Economy of the United Arab Emirates

Economy of United Arab Emirates
Dubai skyline
Currency	United Arab Emirates dirham (AED)
Trade organisations	OPEC and WTO
Statistics
GDP	$301.9 billion (2010 est.)
GDP growth	+3.2% (2010 est.)
GDP per capita	$49,600 (2010 est.) (9th)
GDP by sector	Agriculture (0.9%), industry (55.5%), services (36.6%) (2010 est.)
Inflation (CPI)	0.9% (2010 est.)
Labour force	3.705 million (2010 est.)
Labour force by occupation	Agriculture (7%), industry (15%), services (78%) (2000 est.)
Unemployment	12.7% (2008)
Main industries	Petroleum and petrochemicals, fishing, aluminium, cement, fertilizers, commercial ship repair, construction materials, some boat building, handicrafts, textiles.
Ease of Doing Business Rank	33rd
External
Exports	$212.3 billion (2010 est.)
Export goods	Crude oil, natural gas, reexports, dried fish, dates
Main export partners	Japan 17.1%, India 13.6%, Iran 6.9%, South Korea 6.1%, Thailand 5.1% (2010)
Imports	$161.4 billion (2010 est.)
Import goods	Machinery and transport equipment, chemicals, food
Main import partners	India 17.5%, China 14%, United States 7.7%, Germany 5.6%, Japan 4.8% (2010)
Gross external debt	$151.8 billion (31 December 2010 est.)
Public finances
Public debt	51.2% of GDP (2010 est.)
Revenues	$85.77 billion (2010 est.)
Expenses	$92.15 billion (2010 est.)
All values, unless otherwise stated, are in US dollars

The United Arab Emirates (UAE) is a rapidly diversifying, highly developed economy, based on various socioeconomic indicators such as GDP per capita, energy consumption per capita, and the HDI.

At $270 billion in 2008, the GDP of the UAE ranks second in the CCASG (after Saudi Arabia), third in the Middle East—North Africa (MENA) region (after Saudi Arabia and Iran), and 38th in the world.

There are various deviating estimates regarding the actual growth rate of the nation’s GDP, however all available statistics indicate that the UAE currently has one of the fastest growing economies in the world. According to a recent report by the Ministry of Finance and Industry, nominal GDP rose by 35 per cent in 2006 to $175 billion, compared with $130 billion in 2005.

Although the United Arab Emirates is becoming less dependent on natural resources as a source of revenue, petroleum and natural gas exports still play an important role in the economy, especially in Abu Dhabi. A massive construction boom, an expanding manufacturing base, and a thriving services sector are helping the UAE diversify its economy. Nationwide, there is currently $350 billion worth of active construction projects. The UAE is a member of the World Trade Organization.

External trade

Major increases in imports occurred in manufactured goods, machinery, and transportation equipment, which together accounted for 70% of total imports. Another important foreign exchange earner, the Abu Dhabi Investment Authority--which controls the investments of Abu Dhabi, the wealthiest emirate—manages an estimated $360 billion in overseas investments & an estimated $900 billion in assets.

Emirati exports in 2006

More than 200 factories operate at the Jebel Ali complex in Dubai, which includes a deep-water port and a free trade zone for manufacturing and distribution in which all goods for re-export or transshipment enjoy a 100% duty exemption. A major power plant with associated water desalination units, an aluminium smelter, and a steel fabrication unit are prominent facilities in the complex. The complex is currently undergoing expansion, with sections of land set aside for different sectors of industry. A large international passenger and cargo airport, Dubai World Central International Airport, with associated logistics, manufacturing and hospitality industries, is also planned here.

Except in the free trade zone, the UAE requires at least 51% local citizen ownership in all businesses operating in the country as part of its attempt to place Emiratis into leadership positions. However, this law is under review and the majority ownership clause will very likely be scrapped, to bring the country into line with World Trade Organisation regulations.

As a member of the Gulf Cooperation Council (GCC), the UAE participates in the wide range of GCC activities that focus on economic issues. These include regular consultations and development of common policies covering trade, investment, banking and finance, transportation, telecommunications, and other technical areas, including protection of intellectual property rights.

Diversification

In 2009, more than 85% of the UAE's economy was based on the exports of natural resources.

Recently, the Emirate of Dubai has started to look for other sources of revenue. High-class tourism and international finance are the new sectors starting to be developed. In line with this initiative, the Dubai International Financial Centre was announced, offering 55.5% foreign ownership, no withholding tax, freehold land and office space and a tailor-made financial regulatory system with laws taken from best practice in other leading financial centres like New York, London, Zürich and Singapore. A new stock market for regional companies and other initiatives were announced in DIFC. Dubai has also developed Internet and Media free zones, offering 100% foreign ownership, no tax office space for the worlds leading ICT and media companies, with the latest communications infrastructure to service them. Many of the world's leading companies have now set up branch offices, and even changed headquarters to, there. Recent liberalisation in the property market allowing non citizens to buy freehold land has resulted in a major boom in the construction and real estate sectors, with several signature developments such as the 2 Palm Islands, the World (archipelago), Dubai Marina, Jumeirah Lake Towers, and a number of other developments, offering villas and high rise apartments and office space.

In As of 2001, budgeted government revenues were about AED 29.7 billion, and expenditures were about AED 22.9 billion.

Mean wages were $45.61 per manhour in 2009.

Investment

The stock market capitalisation of listed companies in the UAE was valued at $225,568 million in 2005 by the World Bank. [1]

See also

• Economy of Dubai
• The National Sukuk Program
• Oil and Gas Infrastructure in the UAE

External links

• UAE Economy on the CIA World Factbook
• United Arab Emirates Economy
• United Arab Emirates Economic Development at the Open Directory Project
• Business consultants in UAE
• PRO Services Dubai