United Arab Emirates

The Trucial States of the Persian Gulf coast granted the UK control of their defense and foreign affairs in 19th century treaties. In 1971, six of these states - Abu Zaby, 'Ajman, Al Fujayrah, Ash Shariqah, Dubayy, and Umm al Qaywayn - merged to form the United Arab Emirates (UAE). They were joined in 1972 by Ra's al Khaymah. The UAE's per capita GDP is on par with those of leading West European nations. Its generosity with oil revenues and its moderate foreign policy stance have allowed the UAE to play a vital role in the affairs of the region.

chief of state:

• President KHALIFA bin Zayid al-Nuhayyan (since 3 November 2004), ruler of Abu Zaby (Abu Dhabi) (since 4 November 2004);
• Vice President and Prime Minister MUHAMMAD bin Rashid al-Maktum (since 5 January 2006)

head of government:

• Prime Minister and Vice President MUHAMMAD bin Rashid al-Maktum (since 5 January 2006);
• Deputy Prime Ministers SULTAN bin Zayid al-Nuhayyan (since 20 November 1990) and HAMDAN bin Zayid al-Nuhayyan (since 20 October 2003)

cabinet:

Council of Ministers appointed by the president

note: there is also a Federal Supreme Council (FSC) composed of the seven emirate rulers; the FSC is the highest constitutional authority in the UAE;

establishes general policies and sanctions federal legislation; meets four times a year; Abu Zaby (Abu Dhabi) and Dubayy (Dubai) rulers have effective veto power

elections:

• president and vice president elected by the FSC for five-year terms (no term limits);
• election last held 3 November 2004 upon the death of the UAE's Founding Father and first President ZAYID bin Sultan Al Nuhayyan (next to be held 2009);
• prime minister and deputy prime minister appointed by the president

election results:

KHALIFA bin Zayid al-Nuhayyan elected president by a unanimous vote of the FSC; MUHAMMAD bin Rashid al-Maktum unanimously reaffirmed vice president

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.

total:

58 ships (1000 GRT or over) 656,003 GRT/891,837 DWT

by type:

bulk carrier 6, cargo 7, chemical tanker 5, container 6, liquefied gas 1, passenger/cargo 6, petroleum tanker 20, roll on/roll off 6, specialized tanker 1

foreign-owned:

10 (Greece 2, Kuwait 8)

registered in other countries:

259 (Bahamas 16, Barbados 1, Belize 5, Cambodia 1, Comoros 6, Cyprus 11, Dominica 2, Georgia 1, Hong Kong 2, India 6, Iran 1, Jordan 11, Kiribati 1, North Korea 6, Liberia 18, Malta 5, Marshall Islands 3, Mexico 1, Mongolia 5, Norway 1, Panama 105, Philippines 1, Saint Kitts and Nevis 19, Saint Vincent and the Grenadines 11, Saudi Arabia 1, Sierra Leone 3, Singapore 7, Somalia 1, Sri Lanka 2, Syria 1, unknown 5) (2006)