Economy of the United Arab Emirates

Economy - overview: The UAE has an open economy with a high per capita income and a sizable annual trade surplus. Its wealth is based on oil and gas output (about 33% of GDP), and the fortunes of the economy fluctuate with the prices of those commodities. Since 1973, 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. At present levels of production, oil and gas reserves should last for over 100 years. Despite higher oil revenues in 1999, the government has not drawn back from the economic reforms implemented during the 1998 oil price depression. The government has increased spending on job creation and infrastructure expansion and is opening up its utilities to greater private-sector involvement.

Expatriates from India and Pakistan perform a significant role in the local economy. However, to control illegal immigration into the country, on November 9, 2002, the UAE immigration ministry announced that all Indians visiting the country must have a return ticket.

GDP: purchasing power parity - $41.5 billion (1999 est.)

GDP - real growth rate: 2.5% (1999 est.)

GDP - per capita: purchasing power parity - $17,700 (1999 est.)

GDP - composition by sector:
agriculture: 3%
industry: 52%
services: 45% (1996 est.)

Population below poverty line: NA%

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

Inflation rate (consumer prices): 4% (1999 est.)

Labor force: 1.38 million (1998 est.)
note: 75% of the population in the 15-64 age group is non-national (July 1998 est.)

Labor force - by occupation: services 60%, industry 32%, agriculture 8% (1996 est.)

Unemployment rate: NA%

Budget:
revenues: $5.5 billion
expenditures: $6.2 billion, including capital expenditures of $NA (1999 est.)

Industries: petroleum, fishing, petrochemicals, construction materials, some boat building, handicrafts, pearling

Industrial production growth rate: 0% (1997 est.)

Electricity - production: 20.11 billion kWh (1998)

Electricity - production by source:
fossil fuel: 100%
hydro: 0%
nuclear: 0%
other: 0% (1998)

Electricity - consumption: 18.702 billion kWh (1998)

Electricity - exports: 0 kWh (1998)

Electricity - imports: 0 kWh (1998)

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

Exports: $34 billion (f.o.b., 1999 est.)

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

Exports - partners: Japan 30%, South Korea 10%, India 6%, Singapore 4.5%, Oman 3%, Iran (1998)

Imports: $27.5 billion (f.o.b., 1999 est.)

Imports - commodities: machinery and transport equipment, chemicals, food

Imports - partners: US 10%, Japan 9%, UK 9%, Germany 6%, South Korea 5%, Italy (1998)

Debt - external: $15.5 billion (1998 est.)

Economic aid - recipient: $NA

Currency: 1 Emirian dirham (Dh) = 100 fils

Exchange rates: Emirian dirhams (Dh) per US$1 - central bank mid-point rate: 3.6725 (from 1998); 3.6711 (1997), 3.6710 (1995-96)

Fiscal year: calendar year

See also : United Arab Emirates