UAE country profile

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The United Arab Emirates is a federation of seven states established in 1971 by what were then called the Trucial states, on gaining their independence from the UK.

They are Abu Dhabi, Dubai, Ajman, Fujayrah, Ra's al-Khayma, Sharjah and Umm al-Qaywayn.

The states maintain a high level of autonomy but the UAE as a whole is governed by the Supreme Council of Rulers, composed of the seven emirs, who appoint a prime minister and cabinet.

The president of the federation and ruler of Abu Dhabi since 1971 has been Shaikh Zayed bin-Sultan Al-Nuhayyan, who is reselected every five years. The vice president and prime minister is the president of Dubai, Shaikh Maktum bin-Rashid Al-Maktum.

There is a large economic imbalance between Adu Dhabi and Dubai, and the five poorer northern emirates. Important domestic issues for the emirates are the development of these five and the heavy reliance on expatriate labour.

In foreign affairs, the UAE has a longstanding territorial dispute with Iran over three Gulf islands, Abu Moussa, Lesser Tunbs and Greater Tunbs, which Iran has occupied since 1971 but there are signs of a thaw in relations.

Table: UAE at  a glance

Government

Government officials:

• President: Khalifa bin Zayid al-Nahyan

• Vice President: Mohammad bin Rashid al-Maktoum

• Prime Minister: Mohammad bin Rashid al-Maktoum

• Minister of Defence: Mohammad bin Rashid al-Maktoum

• Dep. Prime Minister: Sultan bin Zayed al-Nahyan

• Dep. Prime Minister: Hamdan bin Zayed al-Nahyan

• Minister of Economy: Sultan bin Saeed al-Mansouri

• Minister of Foreign Trade: Sheikha Lubna al-Qasimi

• Minister of State for Foreign Affairs: Anwar Mohammed Gargash

• Minister of Justice: Hadef bin Juaan al-Dhaheri

• Minister of Environment and Water: Rashid Ahmed bin Fahad

• Minister of labour: Saqr Ghobash Saeed Ghobash

• Minister of State: Khalifa Bakheet al-Falasi

• Minister of State: Maitha Salem al-Shamsi

• Minister of State: Reem Ibrahim al Hashimi

• Minister of Finance: Sheikh Hamdan bin Rashid al-Maktoum

• Minister of State for Financial Affairs: Mohammed Khalfan bin Kharbash

• Minister of Interior: Shaikh Saif bin Zayed al-Nahyan

• Minister of Presidential Affairs: Sheikh Mansour bin Zayed al-Nahyan

• Minister of Foreign Affairs: Sheikh Abdullah bin Zayed al-Nahyan

• Minister of Higher Education & Scientific Research: Sheikh Nahyan bin Mubarak al-Nahyan

• Minister of Public Works: Sheikh Hamdan bin Mubarak al-Nahyan

• Minister of Cabinet Affairs: Mohammed Abdullah al-Gergawi

• Minister of Energy: Mohammed bin Dhaen al-Hamili

• Minister of Social Affairs: Maryam al-Roumi

• Minister of Education: Hanif Hassan Ali

• Minister of Health: Humaid Mohammed Obaid al-Qattami

• Minister of Culture: Abdul Rahman Mohammed al-Owais

• Minister of State for FNC Affairs: Mohammed Gargash

• Governor, Central Bank: Sultan bin Nasir al-suwaydi

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Economy

Abu Dhabi accounts for 90 per cent of UAE oil and gas production, having more than 90,000 million barrels of recoverable crude and the world's fifth largest deposits of natural gas. It has been the lead contributor to the federal budget and has helped with development projects in the other emirates.

The UAE economy is heavily dependent on oil and on foreign labour, especially in the private sector where 96 per cent are expatriates. An Emiratisation drive is in progress, which has been successful in some sectors. In the oil and gas sector, Abu Dhabi National Oil Company (ADNOC) is planning a large investment in engineering, procurement and construction (EPC) to raise its sustainable oil capacity and upgrade its hydrocarbon infrastructure.

The government is keen to increase private sector involvement in the economy. Abu Dhabi is the leader in attempts to attract private capital into its infrastructure sector, and has a target of having private sector involvement in all its power generators by 2006. Several independent water and power projects (IWPPs) have already been successfully implemented.

The privatisation drive has been largely absent in Dubai where the emphasis has been on making public sector projects self-sufficient and profitable. As it has dwindling oil reserves and a huge demand for its natural gas for infrastructure development schemes, the focus is on the development of the emirate as a centre for tourism, trade and commerce. This is seen in schemes such as the Dubai International Financial Centre (DIFC) and hotel developments like the Madinat Jumeirah.

Without any major hydrocarbon reserves, the five northern emirates have traditionally been dependent on the federal government, and by extension Abu Dhabi, for upgrading their infrastructure. However they are trying to increase private sector involvement. The Gulf's first privately funded wastewater network is to be constructed in Ajman, and the governments of Ajman and Sharjah have signed a production sharing agreement on the development of the offshore Zora gas field. 

Table: Economic indicators

($ million, unless stated)