Country Report on United Arab Emirates - Research Paper Example

Country Report on United Arab Emirates Country History: United Arab Emirates came into its formation from a tribe of the Arabian Peninsula, who were known as the sheikhdoms. This tribe lived along the northwestern coast of Gulf of Oman and the southern coast of the Persian Gulf. For years and years ago, these sheikhdoms were involved in the fights over their territories and dynasties. This area came to known as the Coast for Pirates as the burglars living here became a threat to foreign shipping, in spite of both the Arab and European navies guarding this Coast from 17th to 19th century. In 1819, campaigns begin to take place against harbors along the coast of Ras-al-Khaimah when British started their voyage to save India trade from the burglars. The following year, all the principal sheikhs of the coast signed a general peace treaty to which they promised to stick to. Still, the riots continued until the year 1835 when sheikhs discerned their interests to warfare happening at the sea. The Trucial Sheikhdoms signed a treaty in 1853 with the United Kingdom under which they concurred to a “perpetual maritime truce”. This treaty was imposed the United Kingdom, and all the disagreements among the sheikhs were to be presented to the Political Resident, who was a British servant, for resolution. In 1892 treaty, as a response to the aspirations of other countries of Europe, the Trucial Sheikhdoms and the United Kingdom instituted closer ties. The United Kingdom established related treaties with other Gulf countries as well. In this treaty, the Sheikhs agreed not to trade with any country except the United Kingdom or engage in any foreign relationships with any country without the permission of United Kingdom. The British, in return, concurred to save the Trucial Coast against any hostilities at sea and also to help Sheikhs against any attack on their land. The United Kingdom partnered with the state of Abu Dhabi in 1955 in the argument over Buraimi Oasis with Saudi Arabia and also with other regions along the southern coast. The states of Saudi Arabia and Abu Dhabi succeeded in settling their disputes over the border in 1974 but the United Arab Emirates Government never sanctioned it. The border dispute over Oman remained unsettled too, even though the two governments decided to define the border in the May of 1999. The government of United Kingdom decided to end the treaty with Qatar, Bahrain, and the seven Trucial Sheikhdoms it took into its fortification. These nine states tried to form their own union of the Arab Emirates, but by the middle of 1971 they failed to disagree on the terms of amalgamation. In the August of1971, Bahrain became an independent nation and Qatar the following September. On December 1, 1971, the Trucial Sheikhdoms-British treaty expired and they became fully self-governing. In the December of 1971, six of these states united to become the United Arab Emirates. Ras al-Khaimah joined these states in the beginning of 1972. Sheikh Zayed bin Sultan al Nahyan, Abu Dhabi’s leader, was elected by the Supreme Council as Dubai’s leader and President. The post of Prime Minister was designated to Sheikh Rashid bin Said al Maktoum. Geography: The United Arab Emirates is a confederation of seven emirates, each of which is ruled by a hereditary emir, and a single national president. The member emirates are Ajman, Abu Dhabi, and Dubai, Ras al-Khaimah, Fujairah, Sharjah and Umm al-Quwain. The United Arab Emirates is located in Southwest Asia and provides a border to Persian Gulf and Gulf of Oman, between Saudi Arabia and Oman. It is in a tactical site along northern advancements to the Strait of Hormuz, an important trade point for the world’s crude oil. United Arab Emirates is situation between 51° and 56°25? eastern longitude and between 22°50? and 26° northern latitude. In the northwest, a 19-kilometer border is aligned with Qatar; in the west, south east and south, it shares 1 530 kilometer border with Saudi Arabia; in the northeast ad southeast it shares a 450-kilometer border with Oman. Even today, the land border it shares with Qatar at Khawr al Udayd is in dispute. Even the fight over there is a border or not is ongoing. The whole area of United Arab Emirates is about 83,600 square kilometers (almost about the area of Maine). Even today, the country’s exact size is not known because of doubtful alleges of many islands of the Persian Gulf. Since there is lack of accurate information on the actual size of several of these islands, and also about many boundaries of land, particularly with Saudi