United Arab Emirates Economy 2008

Economy - overview:
The UAE has an open economy with a high per capita income and a sizable annual trade surplus. Despite largely successful efforts at economic diversification, nearly 40% of GDP is still directly based on oil and gas output. 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. The country's Free Trade Zones - offering 100% foreign ownership and zero taxes - are helping to attract foreign investors. Higher oil revenue, strong liquidity, housing shortages, and cheap credit in 2005-07 led to a surge in asset prices (shares and real estate) and consumer inflation. Rising prices are increasing the operating costs for businesses in the UAE and adversely impacting government employees and others on fixed incomes. Dependence on oil and a large expatriate workforce 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.

GDP (purchasing power parity):
$145.8 billion (2007 est.)

GDP (official exchange rate):
$121.8 billion (2007 est.)

GDP - real growth rate:
8.5% (2007 est.)

GDP - per capita (PPP):
$55,200 (2007 est.)

GDP - composition by sector:
agriculture: 1.8%
industry: 59.3%
services: 38.9% (2007 est.)

Labor force:
3.119 million (2007 est.)

Labor force - by occupation:
agriculture: 7%
industry: 15%
services: 78% (2000 est.)

Unemployment rate:
2.4% (2001)

Population below poverty line:
19.5% (2003)

Household income or consumption by percentage share:
lowest 10%: NA%
highest 10%: NA%

Inflation rate (consumer prices):
12% (2007 est.)

Investment (gross fixed):
21.5% of GDP (2007 est.)

Budget:
revenues: $58.15 billion
expenditures: $38.06 billion (2007 est.)

Public debt:
14.8% of GDP (2007 est.)

Agriculture - products:
dates, vegetables, watermelons; poultry, eggs, dairy products; fish

Industries:
petroleum and petrochemicals; fishing, aluminum, cement, fertilizers, commercial ship repair, construction materials, some boat building, handicrafts, textiles

Industrial production growth rate:
5.1% (2007 est.)

Electricity - production:
57.06 billion kWh (2005)

Electricity - consumption:
52.62 billion kWh (2005)

Electricity - exports:
0 kWh (2005)

Electricity - imports:
0 kWh (2005)

Oil - production:
2.54 million bbl/day (2006 est.)

Oil - consumption:
372,000 bbl/day (2005 est.)

Oil - exports:
2.54 million bbl/day (2004 est.)

Oil - imports:
137,200 bbl/day (2004)

Oil - proved reserves:
97.8 billion bbl (1 January 2006 est.)

natural gas - production:
45.07 billion cu m (2005 est.)

natural gas - consumption:
39.56 billion cu m (2005 est.)

natural gas - exports:
6.848 billion cu m (2005 est.)

natural gas - imports:
1.343 billion cu m (2005)

natural gas - proved reserves:
5.823 trillion cu m (1 January 2006 est.)

Current account balance:
$36.11 billion (2007 est.)

Exports:
$152.1 billion f.o.b. (2007 est.)

Exports - commodities:
crude oil 45%, natural gas, reexports, dried fish, dates

Exports - partners:
Japan 25.8%, South Korea 9.6%, Thailand 5.9%, India 4.5% (2006)

Imports:
$94.72 billion f.o.b. (2007 est.)

Imports - partners:
US 11.5%, China 11%, India 9.9%, Germany 6.2%, Japan 5.8%, UK 5.6%, France 4.1%, Italy 4% (2006)

Economic aid - donor:
since its founding in 1971, the Abu Dhabi Fund for Development has given about $5.2 billion in aid to 56 countries (2004)

Economic aid - recipient:
$5.36 million (2004)

Reserves of foreign exchange and gold:
$29.62 billion (31 December 2007 est.)

Debt - external:
$41.51 billion (31 December 2007 est.)

Stock of direct foreign investment - at home:
$42.58 billion (2006 est.)

Stock of direct foreign investment - abroad:
$11.43 billion (2006 est.)

Market value of publicly traded shares:
$138.5 billion (2006)

Currency (code):
Emirati dirham (AED)

Exchange rates:
Emirati dirhams per US dollar - 3.673 (2007), 3.673 (2006), 3.6725 (2005), 3.6725 (2004), 3.6725 (2003)
note: officially pegged to the US dollar since February 2002