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United Arab Emirates
Introduction
Background
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 Dhabi, 'Ajman, Al Fujayrah, Ash Shariqah, Dubayy, and Umm al Qaywayn - merged to form the United Arab Emirates (UAE). They were joined in 1972 by Ra's al Khaymah. The UAE's per capita GDP is on par with those of leading West European nations. For more than three decades, oil and global finance drove the UAE's economy. In 2008-09, the confluence of falling oil prices, collapsing real estate prices, and the international banking crisis hit the UAE especially hard. The UAE did not experience the "Arab Spring" unrest seen elsewhere in the Middle East in 2010-11, partly because of the government's multi-year, $1.6-billion infrastructure investment plan for the poorer northern emirates, and its aggressive pursuit of advocates of political reform. The UAE in recent years has played a growing role in regional affairs. In addition to donating billions of dollars in economic aid to help stabilize Egypt, the UAE was one of the first countries to join the Defeat-ISIS coalition, and to participate as a key partner in a Saudi-led military campaign in Yemen. On 15 September 2020, the United Arab Emirates and Bahrain signed a peace accord with Israel – brokered by the US – in Washington DC. Referred to as the Abraham Accords, the United Arab Emirates and Bahrain are the two latest Middle Eastern countries, along with Egypt and Jordan, to recognize Israel.
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Geography
Location
Middle East, bordering the Gulf of Oman and the Persian Gulf, between Oman and Saudi Arabia
Geographic coordinates
24 00 N, 54 00 E
Map references
Middle East
Area - comparative
slightly larger than South Carolina; slightly smaller than Maine
Land boundaries
total: 1,066 km
border countries (2): Oman 609 km, Saudi Arabia 457 km
Coastline
1,318 km
Maritime claims
territorial sea: 12 nm
exclusive economic zone: 200 nm
contiguous zone: 24 nm
continental shelf: 200 nm or to the edge of the continental margin
Climate
desert; cooler in eastern mountains
Terrain
flat, barren coastal plain merging into rolling sand dunes of vast desert; mountains in east
Elevation
mean elevation: 149 m
lowest point: Persian Gulf 0 m
highest point: Jabal Yibir 1,527 m
Natural resources
petroleum, natural gas
Land use
agricultural land: 4.6% (2011 est.)
arable land: 0.5% (2011 est.)
permanent crops: 0.5% (2011 est.)
permanent pasture: 3.6% (2011 est.)
forest: 3.8% (2011 est.)
other: 91.6% (2011 est.)
Irrigated land
923 sq km (2012)
Population distribution
population is heavily concentrated to the northeast on the Musandam Peninsula; the three largest emirates - Abu Dhabi, Dubai, and Sharjah - are home to nearly 85% of the population
Natural hazards
frequent sand and dust storms
Environment - current issues
air pollution; rapid population growth and high energy demand contribute to water scarcity; lack of natural freshwater resources compensated by desalination plants; land degradation and desertification; waste generation, beach pollution from oil spills
Environment - international agreements
party to: Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Endangered Species, Hazardous Wastes, Marine Dumping, Ozone Layer Protection
signed, but not ratified: Law of the Sea
Geography - note
strategic location along southern approaches to Strait of Hormuz, a vital transit point for world crude oil
People and Society
Population
9,992,083 (July 2020 est.)
note: the UN estimated the country's total population was 9,771,000 as of mid-year 2019; immigrants make up 87.9% of the total population, according to UN data (2019)
country comparison to the world: 92Nationality
noun: Emirati(s)
adjective: Emirati
Ethnic groups
Emirati 11.6%, South Asian 59.4% (includes Indian 38.2%, Bangladeshi 9.5%, Pakistani 9.4%, other 2.3%), Egyptian 10.2%, Filipino 6.1%, other 12.8% (2015 est.)
Languages
Arabic (official), English, Hindi, Malayam, Urdu, Pashto, Tagalog, Persian
Religions
Muslim (official) 76%, Christian 9%, other (primarily Hindu and Buddhist, less than 5% of the population consists of Parsi, Baha'i, Druze, Sikh, Ahmadi, Ismaili, Dawoodi Bohra Muslim, and Jewish) 15% (2005 est.)
note: data represent the total population; as of 2019, immigrants make up about 87.9% of the total population, according to UN data
Age structure
0-14 years: 14.45% (male 745,492/female 698,330)
15-24 years: 7.94% (male 431,751/female 361,804)
25-54 years: 68.03% (male 5,204,618/female 1,592,987)
55-64 years: 7.68% (male 658,892/female 108,850)
65 years and over: 1.9% (male 146,221/female 43,138) (2020 est.)