Arabia; the size of United Arab Emirates is still not decided yet. The largest emirate of UAE is Abu Dhabi which covers 87 percent of the total area of United Arab Emirates (67,340 square kilometers). The emirate which covers the least area of UAE is Ajman which accounts for only 259 square kilometers of the total area. United Arab Emirates is mostly made up of dessert with only some agricultural regions. Desert covers four fifths of the total area of United Arab Emirates. Gigantic dunes rising up to 656 feet (200m) are part of the Rub’ Al-Khali Desert, also known as the Empty Quarter, along the southern border. Towards the northwest, the sand and gravel dessert widens toward the uneven Hajar chain that divides the country from north to the south in the Northern Emirates. Jebel Hafit Mountain lies in the east. Stony slopes rising up to 4,200 feet (1,300 m), falling sharply to the lush gravel plains of the east along the Gulf of Oman. Sandy islands, mangroves, sea grass beds, khors (tidal inlets), and sandy beaches thrive along its shore. The climate is usually humid, hot and with very low annual rainfall. The United Arab Emirates extend for more than six hundred and fifty kilometers along the Persian Gulf in the south. Much area of the coast is made up of salt pans that stretch far inland. The biggest natural harbor is located at Dubai, though there are other ports at Sharjah, Abu Dhabi and elsewhere. Several islets are present in the Persian Gulf, and the possession of some of these islands has been the reason for international disagreements with both Qatar and Iran. The smaller islets, in addition to shifting sandbars and coral reefs, are a threat to navigation of the land. Furthermore, strong tides and windstorms also make the ship movements along the harbor difficult. Al-Batinah coast is also located along the border of United Arab Emirates for approximately ninety kilometers along side the Gulf of Oman. The Al-Batinah coast is distinguished from the rest of the United Arab Emirates by Al-Hajar al Gharbi(Western Al Hajar) mountain range. The height of these mountains is about 2,500 meters. This mountain range begins in Oman-UAE border along the Ras Musandam(Musandam Peninsula) on Persian Gulf coast and stretch southeastward for approximately one fifty kilometers to the southernmost Oman-UAE frontier on the Oman Gulf. This range continues for more than five hundred kilometers into Oman as the Al-Hajar ash Sharqi (Eastern Al Hajar) mountains. The sheer mountain slopes come directly to the coast at some places. Also, there are other small shores at Kalba, Dibba Al-Hisn and Khor Fakkan located on the Gulf of Oman. In the surrounding are of Al-Fujayrah, where the mountain range do not run directly to the coast, there are sandy shores. Before leaving the United Arab Emirates in 1971, Britain defined the internal borders between the seven emirates as they were anticipating territorial arguments that might hinder the creation of the federation. The rulers of the emirates happily accepted the intervention by the British, but in the case of border disputes among Abu Dhabi and Dubai, and also among Sharjah and Dubai, disagreements prevailed until the United Arab Emirates became an independent nation. The most difficult and complex arguments were between Al Gharbi Al Hajar mountains because at this point, five of the seven emirates competed over authority. Demographics The native people of United Arab Emirates are known as Emirati. According to 1982 report of CIA-The World Fact Book, there are 19% Emirati living in UAE. Other Arabs and Indians constitute of 23% of the population. There are 50% South Asians and other emigrants constitute of 8% of the total population. Arabic is the official language of United Arab Emirates. Other languages spoken here include Urdu, Hindi, Persian and English. Majority population of UAE is Muslim constituting of 96% of the population. Of them, 16% are Shia Muslims and rest is Sunni Muslims. Other religions include Christianity and Hinduism which make up the rest 4% of the residents. The total population of United Arab Emirates according to a census of July 2011 is 5,148,664 people. According to the population, UAE is the 115th largest country in the world. 20.4% of the population is between the age group of 0-14 years. Of these there are 537,925 males and 513,572 females. 