The term 'UNITED ARAB Emirates' is a combination of four words, with the first being 'UNITED'. The UNITED ARAB Emirates is a country located in the Middle East, formed in 1971 by the unification of seven emirates. It is a federation of seven states, each governed by an absolute monarchy. The UAE is a major oil producer and has the seventh-largest proven reserves in the world. It is also a major hub for international trade and finance.