Economics of the UAE Research Paper Example | Topics and Well Written Essays - 3500 words

Economics of the UAE - Research Paper Example y is comprised of seven formerly independent states, Abu Zaby, Ajman, Al Fujayrah, Ash Shariqah, Dubayy, and Umm al Qaywayn which merged to form the country in 1971, and in 1972, was joined by the state of by Ras al Khaymah (Index Mundi par. 2). The UAE presently has an approximate population of 5,314,317, a large increase from its population on 1968 of 180,000 (Elhiraika & Hamed 2-3). Its economy is primarily based on the extraction of vast natural oil and gas reserves within its inland and sea areas. It currently produces an estimated 2 million of barrels of oil daily. Being the third in worldwide oil reserves, the country has proven oil reserves of 98.8 million barrels, or 10% of the world’s oil reserves in June 2000, with another 6 trillion cubic meters of proven gas reserves (Shihab 249-251). The UAE has a total land area of 83,600 square kilometers, with a coastline of 1,318 km and is bordered by Saudi Arabia on its west, Oman on its east, and the Persian Gulf to the North. As of 1982, its population is comprised of less than 20% natural UAE citizens, with the rest being Emirati, Arabia and Iranian, South Asians and other expatriates. Its official language and religion is Arabic and Islam. Literacy rate is 77.9% with a life expectancy of 76.71 years. The country has a federal form of government, with a Federal Supreme Council (FSC), composed of the seven emirate leaders, with its capital in Abu Dhabi. Its Executive Branch has a Chief of State, President, Vice President and Deputy Prime Ministers with a Council of Ministers appointed by the President. Its legislature is composed of a 40-seat unicameral Federal National Council (FNC) and a judicial branch, the Union Supreme Court, with the Judges appointed by the President (CIA par. 3-5). The UAE economy has undergone a significant change from an impoverished region to one with a high degree of standard of living since the discovery of oil within its borders in the 1950s (CIA Para 1). With a 5.4 million