Wayzata World Factbook 1995/World Factbook - 1995 Edition - Wayzata Technology (1995).iso/mac/text/Build/orig BACKGR/BNOT0108.TXT

Text File | 1994-11-21 | 18KB | 362 lines

National Trade Data Bank
ITEM ID     : ST BNOTES UAE
DATE        : Oct 28, 1994

AGENCY      : U.S. DEPARTMENT OF STATE
PROGRAM     : BACKGROUND NOTES
TITLE       : Background Notes - UNITED ARAB EMIRATES

Source key      : ST
Program key     : ST BNOTES
Update sched.   : Occasionally
Data type       : TEXT
End year        : 1992
Date of record  : 19941018
Keywords 3      :
Keywords 3      : | UNITED ARAB EMIRATES
Keywords 3      : | UAE

US DEPARTMENT OF STATE BACKGROUND NOTES:  UNITED ARAB EMIRATES

July 1991
Official Name:  United Arab Emirates

PROFILE

People
Nationality: Noun and adjective--UAE, Emirian, or Emiri.
Population (1990 est.): 1.8 million.  Annual growth rate: 2.8%.
Ethnic groups: Arab, Pakistani, Indian, Iranian, Filipino  (15-20%
of residents are UAE citizens).  Religions: Muslim (90%), Hindu,
Christian.  Languages: Arabic (official), English, Hindi, Urdu,
Persian.  Education: Years compulsory--ages 6-12.  Literacy (UAE
citizens)--about 60%. Life expectancy: About 63 yrs.  Work force
(1990) 650,000 (90% foreign): Agriculture--6%.  Industry and
commerce--65%.  Services--16%.  Government--13%.

Geography
Area: 82,880 sq. km. (30,000 sq. mi.); about the size of Maine.
Cities (1990 est.): Capital--Abu Dhabi (pop. over 500,000); Dubai
(pop. over 400,000).  Terrain: Largely desert with some
agricultural areas.  Climate: Hot, humid, low annual rainfall.

Government
Type: Federation of emirates.  Independence: December 2, 1971.
Provisional constitution: December 2, 1971.
Branches: Executive--7-member Supreme Council of Rulers, which
elects president and vice president.  Legislative--40-member
Federal National Council (consultative only).  Judicial--Islamic
and secular courts.
Administrative subdivisions: Seven largely self-governing
city-states.
Political parties: None.  Suffrage: None.
Central government budget (1990): $4.3 billion.
Flag: A vertical red stripe on the staff side and three horizontal
stripes--green, white, and black from top to bottom--on the right.

Economy
GDP (1990): $34 billion.  Annual growth rate (23%).  Per capita GDP
(1990): $21,335.  Inflation rate (1990 est.): 10%.
Natural resource: Oil.
Agriculture (1.5% of 1990 GDP): Products--vegetables, dates, dairy
products, poultry.
Petroleum: (46% of 1990 GDP.)
Other industry: (7.5% of 1990 GDP).
Services: (45% of 1990 GDP): Trade, government, real estate.
Trade (1990 est.): Exports--$21 billion: petroleum, gas, and
petroleum products.  Major markets--EC, Japan, US (4%).
Imports--$12 billion: machinery, consumer goods, food.  Major
suppliers--Western Europe, Japan, US (8%).
Official exchange rate: US$1=3.67 dirhams.
Foreign economic aid (1973 through 1989): In excess of $15 billion.

Membership in International Organizations
UN and several of its specialized agencies (ICAO, ILO, UPU, WHO,
WIPO), World Bank, IMF, Arab League, Organization of the Islamic
Conference, Organization of Petroleum Exporting Countries,
Organization of Arab Petroleum Exporting Countries, Non-Aligned
Movement.

PEOPLE

     Only 15-20% of the total population of 1.8 million are UAE
citizens.  The rest include significant numbers of other
Arabs--Palestinians, Egyptians, Jordanians, Yemenis, Omanis--as
well as many Iranians, Pakistanis, Indians, Filipinos, and West
Europeans.
     The majority of UAE citizens are Sunni Muslims with a small
Shia minority.  Most foreigners also are Muslim, although Hindus
and Christians make up a portion of the UAE's foreign population.
     Educational standards among UAE citizens population are rising
rapidly.  Citizens and temporary residents have taken advantage of
facilities throughout the country.  The UAE University in Al Ain
had roughly 10,000 students in 1990.  A network of
technical-vocational colleges opened in 1989.

