The UAE, or United Arab Emirates, is a federal constitutional monarchy and a country located in the eastern part of the Arabian Peninsula, on the southeastern coast of the Persian Gulf. It is a federation of seven constituent emirates: Abu Dhabi, Dubai, Sharjah, Ajman, Umm Al Quwain, Fujairah, and Ras Al Khaimah. The UAE was formally established on December 2, 1971, when six of the former British-protected Trucial States signed the founding treaty, with Ras Al Khaimah joining on February 10, 1972. The union was formed following the British announcement in 1968 of its withdrawal from the Arabian Gulf, solving the problem of creating a stable, independent state from the sheikhdoms.
The highest authority is the Federal Supreme Council, composed of the rulers of the seven emirates, which holds both legislative and executive powers. The ruler of Abu Dhabi traditionally serves as the President of the UAE, and the ruler of Dubai serves as the Vice-President and Prime Minister. Each emirate retains considerable autonomy, including control over mineral rights and revenues, under the provisional constitution of 1971. The federal structure also includes a Council of Ministers (Cabinet) and the advisory Federal National Council (FNC), which has 40 members, half of whom are appointed and half elected.
The UAE is deeply connected to India, being its third-largest trading partner, with bilateral trade exceeding $100 billion in FY 2024-25. The relationship was significantly strengthened by the Comprehensive Economic Partnership Agreement (CEPA), which came into force on May 1, 2022, aiming to double bilateral trade to $200 billion by 2032. The UAE is also home to the largest Indian diaspora globally, with over 4.3 million Indians, making up roughly 35% of the country's population. Recent changes include the introduction of a 15% minimum top-up tax on large multinational companies starting in January 2025 to enhance non-oil revenue, and the launch of the Zero Government Bureaucracy Program in 2024.