Page 7 - Sept Oct Issue
P. 7
Overview of the United Arab Emirates
The illiteracy rate is approximately seven percent. represented a 5.2 percent annual growth rate
and is approximately 115 times larger than its
The UAE government supports efforts to develop GDP in 1971. Major industries are oil and gas,
human services, especially to assist in the petrochemicals, aluminum, cement, ceramics, ship
empowerment of women and for social welfare repair, pharmaceuticals, tourism, transport, real estate
programs. Approximately thirty percent of the UAE and inancial services. While many private companies
workforce is comprised of women. While migrants operate six days each week, the government institutions
primarily wear Western-style clothing outside of reserve Friday and Saturday as days off.
work, the UAE nationals primarily wear traditional
clothing in most settings for cultural reasons and In 2007, the UAE economy was ranked the twenty-
to distinguish themselves from foreigners. Rapid ninth most competitive economy out of forty advanced
advancements in healthcare facilities have drastically economies in a study. This puts the country well ahead of
reduced infant mortality (to approximately eight out any other Middle Eastern nation. According to the study,
of every 1,000 births in 2008) and raised the average some of the strengths of the UAE included a government
life expectancy age in the UAE (to seventy-seven surplus, low national debt and a high national
for men and eighty for women). Social security savings rate. Some of the weaknesses include uneven
services amounted to over $600 million (USD) in performance, a lack of innovation and entrepreneurship
2008, providing inancial assistance to nearly 38,000 and high inlation, which unoficially has been as high
people. as ifteen percent. In fact, the UAE is now the second
largest Arab economy, behind only Saudi Arabia.
The UAE sought to modernize under President
Sheikh Zayed. Today, the country beneits from a Economic growth is anticipated to slow as the country
vibrant free economy with a signiicant annual trade continues to mature and stabilize. Several serious issues
surplus. Reform of property laws has led to a boom hinder the continued UAE economic expansion. The
in real estate and tourism, especially within Dubai. property market throughout the country has issues such
Tourism is expected to increase to 11.2 million as project delays and bank funding shortages. Partially
tourists to the UAE in 2010. inished commercial buildings can be found primarily
in Dubai and Abu Dhabi, and to a lesser extent in the
Using such efforts as free trade zones, the UAE other ive emirates The recent decline in fuel prices has
has been able to successfully diversify away from had implications on the UAE budget despite efforts
dependence on oil and gas exports. Free trade zones to diversify. Furthermore, the UAE government is
attract signiicant foreign investment given the implementing more stringent lending guidelines for
incentive of one-hundred percent foreign ownership individuals and companies, while UAE banks are
and tax-free proits, creating thousands of jobs and reducing exposure to foreign debt. The UAE had a
facilitating a technology transfer. In 2007, the direct budget surplus in 2006 of 211.3 billion AED. In 2007,
foreign investment (DFI) into the UAE was the the budget surplus increased to 236.15 billion AED.
highest in the region, at around $19 billion (USD).
Two of the largest free trade zones in the UAE are Despite the efforts by the UAE to become less dependent
the Dubai Media City and Jebel Ali Free Zone. on natural resources as a source of revenue, petroleum
For instance, Jebel Ali Free Zone, a container port and natural gas exports continue to play an important
terminal, transports over eight million containers role in the economy. UAE main export partners are
of cargo each year and was expected to reach $180 Japan, China, and Iran. Imports into the UAE are mostly
million in proits in 2007. This is more than all of machinery and transport equipment, chemicals and
India’s ports combined. food. Its main import partners are the European Union
(Germany, UK and Italy), China, India, the US, and
The GDP in the UAE was approximately $199 Japan. In 2006, the UAE had a trade surplus of 132.38
billion (USD) in 2007 using current prices, which billion AED and a trade surplus of 135.94 billion AED in
2007.
7
The illiteracy rate is approximately seven percent. represented a 5.2 percent annual growth rate
and is approximately 115 times larger than its
The UAE government supports efforts to develop GDP in 1971. Major industries are oil and gas,
human services, especially to assist in the petrochemicals, aluminum, cement, ceramics, ship
empowerment of women and for social welfare repair, pharmaceuticals, tourism, transport, real estate
programs. Approximately thirty percent of the UAE and inancial services. While many private companies
workforce is comprised of women. While migrants operate six days each week, the government institutions
primarily wear Western-style clothing outside of reserve Friday and Saturday as days off.
work, the UAE nationals primarily wear traditional
clothing in most settings for cultural reasons and In 2007, the UAE economy was ranked the twenty-
to distinguish themselves from foreigners. Rapid ninth most competitive economy out of forty advanced
advancements in healthcare facilities have drastically economies in a study. This puts the country well ahead of
reduced infant mortality (to approximately eight out any other Middle Eastern nation. According to the study,
of every 1,000 births in 2008) and raised the average some of the strengths of the UAE included a government
life expectancy age in the UAE (to seventy-seven surplus, low national debt and a high national
for men and eighty for women). Social security savings rate. Some of the weaknesses include uneven
services amounted to over $600 million (USD) in performance, a lack of innovation and entrepreneurship
2008, providing inancial assistance to nearly 38,000 and high inlation, which unoficially has been as high
people. as ifteen percent. In fact, the UAE is now the second
largest Arab economy, behind only Saudi Arabia.
The UAE sought to modernize under President
Sheikh Zayed. Today, the country beneits from a Economic growth is anticipated to slow as the country
vibrant free economy with a signiicant annual trade continues to mature and stabilize. Several serious issues
surplus. Reform of property laws has led to a boom hinder the continued UAE economic expansion. The
in real estate and tourism, especially within Dubai. property market throughout the country has issues such
Tourism is expected to increase to 11.2 million as project delays and bank funding shortages. Partially
tourists to the UAE in 2010. inished commercial buildings can be found primarily
in Dubai and Abu Dhabi, and to a lesser extent in the
Using such efforts as free trade zones, the UAE other ive emirates The recent decline in fuel prices has
has been able to successfully diversify away from had implications on the UAE budget despite efforts
dependence on oil and gas exports. Free trade zones to diversify. Furthermore, the UAE government is
attract signiicant foreign investment given the implementing more stringent lending guidelines for
incentive of one-hundred percent foreign ownership individuals and companies, while UAE banks are
and tax-free proits, creating thousands of jobs and reducing exposure to foreign debt. The UAE had a
facilitating a technology transfer. In 2007, the direct budget surplus in 2006 of 211.3 billion AED. In 2007,
foreign investment (DFI) into the UAE was the the budget surplus increased to 236.15 billion AED.
highest in the region, at around $19 billion (USD).
Two of the largest free trade zones in the UAE are Despite the efforts by the UAE to become less dependent
the Dubai Media City and Jebel Ali Free Zone. on natural resources as a source of revenue, petroleum
For instance, Jebel Ali Free Zone, a container port and natural gas exports continue to play an important
terminal, transports over eight million containers role in the economy. UAE main export partners are
of cargo each year and was expected to reach $180 Japan, China, and Iran. Imports into the UAE are mostly
million in proits in 2007. This is more than all of machinery and transport equipment, chemicals and
India’s ports combined. food. Its main import partners are the European Union
(Germany, UK and Italy), China, India, the US, and
The GDP in the UAE was approximately $199 Japan. In 2006, the UAE had a trade surplus of 132.38
billion (USD) in 2007 using current prices, which billion AED and a trade surplus of 135.94 billion AED in
2007.
7