HISTORY

     The UAE was formed from the group of tribally-organized
Arabian Peninsula shaikhdoms along the southern coast of the
Persian Gulf and the northwestern coast of the Gulf of Oman.  This
area was converted to Islam in the 7th century; for centuries it
was embroiled in dynastic disputes.  It became known as the Pirate
Coast as raiders based there harassed foreign shipping, although
both European and Arab navies patrolled the area from the 17th
century into the 19th century.  Early British expeditions to
protect the India trade from raiders at Ras al-Khaimah led to
campaigns against that headquarters and other harbors along the
coast in 1819.  The next year, a general peace treaty was signed to
which all the principal shaikhs of the coast adhered.  Raids
continued intermittently until 1835, when the shaikhs agreed not to
engage in hostilities at sea.  In 1853, they signed a treaty with
the United Kingdom, under which the shaikhs (the "Trucial
Shaikhdoms") agreed to a "perpetual maritime truce."  It was
enforced by the United Kingdom, and disputes among shaikhs were
referred to the British for settlement.
     Primarily in reaction to the ambitions of other European
countries, the United Kingdom and the Trucial Shaikhdoms
established closer bonds in an 1892 treaty, similar to treaties
entered into by the UK with other Gulf principalities.  The shaikhs
agreed not to dispose of any territory except to the United Kingdom
and not to enter into relationships with any foreign government
other than the United Kingdom without its consent.  In return, the
British promised to protect the Trucial Coast from all aggression
by sea and to help out in case of land attack.
     In 1955, the United Kingdom sided with Abu Dhabi in the
latter's dispute with Saudi Arabia over the Buraimi Oasis and other
territory to the south.  A 1974 agreement between Abu Dhabi and
Saudi Arabia would have settled the Abu Dhabi-Saudi border dispute;
however, the agreement has yet to be ratified by the UAE Government
and apparently is not recognized by the Saudi Government.  The
border with Oman also remains unsettled.
     In 1968, the UK announced its decision, reaffirmed in March
1971, to end the treaty relationships with the seven Trucial
Shaikhdoms which had been, together with Bahrain and Qatar, under
British protection.  The nine attempted to form a union of Arab
emirates, but by mid-1971 they were unable to agree on terms of
union, even though the termination date of the British treaty
relationship was the end of 1971.  Bahrain became independent in
August and Qatar in September 1971.  When the British-Trucial
Shaikhdoms treaty expired on December 1, 1971, they became fully
independent.  On December 2, 1971, six of them entered into a union
called the United Arab Emirates.  The seventh, Ras al-Khaimah,
joined in early 1972.

GOVERNMENT

     Administratively, the UAE is a loose federation of seven
emirates, each with its own ruler.  The pace at which local
government in each emirate evolves from traditional to modern is
set primarily by the ruler.  Under the provisional constitution of
1971, each emirate reserves considerable powers, including control
over mineral rights (notably oil) and revenues.  In this milieu,
federal powers have developed slowly.  In October 1986, the
provisional constitution was extended for another 5 years and
probably will be extended for another 5 years in December 1991.
     The constitution established the positions of president (chief
of state) and vice president, each serving 5-year terms; a Council
of Ministers (cabinet), led by a prime minister (head of
government); a supreme council of rulers; and a 40-member National
Assembly, a consultative body whose members are appointed by the
emirate rulers.  President Shaikh Zayyed bin Sultan Al Nahyyan has
been president of the UAE since it was founded.  His current 5-year
term ends in December 1991, but it seems likely he will be elected
to another 5-year term.

Principal Government Officials

Supreme Council
President, Ruler of Abu Dhabi--Shaikh Zayyed bin Sultan Al Nahayyan
Vice President and Prime Minister, Ruler of Dubai--Shaikh Maktoum
bin Rashid Al Maktum
Ruler of Sharjah--Shaikh Sultan bin Muhammad al-Qasimi
Ruler of Ajman--Shaikh Humaid bin Rashid al-Nuaimi
Ruler of Umm al-Qaiwain--Shaikh Rashid bin Ahmad al-Mualla
Ruler of Ras al-Khaimah-- Shaikh Saqr bin Muhammad al-Qasimi
Ruler of Fujairah-- Shaikh Hamad bin Muhammad al-Sharqi
Minister of State for Foreign Affairs--Hamdan bin Zayed al Nahyan
Ambassador to the United States--Sheikh Abdallah bin Zayyed bin
Saqr al Nahyan
Ambassador to the United Nations--Mohammad bin Husayn al-Sha'ali

     The UAE maintains an embassy in the United States at 600 New
Hampshire Avenue NW, Suite 740, Washington, DC 20037 (tel.
202-338-6500).  The UAE Mission to the UN is located at 747 3d
Avenue, 36th Floor, New York, NY 10017 (tel. [phone]).

