United Arab Emirates

Capital: Abu Dhabi

Local time:
It is %T:%M %A in Abu Dhabi, Dubai

GDP growth rate: 4.0% in 2013

FDI stock: 76 175 million USD in 2010

Economic trends

After the 2009 recession (contraction of -3.2%), the growth rate of the GDP of United Arab Emirates (UAE) was about 3% in 2010-2011, mainly because of soaring prices of oil. In the context of the eurozone crisis, growth is estimated at 3.8% for 2012, driven by rising oil prices and production volume.

GDP is dominated by the economic strength of Abu Dhabi (60%), including its hydrocarbon production (Abu Dhabi owns 9% of world oil reserves and 5% of natural gas reserves) and its management of almost all of the savings. Dubai contributes about 26% of GDP and constitues the trade platform of the Emirates, especially thanks to its port and airport infrastructure.

Since the 2009 financial crisis, the priority is to protect the banking system and maintaining investor confidence, particularly with regard to the real estate sector in Dubai. In late January 2012, the Abu Dhabi government announced a spending plan covering various projects in the sectors of health, infrastructure, education, tourism, energy and trade. While Abu Dhabi will lead the initiative of economic diversification, Dubai will work on repaying its debts. Major cultural projects (museums, including an annex of the Louvre), educational projects (university La Sorbonne) and sport events (Formula 1) are also in the works. The Emirates have also decided to diversify energy sources by launching a fleet of nuclear plants by 2017 as well as massive investments in renewable energies, with the "Masdar" project costing 22 billion USD.

The UAE depends heavily on foreign workers (over 85% of the workforce).

Main branches of industry

Agriculture contributes to less than 3% of the GDP. Raw material exploration accounts for nearly 36% of the GDP. United Arab Emirates is the 3rd largest oil producer in the world, with large reserves. Presently, their oil and gas reserves are estimated for 100 years of exploitation.

Manufacturing activities have witneesed an unprecedented growth in the last five years, particularly in sectors such as metal processing, furniture, industrial preparation of food stuffs, aluminum production, cement and construction materials, fertilisers, petrochemical industry, fiberglass and finally real estate.

As for tertiary sector, it contributes around 40% of the GDP and is dominated by international trade, air transport, tourism and financial activities.

International trade

United Arab Emirates are amongst the world’s most dynamic markets in terms of foreign trade. It is amongst the world's 20 largest exporters and 26 largest importers of commodities. Its imports have grown at a rate higher than 20% on average per year. In 2007-2009, trade represented on average over 170% of the GDP. In 2011, trade skyrocketed, the UAE benefiting from its stability in comparison to the problematic rest of the region. UAE is considered a central business hub of the Gulf countries, Iran, South Asia and East Africa.

United Arab Emirates has a trade surplus In both 2009 and 2010 this surplus was very large, due to the raising oil prices.

The main UAE trade partners are Japan, South Korea, Thailand, Singapore, China and Pakistan. The main products exported by the country are hydrocarbons, natural gas, dried fish and dates. Its main suppliers are India, China, the United States, Germany and Japan. The United Arab Emirates mainly imports machinery, transport equipment, chemical products and food stuffs