The Trucial States of the Persian Gulf coast granted the UK control of their defense and foreign affairs in 19th century treaties.

In 1971, six of these states - Abu Zaby, 'Ajman, Al Fujayrah, Ash Shariqah, Dubayy, and Umm al Qaywayn - merged to form the United Arab Emirates (UAE).

They were joined in 1972 by Ra's al Khaymah.

The UAE's per capita GDP is on par with those of leading West European nations.

Its generosity with oil revenues and its moderate foreign policy stance have allowed the UAE to play a vital role in the affairs of the region.

On November 2, 2004, the UAE’s first and only president, Sheikh Zayed bin Sultan Al Nahyan, died. His eldest son Khalifa bin Zayed al Nahyan succeeded him as Ruler of Abu Dhabi.

In accordance with the Constitution, the UAE’s Supreme Council of Rulers elected Khalifa bin Zayed Al Nahyan as UAE Federal President.

Mohammad bin Zayed Al Nahyan succeeded Khalifa as Crown Prince of Abu Dhabi.

Source: CIA World Fact Book

Population: 4,444,011 note: estimate is based on the results of the 2005 census that included a significantly higher estimate of net inmigration of non-citizens than previous estimates (July 2007 est.)

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Age structure: 0-14 years: 20.6% (male 467,931/female 447,045) 15-64 years: 78.5% (male 2,558,029/female 932,617) 65 years and over: 0.9% (male 24,914/female 13,475) note: 73.9% of the population in the 15-64 age group is non-national (2007 est.)

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Median age: total: 30.1 years male: 32 years female: 24.5 years (2007 est.)

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Population growth rate: 3.997% (2007 est.)

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Birth rate: 16.09 births/1,000 population (2007 est.)

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Death rate: 2.16 deaths/1,000 population (2007 est.)

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Net migration rate: 26.04 migrant(s)/1,000 population (2007 est.)

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Sex ratio: at birth: 1.05 male(s)/female under 15 years: 1.047 male(s)/female 15-64 years: 2.743 male(s)/female 65 years and over: 1.849 male(s)/female total population: 2.19 male(s)/female (2007 est.)

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Infant mortality rate: total: 13.52 deaths/1,000 live births male: 15.77 deaths/1,000 live births female: 11.15 deaths/1,000 live births (2007 est.)

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Life expectancy at birth: total population: 75.69 years male: 73.16 years female: 78.35 years (2007 est.)

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Total fertility rate: 2.43 children born/woman (2007 est.)

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HIV/AIDS - adult prevalence rate: 0.18% (2001 est.)

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HIV/AIDS - people living with HIV/AIDS: NA

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HIV/AIDS - deaths: NA

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Nationality: noun: Emirati(s) adjective: Emirati

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Ethnic groups: Emirati 19%, other Arab and Iranian 23%, South Asian 50%, other expatriates (includes Westerners and East Asians) 8% (1982) note: less than 20% are UAE citizens (1982)

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Religions: Muslim 96% (Shi'a 16%), other (includes Christian, Hindu) 4%

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Languages: Arabic (official), Persian, English, Hindi, Urdu

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Literacy: definition: age 15 and over can read and write total population: 77.9% male: 76.1% female: 81.7% (2003 est.)

The UAE has an open economy with a high per capita income and a sizable annual trade surplus. Despite largely successful efforts at economic diversification, about 30% of GDP is still directly based on oil and gas output, and the fortunes of the economy fluctuate with the prices of those commodities. Since the discovery of oil in the UAE more than 30 years ago, 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. The government has increased spending on job creation and infrastructure expansion and is opening up its utilities to greater private sector involvement. In April 2004, the UAE signed a Trade and Investment Framework Agreement (TIFA) with Washington and in November 2004 agreed to undertake negotiations toward a Free Trade Agreement (FTA) with the US. Higher oil revenue, strong liquidity, and cheap credit in 2005-06 led to a surge in asset prices (shares and real estate) and consumer inflation. Rising prices are increasing the operating costs for businesses in the UAE and degrading the UAE's allure to foreign investors. Dependence on a large expatriate workforce and oil are significant long-term challenges to the UAE's economy.

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GDP (purchasing power parity): $129.5 billion (2006 est.)

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GDP (official exchange rate): $164 billion (2006 est.)

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GDP - real growth rate: 8.9% (2006 est.)

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GDP - per capita (PPP): $49,700 (2006 est.)

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GDP - composition by sector: agriculture: 2.3% industry: 61.9% services: 35.8% (2006 est.)

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Labor force: 2.968 million (2006 est.)

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Labor force - by occupation: agriculture: 7% industry: 15% services: 78% (2000 est.)

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Unemployment rate: 2.4% (2001)

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Population below poverty line: NA%

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Household income or consumption by percentage share: lowest 10%: NA% highest 10%: NA%

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Inflation rate (consumer prices): 10% (2006 est.)

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Investment (gross fixed): 24.3% of GDP (2006 est.)

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Budget: revenues: $60.3 billion expenditures: $35.2 billion; including capital expenditures of $5.9 billion (2006 est.)

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Public debt: 9% of GDP (2006 est.)

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Agriculture - products: dates, vegetables, watermelons; poultry, eggs, dairy products; fish

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Industries: petroleum and petrochemicals; fishing, aluminum, cement, fertilizers, commercial ship repair, construction materials, some boat building, handicrafts, textiles

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Industrial production growth rate: 4% (2000)

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Electricity - production: 49.52 billion kWh (2004)

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Electricity - consumption: 46.05 billion kWh (2004)

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Electricity - exports: 0 kWh (2004)

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Electricity - imports: 0 kWh (2004)

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Oil - production: 2.54 million bbl/day (2006 est.)

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Oil - consumption: 400,000 bbl/day (2004 est.)

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Oil - exports: 2.54 million bbl/day (2004 est.)

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Oil - imports: 137,200 bbl/day (2004)

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Oil - proved reserves: 97.8 billion bbl (1 January 2005 est.)

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Natural gas - production: 46.29 billion cu m (2004 est.)

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Natural gas - consumption: 40.31 billion cu m (2004 est.)

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Natural gas - exports: 7.18 billion cu m (2004 est.)

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Natural gas - imports: 1.2 billion cu m (2004 est.)

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Natural gas - proved reserves: 6.006 trillion cu m (1 January 2005 est.)

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Current account balance: $26.89 billion (2006 est.)

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Exports: $137.1 billion f.o.b. (2006 est.)

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Exports - commodities: crude oil 45%, natural gas, reexports, dried fish, dates

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Exports - partners: Japan 25.9%, South Korea 10.3%, Thailand 5.9%, India 4.5% (2006)

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Imports: $88.89 billion f.o.b. (2006 est.)

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Imports - commodities: machinery and transport equipment, chemicals, food

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Imports - partners: US 11.4%, China 11%, India 9.8%, Germany 6.2%, Japan 5.8%, UK 5.5%, France 4.1%, Italy 4% (2006)

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Reserves of foreign exchange and gold: $25.51 billion (2006 est.)

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Debt - external: $39.1 billion (2006 est.)

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Economic aid - donor: since its founding in 1971, the Abu Dhabi Fund for Development has given about $5.2 billion in aid to 56 countries (2004)

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Currency (code): Emirati dirham (AED)

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Exchange rates: Emirati dirhams per US dollar - 3.673 (2006), 3.6725 (2005), 3.6725 (2004), 3.6725 (2003), 3.6725 (2002) note: officially pegged to the US dollar since February 2002

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Fiscal year: calendar year