Economy

Economic overview: The UAE has an open economy with one of the world's highest incomes per capita and with a sizable annual trade surplus. Its wealth is based on oil and gas output (about 33% of GDP), and the fortunes of the economy fluctuate with the prices of those commodities. 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. At present levels of production, crude oil reserves should last for over 100 years. Although much stronger economically than most Gulf states, the UAE faces similar problems with weak international oil prices and the pressures for cuts in OPEC oil production quotas. The UAE Government is encouraging increased privatization within the economy. GDP: purchasing power parity - $70.1 billion (1995 est.) GDP real growth rate: 3.3% (1995 est.) GDP per capita: $24,000 (1995 est.) GDP composition by sector: agriculture: 2% industry: 55% services: 43% (1994 est.) Inflation rate (consumer prices): 4.6% (1994 est.) Labor force: 794,400 (1993 est.) by occupation: industry and commerce 56%, services 38%, agriculture 6% (1990 est.) note: 80% of labor force is foreign (est.) Unemployment rate: NEGL% (1988) Budget: revenues: $4.6 billion expenditures: $4.9 billion, including capital expenditures of $NA (1995 est.) Industries: petroleum, fishing, petrochemicals, construction materials, some boat building, handicrafts, pearling Industrial production growth rate: -1.1% (1994 est.) Electricity: capacity: 4,760,000 kW production: 16.5 billion kWh consumption per capita: 5,796 kWh (1993) Agriculture: dates, vegetables, watermelons; poultry, eggs, dairy products; fish Illicit drugs: growing role as heroin transshipment and money-laundering center Exports: $25.3 billion (f.o.b., 1994 est.) commodities: crude oil 66%, natural gas, reexports, dried fish, dates partners: Japan 45%, India 6%, Oman 6%, South Korea 5%, Iran 5% (1994) Imports: $21.7 billion (f.o.b., 1994) commodities: manufactured goods, machinery and transport equipment, food partners: Japan 11%, UK 8%, Germany 8%, US 8%, Italy 7% (1994) External debt: $11.6 billion (1994 est.) Economic aid: $NA Currency: 1 Emirian dirham (Dh) = 100 fils Exchange rates: Emirian dirhams (Dh) per US$1 - 3.6710 (fixed rate) Fiscal year: calendar year