United Arab Emirates

Economy

The UAE's wealth is largely based on oil and gas output, some 33% of GDP. It is the third largest oil producer in the Persian Gulf after Saudi Arabia and Iran (Iraq's oil output has fluctuated due to war). Since 1973, 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 country's per capita GDP is not far below the GDPs of the leading West European nations. Its generosity with oil revenues and its moderate foreign policy stance have allowed it to play a vital role in the affairs of the region. In recent years the government has sought to diversify its sources of income and lessen its dependence on finite oil reserves. One result of these efforts is a steadily developing tourism industry, centered on coastal, desert and sporting resorts and infrastructure. The success of these ventures, along with other factors like the relatively low price of commodities, the warm temperatures that prevail for most of the year, the engineering marvels such as Burj Al Arab and The Palm Islands, and friendliness to the West have led many to call it the Singapore or Hong Kong of the Middle East.

Related Topics:
Oil - Gas - GDP - Saudi Arabia - Iran - Iraq - Standard of living - Burj Al Arab - The Palm Islands - Singapore - Hong Kong

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