Dependency ratios
total dependency ratio: 19.2
youth dependency ratio: 17.7
elderly dependency ratio: 1.5
potential support ratio: 66.4 (2020 est.)
Median age
total: 38.4 years
male: 40.4 years
female: 31.5 years (2020 est.)
Population distribution
population is heavily concentrated to the northeast on the Musandam Peninsula; the three largest emirates - Abu Dhabi, Dubai, and Sharjah - are home to nearly 85% of the population
Urbanization
urban population: 87% of total population (2020)
rate of urbanization: 1.71% annual rate of change (2015-20 est.)
Major urban areas - population
2.878 million Dubai, 1.685 million Sharjah, 1.483 million ABU DHABI (capital) (2020)
Sex ratio
at birth: 1.06 male(s)/female
0-14 years: 1.07 male(s)/female
15-24 years: 1.19 male(s)/female
25-54 years: 3.27 male(s)/female
55-64 years: 6.05 male(s)/female
65 years and over: 3.39 male(s)/female
total population: 2.56 male(s)/female (2020 est.)
Infant mortality rate
total: 5.3 deaths/1,000 live births
male: 5.8 deaths/1,000 live births
female: 4.7 deaths/1,000 live births (2020 est.)
Life expectancy at birth
total population: 79 years
male: 77.6 years
female: 80.5 years (2020 est.)
Drinking water source
improved: total: 100% of population
unimproved: total: 0% of population (2017 est.)
Current Health Expenditure
3.3% (2017)
Physicians density
2.44 physicians/1,000 population (2017)
Hospital bed density
1.4 beds/1,000 population (2017)
Sanitation facility access
improved: total: 98.6% of population
unimproved: total: 1.4% of population (2017 est.)
Literacy
definition: age 15 and over can read and write
total population: 93.8%
male: 93.1%
female: 95.8% (2015)
School life expectancy (primary to tertiary education)
total: 14 years
male: 14 years
female: 15 years (2017)
Unemployment, youth ages 15-24
total: 6.9%
male: 5%
female: 12.8% (2018 est.)
Government
Country name
conventional long form: United Arab Emirates
conventional short form: none
local long form: Al Imarat al Arabiyah al Muttahidah
local short form: none
former: Trucial Oman, Trucial States
abbreviation: UAE
etymology: self-descriptive country name; the name "Arabia" can be traced back many centuries B.C., the ancient Egyptians referred to the region as "Ar Rabi"; "emirates" derives from "amir" the Arabic word for "commander," "lord," or "prince"
Government type
federation of monarchies
Capital
name: Abu Dhabi
geographic coordinates: 24 28 N, 54 22 E
time difference: UTC+4 (9 hours ahead of Washington, DC, during Standard Time)
etymology: in Arabic, "abu" means "father" and "dhabi" refers to "gazelle"; the name may derive from an abundance of gazelles that used to live in the area, as well as a folk tale involving the "Father of the Gazelle," Shakhbut bin Dhiyab al Nahyan, whose hunting party tracked a gazelle to a spring on the island where Abu Dhabi was founded
Administrative divisions
7 emirates (imarat, singular - imarah); Abu Zaby (Abu Dhabi), 'Ajman, Al Fujayrah, Ash Shariqah (Sharjah), Dubayy (Dubai), Ra's al Khaymah, Umm al Qaywayn
Independence
2 December 1971 (from the UK)
National holiday
Independence Day (National Day), 2 December (1971)
Constitution
history: previous 1971 (provisional); latest drafted in 1979, became permanent May 1996
amendments: proposed by the Supreme Council and submitted to the Federal National Council; passage requires at least a two-thirds majority vote of Federal National Council members present and approval of the Supreme Council president; amended 2009
Legal system
mixed legal system of Islamic (sharia) law and civil law
International law organization participation
