UAE Country Profile United Arab Emirates

Country Profile Politics Economy Trade & Industries

General Profile Total area Population World Population (in billions) Government type Chief of state Head of government Capital Climate Language Major City

83,600 sq km 5,314,317 (July 2012 est.) 2007 2008 2009

2010

2011

Growth YoY 6.6 6.7 6.8 6.9 7.0 1% federation with specified powers delegated to the UAE federal government and other powers reserved to member emirates President KHALIFA bin Zayid Al-Nuhayyan Prime Minister and Vice President MUHAMMAD bin Rashid Al-Maktum Abu Dhabi desert; cooler in eastern mountains Arabic (official), Persian, English, Hindi, Urdu Dubai, Abu Dhabi, Sharjah

World GDP Real Growth World GDP (in Trillions) UAE GDP Real Growth GDP GDP – Per capita

2009 -0.8%

2010 5%

2011 3.6%

58.1

63.3

70.2

-3.2%

3.2%

3.3%

$358.1 billion (2011 est.) $48,500 (2011 est.)

Chapter: General Profile

Economy Profile

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GDP – Composition by sector

agriculture: 0.7% industry: 59.4% services: 39.8% (2011 est.)

Inflation

2.5% (2011 est.)

Exchanges Rates

Emirati dirhams (AED) per US dollar 3.673 (2011 est.) 2.4% (2001)

Chapter: Economy Profile

Unemployment Rate

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Al Fujayrah, Mina' Jabal 'Ali (Dubai), Khawr Fakkan (Khor Fakkan), Mubarraz Island, Mina' Rashid (Dubai), Mina' Saqr (Ra's al Khaymah)

International Airports

Abu Dhabi International Airport, Fujairah International Airport, Dubai International Airport, Ras Al Khaimah International Airport, Sharjah Airport elected seats by emirate - Abu Dhabi 4, Dubai 4, Sharjah 3, Ras al-Khaimah 3, Ajman 2, Fujairah 2, Umm al-Quwain 2; note - number of appointed seats for each emirate are same as elected seats Prime Min. MUHAMMAD BIN RASHID Al Maktum Dep. Prime Min. MANSUR bin Zayid Al Nuhayyan Dep. Prime Min. SAIF bin Zayid Al Nuhayyan Min. of Cabinet Affairs Muhammad Abdallah al-GERGAWI Min. of Culture, Youth, & Community Development Abd al-Rahman Muhammad al-UWAIS Min. of Defense MUHAMMAD BIN RASHID Al Maktum Min. of Economy Sultan bin Saeed alMANSURI Min. of Education Humaid Muhammad Ubayd al-QATAMI Min. of Energy Muhammad bin Dhain al-HAMILI Min. of Environment & Water Rashid Ahmed bin FAHD Min. of Finance HAMDAN bin Rashid Al Maktum Min. of Foreign Affairs ABDALLAH bin Zayid Al Nuhayyan Min. of Foreign Trade LUBNA al-Qasimi Min. of Health Hanif bin Hassan ALI Min. of Higher Education & Scientific Research NUHAYYAN bin Mubarak Al Nuhayyan Min. of Interior SAIF bin Zayid Al Nuhayyan Min. of Justice Hadef bin Juaan al-DHAHERI Min. of Labor Saqr Ghobash Saeed GHOBASH Min. of Presidential Affairs MANSUR bin Zayid Al Nuhayyan Min. of Public Works HAMDAN bin Mubarak Al Nuhayyan Min. of Social Affairs Mariam bint Muhammad Khalfan al-RUMI Min. of State for Federal National Council Affairs Anwar Muhammad GARGASH Min. of State for Financial Affairs Obaid Humaid al-TAYER Min. of State for Foreign Affairs Anwar Muhammad GARGASH Min. of State Without Portfolio Reem Ibrahim alHASHEMI Min. of State Without Portfolio Maitha Salem al-SHAMSI Governor, Central Bank Sultan bin Nasir al-SUWAYDI

Election results

Ministry Name

Political parties and leaders

none; political parties are not allowed

UAE Economy Overview

The UAE has an open economy with a high per capita income and a sizable annual trade surplus. Successful efforts at economic diversification have reduced the portion of GDP based on oil and gas output to 25%. 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 utilities to greater private sector involvement. In April 2004, the UAE signed a Trade and Investment Framework Agreement with Washington and in November 2004 agreed to undertake negotiations toward a Free Trade Agreement with the US, however, those talks have not moved forward. The country's Free Trade Zones offering 100% foreign ownership and zero taxes - are helping to attract foreign investors. The global financial crisis, tight international credit, and deflated asset prices constricted the economy in 2009 and 2010. UAE authorities tried to blunt the crisis by increasing spending and boosting liquidity in the banking sector. The crisis hit Dubai hardest, as it was heavily exposed to depressed real estate prices. Dubai lacked sufficient cash to meet its debt obligations, prompting global concern about its solvency. The UAE Central Bank and Abu Dhabi-based banks bought the largest shares. In December 2009 Dubai received an additional $10 billion loan from the emirate of Abu Dhabi. The economy is expected to continue a slow rebound. Dependence on oil, a large expatriate workforce, and growing

Chapter: Ports and Terminals

Ports and Terminals

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Chapter: UAE Economy Overview

inflation pressures are significant long-term challenges. The UAE's strategic plan for the next few years focuses on diversification and creating more opportunities for nationals through improved education and increased private sector employment.

