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United Arab Emirates, federation of emirates (1995 est. pop. 2,925,000), 30,000 sq mi (77,700 sq km), SW Asia, on the E Arabian Peninsula, bordered by the Persian Gulf (N), the Gulf of Oman (E), Oman (S), Saudi Arabia (S, W), and Qatar (NW). It comprises the emirates (in fact, sheikhdoms) of Abu Dhabi (with 80% of the area), Ajman, Dubai, Fujairah, Ras al-Khaimah, Sharjah, and Umm al-Qaiwain. The city of Abu Dhabi is the capital. The land is largely hot, dry desert; in the east is a portion of the Jabal al Akhdar Mts. Oil, first exploited in the 1960s, is critical to the economy; oil exports rank among the world's largest, and oil revenues have made the per capita income one of the world's highest. There are also rich natural-gas deposits, but banking and financial services, regional corporate headquarters, and tourism are increasingly important. Fishing and pearling are traditional occupations. The indigenous population, Sunni Muslim Arabs, is outnumbered by foreign-born workers, mostly from Asia, originally attracted by the petroleum boom. The official language is Arabic, but Farsi and English are widely used. Overall governmental authority is invested in the Supreme Council, which consists of the seven sheikhs; a majority of five (including both Abu Dhabi and Dubai) must agree to any action.

History
Formerly known as the Trucial States, Trucial Coast, or Trucial Oman, the seven constituent emirates were bound to Great Britain by truce (1820) and agreement (1892). After World War II Britain granted autonomy to the emirates, and in 1971 the independent federation was formed; neighboring Qatar and Bahrain, which originally were to be part of the federation, opted for separate statehood.

Originally governed by a provisional constitution, the federation went through a period of severe internal tensions in the late 1970s and 1980s, with rivalry between Abu Dhabi and Dubai hampering closer cooperation. The United Arab Emirates participated with the international coalition against Iraq during the Persian Gulf War (1991) and since then has expanded its international contacts and diplomatic relations. The federation's constitution was made permanent in 1996. A dispute erupted with Saudi Arabia in 1999 over relations with Iran, a traditional enemy; while Saudi Arabia appeared willing to seek improved ties, the emirates still regarded Iran as a foe. Sheikh Zaid ibn Sultan al-Nahayan, the ruler of Abu Dhabi, was president of the UAE from the founding of the federation until his death in 2004, when his son and heir, Sheikh Khalifa ibn Zaid Al Nahayan, was elected to succeeded him.


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