78.4% of the population comes in the working class that is the age group of 15-64 years. Of these there are 2,968,958 males and 1,080,717 females. Of the 78.4% of working class, 73.9% people are emigrants or non-national of United Arab Emirates. There are only 0.9% of the people of 65 years or above. Of these, there are 30,446 males and 17,046 females. The total median age is 30.2 years of which 32.1 years is for males and 24.9 years is for females. According to an estimation of 2011, the population growth rate is 3.282% which is on the 6th rank among all countries of the world. The Birth rate is 15.87 births/1,000 population and it is on 128th rank in comparison to all countries of the world. Death rate is relatively low, that is 2.06 deaths/1,000 population and it comes on 223th rank in comparison to the world. The net migration rate of UAE is one of the highest in the world with the rank 3rd and with 19 migrant(s)/1,000 population. The population of United Arab Emirates is mostly urban making up 84% of the total population according to an estimation conducted in 2010. The rate of urbanization is estimated to be 2.3% annual rate of change during 2010 to 2015. The biggest city is Abu Dhabi which is also the capital of UAE and according to 2009 estimation, 666,000 people live in it. The sex ratio according to 2011 estimation at birth is 1.05 male(s)/female, under the age of 15 years 1.05 male(s)/female, 15-64 years 2.75 male(s)/female, 65 years and above is 1.8 male(S)/female, and the total population sex ratio is 2.2 male(s)/female. This indicates that there are more males living in UAE than females. The definition of literacy in UAE is that people of age 15years or older can read and write. The literacy rate of total population as per 2003 estimation is 77.9%, the male literacy rate is 77.9% and female is 81.7%. The total school life expectancy (primary to tertiary education) is 13 years, of males is 13years and of females is 14years as of 2009 estimation. The unemployment rate in the age group of 15-24 is 12.1% of the total population. United Arab Emirates is the 90th country in the world in its unemployment count. The male unemployment percentage is 7.9% and the female unployment percentage is 21.8% according to 2008 estimation. The Health expenditure amounts to 2.8% of the Gross Domestic Product as of 2009 estimation. It is the 181th country who spends the most on health care facilities in comparison to all countries of the world. The life expectancy at birth is 76.51 years of the total population according to the estimation of 2011. Of the total population, the male life expectancy age is 73.94 years and a female is 79.22 years. There are no people who are suffering from HIV AIDS in United Arab Emirates and no deaths have occurred due to HIV AIDS. Economic Outlook At the time of its independence, United Arab Emirates was regarded as one of the affluent nations of the world having a per capita income of more than US $2000. In 2011, United Arab Emirates is titled as the 14th best country in the whole entire world for conducting business based on its financial system and wealth by the Doing Business 2011 Report issued by the World Bank Group. United Arab Emirates is an open economy with a huge annual trade surplus and national debt amounting to only $142 billion as of June 18, 2009. Thriving efforts for economic diversification in United Arab Emirates have lessened the section of Gross Domestic Product based on gas and oil output to only 25%. Ever since the findings of oil in the United Arab Emirates date back to more than 30years ago, the United Arab Emirates has gone through a deep transformation from a poor region of small desert tribes to a modern country with a relatively high living standard. The Government of United Arab Emirates has augmented its spending on the creation of jobs and expansion of infrastructure and also starting up utilities’ business for private sector intervention. The outcome is that the unemployment rate has reduced to only 4% as of May 2009, Gross Domestic Product growth is 3.20% as of 2010 and CPI inflation has reduced to only 1.9% as of April 2008. United Arab Emirates signed an Investment and Trade Framework Agreement with Washington in April 2004 and the following November agreed to take on discussions with the United States on Free Trade Agreement but none of these were fruitful. United Arab Emirates biggest charm is the country’s Free Trade Zones which offer 100% ownership by the foreigners with zero taxes is attracting a crowd of foreign investors. The agricultural products of UAE are vegetables, dates, eggs, poultry, fish, watermelons, and dairy products. The industries of UAE include fishing, aluminum, fertilizers, cement, petroleum and petrochemicals, commercial ship repair, some boat building, textiles, handicrafts, and construction material. The GDP per capital (PPP) according to 2010 estimation