Disputes - international: location and status of boundary with Saudi Arabia is not final, de facto boundary reflects 1974 agreement; no defined boundary with most of Oman, but Administrative Line in far north; claims two islands in the Persian Gulf occupied by Iran: Lesser Tunb (called Tunb as Sughra in Arabic by UAE and Jazireh-ye Tonb-e Kuchek in Persian by Iran) and Greater Tunb (called Tunb al Kubra in Arabic by UAE and Jazireh-ye Tonb-e Bozorg in Persian by Iran); claims island in the Persian Gulf jointly administered with Iran (called Abu Musa in Arabic by UAE and Jazireh-ye Abu Musa in Persian by Iran) - over which Iran has taken steps to exert unilateral control since 1992, including access restrictions and a military build-up on the island; the UAE has garnered significant diplomatic support in the region in protesting these Iranian actions

Illicit drugs: growing role as heroin transshipment and money-laundering center due to its proximity to southwest Asian producing countries and the bustling free trade zone in Dubai