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Investment Policy

The preceding period has seen investment policies that achieved a lot of progress for the country and made it exceed the status of a developing country. Despite that, it was imperative to review these policies in the light of the changes occurring all over the world and as a result of the positive and negative outcomes of these policies.If the aim of the different investment policies is to diversify the production structure of the national economy, it becomes important to rationalize investment policies so as to achieve the desired results, particularly those related to foreign investments in the country. Suitable strategy must be drawn for these investments so that they can be used in the transfer of technology and administrative experience as well as professional training which is normally connected with these kinds of investments. This will reinforce the production and competitive capacity of the national projects and contributes to the production diversity of the economy. It is also worth noting to the role played by the economic exchange program which is considered a pioneering experience that could be improved. This program succeeded in establishing many joint development programs like the Abu Dhabi National Ship Building Company. This program help in transferring advanced technology and specialized experience to the local manpower in addition to developing the industrial base in the country. As for the internal investment policies, founding the securities markets ( Abu Dhabi Securities Market and Dubai Securities Market) undoubtedly, helped support the national economy circulating capital which leads to an increase in the available capital and provide varied investment opportunities for the UAE investor in addition to the support in providing liquid for the local investors. The UAE became a contracting party to the General Agreement on Tariffs and Trade (GATT) in 1994, and subsequently became a member of the World Trade Organization (WTO) in April of 1996. This engagement with international organizations stems from the UAE’s commitment to international trade and its obligations under the multilateral trade policy regime. Today, the UAE has regulations in place that aim to strengthen the country’s position as an open economy, one that welcomes international trade and competition.

As a result of the UAE’s exports diversification policy, less than half of its export value directly comes from oil and gas products. A crucial factor that has contributed to such diversification is the UAE’s so called “Free Trade Zones”. The zones, are designated areas within the UAE where traditional laws and regulations governing licensing, agency requirements, and UAE majority ownership are completely eliminated, creating dynamic business environments conducive to unhindered growth.

Chapter: Investment Policy

Trade Policy

The UAE’s commitment to an open international trade environment is evidenced by several reports released by the WTO. WTO reports found that the UAE’s tariff of 5% was significantly lower than the maximum tariff of 15% that can be charged under international trade regulations. Furthermore, when compared to economies of similar scale the UAE tends to charge even lower rates than those charged by others. These findings further cement the UAE’s claim to an open, competitive, and encouraging trade environment. In addition, the UAE witnessed a 98% increase in exports from 1995 to 2004 compared to a 133% rise in imports. Such increases took place without the use of any WTO-consistent trade remedy laws by the UAE such as invoking any antidumping or countervailing duty against any trading partner.

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Building upon its commitment to free international trade, the UAE has taken the initiative in engaging several countries in order to negotiate bilateral trade agreements alongside the GCC nations. These countries include the European Union (as a single trading bloc), Turkey, China, Australia, as well as the United States. Overall, the UAE’s trade policy has been consistent with its obligations under the WTO. A free, competitive and open trade policy is seen as one of the main drivers behind the UAE’s growth and will continue to play a significant role as the country builds on its recent achievements. Economy 2030 Vision

Foreign Policy

International organization participation

Main Industry

Reduce GDP volatility through diversification, Enlarge the enterprise base, Enhance competitiveness

The foundations of UAE foreign policy comprise good neighborliness, understanding, and non-interference in internal issues, as well as the amicable resolution of disputes. The fruits of this policy were mutual openness between the UAE and the world, and strategic partnerships on the political, economic, trade, cultural, scientific, educational and health levels with many countries in all continents, and asserting the prominent position the country has gained in the international community. ABEDA, AFESD, AMF, CAEU, CICA, FAO, G-77, GCC, IAEA, IBRD, ICAO, ICC, ICRM, IDA, IDB, IFAD, IFC, IFRCS, IHO, ILO, IMF, IMO, IMSO, Interpol, IOC, IPU, ISO, ITSO, ITU, LAS, MIGA, NAM, OAPEC, OIC, OIF (observer), OPCW, OPEC, PCA, UN, UNCTAD, UNESCO, UNIDO, UPU, WCO, WHO, WIPO, WMO, WTO petroleum and petrochemicals; fishing, aluminum, cement, fertilizers, commercial ship repair, construction materials, some boat building, handicrafts, textiles Industry Type Name of the company Electric Utilities Taqa Telecommunication Service Etisalat

Referensi http://www.masdarcity.ae/userfiles/files/economic-vision-2030-section-1.pdf http://www.mofa.gov.ae/mofa_english/portal/b074766a-5507-43c7-9beb-3155a52e25b5.aspx

Chapter: Economy 2030 Vision

Biggest Company

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