The United Arab Emirates (UAE) is a federation of seven emirates bordering the Gulf of Oman and the Persian Gulf, between Oman and Saudi Arabia: 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. The United Arab Emirates has the world’s sixth largest oil reserves and possesses one of the most developed economies in the Middle East, in a strategic location along southern approaches to the Strait of Hormuz, a vital transit point for world crude oil.