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 in 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 affirmed vice president after the 2006 death of his brother Sheikh Maktum bin Rashid Al-Maktum

The UAE has an open economy with a high per capita income and a sizable annual trade surplus. Despite largely successful efforts at economic diversification, nearly 40% of GDP is still directly based on oil and gas output. 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 utilities to greater private sector involvement. In April 2004, the UAE signed a Trade and Investment Framework Agreement with Washington and in November 2004 agreed to undertake negotiations toward a Free Trade Agreement with the US. The country's Free Trade Zones - offering 100% foreign ownership and zero taxes - are helping to attract foreign investors.

Higher oil revenue, strong liquidity, housing shortages, and cheap credit in 2005-07 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 adversely impacting government employees and others on fixed incomes.

Dependence on oil and a large expatriate workforce are significant long-term challenges. The UAE's strategic plan for the next few years focuses on diversification and creating more opportunities for nationals through improved education and increased private sector employment.

total:

58

by type:

bulk carrier 6, cargo 9, chemical tanker 4, container 8, liquefied gas 1, passenger/cargo 1, petroleum tanker 24, roll on/roll off 4, specialized tanker 1

foreign-owned:

14 (Denmark 1, Greece 3, Kuwait 10)

registered in other countries:

313 (Bahamas 23, Bahrain 1, Belize 5, Cambodia 2, Comoros 7, Cyprus 9, Dominica 1, Georgia 1, Gibraltar 3, Hong Kong 1, India 6, Indonesia 2, Iran 1, Jordan 13, North Korea 8, Liberia 23, Malta 5, Marshall Islands 15, Mexico 1, Netherlands 5, Panama 109, Papua New Guinea 6, Philippines 1, Saint Kitts and Nevis 18, Saint Vincent and the Grenadines 9, Saudi Arabia 1, Sierra Leone 8, Singapore 12, Somalia 1, Turkey 1, UK 9, unknown 6) (2008)