Abu Dhabi is one of the seven emirates that make up the United Arab Emirates (UAE) and is the seat of the federal government and the country`s capital.
UAE lies on the south-eastern tip of the Arabian Peninsula, bordered by Saudi Arabia to the south and west and the Sultanate of Oman to the southeast, while Qatar lies to the northwest.
The country`s total land area is about 83,600 square kilometres, where over 80 per cent is occupied by the emirate of Abu Dhabi. UAE`s population of 4.43 million as of 2006 comprises roughly 20 percent Emirati nationals with the rest accounted for mostly by Asian, African and European nationals. The emirates of Abu Dhabi and Dubai comprise over two-thirds (67 per cent) of the country`s total population. The population ratio is also significantly skewed towards the urban zones, which host 82 per cent of the country`s residents.
Endowed with rich natural resources, UAE`s economy is dominated by oil exports although a growing diversification in the country`s economy has been evident in recent years. In 2008, oil and natural gas production accounted for 37.9 percent of the country`s gross domestic product (GDP), up from about 36 percent the previous year because of a spike in global oil prices. UAE has about 8 percent, or 98.7 billion barrels, of the world`s proven oil reserves and hosts the fifth largest natural gas reserves in the world.