 million, of which nonlife premiums accounted for $744 million. In that same year, Dubai was the country's leading life insurer, with gross written life insurance premiums of $22.3 million. There was no data on the UAE's top nonlife insurer. In 1999, there were 19 National Insurance companies practicing in UAE, and 28 foreign insurance companies.

PUBLIC FINANCE

A federal budget is prepared according to the UAE's development policy, while each emirate is responsible for municipal budgets and local projects. Conservative public expenditure policies became necessary in the 1980s and 1990s, when oil revenues declined; by the 2000s, oil revenues had rebounded. Abu Dhabi's oil income accounts for the bulk of federal revenues; under the constitution, each emirate contributes 50% of its net oil income to the federal budget.

The US Central Intelligence Agency (CIA) estimated that in 2005 the United Arab Emirates' central government took in revenues of approximately $34.9 billion and had expenditures of $29.4 billion. Revenues minus expenditures totaled approximately $5.5 billion. Public debt in 2005 amounted to 17.5% of GDP. Total external debt was $30.21 billion.

The International Monetary Fund (IMF) reported that in 1999, the most recent year for which it had data, central government revenues were ud20,217 million and expenditures were ud20,050 million. The value of revenues was us$5,505 million and expenditures us$5,459 million, based on a official exchange rate for 1999 of us$1 = ud3.6725 as reported by the IMF. Government outlays by function were as follows: general public services, 20.8%; defense, 30.1%; public order and safety, 13.8%; economic affairs, 4.5%; housing and community amenities, 1.6%; health, 7.2%; recreation, culture, and religion, 1.4%; education, 17.3%; and social protection, 3.2%.

TAXATION

Each emirate has its own decrees on corporate taxation. Corporate taxes are paid only by oil companies (at rates that vary among emirates) and branches of foreign banks (at 20%). Municipal taxes are 5% on residential and 10% on commercial rents. A 5% tax is

Revenue and Grants	20,217	100.0%
Tax revenue	3,481	17.2%
Social contributions	92	0.5%
Grants	…	…
Other revenue	16,644	82.3%
Expenditures	20,050	100.0%
General public services	4,167	20.8%
Defense	6,027	30.1%
Public order and safety	2,763	13.8%
Economic affairs	910	4.5%
Environmental protection	…	…
Housing and community amenities	329	1.6%
Health	1,448	7.2%
Recreational, culture, and religion	290	1.4%
Education	3,474	17.3%
Social protection	642	3.2%
(…) data not available or not significant.

imposed on hotel services and entertainment. There is no personal income tax.

CUSTOMS AND DUTIES

Dubai, the major area for foreign trade, is a free trade zone and free port with no restrictions on imports or exports. The individual emirate governments exert no control over imports, except for licensing. Customs duties are levied ad valorem; the rates differ among the emirates but are generally nominal (4% for most goods), except for a duty of 50% on alcoholic beverages (importation of which requires special permission). The duty on tobacco was is 90% of the CIF (cost, insurance, and freight) value. Duty-free imports include machinery, construction materials, foodstuffs, medicine, and printed matter. Food imports require a health certificate and meats require a certificate from a slaughterhouse that has been approved under Islamic law. Import licenses are required for all firms desiring to engage in importation. The United Arab Emirates is a member of the Gulf Cooperation Council (GCC) along with Bahrain, Kuwait, Oman, Qatar, and Saudi Arabia. The GCC has been in discussions for a common external tariff (CET) for some years.

FOREIGN INVESTMENT

All the emirates are eager to attract foreign investment. One obstacle to foreign investment may be the federal requirement that investments must be on a joint venture basis with the local partner owning at least 51% of the venture. The exception is investment in the free trade zones where 100% foreign ownership is allowed. In 2002, there were 11 free trade zones in the UAE in various stages of development. Most provide 100% import and export tax exemption, 100% exemption from commercial levies, 100% repatriation of capital and profits, multiyear leases and other services, including assistance with recruiting labor. The largest and most successful is the Jebel Ali industrial free zone (JAFZ) in Dubai incorporating close to 2,000 companies from over 100 countries. The JAFZ has attracted more than $3 billion of foreign investment. In 2002, three new zones were announced: The Dubai International Financial Centre; the Dubai Metals and Commodities Centre; and the Mohammed bin Rashid Technology Zone. In 2000, Dubai Internet City, the world's first e-commerce free zone, was opened, and in 2001, the Dubai Media City began was launched. Other free zones are located in the Dubai International Airport, and in Sharjah, Ajman, Umm Al Quwain, and Fujairah. Principal foreign investors are the United Kingdom, the United States, France, India, Japan, and Germany. Though reliable statistics are not available for the UAE, some reports suggest that US investment in 1999 was about $500 million. Multinational companies operating in the Jebel Ali industrial zone include the following: Samsung (ROK); Pioneer (Japan); General Motors, IBM, Mobil, and Toys "R" Us (US); and Ericsson (Sweden).

