United Arab Emirates

Coordinates: 24°N 54°E / 24°N 54°E / 24; 54

The United Arab Emirates ⁱ/juːˌnaɪtᵻd ˌærəb ˈɛmɪrᵻts/ (Arabic: دولة الإمارات العربية المتحدة‎ Dawlat al-Imārāt al-‘Arabīyah al-Muttaḥidah), sometimes simply called the Emirates or the UAE, is a country located in the southeast end of the Arabian Peninsula on the Persian Gulf, bordering Oman to the east and Saudi Arabia to the south, as well as sharing sea borders with Qatar and Iran. In 2013, the UAE's total population was 9.2 million, of which 1.4 million are Emirati citizens and 7.8 million are expatriates.

Established in December 1971, the country is a federation of seven emirates. The constituent emirates are Abu Dhabi (which serves as the capital), Ajman, Dubai, Fujairah, Ras al-Khaimah, Sharjah, and Umm al-Quwain. Each emirate is governed by an absolute monarch; together, they jointly form the Federal Supreme Council. One of the monarchs is selected as the President of the United Arab Emirates. Islam is the official religion of the UAE, and Arabic is the official language, although English is widely used.

Economy of the United Arab Emirates

The economy of the United Arab Emirates is the second largest in the Arab world (after Saudi Arabia), with a gross domestic product (GDP) of $570 billion (AED2.1 trillion) in 2014. The United Arab Emirates has been successfully diversifying its economy.

Although UAE has the most diversified economy in the GCC, the UAE's economy remains extremely reliant on oil. With the exception of Dubai, most of the UAE is dependent on oil revenues. Petroleum and natural gas continue to play a central role in the economy, especially in Abu Dhabi. More than 85% of the UAE's economy was based on the oil exports in 2009. While Abu Dhabi and other UAE emirates have remained relatively conservative in their approach to diversification, Dubai, which has far smaller oil reserves, was bolder in its diversification policy. In 2011, oil exports accounted for 77% of the UAE's state budget.

Dubai suffered from a significant economic crisis in 2007-2010 and was bailed out by Abu Dhabi's oil wealth. Dubai's current prosperity has been attributed to Abu Dhabi's petrodollars. Dubai is currently in extreme debt.Tourism is one of the main sources of revenue in the UAE, with some of the world's most luxurious hotels being based in the UAE. Although the UAE is now 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.

Middle East

The Middle East (also called the Mid East) is a transcontinental region centered on Western Asia and Egypt. The corresponding adjective is Middle-Eastern and the derived noun is Middle-Easterner. Formerly, the Eurocentric synonym Near East (as opposed to Far East) was commonly used. Arabs, Azeris, Kurds, Persians, and Turks constitute the largest ethnic groups in the region by population, while Armenians, Assyrians, Circassians, Copts, Druze, Jews, Maronites, Somalis, and other ethnic and ethno-religious groups form significant minorities.

The History of the Middle East dates back to ancient times, with the (geo-political) importance of the region being recognized for millennia. Several major religions have their origins in the Middle East, including Judaism, Christianity, and Islam; the Baha'i faith, Mandaeism, Unitarian Druze, and numerous other belief systems were also established within the region. The Middle East generally has a hot, arid climate, with several major rivers providing irrigation to support agriculture in limited areas such as the Nile Delta in Egypt, the Tigris and Euphrates watersheds of Mesopotamia, and most of what is known as the Fertile Crescent. Most of the countries that border the Persian Gulf have vast reserves of crude oil, with the dictatorships of the Arabian Peninsula in particular benefiting from petroleum exports. In modern times the Middle East remains a strategically, economically, politically, culturally and religiously sensitive region.

Abu Dhabi

Abu Dhabi (US /ˈɑːbuː ˈdɑːbi/, UK /ˈæbuː ˈdɑːbi/; Arabic: أبو ظبي‎ Abū Ẓabī Emirati pronunciation [ɐˈbuˈðˤɑbi]) is the capital and the second most populous city in the United Arab Emirates (the most populous being Dubai), and also capital of Abu Dhabi emirate, the largest of the UAE's seven member emirates. Abu Dhabi lies on a T-shaped island jutting into the Persian Gulf from the central western coast. The city proper had a population of 1.5 million in 2014.

Abu Dhabi houses federal government offices, is the seat of the United Arab Emirates Government, home to the Abu Dhabi Emiri Family and the President of the UAE, who is from this family. Abu Dhabi's rapid development and urbanisation, coupled with the relatively high average income of its population, has transformed the city into a large and advanced metropolis. Today the city is the country's center of political and industrial activities, and a major cultural and commercial centre, due to its position as the capital. Abu Dhabi accounts for about two-thirds of the roughly $400-billion United Arab Emirates economy.

Economy

An economy (Greek οίκος-household and νέμoμαι - manage) is an area of the production, distribution or trade, and consumption of goods and services by different agents in a given geographical location. The economic agents can be individuals, businesses, organizations, or governments. Transactions occur when two parties agree to the value or price of the transacted good or service, commonly expressed in a certain currency.

Economic activity is spurred by production which uses natural resources, labor, and capital. It has changed over time due to technology (automation, accelerator of process, reduction of cost functions), innovation (new products, services, processes, new markets, expands markets, diversification of markets, niche markets, increases revenue functions) such as that which produces intellectual property and changes in industrial relations (child labor being replaced with universal access to education).

A given economy is the result of a set of processes that involves its culture, values, education, technological evolution, history, social organization, political structure and legal systems, as well as its geography, natural resource endowment, and ecology, as main factors. These factors give context, content, and set the conditions and parameters in which an economy functions.