CIAO DATE: 01/2013
December 2012
Norwegian Peacebuilding Resource Centre
Formed in 1971 following Britain's departure from the Gulf, the United Arab Emirates (UAE) is a federation made up of seven monarchies, each of which retains traditional powers alongside more formal emirate-level and federal governments. With the bulk of the UAE’s hydrocarbon reserves in the largest emirate of Abu Dhabi, the latter’s ruling family continues to dominate UAE politics. Although a semi-elected consultative council exists, this is far from being an effective parliament, and since the 2011 “Arab Spring” there have been strong calls for greater democracy, which have led to the imprisonment of more than 50 activists. Externally, Iran remains the most significant threat to the UAE regime, having occupied three UAE islands since 1971 and continuing to alarm the UAE with its nuclear programme. Although the UAE is a wealthy country, often suffering from “voluntary unemployment” among its nationals, there is a serious wealth distribution problem, with poorer parts of the country experiencing poverty. Hydrocarbons remain the mainstay of the UAE’s economy, although there have been some spirited attempts to diversify into other sectors, especially in Dubai, which is the UAE's most business-friendly emirate.