United Arab Emirates Economy - 2006

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 30% of GDP), and the fortunes of the economy fluctuate with the prices of those commodities. Since the discovery of oil in the UAE more than 30 years ago, 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 more than 100 years. The government has increased spending on job creation and infrastructure expansion and is opening up its utilities to greater private sector involvement. Higher oil revenue, strong liquidity, and cheap credit in 2005 led to a surge in asset prices (shares and real estate) and consumer inflation. Any sharp correction to the UAE's equity markets could damage investor and consumer sentiment and affect bank asset quality. In April 2004, the UAE signed a Trade and Investment Framework Agreement (TIFA) with Washington and in November 2004 agreed to undertake negotiations toward a Free Trade Agreement (FTA) with the US.

GDP (purchasing power parity):
$74.67 billion (2005 est.)

GDP (official exchange rate):
$101.6 billion (2005 est.)

GDP - real growth rate:
6.7% (2005 est.)

GDP - per capita (PPP):
$29,100 (2005 est.)

GDP - composition by sector:
agriculture: 4%
industry: 58.5%
services: 37.5% (2002 est.)

Labor force:
2.8 million
note: 73.9% of the population in the 15-64 age group is non-national (2005 est.)

Labor force - by occupation:
agriculture: 7%
industry: 15%
services: 78% (2000 est.)

Unemployment rate:
2.4% (2001)

Population below poverty line:
NA%

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

Inflation rate (consumer prices):
4.5% (2005 est.)

Investment (gross fixed):
20.7% of GDP (2005 est.)

Budget:
revenues: $34.93 billion
expenditures: $29.41 billion; including capital expenditures of $3.4 billion (2005 est.)

Public debt:
17.5% of GDP (2005 est.)

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

Industries:
petroleum and petrochemicals; fishing, aluminum, cement, fertilizers, commercial ship repair, construction materials, some boat building, handicrafts, textiles

Industrial production growth rate:
4% (2000)

Electricity - production:
45.12 billion kWh (2004)

Electricity - consumption:
38.32 billion kWh (2002)

Electricity - exports:
0 kWh (2004)

Electricity - imports:
0 kWh (2004)

Oil - production:
2.396 million bbl/day (2005 est.)

Oil - consumption:
310,000 bbl/day (2004 est.)

Oil - exports:
2.5 million bbl/day (2004 est.)

Oil - imports:
0 bbl/day (2004)

Oil - proved reserves:
97.8 billion bbl (2005 est.)

Natural gas - production:
44.79 billion cu m (2003 est.)

Natural gas - consumption:
37.88 billion cu m (2003 est.)

Natural gas - exports:
7.19 billion cu m (2003 est.)

Natural gas - imports:
0 cu m (2003 est.)

Natural gas - proved reserves:
6.006 trillion cu m (2005)

Current account balance:
$25.66 billion (2005 est.)

Exports:
$103.1 billion f.o.b. (2005 est.)

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

Exports - partners:
Japan 24.9%, South Korea 9.9%, India 5.4%, Thailand 5% (2004)

Imports:
$60.15 billion f.o.b. (2005 est.)

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

Imports - partners:
China 9.9%, India 9.8%, Japan 6.8%, Germany 6.5%, UK 6.2%, France 6.1%, US 6% (2004)

Reserves of foreign exchange and gold:
$23.53 billion (2005 est.)

Debt - external:
$30.21 billion (2005 est.)

Economic aid - donor:
since its founding in 1971, the Abu Dhabi Fund for Development has given about $5.2 billion in aid to 56 countries (2004)

Currency (code):
Emirati dirham (AED)

Exchange rates:
Emirati dirhams per US dollar - 3.6725 (2005), 3.6725 (2004), 3.6725 (2003), 3.6725 (2002), 3.6725 (2001)
note: officially pegged to the US dollar since February 2002