UNITED ARAB EMIRATES (UAE) COUNTRY PROFILE Key Facts
Location: The UAE borders the Gulf of Oman and the Persian Gulf, between Oman and Saudi Arabia. It has a strategic location along southern approaches to the Strait of Hormuz, a vital transit point for world crude oil
Capital city: Abu Dhabi
Other Cities: Dubai, Fujairah, Ras al-Khaimah Sharjah, Ajman
Total Area: 83,600 sq km
Population: 4,798,491
Currency: United Arab Emirates dirham
GDP: $184.6bn (2008 est.)
GDP Growth rate: 7.7 per cent (2008 est.)
Languages: Arabic (official), Persian, English, Hindi, Urdu
Ethnic make-up: Emirati 19 per cent, other Arab and Iranian 23 per cent, South Asian 50 per cent, other expatriates (includes Westerners and East Asians) 8 per cent
Religions: Muslim 96 per cent, other 4 per cent
Introduction
The Trucial States of the Persian Gulf coast granted the UK control of their defence and foreign affairs in 19th century treaties. In 1971, six of these states - Abu Zaby, 'Ajman, Al Fujayrah, Ash Shariqah, Dubayy, and Umm al Qaywayn - merged to form the United Arab Emirates (UAE). In 1972 they were joined by Ra's al Khaymah.
In terms of per capital GDP the UAE is on a par with leading west European nations. Huge oil revenues and a progressive foreign policy stance have enabled it to play a key role in the affairs of the region.
Oil was discovered in the UAE more than three decades ago and has significantly increased prosperity in the region. Once an impoverished region of small desert principalities, it is now a modern state with a high standard of living. Government spending on infrastructure expansion is diversifying its economy and opening it up to increased external investment.
Indeed the UAE has, in recent times, undertaken successful efforts to reduce the proportion of its GDP which relates to oil and gas output. The introduction of free trade zones, which offer 100 per cent foreign ownership and zero taxes, are also playing a key part in attracting foreign investment.
Investment climate and opportunities
The UAE is the largest market in the Middle East for the UK and, indeed, is the UK's 14th largest export market at around £3.7bn. Of UK exports, 88 per cent go to Dubai and the Northern Emirates and 12 per cent to Abu Dhabi.
The UAE’s vast oil and gas reserves, most of which lie in the largest emirate and seat of the capital, Abu Dhabi, are obviously fundamental to the prosperity that has been experienced by UAE residents. In fact, the UAE has almost ten per cent of the world’s proven oil reserves and five per cent of its proven gas reserves.
However, signs are that things are changing. Oil and gas production will, clearly, remain integral to the economy for many years to come, other sectors of the economy have recently been growing at a rapid pace. Areas that have experienced major growth and which offer excellent export and investment opportunities include security and safety equipment, ICT, medical equipment and related services, architecture, construction, and engineering services and environmental and pollution control equipment. Water and power projects are also a major growth area.
Key Sectors
Energy
Travel and tourism
Financial services
Professional services
Transport and logistic services
Construction
Education and healthcare
Sectors up-close
Oil and gas
The UAE’s oil and gas sector represents a fantastic investment opportunity as well as a great chance to sell products, services and consultancy support into rapidly growing sector. The UAE pumped around 2.6 million barrels of oil per day in 2007, and plans were to raise its daily production capacity to 3.5 million by 2009 and over 5 million by 2014. The country's crude oil reserves stand at 98 billion barrels - around 8 per cent of the world's total reserves. Abu Dhabi has 94 per cent of this. Dubai has an estimated 4 billion barrels, followed by Sharjah and Ra’s al-Khaimah, with 1.5 billion and 100 million barrels of oil, respectively. The country’s gas resources are estimated at 6.5 trillion cubic meters, the fifth largest after Russia, Iran, Qatar and Saudi Arabia.
The UAE is moving forward many sizeable projects to increase its oil capacity above five million barrels per day within six years and solidify its position as a pre-eminent crude supplier. Abu Dhabi has already given contracts to various foreign companies to develop its oilfields as part of long-term plans to expand capacity. Spending on the hydrocarbon sector is also growing - it is estimated to be more than $20bn in the next five years.
Medical equipment
The UAE has seen significant progress in health care and major health programs have been implemented to meet the requirements of the UAE people. The UAE has a comprehensive health service funded by the government and a developing private health sector. Health care infrastructure has kept pace with other health care developments to ensure adequate services are provided in the emirates. Government and private sector expansion and improvements are continuing. It is estimated that the average annual growth during the next three years will be 25 percent, mainly because of expansion in the number of hospitals and increases in private health care facilities. Explosive population growth has benefited many sectors of the economy, an obvious one being medical equipment.
Construction
The UAE has a hugely dynamic construction industry - construction activities are the third largest part of its economy. This sector has been a key beneficiary of the oil boom, with a surge in new and ongoing large-scale projects leads. Many are in the services sector, including the expansion and refurbishment of the airports and the building of new hotels and offices.
Abu Dhabi, Dubai and Ras Al Khaimah are the three main emirates of construction activity. All have distinct spending programs. Major ongoing projects in Dubai are the development of the metro rail system, and Burj Dubai, the man-made Palm Islands. In Abu Dhabi they are Saadiyat Island and the Al-Raha Beach. All of these major projects require international construction project management skills and UK companies enjoy an excellent reputation for these and related construction services.