has not submitted an ICJ jurisdiction declaration; non-party state to the ICCt
Citizenship
citizenship by birth: no
citizenship by descent only: the father must be a citizen of the United Arab Emirates; if the father is unknown, the mother must be a citizen
dual citizenship recognized: no
residency requirement for naturalization: 30 years
Suffrage
limited; note - rulers of the seven emirates each select a proportion of voters for the Federal National Council (FNC) that together account for about 12 percent of Emirati citizens
Executive branch
chief of state: President KHALIFA bin Zayid Al-Nuhayyan (since 2 November 2004), ruler of Abu Zaby (Abu Dhabi) (since 4 November 2004); Vice President and Prime Minister MUHAMMAD BIN RASHID Al-Maktum (since 5 January 2006)
head of government: Prime Minister Vice President MUHAMMAD BIN RASHID Al-Maktum (since 5 January 2006); Deputy Prime Ministers SAIF bin Zayid Al-Nuhayyan, MANSUR bin Zayid Al-Nuhayyan (both since 11 May 2009)
cabinet: Council of Ministers announced by the prime minister and approved by the president
elections/appointments: president and vice president indirectly elected by the Federal Supreme Council - composed of the rulers of the 7 emirates - for a 5-year term (no term limits); election last held 3 November 2009 (next election NA); prime minister and deputy prime minister appointed by the president
election results: KHALIFA bin Zayid Al-Nuhayyan reelected president; FSC vote NA
note: there is also a Federal Supreme Council (FSC) composed of the 7 emirate rulers; the FSC is the highest constitutional authority in the UAE; establishes general policies and sanctions federal legislation; meets 4 times a year; Abu Zaby (Abu Dhabi) and Dubayy (Dubai) rulers have effective veto power
Legislative branch
description: unicameral Federal National Council (FNC) or Majlis al-Ittihad al-Watani (40 seats; 20 members indirectly elected using single non-transferable vote by an electoral college whose members are selected by each emirate ruler proportional to its FNC membership, and 20 members appointed by the rulers of the 7 constituent states; members serve 4-year terms)
elections: last held for indirectly elected members on 5 October 2019 (next to be held in October 2023)
election results: all candidates ran as independents; seats by emirate - Abu Dhabi 4, Dubai 4, Sharjah 3, Ras al-Khaimah 3, Ajman 2, Fujairah 2, Umm al-Quwain 2; composition (preliminary) - 13 men, 7 women, percent of elected women 35%; note - to attain overall FNC gender parity, 13 women and 7 men will be appointed; overall FNC percent of women 50%
Judicial branch
highest courts: Federal Supreme Court (consists of the court president and 4 judges; jurisdiction limited to federal cases)
judge selection and term of office: judges appointed by the federal president following approval by the Federal Supreme Council, the highest executive and legislative authority consisting of the 7 emirate rulers; judges serve until retirement age or the expiry of their appointment terms
subordinate courts: Federal Court of Cassation (determines the constitutionality of laws promulgated at the federal and emirate level; federal level courts of first instance and appeals courts); the emirates of Abu Dhabi, Dubai, and Ra's al Khaymah have parallel court systems; the other 4 emirates have incorporated their courts into the federal system; note - the Abu Dhabi Global Market Courts and the Dubai International Financial Center Courts, the country’s two largest financial free zones, both adjudicate civil and commercial disputes.
