Know UAE - At Glance

UAE AT A GLANCE

2009

UAE at a Glance

2009

Undertaken with the support and assistance of the National Media Council. This book forms part of a multimedia publishing programme involving publication of the UAE Yearbook in English, French and Arabic printed and electronic editions; management of UAE Interact (www.uaeinteract.com), which contains news updates linked to pages of the Yearbook; publication of UAE at a Glance, which summarises main data on the UAE; and production of a DVD containing films and e-books on the UAE.

The publishers wish to acknowledge and thank the National Media Council for their valuable encouragement and support for this multifaceted project.

Editor: Paula VineAssociate Editors: Ibrahim Al Abed, Peter Hellyer, Peter Vine

Text copyright ©2009: Trident PressPhotographs ©: Emirates News Agency (WAM), Trident Press Ltd, The National, Gulf News, Getty Images, Hanne & Jens Eriksen, Photolibrary, Frederic Froger, Fotosearch, Grapheast, Abu Dhabi Urban Planning Council, BP Photographic Archives, Peter Vine

English edition design and typesetting: Noel MannionLayout copyright ©2009: Trident Press

This book contains information available at the time of printing. Whilst every effort has been taken to achieve accuracy, the publishers cannot accept any liability for consequences arising from the use of information contained in this book.

Statistics are based on available sources and are not necessarily official or endorsed by the UAE Government.

British Library Cataloguing in Publication Data : A CIP catalogue record for this book is available from the British Library.ISBN: 1-905486-51-0Published by Trident Press Ltd

175 Piccadilly, Mayfair, London WIJ 9TBTel: 020 7491 8770Fax: 020 7491 8664E-mail: [email protected]: www.tridentpress.com

For further information please contact:National Media CouncilAbu DhabiUnited Arab EmiratesTel: 009712 4452922Fax: 009712 4450458E-mail: [email protected]

u History and Heritage 10

u Government 20

u the economy 36

u infrastructure 50

u People and society 66

u media and culture 80

u environment 86

u sports and leisure 94

u exhibitions and events 100

contents

factfi lecoUntry Profile

The United Arab Emirates is a federation of seven emirates (Abu Dhabi, Dubai, Sharjah, Ajman, Umm al-Qaiwain, Ra’s al-Khaimah and Fujairah) that was formed in 1971.

¢ Country name: United Arab Emirates (UAE) or Dawlat al Imarat al Arabiyya al Muttahidah ¢ Capital: Abu Dhabi¢ National Day: 2 December ¢ Time: four hours ahead of GMT¢ Currency: Emirati dirham (Dh or AED)¢ Exchange rate: Dh3.67 per US dollar. The UAE dirham has been o� cially pegged to the US dollar since February 2002.¢ Flag: three equal horizontal bands of green (top), white, and black with a wider vertical red band on the hoist side

GeoGraPHy

Situated towards the south-east of the Arabian Peninsula, the UAE is a roughly triangular landmass whose coastlines form the south and south-eastern shores of the Arabian Gulf and part of the western shores of the Gulf of Oman. The UAE thus occupies a strategic location along southern approaches to the Straits of Hormuz. The UAE also has land borders with Oman and Saudi Arabia.

¢ Latitude/Longitude: From 26.08˚ to 22.5˚N; 55.5˚ to 58.37˚E¢ Area: approximately 82,880 square kilometres. Abu Dhabi accounts for 87 per cent of the country’s total landmass. ¢ Coastline: prior to construction of the ‘Dubai Palms’ and other schemes, the coastline of the UAE was approximately 1318 kilometres. Land reclamation projects are extending this � gure so that the new coastline length is yet to be de� ned.¢ Climate: the UAE enjoys a desert climate, warm and sunny in winter, hot and humid during the summer months. Average rainfall is 100mm annually although it varies considerably across the country, with higher rainfall in the eastern mountains, where it is also generally cooler.¢ Topography: a low-lying coastal plain merges into the rolling sand dunes of the Rub al-Khali desert with rugged mountains along the UAE’s eastern border with Oman and in the north. ¢ Elevation extremes: the country’s lowest point is at sea level and its highest point is 1527 metres at Jebal Yibir.¢ Natural resources: the UAE’s most important natural resources are oil and natural gas, more than 90 per cent of which are located in Abu Dhabi.

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federal Government

The UAE enjoys a high degree of political stability and is the only state in the Arab world to have a working federal system that has stood the test of time.

