Where is UAE

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Economic trends

The economy of United Arab Emirates (UAE) is largely dependent on oil and gas production (about 33% of GDP) and hence has been booming for last few years (especially from 2003 onwards) due to rise in global oil prices and increase in OPEC quotas. UAE has the fourth highest GDP per capita in the world. Out of the seven Emirates constituting UAE, two of them i.e. Dubai and Abu-Dhabi account for 80% of the total GDP. The GDP growth rate was 9.4% in 2006 and 7.7% in 2007. However, IMF forecasts a growth rate of 6.6% in 2008 as a result of softening of the oil prices. The inflation remains around 8% - a cause of concern. The government has increased spending on job creation and infrastructure expansion and is opening up its public-sector (especially utility services) to greater private-sector involvement.

Main branches of industry

Agriculture contributes less than 3% to the GDP. It is the 3rd largest producer of oil in the world. At present levels of production, oil and gas reserves should last for over 100 years. Despite higher oil revenues (70% of foreign exchange), government is adopting a policy of economic diversification. It is developing large free-trade zones to attract foreign investors. For the last five years, manufacturing activities have been in full swing, especially sectors like metal processing, furniture, food-processing and jewellery. The other most dynamic sectors are tourism, finance and banking, construction, and transport. The services sector accounts for nearly 45% of the GDP. Only 20% of the total population is native. Expatriates from India (the highest in number) perform a significant role in the local economy.

International trade

The UAE market is very open and competitive. It is a member of GCC (Gulf Cooperation Council). The share of foreign trade in its GDP is nearly 150%. The top three export partners of UAE are: Japan, India and Iran. The commodities mainly exported are mineral fuels & oils, pearls & precious stones, electric & electronic equipment, and vehicles. The top three import partners are: India, China and Japan. UAE mainly imports pearls & precious stones, machinery, electric & electronic equipment, and vehicles.