United Arab Emirates

Click here for more Middle East Links and Resources

FITA helps you find
service providers for:

Market Research

Economic and political outline

Economic indicators | Foreign Trade in figures | Sources of general economic information | Political outline

Economic indicators

The GDP growth rate was very high during the last decade, as it trippled between 2003 and 2008. It was slightly negative in 2009 due to fall in oil prices and the international crisis.

The economy of United Arab Emirates (UAE) depends to a large extent on the production of oil and gas (around 36% of the GDP) and has thus been booming these last few years (specially since 2003) because of the increase in global oil prices and the increase in OPEC quotas. UAE has the 4th highest GDP per capita in the world. Inflation was high in 2007 and 2008, but it stabilized in 2009.

The Emirates government has implemented economic reforms on several fronts. One one hand, other than oil, it is trying to develop other sectors as tourism, financial services and real-estate. In this perspective, the Emirate of Dubai has multiplied the creation of free zones and is becoming a platform for re-export in the region. Moreover, among themselves, the Emirates are in a phase of significant economic liberalization. Since 2003, along with other countries of the Gulf Economic Cooperation Council, they have created a Free Trade Zone. Despite these efforts, some markets such as insurance and banking remain closed. Moreover, some restrictive legislations do not encourage foreign direct investments, which remain low in the country.

The unemployment rate is quite low. UAE is politically a very stable country. However, the large immigrant population originating from India and Pakistan can play a destabilizing role. Consequently, the government formulated a turn-over policy in 2002 to diversify the origin of migrants.

Main indicators	2006	2007	2008	2009	2010
GDP (billions USD)	164.17	180.18	260.14	215.20e	235.52e
GDP (constant prices, annual % change)	9.4	6.3	7.4e	-0.6	1.6e
GDP per capita (USD)	38,819	40,147e	54,607	43,857	46,601
Inflation rate (%)	9.3	11.1e	11.5e	2.0	3.1e
Current Account (billions USD)	37.08	28.99	41.09e	-12.03	-2.47
Current Account (in % of GDP)	22.6	16.1	15.8e	-5.6e	-1.1e

Source: IMF - World Economic Outlook Database

Note: (e) Estimated data

Main sectors of industry

Agriculture contributes to less than 3% of the GDP. Raw material exploration accounts for nearly 36% of the GDP. United Arab Emirates is the 3rd largest oil producer in the world. Presently, their oil and gas reserves are estimated for 100 years of exploitation.

Manufacturing activities have witneesed an unprecedented growth in the last five years, particularly in sectors such as metal processing, industrial preparation of food stuffs, aluminum production, cement, and construction materials, fertilisers, petrochemical industry, fiberglass and finally real estate.

As for tertiary sector, it contributes around 40% of the GDP and is dominated by international trade, air transport, tourism and financial activities.

Breakdown of economic activity by sector	Agriculture	Industry	Services
Employment by sector (in % of total employment)	-	-	-
Value added (in % of GDP)	2.0	58.8	39.1
Value added (annual % change)	5.0	10.3	8.9

- last available data.

Monetary indicators	2004	2005	2006	2007	2008
UAE Dirham (AED) - Average annual exchange rate for 1 USD	3.67	3.67	3.67	3.67	3.67

Source: World Bank - World Development Indicators

Indicator of economic freedom

Score:: 64.7/100
Position:: moderately free
World Rank:: 54 out of 179
Regional Rank:: 7 out of 18

Distribution of Economic freedom in the world
Source: 2008 Index of Economic freedom, Heritage Foundation

Country risk

See the country risk analysis provided by Ducroire.

Foreign trade in figures

United Arab Emirates are a very open country. It is amongst the world's 25 primary exporters and 30 primary importers of commodities. Its imports have grown at a rate higher than 20% on average per year from 2003. United Arab Emirates has displayed in 2008 a large commercial surplus due to the raising oil price. In 2009, the country kept a positive trade balance but with a smaller surplus. The main UAE trade partners are China, India, Japan and USA. The main products exported by the country are hydrocarbons, natural gas, dried fish and dates. The United Arab Emirates mainly imports machinery, transport equipment, chemical products and food stuffs.