¢ Political system: a federation with speci� c areas of authority constitutionally assigned to the UAE Federal Government and other powers reserved for member emirates.¢ Constitution: adopted provisionally on 2 December 1971, made permanent in 1996.¢ The Federal Supreme Council (FSC): the FSC, the highest constitutional authority in the UAE, has both legislative and executive powers and is made up of the rulers of the seven emirates. ¢ President: HH Sheikh Khalifa bin Zayed Al Nahyan, Ruler of Abu Dhabi¢ Vice President & Prime Minister: HH Sheikh Mohammed bin Rashid Al Maktoum, Ruler of Dubai ¢ Deputy Prime Minister: HH Sheikh Sultan bin Zayed Al Nahyan¢ Deputy Prime Minister: HH Sheikh Hamdan bin Zayed Al Nahyan The President and Vice President are elected by the Federal Supreme Council for � ve-year terms, while the Prime Minister and Deputy Prime Minister are appointed by the President.¢ Cabinet: Council of Ministers nominated by Prime Minister, appointed by the President ¢ Federal National Council (FNC): the FNC has both a legislative and supervisory role. Its 40 members are drawn from each emirate, half of whom are indirectly elected. 22.5% of FNC members are women.¢ Federal judiciary: independent judiciary with the Federal Supreme Court at its apex (judges are appointed by the Federal Supreme Council) and also includes Courts of First Instance. ¢ Legal system: in addition to the federal court system introduced in 1971, all emirates have secular courts to adjudicate criminal, civil, and commercial matters, and Islamic courts to review family and religious disputes.¢ Administrative divisions: each of the seven emirates has its own government with respective municipalities and departments.¢ Foreign policy: the UAE’s foreign policy is derived from a set of guiding principles, amongst which are a deep belief in the need for justice in international dealings between states, including the necessity of adhering to the principle of non-interference in the internal a� airs of others and the pursuit, whenever possible, of peaceful resolution of disputes, together with a support for international institutions, such as the United Nations.

¢ Foreign aid: the UAE has provided over US$70 billion in loans, grants and assistance for development projects in some 100 countries. The UAE has also been a major contributor of emergency relief to regions a� ected by con� ict and natural disasters both at a governmental level and through NGOs. such as the UAE Red Crescent Society.¢ International organisation participation: ABEDA, AFESD, AMF, FAO, G- 77, GCC, IAEA, IBRD, ICAO, ICC, ICCT (signatory), ICRM, IDA, IDB, IFAD, IFC, IFRCS, IHO, ILO, IMF, IMO, Interpol, IOC, ISO, ITU, LAS, MIGA, NAM, OAPEC, OIC, OPCW, OPEC, UN, UNCTAD, UNESCO, UNIDO, UPU, WCO, WHO, WIPO, WMO, WTO

THE PEOPLE

Emiratis are a tolerant, forward-looking people with a strong sense of tradition. They enjoy a high standard of living, including well-developed education and health services. E� orts are being made to develop human resources, e� ect the empowerment of women and provide social welfare to the more vulnerable in society.

¢ Population: 4.488 (2007); 4.76 million (est. 2008); 5.06 million (est. 2009)¢ Nationals: 864,000 (est. 2007)¢ Non-nationals: 3.62 million (est. 2007)¢ Males: 3.08 million (est. 2007)¢ Females: 1.4 million (est. 2007)¢ Population under 15 years: 862,991 (est. 2007)¢ Annual population growth rate: 6.31% (est. 2008–2009)¢ National population growth rate: 3.4% (est. 2008–2009)¢ Most populated emirate: Abu Dhabi with 1.493 million people (est. 2007)¢ Least populated emirate: Umm al-Qaiwain with 52,000 inhabitants¢ Language: Arabic¢ Religion: Islam; practice of all religious beliefs is allowed.¢ Life expectancy at birth: 78.5 years ¢ Under-fi ve mortality rate: approx 8 per 1000 live births¢ New-born (neonate) mortality: 5.54 per 1000 ¢ Infant mortality rate: 7.7 per 1000 ¢ Maternal mortality rate: 0.01 for every 100,000¢ GDP per capita: Dh162,000 (2007)¢ Percentage of women students at the UAE University: 75%¢ Percentage of UAE women in labour force: approx. 30%¢ School enrolment: 648,000 students in 1259 public and private schools (2007/08), of which over half are female¢ No. of government and private universities: approx. 60 ¢ Illiteracy rate: 7%

