Economy of United Arab Emirates
Overview
The UAE has an open economy with a high per capita income and a sizable annual trade surplus. Despite largely successful efforts at economic diversification, about 30% of GDP is still directly based on oil and gas output, and the fortunes of the economy fluctuate with the prices of those commodities.
Since the discovery of oil in the UAE more than 30 years ago, the UAE has undergone a profound transformation from an impoverished region of small desert principalities to a modern state with a high standard of living. The government has increased spending on job creation and infrastructure expansion and is opening up its utilities to greater private sector involvement.
In April 2004, the UAE signed a Trade and Investment Framework Agreement (TIFA) with Washington and in November 2004 agreed to undertake negotiations toward a Free Trade Agreement (FTA) with the US. Higher oil revenue, strong liquidity, and cheap credit in 2005-06 led to a surge in asset prices (shares and real estate) and consumer inflation. Rising prices are increasing the operating costs for businesses in the UAE and degrading the UAE's allure to foreign investors. Dependence on a large expatriate workforce and oil are significant long-term challenges to the UAE's economy.
GDP
Real Growth Rate
9%
Per Capita
USD 49,700
From Agriculture
2%
From Industry
62%
From Services
36%
Labour Force
Available for Work
Unknown
Working in Agriculture
0%
Working in Industry
0%
Working in Services
0%
Unemployment Rate
0%
Population Below Poverty Line
0%
Inflation Rate
10%
Investment as Percent of GDP
24%
Budget
Revenues
USD 60,300 (m)
Expenditures
USD 35,200 (m)
Public Debt
US$ 0.00 (m)
Agricultural Products
Dates, vegetables, watermelons; poultry, eggs, dairy products and fish.
Core Industries
Petroleum and petrochemicals, fishing, aluminum, cement, fertilizers, commercial ship repair, construction materials, some boat building, handicrafts and textiles.
Exports
Value
USD 137,100 (m)
Commodities
Crude oil 45%, natural gas, reexports, dried fish and dates.
Partners
Japan 25.6%, South Korea 10.2%, Thailand 5.8%, India 4.5% (2006).
Imports
Value
USD 88,890 (m)
Commodities
Machinery and transport equipment, chemicals and food.
Partners
US 11.4%, China 11%, India 9.8%, Germany 6.2%, Japan 5.8%, UK 5.5%, France 4.1%, Italy 4% (2006).
External Debt
USD 39,100 (m)
Fiscal Year
Calendar year