Foreign trade indicators	2003	2004	2005	2006
Imports of goods and services (annual % change)	7.0	7.0	-	-
Exports of goods and services (annual % change)	19.6	11.2	-	-
Imports of goods and services (in % of GDP)	65.1	75.7	71.5	67.7
Exports of goods and services (in % of GDP)	79.0	89.8	92.6	91.4
Foreign trade (in % of GDP)	144.1	165.5	164.1	159.1

Source: World Bank

Main partner countries

Main customers (% of exports)	2007
Japan	25.4%
India	6.0%
Iran	4.2%
Iraq	1.9%
Switzerland	1.2%
Saudi Arabia	1.1%
Qatar	1.0%
Kuwait	0.8%
Oman	0.6%
Belgium	0.5%
Pakistan	0.5%
Bahrain	0.5%
Tanzania	0.5%
Hong Kong	0.5%
United States	0.4%
Kazakhstan	0.4%
France	0.4%
Yemen	0.3%
Libya	0.3%
Ukraine	0.3%
See more countries	61.3%

Main suppliers (% of imports)	2007
China	9.7%
India	9.6%
United States	6.6%
Japan	6.4%
Germany	5.7%
Italy	3.7%
United Kingdom	3.6%
Saudi Arabia	2.8%
France	2.4%
Switzerland	2.4%
Turkey	2.2%
South Korea	2.2%
Australia	2.1%
Malaysia	2.0%
Belgium	1.5%
Thailand	1.4%
Indonesia	1.2%
South Africa	1.0%
Brazil	1.0%
Singapore	0.9%
See more countries	62.0%

Source: Comtrade

Main products

Main exports (% of exports)	2007
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	49.6%
Natural or cultured pearls, precious or...Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin	8.9%
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	3.5%
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	2.7%
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	2.5%
Plastics and articles thereofPlastics and articles thereof	0.9%
Man-made filamentsMan-made filaments	0.7%
Articles of iron or steelArticles of iron or steel	0.5%
Rubber and articles thereofRubber and articles thereof	0.5%
Aluminium and articles thereofAluminium and articles thereof	0.5%
Essential oils and resinoids; perfumery, cosmetic...Essential oils and resinoids; perfumery, cosmetic or toilet preparations	0.5%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	0.4%
Iron and steelIron and steel	0.4%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	0.3%
Articles of apparel and clothing accessories, not...Articles of apparel and clothing accessories, not knitted or crocheted	0.3%
Sugars and sugar confectionerySugars and sugar confectionery	0.3%
Ceramic productsCeramic products	0.3%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	0.3%
Glass and glasswareGlass and glassware	0.3%
Articles of apparel and clothing accessories,...Articles of apparel and clothing accessories, knitted or crocheted	0.2%
Other made-up textile articles; sets; worn...Other made-up textile articles; sets; worn clothing and worn textile articles; rags	0.2%
Edible fruit and nuts; peel of citrus fruits or...Edible fruit and nuts; peel of citrus fruits or melons	0.2%
Tobacco and manufactured tobacco substitutesTobacco and manufactured tobacco substitutes	0.2%
Articles of stone, plaster, cement, asbestos, mica...Articles of stone, plaster, cement, asbestos, mica or similar materials	0.2%
Footwear, gaiters and the like; parts of such...Footwear, gaiters and the like; parts of such articles	0.2%
Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal	0.2%
Ships, boats and floating structuresShips, boats and floating structures	0.1%
Aircraft, spacecraft, and parts thereofAircraft, spacecraft, and parts thereof	0.1%
CerealsCereals	0.1%
Copper and articles thereofCopper and articles thereof	0.1%
Toys, games and sports requisites; parts and...Toys, games and sports requisites; parts and accessories thereof	0.1%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	0.1%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	0.1%
Coffee, tea, maté and spicesCoffee, tea, maté and spices	0.1%
See more products	32.9%