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¢ Social security: in 2008 the Government allocated over Dh2.2 billion in � nancial assistance to 16 vulnerable sections of society.¢ UN Human Development Index ranking: 39 out of 177 countries (2008)¢ Human rights conventions to which the country is a party: International Convention on the Elimination of All Forms of Racial Discrimination; International Covenant on Civil and Political Rights; Convention on the Elimination of All Forms of Discrimination Against Women; Convention on the Rights of the Child; Protocol to the Convention on the Rights of Person with Disabilities; Signatory to the Arab Charter on Human Rights; United Nations Convention against Transnational Organised Crime¢ Labour rights conventions to which the country is a party: Elimination of forced and compulsory labour – Convention 29; Elimination of forced and compulsory labour – Convention 105; Elimination of discrimination in respect of employment and occupation – Convention 111; Abolition of child labour – Convention 138; Abolition of child labour – Convention 182

ECONOMY

The UAE has a vibrant free economy with a signi� cant annual trade surplus. Successful e� orts have been made to diversify away from dependence on oil and gas exports and a solid industrial base has been created together with a very strong services sector. The establishment of free zones has been an important feature of this diversi� cation policy and reform of property laws has given a major boost to real estate and tourism sectors.

¢ Fiscal year: 1 January to 31 December¢ GDP: Dh729.73 billion (2007, current prices) ¢ Real GDP growth rate: 5.2% (2007) ¢ Non-oil sector contribution to nominal GDP: 64.1% (2007)¢ Industries: oil & gas, petrochemicals, aluminium, cement, ceramics, ship repair, pharmaceuticals, tourism, transport, real estate, � nancial services¢ Oil exports: 2.2 million barrels of crude oil per day, world’s third largest exporter of crude oil¢ Oil reserves: 97.8 billion barrels, sixth largest in the world, of which Abu Dhabi holds 92.2 billion barrels or 94%¢ Natural gas reserves: 6 trillion cubic metres, � fth largest in the world¢ Total exports FOB: Dh664.34 billion (est. 2007)¢ Free-zone exports: Dh83.7 billion (est. 2007)¢ Re-exports: Dh228.7 billion (est. 2007)¢ Total Imports (FOB): Dh428.19 billion (2007)¢ Value of oil exports: Dh261.42 billion ¢ Value of gas exports: Dh28.5 billion¢ Weekend: Friday and Saturday for government institutions, many private companies operate a six-day week

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factfi leINFRASTRUCTURE

Commercial and residential areas, tourist facilities and industrial zones are being built on an unprecedented scale and corresponding investment is taking place in road and rail networks, airports and ports, telecommunications, electricity and water plants, hospitals and educational facilities. To date, the Government has invested heavily in infrastructure development, but it has also opened up its utilities and other infrastructure to greater private sector involvement, so much so that public-private partnerships are now the norm.

¢ Telecommunications: thriving deregulated market, modern � bre-optic integrated services; digital network with highest mobile phone penetration in the Arab world¢ International country code: 971¢ Internet country code: ae¢ Fixed line penetration rate: 30%¢ Mobile phone subscribers: 9.2 million (est. 2008) ¢ Internet subscribers: 1.15 million (est. 2008)¢ Main Ports: Mina Zayed, Jebel Ali, Mina Rashid, Fujairah, Khor Fakkan, Mina Saqr, Sharjah. Abu Dhabi is building a major new port, Khalifa Port & Industrial Zone, at Taweelah¢ International airports: 7¢ Available electricity generating capacity: 16,670 MW (UAE, 2007)¢ Electricity generating capacity Abu Dhabi: 8000 MW (2007) ¢ Electricity generating capacity Dubai: 5500 MW (2007) ¢ Annual peak demand forecast Abu Dhabi: 18,574 MW (2010)¢ Water production Abu Dhabi: 626 MIGD (2007)¢ Water consumption: average of 550 litres per day

history and heritage

‘He who does not know his past cannot make the best of his present and future, for it is from the past that we learn.’

The UAE has a long history, recent fi nds in the Hajar

Mountains and in the Western Region of Abu Dhabi

having pushed the earliest evidence of man in the Emirates

back by hundreds of thousands of years, with a scatter of

small sites from the Palaeolithic (Old Stone Age) period.

