The UAE was established in 1971 as a federation of seven emirates and is strategically situated in the southeast of the Arabian Peninsula in Southwest Asia on the Persian Gulf, and bordering Oman and Saudi Arabia and sharing sea borders with Iraq, Kuwait, Bahrain, Qatar and Iran. It is comprised of seven states called as Emirates. They are Abu Dhabi, Dubai, Sharjah, Ajman, Umm al-Quwain, Ras al-Khaimah and Fujairah. The capital and second largest city of the United Arab Emirates is Abu Dhabi. It is also the center of political, industrial and cultural  activities of the country.  The United Arab Emirates (UAE) has a stable political and economic system capable of supporting long term civil aviation planning.