is $49,600. The industrial production growth rate is 3.2% according to 2010 estimation and country is ranked 109th in comparison to the world. According to 2010 estimation, the oil production is 2.813 million bbl/ day and it is tenth largest oil producing country in the world. The everyday oil consumption is 545,000 bbl/ day as of 2010 estimation and it is 33rd largest oil consuming country. The exports of oil are 2.395 million bbl/ day as of 2009 estimation and it is 4th largest oil exporting country in the world. There are 97.8 billion bbl/ day of oil-proved reserves in UAE as of 1st January, 2011 and it is the 7th largest oil containing country on Earth. The worldwide financial crisis, deflated prices of assets and tight international credit slender the country’s economy in 2009 and 2010. The authorities of United Arab Emirates tried to reduce the crisis by augmenting spending and increasing liquidity in its banking sector. But, the crisis did hit UAE and hit Dubai the most as it was the one most exposed to low prices of real estate. Dubai didn’t have enough cash to fulfill its debt requirements, which led to growing concerns about its wealth. During the December of 2009, the UAE Central Bank and banks based in Abu Dhabi bought the biggest shares and thus Dubai got an extra $10 billion loan from Abu Dhabi. The economy is predicted to bounce back slowly and gradually to its original position. Political Outlook The local long form of UAE is AL Imarat al Arabiyah al Muttahidah. It does not have nay conventional short form. It was formerly known as Trucial Oman or Trucial States. The politics of United Arab Emirates is formulated in a framework of a presidential, federal and elective monarchy. The UAE is a consolidation of seven monarchies which include the emirates of Ajman, Abu Dhabi, and Dubai, Ras al-Khaimah, Fujairah, Sharjah and Umm al-Quwain. The President is the head of the state in UAE and the Prime Minister is the head of the government, including defense and security, foreign affairs, immigration issues, nationality, communication services, licensing of aircraft, air traffic control, banking, labor relations, exile of criminals, and delimitation of waters at the territory. All other obligations not given to national government come under the supervision of emirates. According to 2010 budget, revenues amount to $85.77 billion and expenditures amount to $92.15 billion. The United Arab Emirates government is made up of three branches: the executive branch, the legislature, and the judiciary. The executive branch is made up of the President, Vice President, Federal Supreme Council, Prime Minister, and a cabinet (Council of Members). The Federal Supreme Council consists of the emirs of all seven emirates. It is responsible for electing the president, vice president, members of Ministers; Council, and the judges of the Federal Supreme Court. The Supreme Council also devises policies of the government, proposes and passes national laws as well as treaties. Even though the President and the Prime Minister are elected by the Supreme Council, they are hereditary. The emir of Abu Dhabi becomes the President and the emir of Dubai becomes the Prime Minister. One of the Prime Ministers serves as a Vice President at the same time. The financial duties and political powers of the emirates are shown by their designated positions in the federal government. Although each emirate remains a self governing body over its own state, a percentage of the revenue of emirate is allotted to the UAE’s central budget. There are no political parties in the UAE. Political parties are not even allowed in this country. There are no political leaders or pressure groups. The rulers of all emirates hold power on the basis of their hereditary powers in a tribal agreement. Increases in literacy rate, modernization, and the emigration of huge number of foreign people have sought to change the outlook of society. In the December of 2006, the United Arab Emirates held its first elections to choose half of the members of FNC. These elections were also limited. One woman was selected to the FNC and furthermore seven women were elected to act as council members. In the March of 2011, it was announced that now elections would be held in the September of 2011. According to CIA-World Fact Book, “UAE is a member of many international organizations including ABEDA, AFESD, AMF, CAEU, CICA, FAO, G-77, GCC, IAEA, IBRD, ICAO, ICC, ICRM, IDA, IDB, IFAD, IFC, IFRCS, IHO, ILO, IMF, IMO, IMSO, Interpol, IOC, IPU, ISO, ITSO, ITU, LAS, MIGA, NAM, OAPEC, OIC, OIF (observer), OPCW, OPEC, PCA, UN, UNCTAD, UNESCO, UNIDO, UPU, WCO, WHO, WIPO, WMO, and