ECONOMY
Prior to the first exports of oil in 1962, the U.A.E. economy was dominated by pearl production, fishing, agriculture, and herding. Since the rise of oil prices in 1973, however, petroleum has dominated the economy, accounting for most of its export earnings and providing significant opportunities for investment. The U.A.E. has huge proven oil reserves, estimated at 98.8 billion barrels in 2003, with gas reserves estimated at (212 trillion cubic feet); at present production rates, these supplies would last well over 150 years.
In 2005, the U.A.E. produced about 2.5 million barrels of oil per day--of which Abu Dhabi produced approximately 94%--with Dubai , and Sharjah to a much lesser extent, producing the rest.
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 $250 billion in overseas investments.
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 aluminum smelter, and a steel fabrication
unit are prominent facilities in the complex.
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.
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.
GDP (2004): $102 billion.
Annual growth rate: 7%.
Per capita GDP (2004): $21,600.
Inflation rate (2004 est.): 4.6%.
Natural resources: Oil and natural gas.
Agriculture (3.0% of GDP): Products--vegetables, dates, dairy products, poultry, fish.
Petroleum: 31.9% of 2003 GDP.
Other industry: 25% of 2002 GDP.
Services (44% of 2003 GDP): Trade, government, real estate.
Trade (2004 est.): Exports --$82.3 billion: petroleum, gas, and petroleum products. Major markets -- Japan , India , Singapore , Iran . Imports --$54.2 billion: machinery, consumer goods, food. Major suppliers --western Europe, Japan , U.S. (6.5%), China , India .
Foreign economic aid (2003): In excess of $5.25 billion.
