Geography
The United Arab Emirates (UAE) is comprised of seven members: Abu Dhabi (the capital city), Dubai, Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah and Fujairah.
Dubai has a total area of 3,885 square kilometers and is the second largest emirate. The UAE has 700 kilometers of coastline, of which 100 kilometers are on the Gulf of Oman. Along the Arabian Gulf Coast, there are offshore islands, coral reefs and sabkha, or salt marshes. Stretches of gravel plain and sandy desert characterize the inland region.
Climate
The UAE has a sub-tropical, arid climate. Rainfall is infrequent and irregular. Falling mainly in winter, it amounts to some 13 centimeters per year. Temperatures range from a low of about 10 degrees Celsius to a high of 48 degrees Celsius.
Language
The official language is Arabic. English is widely understood and ranks alongside Arabic as the language of commerce.
International Relations
The UAE became a member of the United Nations and the Arab League in 1971. It is a member of the International Monetary Fund, the Organization of Petroleum Exporting Countries (OPEC), World Trade Organization and other international and Arab organizations, including the Arab Co-operations Council (AGCC), whose other member are Saudi Arabia, Oman, Bahrain and Kuwait. In its foreign relations, the UAE’s stance is non-alignment but it is committed to the support of Arab unity.
Population
The current population of Dubai is approximately 2.4 million and rising.
Government
The Supreme Council of the UAE, comprising the hereditary rulers of the seven emirates, is the highest federal authority. It is responsible for general policy matters involving communications, education, defense, foreign affairs and development, and for ratifying federal laws. The federal council of ministers, responsible to the Supreme Council, has executive authority to initiate and implement laws. The federal Nation Council is a consultative assembly of 40 representatives who are appointed for two years by the individual emirates. The council monitors and debates government policy but has no power of veto. While Abu Dhabi is the centre of federal government activities, most ministerial departments also maintain offices in Dubai.
Economic Policy
In matters unrelated to diplomacy and defense, each emirate enjoys considerable autonomy in managing its own affairs. In business, the government of Dubai is committed to liberal, free market policies and to the creation of a business environment conductive to commercial activity. This approach is well illustrated by the incentives available to investors in the Jebel Ali and Airport Free Zones and by the continuing high level of public sector investment in the infrastructure.
Economic Highlights
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GDP in 2007 registered at US$ 54.3bn
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Economic growth at a Compounded Annual Growth Rate (CAGR) of 18% over the past 7 years
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Non-oil GDP growth by logistics, finance, tourism and real estate sectors
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Population CAGR of 8% between 2003 and 2007, with current population estimates at 2.4 million inhabitants
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Proportion of expatriate population in Dubai is expected to increase to 87% by 2010
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Steady population growth and strong wages underpinned by buoyant economic conditions provide the impetus for real estate demand.
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Average spending power of US$ 14,400 per household per annum
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Average spending power per annum of US$ 23,000 for ‘ Emirati’ households, US$ 19,500 for ‘Western’ households, US$ 13,500 for ‘ Other ‘Arab’ households and US$ 10,000 for ‘Asian’ households
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Oligopolistic market structure of high-net worth individuals controlling disproportionately large volumes of real estate stock
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Continued asset value growth supported by ‘liquidity cushion’ reflecting tolerance of investors towards longer vacancy rates rather than reduction in rental values
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