The earliest known human occupation for which there

is signifi cant evidence dates from the Neolithic period,

6000 BC or 8000 years ago, when the climate was wetter

and food resources abundant. Even at this early stage, there

is proof of interaction with the outside world, especially

with civilisations to the north. These contacts persisted

and became wide-ranging, probably motivated by trade

in copper from the Hajar Mountains, commencing around

3000 BC as the climate became more arid and fortifi ed oasis

communities focused on agriculture.

Foreign trade, the recurring motif in the history of this

strategic region, seems to have fl ourished also in later

periods, facilitated by domestication of the camel at the

end of the second millennium BC. At the same time, the

discovery of new irrigation techniques (falaj irrigation)

Uae at a Glance 2009

www.uaeinteract.com/history

made possible the extensive watering of agricultural areas that resulted in

an explosion of settlement in the region.

By the first century AD overland caravan traffic between Syria and cities in

southern Iraq, followed by seaborne travel to the important port of Omana

(perhaps present-day Umm al-Qaiwain) and thence to India was an alternative

to the Red Sea route used by the Romans. Pearls had been exploited in the

area for millennia but at this time the trade reached new heights. Seafaring

was also a mainstay and major fairs were held at Dibba, bringing merchants

from as far afield as China.

The arrival of envoys from the Prophet Muhammad in 630 AD heralded

the conversion of the region to Islam. By 637 AD Islamic armies were using

Julfar (Ra’s al-Khaimah) as a staging post for the conquest of Iran. Over many

centuries, Julfar became a wealthy port and pearling centre from which great

wooden dhows ranged far and wide across the Indian Ocean.

The Portuguese arrival in the Gulf in the sixteenth century had bloody

consequences for the Arab residents of Julfar and east coast ports like Dibba,

Bidiya, Khor Fakkan and Kalba. However, while European powers competed

for regional supremacy, a local power, the Qawasim, was gathering strength.

At the beginning of the nineteenth century the Qawasim had built up a fleet

of over 60 large vessels and could put nearly 20,000 sailors to sea, eventually

provoking a British offensive to control the maritime trade routes between

the Gulf and India.

Inland, the arc of villages at Liwa were the focus of economic and social

activity for the Bani Yas from before the sixteenth century. But by the early

1790s the town of Abu Dhabi had become such an important pearling centre

that the political leader of all the Bani Yas groups, the sheikh of the Al Bu Falah

(Al Nahyan family) moved there from the Liwa. Early in the nineteenth century,

members of the Al Bu Falasah, a branch of the Bani Yas, settled by the creek in

Dubai and established Maktoum rule in that emirate.

Following the defeat of the Qawasim in 1820, the British signed a series of

agreements with the sheikhs of the individual emirates that, later augmented

with treaties on preserving a maritime truce, resulted in the area becoming

known as ‘The Trucial States’.

History and HeritaGe

www.uaeinteract.com/history

The pearling industry thrived in the

relative calm at sea during the nineteenth

and early twentieth centuries, providing

both income and employment to the

people of the Arabian Gulf coast. Many

of the inhabitants were semi-nomadic,

pearling in the summer months and

tending to their date gardens in the

winter. However, their meagre economic

resources were soon to be dealt a heavy

blow. The First World War impacted

severely on the pearl fishery, but it was

the economic depression of the late

1920s and early 1930s, coupled with

the Japanese invention of the cultured

pearl, that damaged it irreparably. The

industry eventually faded away just

after the Second World War, when

the newly independent Government

of India imposed heavy taxation on

pearls imported from the Gulf. This was

catastrophic for the area. Despite their

adaptability and resourcefulness, the

population faced considerable hardship

with little opportunity for education

and no roads or hospitals.

Fortunately, oil and the visionary

leadership of Sheikh Zayed bin Sultan

Al Nahyan were on the horizon. Born

around 1918 in Abu Dhabi, Sheikh Zayed

was the youngest of the four sons of

Sheikh Sultan, Ruler of Abu Dhabi from

1922 to 1926. As Sheikh Zayed grew

“Pearls had been

exploited in the area

for millennia but at this

time the trade reached

new heights”

www.uaeinteract.com/zayed

to manhood, he travelled widely throughout the country, gaining a deep

understanding of the land and of its people. In the early 1930s, when oil

company teams arrived to undertake preliminary geological surveys, he

obtained his first exposure to the industry that was to make possible the

development of today.

