General Information » Economy » United Arab Emirates Overview

The UAE has an open economy, with one of the world’s highest per capita incomes, estimated at Dhs.91,000 per annum, for 2004 (nearly US$25,000); this wealth is not evenly distributed throughout the population, though. The oil sector, once the basis of the country's wealth now contributes around 30% of the country’s gross domestic product (GDP). The GDP for 2004 exceeded Dhs.337 billion, compared with Dhs.156 billion in 1995. Abu Dhabi and Dubai contribute around 80% to the country’s GDP.

Over 90% of the UAE’s oil reserves lie under Abu Dhabi and there is enough at the current rate of production (just over 2 million barrels per day) to last a further 100 years. While there is still a heavy dependence on the oil and gas industry, trade, manufacturing, tourism and construction also play an important part in the national economy. Investment in infrastructure and development projects exceeded an estimated Dhs.3.9 billion in the first half of 2003. The UAE’s main export partners are Japan, India, Singapore, South Korea, Oman and Iran. In 2003, the UAE’s export and re-export trade amounted to Dhs.241.8 billion. The main import partners are Japan, USA, UK, Italy, Germany and South Korea.

Current reports note that the country’s economy is roughly 36 times larger than it was in 1971. The UAE has a good GDP growth rate, showing an expected annual growth of 6% for 2005/6; total economic growth is projected at 5%.

The country's economy is moving away from a reliance on the oil and gas industry, whilst prices in this sector are currently high, they are notoriously unstable (in 1998 oil was selling for around US$10 per barrel). Commerce and tourism are being actively developed, enhancing the country's reputation as the Middle East business hub.

The situation in the Emirates is radically different to that of 40 years ago when the area consisted of small, underdeveloped desert states. Visitors will find a unified and forward looking nation with a high standard of living and a relatively well balanced and stable economy.