In 1996, UAE created the Abu Dhabi Free Zone Authority to regulate the development of Saadiyat Island, where there will be few restrictions on foreign companies. Companies opening offices there will be exempt from taxes, will be allowed to repatriate all profits and capital, to import labor; in addition, there will be no requirements to establish UAE partners. In 1999, the Emirates Global Capital Corporation was granted a 50-year contract to develop the 26 sq km (10 sq mi) zone, where a stock, commodities, and futures exchange was planned. However, in 2002 this project was on hold.

The UAE does not offer any statistical information on inward flows of capital, but UNCTAD estimates show that FDI totaled $480 million in 2003, down from $834 million in 2002. Despite the relative low levels of capital inflows, analysts think that FDI will play an increasingly important role in the future. Current leading sectors for investment in the UAE are oil and gas-field machinery and services, power and water, computer/peripherals, medical equipment and supplies, airport development and ground equipment, telecommunications, and franchising.

ECONOMIC DEVELOPMENT

The discovery of oil opened the way for the UAE into the industrial age. The federation, formed in 1971, used its vast oil wealth during the 1970s to transform the national economy through expansion of roads, ports, airports, communications facilities, electric power plants, and water desalination facilities, as well as construction of huge oil-processing complexes. With the completion of major infrastructural projects by the early 1980s, the focus of development shifted to diversifying the economy by establishing capital-intensive industries based on oil and gas resources.

The country's major industrial projects are the Jabal 'Ali industrial zone in Dubai and the refinery complex at Ar-Ruwais in Abu Dhabi. Jabal 'Ali includes the Dubai Aluminum Co. smelter, a natural gas liquefaction plant, a cable factory, and a desalination plant that is one of the world's largest, with an output of about 25 million gallons of water daily. In mid-1995, 822 companies were operating in the Jabal 'Ali Free Zone. By 2002, this number had risen to about 2000, representing investments from over 100 countries. The United Arab Emirates now hosts 11 free trade zones. The Dubai Internet City, launched in 2000, was the world's first e-commerce free trade zone. Dubai Multi-Media City was established in 2001. In 2002 three new specialized free zones were founded: the Dubai International Financial Centre, the Dubai Metals and Commodities Centre, and the Mohammed bin Rashid Technology Park.

In 1997 the Industrial Loan Fund was set up to provide finance through the Gulf Industrial Corporation (GIC) established in 1979 in Abu Dhabi. The GIC now owns a large number of industries which produce a wide variety products, including cement blocks, fodder, flour, PVC pipes, mineral waters, and aluminum.

In relation to GNP, the UAE is one of the world's major aid donors; the principal vehicle for bilateral aid has been the Abu Dhabi Fund for Arab Economic Development. The UAE makes regular annual payments to Syria, Jordan, Lebanon, and the PLO. Responding to Iraq's invasion of Kuwait in 1990, the UAE made significant financial contributions to assist the frontline states and to share the cost of the foreign military forces.

In 2004, the UAE government has increased spending on job creation and infrastructure expansion, and is looking for ways to enhance the role of the private sector in the management of its utilities. Although oil will continue to be the backbone of the economy for years to come, the country's leaders recognized that a diverse and dynamic economy will prove more sustainable in the long run. Some of the main areas of economic diversification include: security and safety equipment; IT equipment and services; medical equipment, services and supplies; architecture, construction, and engineering services; building products; air conditioning and refrigeration equipment; environmental and pollution control equipment; and sporting goods and equipment.

SOCIAL DEVELOPMENT

There is no social security law in the UAE, but many welfare benefits are available to citizens, among them free hospital treatment and medical care and subsidies for education. Relief for any domestic catastrophe is provided from a disaster fund. If the father of a family is unable to work because of illness, disability, or old age, he receives help under the National Assistance Law; should he die or divorce his wife, the woman's future is secured. UAE nationals receive many government services, including health care, water, and electricity, free of charge.

Female employment is growing in government service and in occupations such as education and health.

