United Arab Emirates
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Administratively, the UAE is a loose federation of seven emirates, each with its own ruler, but 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. Under the provisional constitution of 1971, each emirate reserves considerable powers, including control over mineral rights (notably oil) and revenues.
Petroleum dominates the economy, accounting for most of its export earnings and providing significant opportunities for investment. There have been major increases in imports of manufactured goods, machinery, and transportation equipment, which together account for 70% of total imports. Another important foreign exchange earner, the Abu Dhabi investment authority--which controls the investments of Abu Dhabi, the wealthiest emirate--manages an estimated $150 billion in overseas investments.
More than 200 factories operate at the Jebel Ali complex in Dubai, which includes a deep-water port and a free trade zone for manufacturing and distribution in which all goods for re-export or transshipment enjoy a 100% duty exemption. A major power plant with associated water desalination units, an aluminum smelter, and a steel fabrication unit are prominent facilities in the complex.
Except in the free trade zone, the UAE requires at least 51% local citizen ownership in all businesses operating in the country as part of its attempt to place Emiratis into leadership positions.
For more information, please see the U.S. State Department site:http://www.state.gov/r/pa/bgn/index.cfm?docid=5444.
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