Economy 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 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. The
government has increased spending on job creation and infrastructure
expansion and is opening up its utilities to greater private sector
involvement. 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. Higher oil revenue, strong liquidity, and cheap credit
in 2005-06 led to a surge in asset prices (shares and real estate)
and consumer inflation. Rising prices are increasing the operating
costs for businesses in the UAE and degrading the UAE's allure to
foreign investors. Dependence on a large expatriate workforce and
oil are significant long-term challenges to the UAE's economy.
GDP (purchasing power parity):
$129.4 billion (2006 est.)
GDP (official exchange rate):
$110.6 billion (2006 est.)
GDP - real growth rate:
10.2% (2006 est.)
GDP - per capita (PPP):
$49,700 (2006 est.)
GDP - composition by sector: agriculture: 2.3% industry: 61.9% services: 35.8% (2006 est.)
Labor force: 2.968 million (2006 est.)
Labor force - by occupation: agriculture: 7% industry: 15% services: 78% (2000 est.)
Unemployment rate:
2.4% (2001)