In 1946, Sheikh Zayed was chosen as Ruler’s Representative in Abu Dhabi’s

Eastern Region, centred on Al Ain, 160 kilometres east of the island of Abu

Dhabi. He brought to his new task a firm belief in the values of consultation

and consensus and his judgements‘ were distinguished by their acute

insights, wisdom and fairness’.

The first cargo of crude oil was exported from Abu Dhabi in 1962. On

6 August 1966, Sheikh Zayed succeeded his elder brother as Ruler of Abu

Dhabi. He promptly increased contributions to the Trucial States Development

Fund and with revenues growing as oil production increased, Sheikh Zayed

undertook a massive construction programme, building schools, housing,

hospitals and roads.

When Dubai’s oil exports commenced in 1969, Sheikh Rashid bin Saeed Al

Maktoum, de facto Ruler of Dubai since 1939, was also able to use oil revenues

to improve the quality of life of his people.

Federation

Page 15



At the beginning of 1968, when the British announced their intention of

withdrawing from the Arabian Gulf by the end of 1971, Sheikh Zayed acted

rapidly to initiate moves towards establishing closer ties between the emirates.

Along with Sheikh Rashid, who was to become Vice President and, later,

Prime Minister of the newly formed state, Sheikh Zayed took the lead in

calling for a federation that would include not only the seven emirates that

together made up the Trucial States, but also Qatar and Bahrain. Following a

period of negotiation, however, agreement was reached between the rulers

of six of the emirates (Abu Dhabi, Dubai, Sharjah, Fujairah, Umm al-Qaiwain

and Ajman) and the federation to be known as the United Arab Emirates

(UAE) was formally established on 2 December 1971 with Sheikh Zayed as

its President. The seventh emirate, Ra’s al-Khaimah, formally acceded to the

new federation on 10 February 1972.

Sheikh Zayed was successively re-elected as President at five-year intervals

until his death 33 years later in November 2004.

The new state emerged at a time of political turmoil in the region. A couple

of days earlier, Iran had seized the islands of Greater and Lesser Tunb, part

of Ra’s al-Khaimah, and had landed troops on Abu Musa, part of Sharjah.

Foreign observers predicted that the UAE would survive only with difficulty,



pointing to disputes with its neighbours and to the wide disparity between

the seven emirates. Sheikh Zayed was more optimistic and the predictions

of those early pessimists were shown to be unfounded.

There is no doubt that the prosperity, harmony and modern development

that today characterises the UAE is due to a very great extent to the formative

role played by Sheikh Zayed. During his years in Al Ain, Sheikh Zayed had

developed a vision of how the country should progress. He subsequently

spent over three and a half decades making that vision a reality.

One foundation of Sheikh Zayed’s philosophy as a leader was that the

resources of the country should be used to benefit of the people. Under his

leadership society prospered and the country’s women accessed education

and came increasingly to play their part in political and economic life.

Sheikh Zayed also believed in the need to preserve the traditional culture

of the people, in order to familiarise the younger generation with the ways

of their ancestors. He was also a firm proponent of the conservation of the

UAE’s environment, deriving this belief from his own upbringing where a

sustainable use of resources required man to live in harmony with nature.

Sheikh Zayed imbibed the principles of Islam in his childhood and they

remained central to his beliefs throughout his life. He firmly opposed those

who pervert the message of Islam to justify harsh dogmas, intolerance and



terrorism. In his view, such an approach was not merely a perversion of the

message but is in direct contradiction of it.

Sheikh Zayed was also an eager advocate of tolerance and a better

understanding between those of different faiths and was an ardent advocate

of dialogue between Muslims and Christians.

In the realm of foreign policy, his firmly held belief in eschewing rhetoric in

the search for solutions led the UAE to adopt an approach of seeking to find

compromises, and to avoid, wherever possible, a resort to the use of force,

whether in the Arab arena or more widely. Under his leadership, the country

became a major donor of overseas aid, both for infrastructural development

and for humanitarian relief, whether provided through civilian channels or,

occasionally, by sending units of the UAE Armed Forces as international

peacekeepers, such as to Kosovo in the late 1990s.

The UAE, under his leadership, also showed its preparedness to fight to

defend justice, as was seen by its participation in the war to liberate Kuwait

from occupation in 1990–1991.

Sheikh Zayed died in November 2004, being succeeded as the UAE’s

President and as Ruler of Abu Dhabi by his eldest son, HH Sheikh Khalifa bin

Zayed Al Nahyan. The principles and philosophy he brought to government,

however, remain at the core of the state, and of its policies, today.


