COUNTRY REPORT: United Arab Emirates

The United Arab Emirates (UAE) is quickly transforming its formerly tribal Bedouin society into an emerging economy that is catching the eye of the world. Dubai, one of the seven emirates, has established itself as a financial hub that has attracted expatriate workers and investors from around the world. Over the past decade, it has become a sprawling metropolis sporting an array of ambitious real-estate projects. However, the billions of dollars of debt incurred by Dubai-based investors during this period left the emirate particularly vulnerable to the global economic downturn that emerged in late 2008. Abu Dhabi, the largest of the seven emirates andhome to the federal capital, has also driven the UAE's economic growth. It is the top oil producer in the federation, controlling more than 85 percent of the country's total output capacity and over 90 percent of its crude reserves. As of mid-2009, Emirati citizens comprised only 20 percent of
the country's fi ve million inhabitants.