Economic Analysis of the United Arab Emirates 1. IntroductionA. General informationThe United Arab Emirates (UAE) is a federation of seven Emirates established on 2 December 1971. It is located between the Arabian Gulf and the Gulf of Oman and borders Saudi Arabia and Oman. The country has a total population of 3,740,000 as of 2004. Approximately 85% of those residing in the United Arab Emirates are not originally from the country. Arabic is the official language, however English is widely considered the official "business" language. Communication should not be a problem for English speaking people. The Muslim faith is practiced by the majority of the population, but there are a significant number of Christians and Hindus. Islam does not play an important role in business practices. The corporate culture more closely resembles the culture found in America or Great Britain. The UAE has a well-developed infrastructure. The capital Abu Dubai and the city of Dubai are both very modern cities. They have a modern and extensive public transportation system that includes buses, highways, commercial seaports, and an international airport. The country also has a number of government-run hospitals. The country is mainly known for oil production, like most countries in the region. Their vast oil reserves have allowed them to achieve enormous economic and social development. Most of the UAE's oil reserves are located in the... center of the paper... United Arab Emirates and have unlimited liability for the operation of the subsidiary. The government recognizes seven different types of companies that can be incorporated in the UAE. The first is a public and private limited company (JSC), a limited liability company (LLC), a limited partnership (LPC), a joint stock partnership company (SPC) and a joint venture company (CC) . Some restrictions applicable to these companies include that their main offices must be in the UAE, they must have at least two shareholders in the UAE, and citizens must own at least 51% of their capital. The reason for these restrictions is to limit the transferability of interests and prevent the formation of holding and subsidiary company structures 100%.