Evidence of extensive human occupation in UAE.

Occupation by skilled groups of herders using finely made stonetools (so-called ‘Arabian bifacial tradition’).

Hafit period – era of earliest collective burials first noted on thelower slopes of Jebel Hafit in the interior of Abu Dhabi.

Umm al-Nar period – era of first oasis towns (e.g. at Hili, TellAbraq, Bidiya, Kalba) dominated by large, circular fortresses; burial ofthe dead in round communal tombs; wide-ranging trade contact with Mesopotamia,Iran, Indus Valley, Baluchistan, Bactria (Afghanistan); first intensive use of copperresources of Hajar Mountains; area referred to as Magan in Mesopotamian sources.

Wadi Suq period and Late Bronze Age – an era which is characterised by fewer towns;change in burial customs to long, generally narrow collective tombs; close ties toDilmun (Bahrain).

Iron Age – introduction of new irrigation technology inthe form of falaj (pl. aflaj), subterranean galleries whichled water from mountain aquifers to lower-lying oases andgardens; explosion of settlement; first use of iron; firstwriting, using South Arabian alphabet; contacts with Assyrianand Persian empires.

Mleiha period (or Late Pre-Islamic A–B) – flourishing town at Mleiha; beginnings oflocal coinage; far-flung imports from Greece (black-glazed pottery), South Arabia(alabaster unguent jars); first use of the horse.

Ed-Dur period (or late Pre-Islamic C–D) – flourishing towns at ed-Dur and Mleiha;extensive trade network along the Gulf linking up the Mediterranean, Syria andMesopotamia with India; imports include Roman glass, coinage, brass; massiveproduction of coinage by a ruler called Abi’el; first use of Aramaic in inscriptions fromed-Dur and Mleiha.

Rise of the Sasanian dynasty in south-western Iran, conquest of most of easternArabia.

Introduction of Christianity via contacts with south-western Iran and southernMesopotamia; establishment of monastery on Sir Bani Yas by Nestorian Christiancommunity; Sasanian garrisons in inner Oman and evidence for contact in the UAEshown by coins and ceramics from Kush (Ra’s al-Khaimah), Umm al-Qaiwain andFujairah.

Arrival of envoys from the Prophet Muhammad;conversion of the people to Islam.

Death of the Prophet Muhammad; outbreak of the riddamovement, a widespread rebellion against the teachingsof Islam; dispatch of Hudhayfah b. Mihsan by the CaliphAbu Bakr to quell rebellion of Laqit b. Malik Dhu at-Tag atDibba; major battle at Dibba, collapse of the rebels.

10

c.5500 BC

5500–3000 BC

3000–2500 BC

2500–2000 BC

2000–l300 BC

1300–300 BC

300 BC–0

0–250 AD

240 AD

6th/7th cent. AD

630 AD

632 AD

IMPORTANT DATES

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Julfar used as staging post for Islamic invasion of Iran.

Julfar used as staging post for Abbasid invasion of Oman.

Buyids (Buwayhids) conquer south-eastern Arabia.

Geographer Yaqut mentions Julfar as a fertile town.

Close commercial contact between Northern Emirates and kingdom of Hormuz,based on Jarun island in the Straits of Hormuz.

Portuguese circumnavigation of Cape of Good Hope by Vasco da Gama using Arabnavigational information.

Portuguese–Ottoman rivalry in the Gulf.

Venetian traveller Gasparo Balbi’s description of coast of UAE from Qatar to Ra’sal-Khaimah; mention of Portuguese fortress at Kalba; first mention of Bani Yas inAbu Dhabi.

Description of the East Coast of the UAE by a Dutch mariner sailing in the Meerkat.

Growth of English trade in the Gulf; increasing Anglo–Dutch rivalry.

Sharjah and most of Musandam and the UAE East Coast, all the way to Khor Fakkan,under control of Qawasim according to Carsten Niebuhr, German surveyorworking with the King of Denmark’s scientific expedition.

Repeated English East India Company attacks on Qawasim navy.

General Treaty of Peace between British Government and sheikhs of Ra’s al-Khaimah,Umm al-Qaiwain, Ajman, Sharjah, Dubai and Abu Dhabi.

Survey of the Gulf resulting in the publication of the first accurate charts and mapsof the area.

