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flag United Arab Emirates United Arab Emirates: Economic and Political Outline

Economic Indicators | Foreign Trade in Figures | Sources of General Economic Information | Political Outline

Economic Indicators

The growth rate of GDP was about 3% in 2010 and 2011, mainly due to soaring oil prices.

The GDP is dominated by the economic power Abu Dhabi (60%), especially by its hydrocarbon production (this emirate hold 9% of the world oil reserves and 5% of the planet’s natural gas reserves) and by its control of nearly all the country’s savings. Dubai contributes to up to 26% of the GDP and constitutes the Emirates’ commercial platform, mostly due to its port and airport infrastructures. The government is trying to develop new sectors, such 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. There is also a number of great cultural projects (museums, especially an annex of the Louvre museum) and sport projects (Formule 1). Moreover, the country has decided to diversify its energy sources by building a fleet of nuclear power plants by 2017 and massively investing in renewable energies, with 22 billion USD for the “Masdar” project.

UAE was nevertheless hit hard by the global economic crisis, which has caused a felt slowdown of the country’s growth. Different factors are at cause: falling oil prices, a contraction of private sector activity, the bursting of the housing bubble in Dubai because of overinvestment, the scarcity of supply of bank credit. Moreover, Dubai was the hardest hit, due to its position of a highly globalized platform and very high borrowing rates. However, the authorities have reacted. The banking sector was consolidated through state guarantees on deposits, introduction of liquidity, recapitalization of banks, and an expansionary fiscal policy (to preserve investments and enhance competitiveness).

 
Main Indicators 2009201020112012 (e)2013 (e)
GDP (billions USD) 270.33302.04358.08375.87396.32
GDP (Constant Prices, Annual % Change) -3.23.2e3.3e3.84.0
GDP per Capita (USD) 53,36357,88466,625e67,89969,507
General Government Gross Debt (in % of GDP) 22.521.018.518.118.1
Inflation Rate (%) 1.60.92.52.52.5
Current Account (billions USD) 8.2321.24e36.8834.6830.51
Current Account (in % of GDP) 3.07.0e10.37.7-

Source: IMF - World Economic Outlook Database ; World Bank , Last Available Data

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, with large reserves. 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, furniture, 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) 4.2 24.3 71.0
Value Added (in % of GDP) 1.8 60.6 37.6
Value Added (Annual % Change) 5.0 10.3 7.6

Source: World Bank - Last Available Data.

 
 
Monetary Indicators 20062007200820092010
UAE Dirham (AED) - Average Annual Exchange Rate For 1 USD 3.673.673.673.673.67

Source: World Bank - Last Available Data.

 
 
Learn more about Market Analysis about the United Arab Emirates on Globaltrade.net, the Directory for International Trade Services.
 

Indicator of Economic Freedom

Score:
67.8/100
Position:
Moderately free
World Rank:
45/179
Regional Rank:
6/17

Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation

 

Country Risk

See the Country Risk Analysis Provided By Ducroire.

 

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Foreign Trade in Figures

United Arab Emirates are amongst the world’s most dynamic markets in terms of foreign trade. 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. Despite the sharp slowdown in trade in 2009, the UAE is considered a central business hub of the Gulf countries, Iran, South Asia and East Africa.
United Arab Emirates has displayed a large commercial surplus in both 2009 and 2010, due to the raising oil prices.
The main UAE trade partners are Japan, South Korea, Thailand, Singapore, China and Pakistan. The main products exported by the country are hydrocarbons, natural gas, dried fish and dates. Its main suppliers are India, China, the United States, Germany and Japan. The United Arab Emirates mainly imports machinery, transport equipment, chemical products and food stuffs.

 
Foreign Trade Indicators 20062007200820092010
Imports of Goods (million USD) 100,057132,500177,000150,000170,000
Exports of Goods (million USD) 145,587178,630239,213185,000235,000
Imports of Services (million USD) 24,32233,37242,77336,799-
Exports of Services (million USD) 6,2597,4348,9589,503-
Imports of Goods and Services (in % of GDP) 67.763.8---
Exports of Goods and Services (in % of GDP) 91.487.1---
Foreign Trade (in % of GDP) 159.1151.0---

Source: WTO - World Trade Organization ; World Bank , Last Available Data

 

Main Partner Countries

Main Customers
(% of Exports)
2009
India 7.2%
Iran 4.4%
Iraq 2.4%
Switzerland 2.0%
Qatar 1.5%
See More Countries 82.5%
Main Suppliers
(% of Imports)
2009
India 10.2%
China 7.9%
United States 6.9%
Germany 5.0%
Japan 4.5%
See More Countries 65.5%

Source: Comtrade, Last Available Data

 

Main Products

Main Exports
(% of Exports)
2009
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals, crude 24.9%
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals 9.1%
Gold, incl. gold plated with platinum, unwrought...Gold, incl. gold plated with platinum, unwrought or not further worked than semi-manufactured or in powder form 6.0%
Diamonds, whether or not worked, but not mounted...Diamonds, whether or not worked, but not mounted or set (excl. unmounted stones for pick-up styluses, worked stones, suitable for use as parts of meters, measuring instruments or other articles of chapter 90) 4.4%
Petroleum gas and other gaseous hydrocarbonsPetroleum gas and other gaseous hydrocarbons 3.0%
See More Products 52.6%
Main Imports
(% of Imports)
2009
Gold, incl. gold plated with platinum, unwrought...Gold, incl. gold plated with platinum, unwrought or not further worked than semi-manufactured or in powder form 8.8%
Diamonds, whether or not worked, but not mounted...Diamonds, whether or not worked, but not mounted or set (excl. unmounted stones for pick-up styluses, worked stones, suitable for use as parts of meters, measuring instruments or other articles of chapter 90) 4.4%
Motor cars and other motor vehicles principally...Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars (excl. motor vehicles of heading 8702) 3.2%
Articles of jewellery and parts thereof, of...Articles of jewellery and parts thereof, of precious metal or of metal clad with precious metal (excl. articles > 100 years old) 3.1%
Parts of aircraft and spacecraft of heading 8801...Parts of aircraft and spacecraft of heading 8801 or 8802, n.e.s. 2.1%
See More Products 78.3%

Source: Comtrade, Last Available Data

 
See More Products
More imports (Intracen Data)
More exports (Intracen Data)
 

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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

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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 : 2014
Designation of members of the National Federal Council : 2011
 

Indicator of Freedom of the Press

World Rank:
87/178
Evolution:
1 place down compared to 2009

Source: Worldwide Press Freedom Index 2010, Reporters Without Borders

 

Indicator of Political Freedom

Ranking:
Not Free
Political Freedom:
6/7
Civil Liberties:
5/7

Map of freedom 2010
Source: Freedom House

 

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Last Updates: January 2012