The United Arab Emirates (UAE) is a federation of seven states that has grown from a quiet backwater to one of the Middle East's most important economic centres. United Arab Emirates has an open market economy .
The economy of the United Arab Emirates is the second largest in the Arab world, with a gross domestic product (GDP) of $403.2 billion (AED 1.46 trillion) in 2014. UAE's market is one of the world's most dynamic markets worldwide, placed among the 16 largest exporters and 20 largest importers of commodities. UAE is dependent on oil revenues. Petroleum and natural gas continue to play a central role in the economy. 85% of the UAE's economy was based on the oil exports. The UAE has six per cent of the world’s oil reserves and the seventh largest proven natural gas reserves.
UAE ranked fourth worldwide in terms of infrastructure quality. The contribution of tourism in the Emirati GDP has increased. UAE has 32 free zones, 26 of which in Dubai with activities relating to services and trade. A common set of incentives: 0% customs duties; no quotas; no foreign exchange controls; unrestricted capital and profit repatriation; tax holidays; streamlined labor procedures; no restriction on foreign ownership; reduction in red tape and bureaucracy; and competitive land rates with long term renewable leases.
Dubai is perceived to be the best place for Businessmen from all over the world to make investments and conduct business transactions.