The Trucial States of the Persian Gulf coast granted the UK control of their defense and foreign affairs in 19th century treaties. In 1971, six of these states - Abu Zaby, 'Ajman, Al Fujayrah, Ash Shariqah, Dubayy, and Umm al Qaywayn - merged to form the UAE. They were joined in 1972 by Ra's al Khaymah. The UAE's per capita GDP is not far below the GDPs of the leading West European nations. Its generosity with oil revenues and its moderate foreign policy stance have allowed it to play a vital role in the affairs of the region. The UAE has an open economy with a high per capita income and a sizable annual trade surplus. Its wealth is based on oil and gas output (about 33% of GDP), and the fortunes of the economy fluctuate with the prices of those commodities. Since 1973, the UAE has undergone a profound transformation from an impoverished region of small desert principalities to a modern state with a high standard of living. At present levels of production, oil and gas reserves should last for over 100 years. Despite higher oil revenues in 1999, the government has not drawn back from the economic reforms implemented during the 1998 oil price depression. The government has increased spending on job creation and infrastructure expansion and is opening up its utilities to greater private-sector involvement.
The UAE has no political parties. There is talk of steps toward democratic government, but nothing concrete has emerged. The rulers hold power on the basis of their dynastic position and their legitimacy in a system of tribal consensus. Rapid modernization, enormous strides in education, and the influx of a large foreign population have changed the face of the society but have not fundamentally altered this traditional political system.
Prior to the first exports of oil in 1962, the UAE economy was dominated by pearl production, fishing, agriculture, and herding. Since the rise of oil prices in 1973, however, petroleum has dominated the economy, accounting for most of its export earnings and providing significant opportunities for investment. The UAE has huge proven oil reserves, estimated at over 100 billion barrels in 1990, with gas reserves estimated at over 200 trillion cubic feet; at present production rates, these supplies would last well over 100 years.
UAE customs authorities enforce strict regulations concerning temporary importation into or export from UAE of items such as firearms, including fireworks, pornographic materials, medications, religious materials, and communication equipment.
A variety of drugs normally taken under a doctor's supervision elsewhere are classified as narcotics in the UAE. A doctor's prescription should be carried along with any medication that is brought into the country.
The workweek is Saturday through Wednesday; some offices may be open Thursday mornings. Shops outside of shopping centers may close in the afternoon between 1 p.m. and 5 p.m. and reopen from 5 p.m. until 10 p.m. or 11 p.m.