Economic trends
The GDP growth rate was very high during the last decade, as it trippled between 2003 and 2008. It was slightly negative in 2009 due to fall in oil prices and the international crisis.
The economy of United Arab Emirates (UAE) depends to a large extent on the production of oil and gas (around 36% of the GDP) and has thus been booming these last few years (specially since 2003) because of the increase in global oil prices and the increase in OPEC quotas. UAE has the 4th highest GDP per capita in the world. Inflation was high in 2007 and 2008, but it stabilized in 2009.
The Emirates government has implemented economic reforms on several fronts. One one hand, other than oil, it is trying to develop other sectors as tourism, financial services and real-estate. In this perspective, the Emirate of Dubai has multiplied the creation of free zones and is becoming a platform for re-export in the region. Moreover, among themselves, the Emirates are in a phase of significant economic liberalization. Since 2003, along with other countries of the Gulf Economic Cooperation Council, they have created a Free Trade Zone. Despite these efforts, some markets such as insurance and banking remain closed. Moreover, some restrictive legislations do not encourage foreign direct investments, which remain low in the country.
The unemployment rate is quite low. UAE is politically a very stable country. However, the large immigrant population originating from India and Pakistan can play a destabilizing role. Consequently, the government formulated a turn-over policy in 2002 to diversify the origin of migrants.
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. 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, 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 a very open country. It is amongst the world's 25 primary exporters and 30 primary importers of commodities. Its imports have grown at a rate higher than 20% on average per year from 2003. United Arab Emirates has displayed in 2008 a large commercial surplus due to the raising oil price. In 2009, the country kept a positive trade balance but with a smaller surplus. The main UAE trade partners are China, India, Japan and USA. The main products exported by the country are hydrocarbons, natural gas, dried fish and dates. The United Arab Emirates mainly imports machinery, transport equipment, chemical products and food stuffs.
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