The UAE has an open economy with one of the world’s largest per capita income. The oil sector, once the basis of the country’s wealth, now contributes around 30% of the country’s gross domestic product (GDP). Abu Dhabi and Dubai contribute around 80% to the country’s GDP.
Over 90% of the oil reserves lie under Abu Dhabi and there is enough at the rate of current production to last a further 100 years. While there is still a heavy dependence on the oil and gas industry, trade, manufacturing, tourism and construction also play an important part in the national economy. Investment in infrastructure and development projects exceeded an estimated Dhs. 3.9 billion in the first half of 2003. The UAE’s main export partners are Japan, India, Singapore, South Korea, Oman and Iran. The main import partners are Japan, USA, UK, Italy, Germany and South Korea.
However Abu Dhabi’s present economy is showing a strong growth by its expanding non-oil sectors, with gains in areas like transport, real estate, manufacturing, finance and tech exceeding oil’s contribution to GDP, with successful diversification efforts under under Economic Vision 2030 towards innovation, sustainability, and becoming a global business hub, attracting talent and investment with supportive regulations.
Tourism Strategy 2030 and Cultural Expansion
Abu Dhabi’s tourism development focuses on its ‘Tourism Strategy 2030’ aiming to attract 39.3 million visitors by 2030 through cultural growth (Louvre, Grand Mosque), modern attractions (Sea World), infrastructure (airport expansion), and diversified marketting to key markets like India and UK, boosting its global standing as a cultural hub with significant GDP contribution and job creation. The strategy aims at an economic impact of AED 90 billion contribution to GDP by 2030 with employment creating 178,000 new jobs.
In 2025 the tourism sector has witnessed 47% growth, Cultural sites saw a 47% rise in visitors, Strong growth from India (29%) and UK (17%), with 80% hotel occupancy during Eid al-Adha. These initiatives are driven by the Department of Culture and Tourism (DCT Abu Dhabi), focussing on sustainable growth, human capital development, and safeguarding technology to position the emirate as a premier global destination.
Retail, Hospitality and Urban Landmarks
Being the trend setting paradise Abu Dhabi’s developing reputation can be traced to opening of the Abu Dhabi Mall and Marina Mall in 2001. Abu Dhabi Mall is located within the Tourist Club Area and boasts the Abu Dhabi Co-op (a 16,000 sq. metre hypermarket), over 200 retail outlets, restaurants, an extensive food court, coffee shops and a multi screen cinema. Located near the rapidly developing Breakwater area opposite the corniche, Marina Mall is another shopping and recreational landmark, attracting crowds with a Carrefour hypermarket. The IKEA market set up earlier has been shifted to other place.
The US$200 million Emirates Palace Hotel is the new Luxury hotel in Abu Dhabi. Set within 200 acres of landscaped gardens it houses the largest conference facilities in UAE. Also on the Corniche Road, the Dhs. 750 million Capital Plaza Commercial Development Project includes a luxury hotel, offices, apartments and retail facilities.
Parks, Heritage and City Planning
Khalifa Park Project is located on the site of old airport, near the Al Maqtaa Bridge. The 430,000 sq. m. piece of land is dedicated to promoting tourism and highlighting the emirates cultural heritage. The park is first of its kind in the Middle East, featuring a marine natural history museum, several public gardens and oases, a mosque, a huge open air amphitheatre seating 1,500, a water garden, games and and a festival stand.
The New Corniche Park is divided into three themed zones; the Family Zone, the Central Zone and the Heritage Zone. Besides Al Ain has emerged as a tourist destination in the region.
The ambitous ten year plan was launched by Abu Dhabi Muncipality in 1990 aimed at providing the necessary infrastructure for the long term expansion of the city which stands completed with further underway. About Dhs 40 billion worth investment in tourism was planned over the next 10 years. The plan was to develop some of the 200 plus natural islands located around Abu Dhabi, as well as to develop a focus on eco-tourism.
The Projects included Corniche Area, Emirates Palace Hotel, Reem Island, Al Gurm Resort, Al Hosn Palace, Reconstruction of the Central Market, Abu Dhabi International Airport, Al Raha Beach, Khalidya Mall, MARINA mall, Zayed Sports City, Sheikh Zayed Grand Mosque, The Gate, Al Ain, etc.
International Relations and Foreign Policy
International Relations: The UAE’s official foreign policy is one of non-alignment, but it is committed to support Arab unity. The country became a member of the UN and the Arab League in 1271. It is a member of the IMF, OPEC, the World Trade Organisation (WTO) and other international and Arab organisations.
The UAE led by the late president, His Highness Sheikh Zayed bin Sultan Al-Nahyan, had a leading role in the 1981 formation of the Arab Gulf Co-operation Council (AGCC, also known as the GCC). The other member countries are Bahrain, Kuwait, Oman, Qatar and Saudi Arabia. The UAE is the third largest member in terms of geographical size after Saudi Arabia and Oman. All embassies and consulates are represented either in Abu Dhabi or Dubai or both.
Government Structure and Leadership
Government & Ruling Party: The Supreme Council of Rulers, the highest authority in the UAE, comprises the heriditary rulers of the seven emirates. Since the emirates are governed by heriditary rule there is little distinction between the royal families and the government.
The Supreme Council is responsible for general policy matters including education, defence, foreign affairs, communications and developmenty, and for ratifying federal laws. The Council meets four times a year and the Abu Dhabi and Dubai rulers have effective power of veto over decisions. While non-democratic, there is little indication of dissatisfaction with the system among UAE Nationals.
The seven members of the Supreme Council elect the president from among its members. The president of the UAE is His Highness Sheikh Khalifa bin Zayed Al Nahyan, who is also the ruler of Abu Dhabi. He was elected to the position on the death of his father, Sheikh Zayed bin Sultan Al Nahyan, who had been president since independence on December 2, 1971, and ruler of Abu Dhabi since August 6, 1966.
The Supreme Council also elects the vice president, currently HH Sheikh Mohammad bin Rashid Al Makhtoum, Ruler of Dubai. The president and vice president are elected and appointed for five year terms, there is no limit to the number of times they may serve.
Population and Utilities
Population: The population of Abu Dhabi has increased from 4,041,000 in 2004 with 20% nationals to about 4.14 million (4,135,985) a significant increase. Abu Dhabi attracts people from over 200 nationalities, with a strong presence in professional roles.
Electricity & Water: Electricity and water services in Abu Dhabi are excellent and power cuts or water shortages are practically unheard of. Both of these utilities are provided by Abu Dhabi Water and Electricity Authority known as ADWEA or WEDI. The electricity supply is 220/240 volts and 50 cycles. More expensive than oil, the water is heavily purified and safe to drink but most people prefer to drink the locally bottled mineral waters.