WTO”. The Chief of mission for representation in the United States is Ambassador Yusif bin Mani bin Said al-UTAYBA. The consulate general is located in Dubai. United Arab Emirates Armed Forces include the Navy (including Marines), Army, Air Defense, Air Force, and Border and Coast Guard Directorate as of 2009. The military service age for people voluntarily agreeing to participate is 18 years of age and for women and officers it is also 18 years. The average age for candidates of UAE Naval College is between 16-22 years of age. The manpower which is available for military service including non-nationals of age group 16-49 is 2,676,928 and females in the same age group is 981,649 according to 2010 estimation. The manpower reaching militarily significant age each year is 27,439 and females is 24,419 as of 2010. The military expenditure is 3.1% of the GDP as of the estimation of 2005 and it is 41th largest expenditures spent on military in the world. In relation to its international disputes, a boundary agreement was signed in 2003 with Oman and passed in the same year for the whole border, including the Al Madhah enclaves nad the Oman’s Musandam Peninsula. But, still the data of the agreement and explanatory maps representing the change have yet to be published. There is also a dispute with Iran over the Abu Musa Island and Tunb Islands which are under the Iranian government. Analysis United Arab Emirates has turned into an international hub for all foreign investors. It hosts the free harbor where trade is free for countries all around the world. But, it has its strengths. The emirs of all emirates have their shares in all the foreign direct investment in their country. They make sure that whatever business takes place in their country, they are a part of it due to which their country is not sold out properly to the private foreign investors ever. Also, even if you are born in UAE and your parents were emigrants of UAE, you can not be a national of United Arab Emirates. The rights enjoyed by the nationals of UAE are preserved and no one else can enjoy it. Also, one can never hold property in UAE. All the property is rented and the rent in some way or the other goes to the nationals of UAE. Today, provisions have begin to grant rights for holding property in UAE but it is too expensive for an average person. But this free trade has its drawbacks. The country is not self-sufficient in feeding or educating its citizens. Even though it has huge oil reserves as described above, but due to foreigners owning all the business of imports and exports, the country can not feed its residents if all the non-nationals go back to their home countries. Also, as everything is semi privatized so is the educational sector. There is not a single college or school which offers free education for the citizens of UAE or people living there. Hence, education is very expensive. If foreigners are obliged to pay rents on property, they take out their rents in the form of school, colleges and universities’ fees. Thus education is very expensive in UAE. The country of UAE is also militarily vulnerable as described above so it possesses a threat from its neighbor nations. It can not guard itself against its enemies in case of any attack on the country. Also, if all foreigners decide to go back to their countries, UAE is nothing without them! They are working for the GDP of UAE and if they are gone, the nationals are so less in amount to render to financial aid for the country. In addition, if foreigners leave the country, how will UAE feed its citizens or educate them? This is a question which emirs of all emirates of UAE should ponder upon! References McColl, R W. Encyclopedia of World Geography: Volume I, A-G. New York, NY: Facts On File, 2005. Internet resource. Central Intelligence Agency. World Fact Book. Washington DC, Facts on UAE, 2011. Internet Source Background Note: United Arab Emirates, March 16, 2011 UAE Interact Spotlight on major changes in the UAE, , November 28, 2011 Arabianbusiness.com UAE population hits 6m, Emiratis make up 16.5%.. 2011 United Arab Emirates. International Monetary Fund. 2010 Encyclop?dia Britannica Eleventh Edition.1911 Table 3.10 Urbanization ,World Development Indicators. World Bank Group. 200624. Abu Dhabi Islands Archaeological Survey (ADIAS). Adias-uae.com. 2009 United Arab Emirates History, UAE History, History of the Arabian Peninsula, Arabian Culture 2009-07-15. UAEinteract. UAE History & Traditions: Pearls & pearling. 2009-07-15. BBC News .Middle East | Country profiles | Country profile: United Arab Emirates.2009 Read More