Political parties and leaders
none; political parties are banned
International organization participation
ABEDA, AfDB (nonregional member), AFESD, AMF, BIS, CAEU, CICA, FAO, G-77, GCC, IAEA, IBRD, ICAO, ICC (national committees), ICRM, IDA, IDB, IFAD, IFC, IFRCS, IHO, ILO, IMF, IMO, IMSO, Interpol, IOC, IPU, ISO, ITSO, ITU, LAS, MIGA, NAM, OAPEC, OIC, OIF (observer), OPCW, OPEC, PCA, UN, UNCTAD, UNESCO, UNIDO, UNRWA, UNWTO, UPU, WCO, WHO, WIPO, WMO, WTO
Diplomatic representation in the US
chief of mission: Ambassador Yusif bin Mani bin Said al-UTAYBA (since 28 July 2008)
chancery: 3522 International Court NW, Suite 400, Washington, DC 20008
telephone: [1] (202) 243-2400
FAX: [1] (202) 243-2432
consulate(s) general: Boston, Los Angeles, New York
Diplomatic representation from the US
chief of mission: Ambassador John RAKOLTA Jr. (since 27 October 2019)
telephone: [971] (2) 414-2200
embassy: Embassies District, Plot 38, Sector W59-02, Street No. 4, Abu Dhabi
mailing address: P. O. Box 4009, Abu Dhabi
FAX: [971] (2) 414-2603
consulate(s) general: Dubai
Flag description
three equal horizontal bands of green (top), white, and black with a wider vertical red band on the hoist side; the flag incorporates all four Pan-Arab colors, which in this case represent fertility (green), neutrality (white), petroleum resources (black), and unity (red); red was the traditional color incorporated into all flags of the emirates before their unification
National symbol(s)
golden falcon; national colors: green, white, black, red
National anthem
name: "Nashid al-watani al-imarati" (National Anthem of the UAE)
lyrics/music: AREF Al Sheikh Abdullah Al Hassan/Mohamad Abdel WAHAB
note: music adopted 1971, lyrics adopted 1996; Mohamad Abdel WAHAB also composed the music for the anthem of Tunisia
Economy
Economic overview
The UAE has an open economy with a high per capita income and a sizable annual trade surplus. Successful efforts at economic diversification have reduced the portion of GDP from the oil and gas sector to 30%.
Since the discovery of oil in the UAE nearly 60 years ago, the country has undergone a profound transformation from an impoverished region of small desert principalities to a modern state with a high standard of living. The government has increased spending on job creation and infrastructure expansion and is opening up utilities to greater private sector involvement. The country's free trade zones - offering 100% foreign ownership and zero taxes - are helping to attract foreign investors.
The global financial crisis of 2008-09, tight international credit, and deflated asset prices constricted the economy in 2009. UAE authorities tried to blunt the crisis by increasing spending and boosting liquidity in the banking sector. The crisis hit Dubai hardest, as it was heavily exposed to depressed real estate prices. Dubai lacked sufficient cash to meet its debt obligations, prompting global concern about its solvency and ultimately a $20 billion bailout from the UAE Central Bank and Abu Dhabi Government that was refinanced in March 2014.
The UAE’s dependence on oil is a significant long-term challenge, although the UAE is one of the most diversified countries in the Gulf Cooperation Council. Low oil prices have prompted the UAE to cut expenditures, including on some social programs, but the UAE has sufficient assets in its sovereign investment funds to cover its deficits. The government reduced fuel subsidies in August 2015, and introduced excise taxes (50% on sweetened carbonated beverages and 100% on energy drinks and tobacco) in October 2017. A five-percent value-added tax was introduced in January 2018. The UAE's strategic plan for the next few years focuses on economic diversification, promoting the UAE as a global trade and tourism hub, developing industry, and creating more job opportunities for nationals through improved education and increased private sector employment.
GDP real growth rate
0.8% (2017 est.)
3% (2016 est.)
5.1% (2015 est.)
Inflation rate (consumer prices)
-1.9% (2019 est.)
3% (2018 est.)
1.9% (2017 est.)
Credit ratings
Fitch rating: AA- (2020)
Moody's rating: Aa2 (2007)
Standard & Poors rating: AA (2007)
GDP (purchasing power parity) - real
$696 billion (2017 est.)
$690.5 billion (2016 est.)
$670.5 billion (2015 est.)
note: data are in 2017 dollars
GDP (official exchange rate)
$421.077 billion (2019 est.)
GDP - per capita (PPP)
$68,600 (2017 est.)
$70,100 (2016 est.)
$70,000 (2015 est.)
note: data are in 2017 dollars
country comparison to the world: 12Gross national saving
28.5% of GDP (2017 est.)
30.9% of GDP (2016 est.)
30.7% of GDP (2015 est.)
GDP - composition, by sector of origin
agriculture: 0.9% (2017 est.)
industry: 49.8% (2017 est.)
services: 49.2% (2017 est.)
GDP - composition, by end use
household consumption: 34.9% (2017 est.)
government consumption: 12.3% (2017 est.)
investment in fixed capital: 23% (2017 est.)
investment in inventories: 1.8% (2017 est.)
exports of goods and services: 100.4% (2017 est.)
imports of goods and services: -72.4% (2017 est.)
