How Powerful Is The United Arab Emirates?

UEA flag via wikipedia

In the early 1970’s the United Arab Emirates was an impoverished desert, with little access to food, water, and well-paying jobs. Today, the country looks nothing like it did 45 years ago. Due in no small part to oil, the UAE has completely transformed. The country is now one of the largest economies in the middle east, and its per capita GDP is on par with highly-developed European nations. So, as a fairly new country with a recent influx of wealth, we wanted to know, just how powerful is the United Arab Emirates?

Well, geographically speaking, the UAE is fairly small. At just over 30,000 square miles, the country is roughly the size of the US state of South Carolina. The UAE’s population of just over nine million is also fairly insignificant. However, it’s growing fast. Throughout the most recent two decades, the populace has nearly quadrupled, due to a high birth rate and a rapid influx of expatriate workers, the majority of which are from India. Today, non-nationals make up more than 80 percent of the UAE population. An overwhelming majority UAE expatriates are in the country for one reason: jobs.

UEA map via wikipedia

The UAE's economy is the most expanded in the Persian Gulf, and its most populous city, Dubai, is emerging as a hub for travel, trade, and aviation. Regarding tourism, Dubai ranks first among cities in the middle east, and according to some measurements, fifth in the world. The UAE is extremely conducive to private business and the free market. In the country’s 38 free trade zones, businesses and corporations, even those that are owned by foreigners, are exempt from all taxes. And all UAE residents enjoy no sales or income tax, as well as a very low property tax.

With little revenue coming from taxes, the UAE’s government is left extremely dependent on its primary export: oil. Even after efforts to diversify the economy, the resource still contributes to about 40 percent of the UAE’s more than 350 billion dollar GDP. As global demand for oil has slowed, the country has been forced to make up for loss by reducing public spending, including eliminating fuel subsidies in 2015.

The UAE has also made great strides regarding defense. Over the last two decades, the country has diversified its weapons trade, expanded its army and developed its existing military technology. Today, the UAE has a fairly small army of roughly 65,000 troops, but a sizable defense budget of more than $14 billion dollars. As a result, their small army is technologically advanced and well-equipped. The UAE is also a close ally of the United States. In fact, over the last two decades, it has fought alongside the US more times than any other Arab nation. These conflicts include the ongoing War in Afghanistan, the 1990 Gulf War and the current fight against ISIS.

The UAE is also relatively peaceful, and, compared to its neighbors in the Persian Gulf, enjoys little domestic dissent. However, the country is far from perfect, as rapid development and broad employer rights have paved the way for widespread abuse of expatriate workers. And although the country appears to be modern and progressive, its autocratic government is frequently accused of jeopardizing free speech by suppressing dissidents, forcing disappearances and even torturing suspects. There’s no question that the UAE is well on its way to becoming a financial superpower. But in order to modernize and expand its economy, it may need to clean up its human rights record first.

The UAE is one of the richest countries in the region, but it doesn’t match their oil giant and neighbor, Saudi Arabia. So if you think the UAE wields serious influence, you might want to check out just how powerful the Kingdom of Saudi Arabia is.

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