United Arab Emirates

Introduction Key Economic Facts Risk Assessment (Provided by Coface) United Arab Emirates is a country located in the Middle East Income Level (by per capita High Income Country rating: A4 - A somewhat shaky political and bordering the Gulf of Oman and the Persian Gulf. GNI): economic outlook and a relatively volatile business Neighboring countries include Oman and Saudi Arabia. It Level of Development: Developing environment can affect corporate payment behavior. has a strategic location along southern GDP, PPP (current international $684.81 billion (2019) approaches to the Strait of Hormuz, a $): Corporate default probability is still acceptable on average. transit point for world crude oil. The GDP growth (annual %): 1.68% (2019) Business Climate rating: A2 - The business environment geography of United Arab Emirates is GDP per capita, PPP (current $70,089.32 (2019) is good. When available, corporate financial information is rolling sand dunes of desert and international $): reliable. Debt collection is reasonably efficient. Institutions mountains in the east. The government system is a Manufacturing, value added (% 8.72% (2019) generally perform efficiently. Intercompany transactions federation with specified powers delegated to the UAE of GDP): federal government and other powers reserved to member Inflation, consumer prices -1.93% (2019) usually run smoothly in the relatively stable environment emirates; the chief of state is (annual %): rated A2. the president, and the head of Labor force, total: 6,922,233 (2020) Strengths government is the prime Unemployment, total (% of 2.45% (2020) • Regional trading hub minister. United Arab Emirates total labor force) (modeled ILO • Higher degree of economic diversification compared has an open market economy in estimate): which the prices of goods and Imports of goods and services $288.40 billion (2019) to its neighbors (current US$): services are determined by a • Political stability free price system. United Arab Exports of goods and services $389.37 billion (2019) (current US$): • Vast financial assets of Abu Dhabi Emirates is a member of the League of Arab States (Arab • New investment opportunities related to the League) and the Gulf Cooperation Council (GCC). normalization with Israel Location: Western Asia Weaknesses Capital City: Abu Dhabi (+4 GMT) • Weak oil prices weigh on growth performance Chief of State: President Khalifa bin Zayed Al- GDP Composition % Nahayyan Agriculture Services Industry Manufacturing • Subdued outlook for non-oil activity Head of Govt.: Prime Minister Vice President • Increasing debt, fiscal revenues mostly depend on Mohammad bin Rashid Al-Maktum 53 46 hydrocarbons Currency: Emirati Dirham (AED) 1 9 • Lower tourism revenues due to COVID-19 Major Languages:

Arabic (official), Persian, English, • Rising regional tensions Hindi, Urdu

*Although Manufacturing is included in the Industry figures, it is also separately reported because it plays a critical role in economy. Primary Religions:

Muslim (Islam; official) 76%, Rankings U.S. Embassy Christian 9%, other (primarily Hindu and Buddhist, less than 5% of the Index Rank U.S. Embassy Abu Dhabi population consists of Parsi, Corruption Perceptions Index 21 / 180 P.O. Box 4009 Baha'i, Druze, Sikh, Ahmadi, Abu Dhabi, UAE Ismaili, Dawoodi Bohra Muslim, and Global Competitiveness Index 25 / 141 Phone: +971-2 414 2200 Jewish) 15%

Global Enabling Trade Index 23 / 136 Calling Code: 971 Global Manufacturing Competitiveness Index 30 / 40 https://ae.usembassy.gov Voltage: 220 (GMCI) Global Services Location Index 32 / 55 Key Websites Index of Economic Freedom 9 / 179 Main Government Page: u.ae International Logistics Performance Index (LPI) 11 / 160 Commerce Ministry: economy.gov.ae Inward FDI Potential Index 11 / 139 KOF Index of Globalization 37 / 185 Networked Readiness Index (NRI) 26 / 139

Country Memo Provided by: globalEDGE.msu.edu and EXPORT.GOV