POLITICAL CONDITIONS

     The relative political and financial influence of each emirate
is reflected in the allocation of positions in the federal
government.  The ruler of Abu Dhabi, whose emirate is the UAE's
major oil producer, is president of the UAE.  The ruler of Dubai,
which is the UAE's commercial center and a significant oil
producer, is vice president and prime minister.
     Since achieving independence in 1971, the UAE has worked to
strengthen its federal institutions.  Nonetheless, each emirate
still retains substantial autonomy, and progress toward greater
federal integration has slowed in recent years.  A basic concept in
the UAE Government's development as a federal system is that a
significant percentage of each emirate's revenues should be devoted
to the UAE central budget.
     The UAE has no political parties.  There is talk of steps
toward democratic government, but nothing concrete has emerged.
The rulers hold power on the basis of their dynastic position and
their legitimacy in a system of tribal consensus.  Rapid
modernization, enormous strides in education, and the influx of a
large foreign population have changed the face of the society but
have not fundamentally altered this traditional political system.

DEFENSE

     The Trucial Oman Scouts, long the symbol of public order on
the coast and commanded by British officers, were turned over to
the UAE as its defense forces in 1971.  The UAE Armed Forces,
consisting of 60,000 troops, are headquartered in Abu Dhabi and are
primarily responsible for the defense of six of the seven emirates.
Dubai's central military command (12,000 troops) has primary
responsibility for Dubai's defense.
     The UAE military relies heavily on troop force from other Arab
countries and Pakistan.  The officer corps, however, is composed
almost exclusively of UAE nationals.
     The UAE air force has about 1,800 personnel.  Equipment
includes French Mirage 3s and 5s and newly purchased Mirage 2000s,
British Hawk aircraft, and French helicopters.  The newly
revitalized air defense has a Hawk missile program for which the US
is providing training.  The UAE has taken delivery of two of five
Triad I-Hawk batteries.  The UAE navy is small--about 1,000
personnel--and maintains 12 well-equipped coastal patrol boats.
     The UAE contributes a few hundred troops to the Gulf
Cooperation Council's "Peninsula Shield" force, headquartered in
Saudi Arabia.  These forces participated in the recent Gulf war.

