United Arab Emirates
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 UAE. They were joined in 1972 by Ra's al Khaymah. The UAE's per capita GDP is not far below the GDPs of the leading West European nations. Its generosity with oil revenues and its moderate foreign policy stance have allowed it to play a vital role in the affairs of the region.
While there are no known credible direct threats to expatriates or visitors, the recent military action by U.S. and British forces in Iraq have raised the prospect that individuals or organizations could carry out terror attacks against western interests or personnel. Residents and visitors should exercise caution and take prudent measures to maintain their security. These measures include being vigilantly aware of surroundings, avoiding crowds and demonstrations, keeping a low profile, varying times and routes for all travel, and ensuring travel documents are current.
Visitors should maintain a low profile, vary routes and times for all required travel, and treat mail and packages from unfamiliar sources with suspicion. In addition, visitors should avoid contact with any suspicious, unfamiliar objects, and to report the presence of the objects to local authorities. Vehicles should not be left unattended, if at all possible, and should be kept locked at all times.
Sheikh Zayid Bin-Sultan Al Nuhayyan succeeded his brother as Ruler of Abu Dhabi in 1966 and, as a result of his strong leadership and commitment to forming the federation, he was elected as the first President of the United Arab Emirates in 1971. He has been reelected every five years since 1971. The UAE is a federation of seven emirates - Abu Dhabi, Dubai, Sharjah, Ajman, Fujairah, Ras al-Khaimah, and Umm al-Qaiwain. Political power is concentrated in Abu Dhabi, which controls the vast majority of the UAE's economic and resource wealth. The two largest emirates -- Abu Dhabi and Dubai -- provide over 80% of the UAE's income. In June 1996, the UAE’s Federal National Council approved a permanent constitution for the country. This replaced a provisional document that had been renewed every five years since the country’s creation in 1971. The establishment of Abu Dhabi as the UAE’s permanent capital was one of the new framework’s main provisions.
While the UAE has a relatively diversified economy for a Persian Gulf oil exporter, the collapse in oil prices from late 1997 to early 1999 resulted in a decline in real gross domestic product (GDP) of 5.0%. Real GDP growth for 2000 was near 10.5%. 2001 gross domestic product (GDP) is projected to record a slight decline because of lower oil receipts and the general slowing down of the global economy.
The UAE and Iran continue to dispute the ownership of three islands, Abu Musa and the Greater and Lesser Tunb Islands, which are strategically located in the Strait of Hormuz. All three islands were effectively occupied by Iranian troops in 1992. The Mubarak field, which is located six miles off Abu Musa, has been producing gas-rich oil since 1974. In 1995, the Iranian Foreign Ministry claimed that the islands are "an inseparable part of Iran." Iran rejected a 1996 proposal by the Gulf Cooperation Council (GCC) for the dispute to be resolved by the International Court of Justice, an option supported by the UAE. In the dispute, the UAE has received strong support from the GCC, the United Nations, and the United States. Although Iran remains a continuing concern for officials in Abu Dhabi, they have chosen not to escalate the territorial dispute. Iran is one of Dubai’s major trading partners, accounting for 20% to 30% of Dubai’s business.
