UAE the United Arab Emirates the United

UAE

The United Arab Emirates

The United Arab Emirates is a country created for two purposes; the first is to provide a strong federal-based government in order to protect the traditions and uniqueness of the six different Emirates, while pooling resources in order to protect the territory and profits of the nation. It is a very young nation, only having declared independence in 1971 from Oman. The Emirates has a unique position in the world, being a small country with a population of 5 million, yet residing on the oil-rich Arabian Peninsula that exports the world its primary fuel source; oil. In recent years, two cities in particular, Abu Dhabi and Dubai, have tried to spread their influence beyond the oil market, and have created cities intended for doing business worldwide.

There are many social problems within the UAE, but have been controlled for in a way to protect the political elite. Unlike a country like Syria or Bahrain, which have a minority religious group controlling a general populace of a majority religious group, the UAE is of one type of Islam, Sunni. In addition, the UAE utilizes a massive workforce from South-East Asia, including Indonesia, Bangladesh, India, and even the United States and the European Union. This use of foreign labor is not cheap, but it guarantees the strong union holding the UAE together by not allowing foreign representation of any form in government, and these expats, representing 85% of the labor force, understand that they will never be a part of the political system of the Emirates, therefore creating a bond between subject and state that is relegated solely to economic gain. This does not mean that equality exists within the foreign labor force, however, as the workforce is paid extremely low wages to work in very high demand environments, what in the West we would call "Indentured Servitude," or rather working in order to pay off debts (required to gain voyage to the UAE) and at the end of a year's contract earning a measly amount of money compared to Western construction workers. In terms of social concerns, the UAE has retained an ancient system that will only work in the modern world as long as the finances of the Emirates are as high as they have been due to the influence of oil.

The United Arab Emirates has retained strong growth in the years since the recession deeply rocked the economies of the two wealthiest emirates, Abu Dhabi and Dubai, the latter of which requiring a financial bailout from the former. The constant need for oil around the world helped to stabilize the UAE before most other economies, and truly the country has bounced back in force. Construction continued throughout the financial crisis, and more projects have been approved in the past 18 months. Considering the rate at which Dubai in particular is building new skyscrapers, it is amazing to think that the country felt any hiccups in its once worrisome economy. GNP for 2010 was $350.97 billion, which reflected 3.2% growth from 2009. The economy contracted 3% in 2009 due to the recession, but all of its loss has been recovered as of 2010. Inflation rose 2.5% in 2011, which is at a lower rate than GNP, and therefore considered to be an acceptable amount, although no inflation is desired. Unemployment is at 2.5%, which is one of the lowest rates in the entire world, certainly desirable. Balance of Payments were at a net positive of $41 billion, typical for an export economy, which has a lot of inflowing cash. The UAE is in an extremely favorable economic situation for the foreseeable future.

Politically, the UAE is one of the most Western-friendly countries in the world, yet also maintains its links with Iran, which is across the nearby Hormuz Strait. The ability to position itself as an open, modern country has disrupted conservative elements of the Emirates. Western tourists and workers do not like conforming to the Muslim way of life, particularly troublesome is bridging the difference in cultural roles of women. The UAE military is exceptionally strong and modern, being strengthened tremendously by military deals with the United States. Fighter jets, naval cruisers, and anti-air defense systems have all been sold to the UAE, partially to strengthen existing alliances, and partially to show of the wealth of the nation. The political system is essentially a six party dictatorship, but it works by democratic votes among the six, and is stable.