Women continue to suffer from official discrimination, as dictated by Islamic law. Divorce is available but difficult for a woman to obtain. Men may have more than one wife, but not more than four at one time. Women who remarry may have to give up custody of children from a previous marriage. While abuse against women does exist, it does not seem to be a pervasive problem. Child abuse is not prevalent. Many domestic servants are foreigners who are sometimes subjected to mistreatment or abuse, and poor pay.

The government restricts democratic freedoms and also limits freedoms of speech, assembly, association, press, and the right to a speedy trial.

HEALTH

Health facilities have been expanded rapidly since independence. Modern hospitals have been built in Abu Dhabi, Dubai, and other towns. As of 2004, there were an estimated 202 physicians, 418 nurses, and 33 dentists per 100,000 people. In the same year, total health care expenditure was estimated at 8.4 % of GDP. Approximately 95% of the population had access to health care services, and more than 95% of the population had access to safe water and adequate sanitation.

Average life expectancy in 2005 was 75.24 years and the infant mortality rate was 14.51 per 1,000 live births. As of 2002, the crude birth rate and overall mortality rate were estimated at, respectively, 18.3 and 3.9 per 1,000 people. Children up to one year old were immunized against tuberculosis, 98%; diphtheria, pertussis, and tetanus, 90%; polio, 90%; and measles, 90%. The rates for DPT and measles were, respectively, 94% and 95%.

Typhoid fever and tuberculosis are rare; malaria remains a problem. The goiter prevalence was 40.4 per 100 school children. The HIV/AIDS prevalence was 0.18 per 100 adults in 2003.

HOUSING

The federal government is attempting to make modern low-cost homes available to poorer families, supplying them with amenities such as piped water, sewerage systems, and electricity. The Ministry of Housing constructed about 4,000 houses for free distribution to poor families between 1978 and 1981. In 1993, government spending for housing was at about 30% of the total budget.

In 1980, 33% of all housing units were flats, 30% were traditional Arabic dwellings, 9% were low-cost housing, 8% were shacks, and the remainder were sheds, caravans, single rooms, tents, and other facilities. About 85% had water closets and 26% had electricity, piped-in water, and access to a sewage system.

At the 1995 census there were 413,178 housing units in the nation; 37% were located in Abu Dhabi and 27% were in Dubai. In 1995, the Abu Dhabi Department of Social Service and Commercial Buildings (est. 1976) began construction of 504 residential buildings and had 417 other projects in the planning stages. The department has built over 40,000 housing units since 1976.

EDUCATION

The educational system of the United Arab Emirates has burgeoned since 1971. Education in the six northern emirates, formerly financed and administered by Kuwait, has been managed by the UAE Ministry of Education since 1972. Education is compulsory for six years at the primary level, from age six, and is free to all UAE citizens, as are school uniforms, books, equipment, and transportation. Arabic is a compulsory subject and segregation of classes by sex is required. At the secondary level, children go through six years of education in two stages, three years of preparatory studies and three years of specialized studies in either sciences or the arts. Students may also choose to attend a six year technical, agricultural, or commercial school program at the secondary level. There are religious schools offering secondary studies as well. The academic year runs from September to June.

In 2001, about 70% of children between the ages of four and five were enrolled in some type of preschool program. Primary school enrollment in 2003 was estimated at about 83% of age-eligible students. The same year, secondary school enrollment was about 71% of age-eligible students. It is estimated that about 71.5% of all students complete their primary education. The student-to-teacher ratio for primary school was at about 15:1 in 2003; the ratio for secondary school was about 14:1. In 2003, private schools accounted for about 53.8% of primary school enrollment and 38.1% of secondary enrollment.

The United Arab Emirates University is a major state-sponsored institute. Dubai University College, a private college, was founded in January 1997. In 2003, it was estimated that about 35% of the tertiary age population were enrolled in tertiary education programs; 21% for men and 53% for women. The adult literacy rate for 2004 was estimated at about 77.3%, with 75.6% for men and 80.7% for women.

As of 2003, public expenditure on education was estimated at 1.6% of GDP, or 22.5% of total government expenditures.

LIBRARIES AND MUSEUMS

The National Library in Dubai holds 800,000 volumes, including a collection known as the Gulf and Arabian Peninsula Library. The library of the Juma Al-Majid Heritage & Cultural Centre holds a collection of over 320,000 volumes. The Dubai Public Library system consists of one main and six branch locations. The Higher Colleges of Technology library (175,000 volumes) and the United Arab Emirates University library (300,000 volumes) are in Abu Dhabi.

