ABU DHABI - The Formal State Structure.

Abu Dhabi has an elaborate system of government, with an Executive Council (local cabinet) focusing on the emirate's needs and an annual budget far bigger than the federal budget. Beneath the crust is a modern technocratic structure increasingly filled by young Abu Dhabian university graduates, notably including the sons of the ruler.

The emirate has maintained some of the old traditions, however, and the ruling family is closely associated with tribal clans through various institutions and collective decision making councils. These bodies are in the following order of importance:

The Amiri Diwan (court), of the ruler Shaikh Zayed, which has two main branches: one in Abu Dhabi City at the Presidential Palace, being the highest seat in the union of seven emirates (the UAE), and one in Al Ain.

The Diwan of the Crown Prince, Shaikh Khalifa Bin Zayed, who is the ruler's first son who will succeed Shaikh Zayed. When Khalifa succeeds his father as Abu Dhabi ruler he will be elected as UAE president by the federation's Supreme Council of rulers. When Khalifa takes the top post, his son Shaikh Sultan Bin Khalifa will be the day-to-day ruler of Abu Dhabi; and he will exercise powers over the federal system in partnership with Dubai's strongman Shaikh Mohammed Bin Rashid Al Maktoum.

The Executive Council (cabinet) with a Department (ministry) for every sector, which matches the bureaucracy of the federal government based in Abu Dhabi, led by Shaikh Khalifa Bin Zayed.

The National Consultative Council (local parliament), appointed by the ruler and consists of representatives of the main clans of Abu Dhabi.

The SPC, an autonomous body and ruler of the hydrocarbon sector (see above).

The Abu Dhabi Investment Authority, an autonomous body (see above).

The Municipal Council, mainly consisting of a municipality for each of Abu Dhabi and Al Ain.

The Defence Council, in charge of the military establishment which is still being helped by British and Pakistani officers.

The judiciary consists mostly of Egyptian judges or religious ulema. But the number of Abu Dhabians in this sphere is increasing.

Abu Dhabi is by far the wealthiest state in the Gulf, with about $200 bn invested overseas. Its income from oil and gas exports and petrochemicals will be rising considerably in the coming years as its production capacities are being expanded.

The Abu Dhabi Investment Authority (ADIA) is in charge of the emirate's local, regional and overseas investments. It was established in the 1970s to channel the emirate's surplus revenues into profitable placement. ADIA has since become the third most important institution in Abu Dhabi's economic system next to the Executive Council (local cabinet) and the Supreme Petroleum Council (SPC). The current UAE oil minister and key officials in various sectors in Abu Dhabi have come from ADIA. The Abu Dhabi Investment Co. (ADIC) is the executive arm of ADIA (see OMT).

Shaikh Ahmad Bin Zayed Al Nahyan, in his 20s, is the head of ADIA. In this key position he has succeeded Mohammed Habroush Al Suwaidi, who is now an advisor to the Finance Department (local ministry). Shaikh Ahmad's deputy is Khalifa Al Kindi.

ADIA is having a new $122.5m headquarters built on the Abu Dhabi Corniche. This will be the highest building in Abu Dhabi City at 175 metres. It will consist of two towers which will offer 66,000 square metres of office space and 21,000 square metres of car parking.