United Arab Emirates

THE UNITED ARAB EMIRATES (UAE) is a country bordering Kuwait and Saudi Arabia, located on the coast of the Persian Gulf. It consists of seven emirates, Abu Dhabi, Dubai, Sharjah, Ajman, Ras al-Kheimah, Umm al-Qawein, and Fujeirah. The national capital is located in Abu Dhabi, but the political and commercial center is in Dubai. Previously, the UAE consisted of a loose federation of mostly nomadic peoples whose desert lifestyle relied upon international trade routes passing through its territory. This changed with the discovery of oil, which inevitably changed the country's relations with the outside world, especially the United Kingdom, which had dominated it for many years. Independence was gained in 1971 and, under the vigorous leadership of Sheikh Zayed, the country embarked on a policy of rapid industrialization and social development, while maintaining the traditional conservative Islamic culture.

More than half of the UAE's population of less than four million consists of temporary migrant workers who undertake the great majority of low-paid and low-skilled work, as well as technical and professional tasks. Visa and residential qualifications are strictly handled and any migrant without appropriate sponsorship is quickly deported. This effectively prevents poverty among migrants. The citizens of the UAE enjoy an average income of $25,300 (GNI method, 2003), primarily from oil and gas revenues.

The great bulk of petrochemical deposits lies in Abu Dhabi territory and a large proportion of the incoming funds are invested in a variety of offshore projects through the Abu Dhabi Investment Authority (ADIA). It is believed that the amount of investment made by ADIA is sufficient to ensure the continued standard of income of all UAE citizens irrespective of future oil revenues. Attempts to diversify the economy have met with only limited success, and parallel investment required of international firms wishing to participate in the petrochemical industry that creates manufacturing and service jobs is largely managed by overseas people. However, Dubai is seeking to position itself as the Arab media and technological center.

The northern emirates are not prosperous, and in the absence of oil would have remained in historical levels of poverty. However, the Abu Dhabi authorities subsidize all services, including electricity, telephone, education, and health, and also provide a high salary to anyone wishing to take an available public-sector job. The Private Loans Authority, established in 1991, provided low-cost loans to citizens wishing to finance new property. Other programs exist to ensure that poverty among UAE citizens has become completely eradicated. The only people at threat of poverty are those migrant [Page 1098]workers who are sponsored but in low-income posts in which freedom is limited, such as domestic workers. Islamic charities and organizations are powerful forces for redistribution in cases of need and are also significant in assisting people overseas, primarily in Islamic societies.

Human Development Index Rank: 41

Human Poverty Index Rank: Not included.