THE UNITED ARAB EMIRATES: WHAT IS BEHIND ECONOMIC MIRACLE?

Abstract

Аbstract. The United Arab Emirates is situated simultaneously in southern region of the Persian Gulf and on the Coast of the Gulf of Oman next to Saudi Arabia and Oman and remain the closest maritime neighbour of powerful Iran. This fact defines geopolitical importance of the country. But environment here is not conductive for economic development. It is distinguished by some of the highest temperatures in the world during warm season and by extreme humidity because of two surrounding bodies of water. It lacks permanent lakes and rivers and the whole area is prone to severe sandstorms. The native population of the UAE is rather small, what forces Emirati rulers to invite foreign workers in growing numbers. Despite domination of crude oil in foreign trade, the ruling elite took a strategic step towards service economy, what represents an interesting example to follow because of the apparent success of such policy. In this article the author makes an attempt to find out what measures at state level made the UAE the most prosperous country in the Gulf. Key words: UAE, Abu Dhabi, Dubai, airlines, free economic zones, ports, tourism, property.