The Dubai National Museum is housed in the Al Fahidi Fort. The Al 'Ayn Museum (1971) is an archeological institution. Sharjah is home to the Sharjah Archeology Museum, the Sharjah Heritage Museum, the Sharjah Natural History Museum, the Sharjah Science Museum, and a children's museum called the Discovery Center.

MEDIA

The communications system has been dramatically improved and expanded in recent years. Telecommunications operations in the emirates are all handled by ETISALAT. The Jabal 'Ali earth satellite station in Dubai maintains telephone and telegraph traffic, telex data transmission, and color television broadcasting; computer-controlled automatic telex systems have been installed in both Dubai and Abu Dhabi. In 2003, there were an estimated 281 mainline telephones for every 1,000 people. The same year, there were approximately 736 mobile phones in use for every 1,000 people.

Nearly all of the television and radio broadcasting stations are owned and operated by the government through Abu Dhabi Radio and TV or Emirates TV. There is a Media Free Zone in Dubai where private stations are located, including those broadcasting in English and Arabic. In 2004, there were about 13 AM and 8 FM radio stations. The same year, there were 15 television stations. In 2003, there were an estimated 309 radios and 252 television sets for every 1,000 people. The same year, there were 129 personal computers for every 1,000 people and 275 of every 1,000 people had access to the Internet. There were 173 secure Internet servers in the country in 2004.

Arabic-language dailies published in the UAE in 2002 included: Al-Khalij (2002 circulation, 85,000), Al-Ittihad (Unity, 58,000), Al-Fajr (The Dawn, 50,000), Al-Wahdah (30,000), and Al-Bayan (32,650). There were three English-language dailies: the Gulf News (91,530) and Khaleej Times (72,000), published in Dubai, and the Emirates News (21,150), published in Abu Dhabi.

The provisional constitution provides for free expression; however, the government restricts expression in practice. All published materials must be licensed by the Ministry of Education, which governs content and allowable subjects. The media practice self-censorship on the subjects of government policy, the ruling families, national security, religion, and international relations.

ORGANIZATIONS

There are national chambers of commerce in the larger states. There are also several associations representing foreign businesses. The Federation of United Arab Emirates Chambers of Commerce and Industry is located in Abu Dhabi. There are active professional associations in several different fields, such as journalism and medicine. Various social and sporting clubs provide outlets for philanthropic work and recreation. National youth organizations include the National Union of Students of the Emirates and the Emirates Scout Association. There is a national chapter of the Red Crescent Society.

TOURISM, TRAVEL, AND RECREATION

Except for Gulf nationals and citizens of the United Kingdom, most visitors must secure a visa in advance. Tourism is encouraged by all the emirates, whose varied scenery includes mountains, beaches, deserts, and oases. Activities include visits to Bedouin markets, museums, zoos, and aquariums. Many large world-class hotels have opened in recent years. The emirates attract tourists from Western Europe during the winter, when the main attractions are the beaches and sunny climate. Tourists numbered 5,871,023 in 2003.

The daily cost of staying in Dubai, according to 2005 US Department of State estimates, was $376 from June through August, and $219 the rest of the year. Estimated daily expenses for travel in Abu Dhabi were $219 that year.

FAMOUS EMIRIANS

Sheikh Zayid bin Sultan Al Nahyan (1918–2004) was ruler of Abu Dhabi after 1966 and president of the UAE from 1971 until his death in 2004. His son, Sheikh Khalifa bin Zayid Al Nahyan (b.1948) became president of the UAE upon his father's death.

DEPENDENCIES

The UAE has no territories or colonies.

BIBLIOGRAPHY

Abu-Baker, Albadr S.S. Political Economy of State Formation: The United Arab Emirates in Comparative Perspective. N.p., 1996.

American University. Persian Gulf States: Country Studies. 3rd ed. Washington, D.C.: Government Printing Office, 1994.

Clements, Frank. United Arab Emirates. (rev. ed.). Santa Barbara, Calif.: Clio Press, 1998.

Henderson, Edward. This Strange Eventful History: Memoirs of Earlier Days in the UAE and the Sultanate of Oman. Dubai, U.A.E.: Motivate Publishing, 1993.

Oman and the United Arab Emirates. London: Lonely Planet, 2000.

Seddon, David (ed.). A Political and Economic Dictionary of the Middle East. Philadelphia: Routledge/Taylor and Francis, 2004.

Stannard, Dorothy. (ed.) Oman and the United Arab Emirates. Singapore: APA Publications, 1998.

Vine, Peter. United Arab Emirates: Profile of a Country's Heritage and Modern Development. London: Immel, 1992.

——. United Arab Emirates in Focus. London: Trident, 1999.