Gulf States Strategy Advisors

The UAE were formed on 2 December 1971 and are a federation of seven Emirates : Abu Dhabi, Ajman, Dubai, Fujairah, Ras Al Khaimah, Sharjah and Umm Al Quwain. The UAE federal constitution of 1996 and provides for an allocation of powers between the government of each emirate and the federal government.

 

The second largest city and capital, which is also the country’s centre of political, industrial and cultural activities is Abu Dhabi. The Ruler of Abu Dhabi, Sheikh Khalifa bin Zayed al-Nahyan is also the President of the UAE. He has the backing of the ruling families in the other six Emirates. The rule of Dubai Sheikh Mohammed bin Rashid al-Maktoum is the Vice President and Prime Minister. Though his priority is Dubai’s business development he still takes a keen interest in regional politics. President and Vice President have appointed Crown Princes to ensure a smooth line of succession. No domestic unrests, as experience by a number of other states in the Arab world since 2011, occurred in the UAE, not least because of the wealth enjoyed by its citizens.

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After Saudi Arabia the UAE are the region´s second largest economy. They possess the world´s sixth biggest oil reserves and the world´s seventh biggest gas reserves. With a per capita GDP of well over 36.000 US-Dollar and stable growth rates over the last years and foreign investments of several billion dollars, the UAE are among the richest  and financially strong states in the world.

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In order to obtain a long term independence from oil revenues, the UAE embarked on an ambitious course of economic diversification. This process has been accomplished successfully: Tourism, logistics, trade and financial services are the main drivers of change. Dubai as well as Abu Dhabi have been able to establish themselves due to their favorable geographical positions as main hubs of international air travel.Dubai has been eager to develop itself into the region´s financial trade hub. The UAE are among the most important broadcasting sites in the middle-east. A growing number of TV- and Radio stations have their main seat in the UAE (programmes like Abu Dhabi TV, Al Arabiya Dubai and Sharjah TV). Dubai hosts a number of business fairs, including the Arab Health.  While Dubai was virtually bankrupted in 2008 by the global credit crunch, it is (with the help of Abu Dhabi) recovering well and embarked on new ambitious projects: i.a. Dubai will host the Expo 2020.

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The UAE are pursuing a moderate foreign policy, aiming for balance, with containing militant political Islam as a priority. They are becoming an increasingly important regional ally for western states. The relations with the USA are close, and relations with European states, the UK and France in particular of great importance. Germany and the UAE agreed on a strategic partnership in 2004. The UAE are cooperation closely with Saudi-Arabia especially in regard to Egypt as well as the current conflict Yemen.

 

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Sources: World Bank, UNDP, IMF, German Foreign Office (AA). This text constitutes a basic information and is regularly updated. Correctness and completeness of the data cannot be guaranteed. Read the full disclaimer.