Country Update.

The article presents information on the economic and political conditions in United Arab Emirates. The country has the ability to finance a social spending and public investment program without generating large fiscal deficits as it can tap into windfall revenues accumulated during the oil price boom. The cities of Abu Dhabi and Dubai have pursued an economic diversification program aimed at generating maximum sustainable growth rates. In the third quarter of 2008, Dubai's real estate prices have grown while at the height of the development boom.