UAE. The population of the United Arab Emirates stood at 6.4 million at the end of 2007, but only 14 percent are nationals of the oil-rich Gulf state, according to a study published recently.

The Federal National Council (FNC), a legislative advisory body which conducted the study, said the total number of inhabitants included just 900,000 nationals, with Asians making up a large proportion of the foreigners.

It raised concerns that unemployment among UAE nationals will rise and that a large part of the national income would go abroad.

"If these percentages continue they will lead to foreigners partially dominating segments of the national economy, especially in property investments and construction," the study said.

"This will drain national income, in the form of wages and money transfer outside the country."

Labour Minister Sakr Ghubash said just 250,000 nationals worked in the private and public sectors, and another 250,000 would join by 2020 and called for a revision of economic strategy to confront the demographic change, according to Emirates Today.

The newspaper said the UAE had issued 640,000 work permits to foreigners in the first quarter of this year, 306,000 in the booming city-state of Dubai alone.

The study found that 87% of the workforce comes from Asia.

The UAE experienced an economic boom in recent years, attracting many foreigners, especially from South and Southeast Asia, many of whom are low-paid workers.

Oil-rich Gulf states have traditionally been a major destination for migrant workers from neighbouring South Asian and Arab countries, while Westerners are also attracted by tax breaks and the lifestyle.

Expatriates living in Arab states of the Gulf make up a third of the 35 million population, according to the latest figure published on the Gulf Cooperation Council website.

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