Ease of Doing Business Index scores
74.1 (2020)
Agriculture - products
dates, vegetables, watermelons; poultry, eggs, dairy products; fish
Industries
petroleum and petrochemicals; fishing, aluminum, cement, fertilizer, commercial ship repair, construction materials, handicrafts, textiles
Labor force
5.344 million (2017 est.)
note: expatriates account for about 85% of the workforce
country comparison to the world: 74Labor force - by occupation
agriculture: 7%
industry: 15%
services: 78% (2000 est.)
Population below poverty line
19.5% (2003 est.)
Household income or consumption by percentage share
lowest 10%: NA
highest 10%: NA
Budget
revenues: 110.2 billion (2017 est.)
expenditures: 111.1 billion (2017 est.)
note: the UAE federal budget does not account for emirate-level spending in Abu Dhabi and Dubai
Fiscal year
calendar year
Current account balance
$26.47 billion (2017 est.)
$13.23 billion (2016 est.)
Exports - partners
India 10.1%, Iran 9.9%, Japan 9.3%, China 5.4%, Oman 5%, Switzerland 4.4%, South Korea 4.1% (2017)
Exports - commodities
crude oil 45%, natural gas, reexports, dried fish, dates (2012 est.)
Imports - commodities
machinery and transport equipment, chemicals, food
Imports - partners
China 8.5%, US 6.8%, India 6.6% (2017)
Reserves of foreign exchange and gold
$95.37 billion (31 December 2017 est.)
$85.39 billion (31 December 2016 est.)
Debt - external
$237.6 billion (31 December 2017 est.)
$218.7 billion (31 December 2016 est.)
Exchange rates
Emirati dirhams (AED) per US dollar -
3.67315 (2020 est.)
3.67315 (2019 est.)
3.67315 (2018 est.)
3.673 (2014 est.)
3.673 (2013 est.)
Energy
Electricity access
electrification - total population: 100% (2020)
Electricity - installed generating capacity
28.91 million kW (2016 est.)
country comparison to the world: 33Electricity - from fossil fuels
99% of total installed capacity (2016 est.)
country comparison to the world: 25Electricity - from nuclear fuels
0% of total installed capacity (2017 est.)
country comparison to the world: 204Electricity - from hydroelectric plants
0% of total installed capacity (2017 est.)
country comparison to the world: 210Electricity - from other renewable sources
1% of total installed capacity (2017 est.)
country comparison to the world: 170Refined petroleum products - production
943,500 bbl/day (2017 est.)
country comparison to the world: 19Refined petroleum products - consumption
896,000 bbl/day (2016 est.)
country comparison to the world: 24Natural gas - proved reserves
6.091 trillion cu m (1 January 2018 est.)
country comparison to the world: 6Carbon dioxide emissions from consumption of energy
289.4 million Mt (2017 est.)
country comparison to the world: 24Communications
Telephones - fixed lines
total subscriptions: 2,380,238
subscriptions per 100 inhabitants: 24.18 (2019 est.)
Telephones - mobile cellular
total subscriptions: 19,749,674
subscriptions per 100 inhabitants: 200.63 (2019 est.)
Telecommunication systems
general assessment: modern fiber-optic integrated services; digital network with rapidly growing use of mobile-cellular telephones; key centers are Abu Dhabi and Dubai; 5G capabilities launched in 2019; two operators are competitive, but majority owned by the government; HSPA (high speed packet access) + LTE networks cover most of the population; low cost smart phones readily available; mobile penetration levels among the world's highest; well-established fiber-broadband network provides future growth (2020)
domestic: microwave radio relay, fiber-optic and coaxial cable; fixed-line 24 per 100 and mobile-cellular 201 per 100 (2019)
international: country code - 971; landing points for the FLAG, SEA-ME-WE-3 ,-4 & -5, Qater UAE Submarine Cable System, FALCON, FOG, Tat TGN-Gulf, OMRAN/EPEG Cable System, AAE-1, BBG, EIG, FEA, GBICS/MENA, IMEWE, Orient Express, TEAMS, TW1 and the UAE-Iran submarine cables, linking to Europe, Africa, the Middle East, Asia, Southeast Asia and Australia; satellite earth stations - 3 Intelsat (1 Atlantic Ocean and 2 Indian) (2020)
note: the COVID-19 outbreak is negatively impacting telecommunications production and supply chains globally; consumer spending on telecom devices and services has also slowed due to the pandemic's effect on economies worldwide; overall progress towards improvements in all facets of the telecom industry - mobile, fixed-line, broadband, submarine cable and satellite - has moderated
Broadcast media
except for the many organizations now operating in media free zones in Abu Dhabi and Dubai, most TV and radio stations remain government-owned; widespread use of satellite dishes provides access to pan-Arab and other international broadcasts; restrictions since June 2017 on some satellite channels and websites originating from or otherwise linked to Qatar (2018)
Internet users
total: 9,550,945
percent of population: 98.45% (July 2018 est.)
