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United Arab Emirates (UAE) is one of the richest nations in the Middle East with
one of the highest per capita incomes in the world, estimated to be Dh 61,000
($ 16,610) in 2005 according to the UAE Federation of Chambers of Commerce and
Industry. The UAE has an open and liberal economy with no taxes on profits or
incomes, complete freedom of capital movement, and 100 per cent foreign ownership
allowed within free zones. The UAE Gross Domestic Product (GDP) stood at $ 98.1
billion in 2005, with GDP growth rate standing high at 8.8% per annnum. Oil and
gas accounts for about 30% of GDP, while nonoil sector has shown an exponential
growth, reaching 70% of GDP. That's why UAE economy proved to be less affected
by the fluctuating oil prices in comparison to other Middle East countries.
The UAE Government has made successful efforts into developing alternatives
to the oil industries. Policies have been made for land reclamation, development
of industries, tourism, refining of oil, as well as creating international free
trade zones. The UAE Government has been putting lots of money into infrastructural
development and opening up its utilities to private sector involvement. There
are substantial opportunities for doing business in the UAE. These factors combined
with an easily accessible location and an extremely pleasant and safe working
environment promise well for foreign investment in the country.
Politics in UAE
The UAE is a federation of seven independent emirates ruled by local emirs.
Though there is no democracy in the country, citizens enjoy a relatively high
freedom of speech but have no say on political issues. The highest federal authority
is the Supreme Council of Rulers comprising the emirs of the seven Emirates.
Policies made by the Supreme Council must have the agreement of at least five
members, including Abu Dhabi and Dubai. The council appoints the President who
serves a five-year term.
The UAE also has the Federal National Council, consisting of 40 members, appointed
from each of the seven emirates. In addition, each emirate has its own local
government, consisting of municipalities and departments. Local emirs are vested
with significant powers so that each emirate retains a good deal of political
and financial autonomy, a fact that has contributed significantly to the remarkable
success of the federation. There is also an independent Federal Judiciary, consisting
of the Federal Supreme Court and the Courts of First Instance. At present Abu
Dhabi's Sheikh Khalifa bin Zayed Al Nahyan is the UAE President, while Sheikh
Mohammed bin Rashid Al Maktoum of Dubai is the Vice President and Prime Minister
of the UAE.
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