Main imports (% of imports)	2007
Natural or cultured pearls, precious or...Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin	16.5%
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	11.1%
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	9.3%
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	8.0%
Iron and steelIron and steel	4.3%
Articles of iron or steelArticles of iron or steel	2.9%
Plastics and articles thereofPlastics and articles thereof	2.2%
Aircraft, spacecraft, and parts thereofAircraft, spacecraft, and parts thereof	1.6%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	1.2%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	1.2%
Essential oils and resinoids; perfumery, cosmetic...Essential oils and resinoids; perfumery, cosmetic or toilet preparations	1.1%
Articles of apparel and clothing accessories, not...Articles of apparel and clothing accessories, not knitted or crocheted	1.0%
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	0.9%
Rubber and articles thereofRubber and articles thereof	0.9%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	0.9%
Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal	0.9%
Aluminium and articles thereofAluminium and articles thereof	0.9%
Man-made filamentsMan-made filaments	0.8%
CerealsCereals	0.8%
Articles of apparel and clothing accessories,...Articles of apparel and clothing accessories, knitted or crocheted	0.7%
Organic chemicalsOrganic chemicals	0.7%
Copper and articles thereofCopper and articles thereof	0.7%
Pharmaceutical productsPharmaceutical products	0.7%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	0.7%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	0.7%
Glass and glasswareGlass and glassware	0.6%
Edible fruit and nuts; peel of citrus fruits or...Edible fruit and nuts; peel of citrus fruits or melons	0.6%
Meat and edible meat offalMeat and edible meat offal	0.6%
Miscellaneous chemical productsMiscellaneous chemical products	0.5%
Dairy produce; birds' eggs; natural honey; edible...Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included	0.5%
Articles of stone, plaster, cement, asbestos, mica...Articles of stone, plaster, cement, asbestos, mica or similar materials	0.5%
Footwear, gaiters and the like; parts of such...Footwear, gaiters and the like; parts of such articles	0.4%
Edible vegetables and certain roots and tubersEdible vegetables and certain roots and tubers	0.4%
Clocks and watches and parts thereofClocks and watches and parts thereof	0.4%
Sugars and sugar confectionerySugars and sugar confectionery	0.4%
Miscellaneous articles of base metalMiscellaneous articles of base metal	0.4%
Coffee, tea, maté and spicesCoffee, tea, maté and spices	0.4%
Ceramic productsCeramic products	0.4%
Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks	0.4%
Tools, implements, cutlery, spoons and forks, of...Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal	0.4%
Miscellaneous edible preparationsMiscellaneous edible preparations	0.3%
Man-made staple fibresMan-made staple fibres	0.3%
Toys, games and sports requisites; parts and...Toys, games and sports requisites; parts and accessories thereof	0.3%
Articles of leather; saddlery and harness; travel...Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silkworm gut)	0.3%
Oil seeds and oleaginous fruits; miscellaneous...Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medicinal plants; straw and fodder	0.3%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	0.3%
Other made-up textile articles; sets; worn...Other made-up textile articles; sets; worn clothing and worn textile articles; rags	0.3%
Preparations of vegetables, fruit, nuts or other...Preparations of vegetables, fruit, nuts or other parts of plants	0.2%
Tobacco and manufactured tobacco substitutesTobacco and manufactured tobacco substitutes	0.2%
Soap, organic surface-active agents, washing...Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental preparations with a basis of plaster	0.2%
Arms and ammunition; parts and accessories thereofArms and ammunition; parts and accessories thereof	0.2%
Miscellaneous manufactured articlesMiscellaneous manufactured articles	0.2%
Preparations of cereals, flour, starch or milk;...Preparations of cereals, flour, starch or milk; pastrycooks' products	0.2%
Beverages, spirits and vinegarBeverages, spirits and vinegar	0.2%
Fish and crustaceans, molluscs and other aquatic...Fish and crustaceans, molluscs and other aquatic invertebrates	0.2%
Special woven fabrics; tufted textile fabrics;...Special woven fabrics; tufted textile fabrics; lace; tapestries; trimmings; embroidery	0.2%
Ships, boats and floating structuresShips, boats and floating structures	0.2%
Printed books, newspapers, pictures and other...Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans	0.1%
Cocoa and cocoa preparationsCocoa and cocoa preparations	0.1%
Zinc and articles thereofZinc and articles thereof	0.1%
CottonCotton	0.1%
Ores, slag and ashOres, slag and ash	0.1%
Carpets and other textile floor coveringsCarpets and other textile floor coverings	0.1%
See more products	50.9%

Source: Comtrade

See more products: More imports (Intracen Data)
More exports (Intracen Data)

Sources of general economic information

Ministries: Website of the Ministry of Economy
Website of the Ministry of Finance
Statistical Office: Office of Statistics-Dubai Municipality
Central Bank: Central Bank of the United Arab Emirates
Stock Exchange: Dubai International Financial Exchange
Abu Dhabi Stock Exchange
Search Engines: UAE Internet pages
Fares
Economic portals: Erutledge

Political outline

Executive Power: Each Emirate is governed by an Emir and is under his administration. Every Emir preserves the autonomy for management of his Emirate's resources.
The Supreme Council of Emirs is the highest authority of UAE ; it holds legislative and executive powers. The Emir of Abu Dhabi, the biggest oil producing Emirate, has been President in 2004 and succeeded from his father. The Emir of Dubai has been nominated the Vice-President and Prime Minister.
Legislative Power: There is only one Chamber: The National Federal Council. It consists of 40 members of which 20 are appointed by the President and 20 are elected, each Emirate has a number of representatives equivalent to its demographical weight. Their mandate is for two years. This council has only consultative functions.
Main political parties: There are no political parties.
Current political leaders: President : Sheikh Khalifa bin Zayed Al Nahayan (since November 2004)
Prime Minister : Sheikh Mohammed bin Rashid Al Maktoum (since January 2006)
Next election dates: Presidential Election : 2009
Designation of members of the National Federal Council : 2011

Indicator of freedom of the press

World Rank:: 69/173
Evolution:: 4 places down compared to 2007

Source: Worldwide Press Freedom Index 2007, Reporters Without Borders

Indicator of political freedom

Ranking:: Not Free
Political freedom:: 6/7
Civil liberties:: 6/7

Map of freedom 2007
Source: Freedom House

Any comments about this content? Report it to us.