Middle East and North Africa

United Arab Emirates
Last revised: 12 January 2009

Country information

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ECONOMY

Basic Economic Facts

GDP: US$67.4bn
GDP per head: US$19,600
Annual Growth: 5%
Inflation: 2.7%
Major Industries: Oil, gas, Petrochemicals, manufacturing and construction
Major Trading Partners: UK, US, France, Italy, Japan, India, Singapore, South Korea
Aid & Development: None
Exchange Rate: Dh3.67=US$1

The UAE has one of the highest GNP's per head in the world. While still heavily dependent on revenues from hydrocarbons, the UAE is relatively well insulated from periods of low oil prices due to successful moves towards economic diversification, large foreign exchange reserves and overseas investments. The global economic crisis is being felt in the UAE with a number of projects being either shelved or cancelled. There have been redundancies across all sectors, and particularly in construction. The lack of funds and credit, while mild compared to Europe and the US is beginning to have an effect.

Abu Dhabi has approximately 10% of the world's proven oil reserves and 5% of the gas. The Emirate also has an impressive investment portfolio financed from oil income. Dubai is different. It has far more limited hydrocarbon reserves and therefore has a more diverse economy based on a vision of making Dubai the region’s business, logistics, media and leisure hub. The Northern Emirates fair less well, although Sharjah has established itself as a base for manufacturing. The Northern Emirates are, to a greater or lesser extent, reliant on Abu Dhabi and funds from the Federal Government.