Collapse of the natural pearl market; first agreements signed by rulers of Dubai,Sharjah and Abu Dhabi for oil exploration.

Oil exploration agreements finalised in Ra’s al-Khaimah, Umm al-Qaiwain and Ajman.

First export of oil from Abu Dhabi.

British Government announced its intention to withdraw fromthe Gulf region; discussions begin on formation of a federationof the emirates.

First export of oil from Dubai.

Agreement reached amongst rulers of the emirates to forma union.

Formation of the State of the United Arab Emirates.

Sheikh Zayed, 1st President of the UAE, died.

Sheikh Khalifa bin Zayed Al Nahyan elected as new President ofthe UAE.

11H I S TORY

637 AD

892 AD

963 AD

c. 1220

14th–15th cent.

1498

16th cent.

1580

1666

1720s

1764

1800–1819

1820

1820–1864

1930s

1945–1951

1962

1968

1969

10 July 1971

2 Dec 1971

2 Nov 2004

3 Nov 2004

01_history_2009.qxd:history_tradX.qxd 16/12/2008 09:01 Page 11

HH Sheikh Khalifa bin Zayed Al Nahyan, President of the UAE

Government

Since the establishment of the federation in 1971, the seven

emirates that comprise the United Arab Emirates (UAE), Abu

Dhabi, Dubai, Sharjah, Ajman, Umm al-Qaiwain, Ra’s al-

Khaimah and Fujairah, have forged a distinct national identity

through consolidation of their federal status and enjoy an

enviable degree of political stability.

The UAE’s constitutionally-based federal system of

government includes the following institutions: the

Supreme Council, the Council of Ministers, the Federal

National Council and the Federal Judiciary.

The Supreme Council, which is made up of the rulers

of each constituent emirate, is the top policy-making

body in the state. It reaffi rms the existing President and

Vice President or elects new ones at fi ve-yearly intervals.

Sheikh Khalifa bin Zayed Al Nahyan, Ruler of Abu Dhabi,

was elected as President of the UAE on 3 November

2004. The current Vice President, Sheikh Mohammed

bin Rashid Al Maktoum, also Prime Minister and Ruler

of Dubai, has held the post since 3 January 2006.

The Council of Ministers or Cabinet, headed by

the Prime Minister, is the executive authority for the

federation. The UAE’s parliament, the Federal National

government‘Unity, progress and prosperity’

Council, has both a legislative and supervisory role, its 40 seats allocated to

the individual emirates on the basis of population and size. Finally, the Federal

Judiciary, whose independence is guaranteed by the Constitution, includes

the Supreme Court and the Courts of First Instance.

In addition, each of the seven emirates has its own local government, the

complexity of which differs according to the size and population of individual

emirates. Each follows a general pattern of municipalities and departments.

The relationship between the federal and local governments is laid down in

the Constitution, which allows for a degree of flexibility in the distribution of

authority. This relationship is evolving over time, dictated by administrative

requirements. However, traditional government still plays an important role

in the UAE, with the institution of the majlis (pl. majalis) maintaining a useful

function in ensuring that the people have free access to their rulers.

above: HH Sheikh Mohammed bin Rashid Al MaktoumUAE Vice President and Prime Minister

www.uaeinteract.com/governmentaffairs

Government

SUPREME COUNCIL MEMBERS

¢ HH President Sheikh Khalifa bin Zayed Al Nahyan, Ruler of Abu Dhabi

¢ HH Vice President and Prime Minister Sheikh Mohammed bin Rashid

Al Maktoum, Ruler of Dubai

¢ HH Dr Sheikh Sultan bin Mohammed Al Qasimi, Ruler of Sharjah

¢ HH Sheikh Saqr bin Mohammed Al Qasimi, Ruler of Ra’s al-Khaimah

¢ HH Sheikh Hamad bin Mohammed Al Sharqi, Ruler of Fujairah

¢ HH Sheikh Saud bin Rashid Al Mu’alla, Ruler of Umm al-Qaiwain

¢ HH Sheikh Humaid bin Rashid Al Nuaimi, Ruler of Ajman

CROWN PRINCES

¢ HH General Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince

of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces

¢ HH Sheikh Hamdan bin Mohammed Al Maktoum, Crown Prince of Dubai

¢ HH Sheikh Sultan bin Mohammed Al Qasimi, Crown Prince and Deputy

Ruler of Sharjah

¢ HH Sheikh Saud bin Saqr Al Qasimi, Crown Prince and Deputy

Ruler of Ra’s al-Khaimah

¢ HH Sheikh Mohammed bin Hamad Al Sharqi, Crown Prince of Fujairah

¢ HH Sheikh Ammar bin Humaid Al Nuaimi, Crown Prince of Ajman

¢ HH Sheikh Rashid bin Saud bin Rashid Al Mu’alla, Crown Prince of Umm al-Qaiwain