Broadband - fixed subscriptions
total: 3,024,565
subscriptions per 100 inhabitants: 31 (2018 est.)
Transportation
National air transport system
number of registered air carriers: 10 (2020)
inventory of registered aircraft operated by air carriers: 497
annual passenger traffic on registered air carriers: 95,533,069 (2018)
annual freight traffic on registered air carriers: 15,962,900,000 mt-km (2018)
Airports - with paved runways
total: 25 (2013)
over 3,047 m: 12 (2013)
2,438 to 3,047 m: 3 (2013)
1,524 to 2,437 m: 5 (2013)
914 to 1,523 m: 3 (2013)
under 914 m: 2 (2013)
Airports - with unpaved runways
total: 18 (2013)
over 3,047 m: 1 (2013)
2,438 to 3,047 m: 1 (2013)
1,524 to 2,437 m: 4 (2013)
914 to 1,523 m: 6 (2013)
under 914 m: 6 (2013)
Heliports
5 (2013)
Pipelines
533 km condensate, 3277 km gas, 300 km liquid petroleum gas, 3287 km oil, 24 km oil/gas/water, 218 km refined products, 99 km water (2013)
Roadways
total: 4,080 km (2008)
paved: 4,080 km (includes 253 km of expressways) (2008)
Merchant marine
total: 637
by type: bulk carrier 2, general cargo 113, oil tanker 17, other 505 (2019)
Ports and terminals
major seaport(s): Al Fujayrah, Mina' Jabal 'Ali (Dubai), Khor Fakkan (Khawr Fakkan) (Sharjah), Mubarraz Island (Abu Dhabi), Mina' Rashid (Dubai), Mina' Saqr (Ra's al Khaymah)
container port(s) (TEUs): Dubai Port (15,368,000), Khor Fakkan (Khawr Fakkan) (Sharjah) (2,321,000) (2017)
LNG terminal(s) (export): Das Island
Military and Security
Military and security forces
United Arab Emirates Armed Forces: Land Forces, Navy, Air Force, Presidential Guard, Joint Aviation Command; Ministry of Interior: Critical Infrastructure Coastal Patrol Agency (CICPA) (2020)
Military expenditures
5.7% of GDP (2016)
5.6% of GDP (2014)
6% of GDP (2013)
5.1% of GDP (2012)
5.5% of GDP (2011)
no public data available for 2015 or after 2016
Military and security service personnel strengths
the United Arab Emirates Armed Forces have approximately 63,000 total active personnel (44,000 Land Forces; 2,500 Navy; 4,500; 12,000 Presidential Guard) (2019)
Military equipment inventories and acquisitions
the UAE Armed Forces inventory is comprised of mostly modern imported equipment; since 2010, the UAE has acquired military equipment from more than 20 countries with the US as the leading supplier, followed by France and Russia (2019 est.)
Military deployments
est. 1,000 Eritrea (maintains a military base in the port of Assab); est. 3-4,000 Yemen (2019)
Military service age and obligation
18-30 years of age for compulsory military service for men; 17 years of age for male volunteers with parental approval; 24-month general service obligation, 16 months for secondary school graduates; women can volunteer to serve for 9 months regardless of education (2018)
Transnational Issues
Disputes - international
boundary agreement was signed and ratified with Oman in 2003 for entire border, including Oman's Musandam Peninsula and Al Madhah enclaves, but contents of the agreement and detailed maps showing the alignment have not been published; Iran and UAE dispute Tunb Islands and Abu Musa Island, which Iran occupies
Illicit drugs
the UAE is a drug transshipment point for traffickers given its proximity to Southwest Asian drug-producing countries; the UAE's position as a major financial center makes it vulnerable to money laundering; anti-money-laundering controls improving, but informal banking remains unregulated