ECONOMY

     Prior to the first exports of oil in 1962, the UAE economy was
dominated by pearl production, fishing, agriculture, and herding.
Since the rise of oil prices in 1973, however, petroleum has
dominated the economy, accounting for most of its export earnings
and providing significant opportunities for investment.  The UAE
has huge proven oil reserves, estimated at over 100 billion barrels
in 1990, with gas reserves estimated at over 200 trillion cubic
feet; at present production rates, these supplies would last well
over 100 years.
     In 1990, the UAE produced about 2 million barrels of oil per
day--of which Abu Dhabi produced approximately 80%--with Dubai, and
Sharjah to a much lesser extent, producing the rest.  The UAE's oil
production rose significantly in the latter half of 1990 after the
outbreak of the Gulf war.  The UAE is embarking on a major
expansion of production capacity during the next 5 years.
     In 1990, GDP increased substantially as a result of soaring
oil revenues, but many companies in the non-oil sector were hit
hard by a general slowdown in business during the period leading up
to the Gulf war.  The oil sector remains the chief determinant of
growth in the UAE economy by virtue of its major contribution to
the GDP.  The preliminary estimate  of 1990 GDP is $34 billion, up
23% from 1989.
     The US has sizable trade with the UAE.  In 1990, the US share
of the UAE's imports was estimated at 8%.  About 4% of the UAE's
exports, mainly oil, went to the US.  The UAE's major trade
partners are Japan, the EEC, and the US.
     The increase in the favorable overall balance of trade in
1990--from $5.4 billion in 1989 to $9.5 billion in 1990--was due to
boosts in the value of oil and gas exports.  The country's imports
rose by about 16% from $10 billion in 1989 to $12 billion in 1990,
while exports were up by 36% from $15.5 billion in 1989 to $21
billion in 1990.  However, the UAE's balance of payments was
actually negative for the first time, registering a 300 million
loss.  This was due to the significant cash outflows from the UAE's
military contributions to the liberation of Kuwait, aid to
countries affected by the Gulf crisis, and huge capital transfers
by individuals and companies during 1990 because of the crisis.
     Major increases in imports occurred in manufactured goods,
machinery, and transportation equipment, which together accounted
for 70% of total imports.  Another important foreign exchange
earner, the Abu Dhabi investment authority--which controls the
investments of Abu Dhabi, the wealthiest emirate--manages an
estimated $60 billion in overseas investments.
     The depreciation of the dollar caused a considerable increase
in the cost of imports from Europe and Asia, especially in the
latter half of 1990.  There is now a trend toward reducing the
country's huge expatriate population, which represents about 90% of
the total UAE work force of 650,000.  From now on, imports of new
labor will depend on the specific requirements of a new project.
     Over 200 factories operate at the Jebel Ali complex in Dubai,
which includes a deep water port and a free-trade zone for
manufacturing and distribution in which all goods for re-export or
transshipment enjoy a 100% duty exemption.  A major power plant
with associated water desalination units, an aluminum smelter, and
a steel fabrication unit are prominent facilities in the complex.
     Except in the free trade zone, the UAE requires at least 51%
local citizen ownership in all businesses operating in the  country
as part of its attempt to place Emiris into leadership positions.
     As a member of the Gulf Cooperation Council (GCC), the UAE
participates in the wide range of GCC activities that focus on
economic issues.  These include regular consultations and
development of common policies covering trade, investment, banking
and finance, transportation, telecommunications, and other
technical areas, including protection of intellectual property
rights.  The post-Gulf war period should see increased efforts to
accelerate economic integration by the UAE and other GCC countries.

FOREIGN RELATIONS

     The UAE joined the United Nations and the Arab League and has
established diplomatic relations with more than 60 countries,
including the US, Japan, the Soviet Union, the People's Republic of
China, and most Western European countries.  It has played a
moderate role in the Organization of Petroleum Exporting Countries,
the Organization of Arab Petroleum Exporting Countries, the United
Nations, and the GCC.
     Substantial development assistance has increased the UAE's
stature among recipient states.  Most of this foreign aid (in
excess of $15 billion) has been to Arab and Muslim countries.
     Following Iraq's 1990 invasion and attempted annexation of
Kuwait, the UAE has sought to rely on the GCC, Syria, Egypt, the
US, and other Western allies for its security.  The UAE believes
that the Arab League needs to be restructured to become a viable
institution.

US-UAE RELATIONS

     The United States has enjoyed friendly relations with the UAE
since 1971.  Private commercial ties, especially in petroleum, have
developed into friendly government-to-government ties which include
security assistance.  The breadth, depth, and quality of US-UAE
relations are increasing dramatically as a result of the US-led
coalition's campaign to end the Iraqi occupation of Kuwait.  The
United States was the third country to establish formal diplomatic
relations with the UAE and has had an ambassador resident in the
UAE since 1974.

Principal US Officials

Ambassador--Edward S. Walker, Jr.
Deputy Chief of Mission--Brian J. Mohler
Political Officer--Juliana Seymour Peck
Economic Officer--William T. Fleming, Jr.
Consular Officer--Charles E. Robertson
Public Affairs Officer--Sami G. Hajjar
Commercial Officer--B. Paul Sogna

     Mailing Address--PO Box 4009, Abu Dhabi; tel: 336691, USIS:
336567, Commercial Office: 345545; fax: 318441, Chancery: 213771,
US Labor Office: 391604, Commercial Office: 331374.
     Consul General in Dubai--Joseph Le Barron; PO Box 9343; tel:
[phone]; fax: 379043, Commercial Office:  375121).

Travel Notes
     Customs: A visa is required for entry.  Business or visitor
visas can be arranged with only a few days' notice through local
sponsors or major hotels.  Hotels levy a varying surcharge for this
service.  No immunizations are required.  Health requirements
change; check latest information.
     Health: No unusual precautions in food and drink are
necessary.  Water is potable.  For travel to some areas, malaria
suppressant is advisable.  Many Western-trained doctors practice in
the UAE.