The United Arab Emirates (UAE) is a federation of seven states formed in 1971 by the then Trucial States after independence from Britain.
Since then, it has grown from a quiet backwater to one of the Middle East's most important economic centres.
Although each state - Abu Dhabi, Dubai, Ajman, Fujairah, Ras al Khaimah, Sharjah and Umm al Qaiwain - maintains a large degree of independence, the UAE is governed by a Supreme Council of Rulers made up of the seven emirs, who appoint the prime minister and the cabinet.
Before oil was discovered in the 1950s the UAE's economy was dependent on fishing and a declining pearling industry. But since 1962, when Abu Dhabi became the first of the emirates to begin exporting oil, the country's society and economy have been transformed.
The late Sheikh Zayed, ruler of Abu Dhabi and president of the UAE at its inception, was quick to seize on the potential of the oil industry. He oversaw the development of all the emirates and directed oil revenues into healthcare, education and the national infrastructure.
The oil industry has attracted a large influx of foreign workers who, together with expatriates, now make up more than three quarters of the population.
But the UAE's authorities also tried to reduce its dependency on oil exports by diversifying the economy, creating booming business, tourism and construction sectors.
While Abu Dhabi remained relatively conservative in its approach, Dubai, which has far smaller oil reserves, was bolder in its diversification policy.
Particularly during the credit boom that built up after 2000, Dubai sought to turn itself into the financial gateway and cosmopolitan hub of the Middle East.
It also began attracting vast amounts foreign investment for ever more ambitious construction projects, most famously the Burj Khalifa skyscraper - as of 2009, the tallest man-made structure ever built - and futuristic land reclamation projects, such as the palm-shaped artificial Palm Islands.
But the worldwide freeze in credit markets looked set to hit Dubai harder than oil-rich Abu Dhabi, prompting speculation that the balance of power in the UAE could shift back to its traditional political centre.
The UAE is one of the most liberal countries in the Gulf, with other cultures and beliefs generally tolerated, especially in Dubai.
However, politically it remains authoritarian. It was the only country in the region not to have elected bodies until 2006 December, when it convened a half-elected federal assembly, which, however, was restricted to a consultative role.
Full name: United Arab Emirates Population: 4.7 million (UN, 2010) Capital: Abu Dhabi Largest city: Dubai Area: 77,700 sq km (30,000 sq miles) Major language: Arabic Major religion: Islam Life expectancy: 77 years (men), 79 years (women) (UN) Monetary unit: 1 Dirham = 100 fils Main exports: Oil, gas GNI per capita:n/aInternet domain: .ae International dialling code: +971President, ruler of Abu Dhabi: Sheikh Khalifa bin Zayed
Sheikh Khalifa was named as president by the UAE Federal Council shortly after the death of his father, Sheikh Zayed Bin-Sultan Al Nahyan, in November 2004. The former president, who was 86, had been in poor health.
Sheikh Khalifa succeeded his father Sheikh Zayed in 2004Sheikh Khalifa, who had been crown prince of Abu Dhabi since 1969, is said to be a pro-Western moderniser.
Often referred to as the father of the nation, Sheikh Zayed succeeded his brother as ruler of Abu Dhabi in 1966 and, because of his strong leadership and commitment to forming the federation, he was elected as the first president of the United Arab Emirates in 1971.
Re-elected every five years since 1971, Sheikh Zayed instilled the values of religious tolerance and equality, especially for women, into his policies, which greatly enhanced the stability of the UAE.
Vice president and PM, ruler of Dubai: Sheikh Mohammed bin Rashid al-Maktoum
Sheikh Mohammed sought to recast Dubai as a global citySheikh Mohammed succeeded his elder brother Sheikh Maktoum as ruler of Dubai in January 2006, and was elected to take his place as the UAE's federal prime minister.
Even before taking over as ruler, Sheikh Mohammed, had pursued the ambition of transforming Dubai - originally a fishing village and the emirates' main trading post - into one of the world's foremost financial and cultural capitals.
In the early 2000s, growth rates reached double digits, while investment and workers poured in from Asia, other Middle Eastern countries and the West. Sheikh Mohammed also worked to make his state the most tolerant in the UAE for foreigners.
However, the economic crash of 2008 left Dubai with large debts to foreign investors lured during the boom years, and needing assistance from Abu Dhabi. In December 2009, Abu Dhabi gave Dubai $10bn handout to pay off the debts of the government-owned company Dubai World.
Ruler of Ajman: Sheikh Humaid bin Rashid al-Nuaimi Ruler of Fujairah: Sheikh Hamad bin Muhammad bin Hamad al-Sharqi Ruler of Ras al Khaimah: Sa'ud Bin-Saqr al-Qasimi Ruler of Sharjah: Sheikh Sultan bin Muhammad al-Qasimi Ruler of Umm al Qaiwain: Sheikh Rashid bin Ahmad al-MuallaThe UAE is a regional and international centre for TV and media, alongside Egypt and Lebanon. Dubai Media City and twofour54, Abu Dhabi's media zone, were set up to attract key players.
Organisations including Reuters, CNN, Sony and Fox have moved in. The UAE is home to major pan-Arab broadcasters MBC and Orbit Showtime Network.
The constitution provides for freedom of speech but there is strong regulatory and political control of media content.
Publications must be licensed and follow official guidelines on reporting. Foreign publications are censored before distribution. Journalists tend to practise self-censorship.
Internet use is extensive; by June 2010 there were 3.8 million users (InternetWorldStats.com). Extensive, automatic filtering is in place at ISP level. Targeted content includes opposition politics and religion.
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