DEPUTIES OF THE RULERS

¢ HH Sheikh Hamdan bin Rashid Al Maktoum, Deputy Ruler of Dubai,

Minister of Finance and Industry

¢ HH Sheikh Maktoum bin Mohammed Al Maktoum, Deputy Ruler of Dubai

¢ HH Sheikh Ahmed bin Sultan Al Qasimi, Deputy Ruler of Sharjah

¢ HH Sheikh Abdullah bin Salim bin Sultan Al Qasimi, Deputy Ruler of Sharjah

¢ HH Sheikh Sultan bin Saqr Al Qasimi, Deputy Ruler of Ra’s al-Khaimah

¢ HH Sheikh Hamad bin Saif Al Sharqi, Deputy Ruler of Fujairah

¢ HH Sheikh Abdullah bin Rashid Al Mu’alla, Deputy Ruler of Umm al-Qaiwain


Political DevelopmentsOver the course of the last three years, major steps have been taken, both at a

federal and at a local level, in terms of reforming the structure of government

in order to make it more responsive to the needs of the country’s population

and to ensure that it is better equipped to cope with the challenges of

development in a manner that is in keeping with current best practices

in administration and the delivery of services, as well as being more cost-

effective. The strategy has been directed at a federal level by President HH

Sheikh Khalifa, and has been devised and guided at an executive level by

Vice President and Prime Minister, HH Sheikh Mohammed.

One major initial step in the process of reform that was designed to

enhance public participation in government was the introduction of indirect

elections to the FNC. First announced by Sheikh Khalifa in his statement on

National Day, 2 December 2005, it provided for half of the FNC members for

each emirate to be elected by members of electoral colleges established by

each ruler, rather than being appointed by the ruler, as had previously been

the case. The elections were held in late 2006, seeing a respectably high

turnout and with one woman among the successful candidates. Once the

remaining seats for each emirate had been filled by nomination from the

rulers, the new Federal National Council had nine women amongst its 40

members, representing about 22 per cent of the total, an indication of the

way in which the UAE’s women are expanding their participation in all levels

of government and political society.

The system of indirect elections now in operation is perceived as being only

a first stage in the reforming of the FNC’s role in government and constitutional

amendments agreed by the Federal Supreme Council in December 2008

granted the FNC new powers to debate foreign policy matters, including

the ratification of international treaties, extended the FNC’s term from two

to four years and extended its annual session from six to seven months.

Consideration is also being given to the introduction of an electoral process

at local level, although no timetable has yet been announced for this.

The President and Vice President have also overseen major reforms in the

structures of government in Abu Dhabi and Dubai, these being implemented


by the Executive Councils of each emirate, chaired respectively by HH Sheikh

Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, and by HH

Sheikh Hamdan bin Mohammed Al Maktoum, Crown Prince of Dubai.

The most important recent development was the formal launching in early

2007 of a UAE Government Strategy for the years ahead, based upon the

National Programme unveiled by President HH Sheikh Khalifa in December

2005. Drawn up after extensive consultation between the federal ministries,

as well as other bodies, the strategy was launched by HH Sheikh Mohammed

bin Rashid, who noted that it ‘sets the foundations for a new era of public

administration’. Implementation of the strategy continued to make progress

in 2008, with one of the most important aspects being the enhancement of

collaboration between the federal authorities and those in each emirate.

A separate policy agenda for Abu Dhabi was announced in August 2007,

covering that year and 2008. This included independent policy statements

above: HH Sheikh Mohammed bin Zayed Al NahyanCrown Prince of Abu Dhabi, Deputy Supreme Commander of the UAE Armed Forces



providing details of plans in areas such as economy, energy, tourism, health,

education, labour, civil services, culture and heritage, food control, urban

planning, transport, environment, health and safety, municipal affairs, police and

emergency services, electronic government, women, and legislative reform.

The policy agenda was swiftly followed by the very detailed Plan Abu Dhabi

2030, covering the city of Abu Dhabi, the UAE’s federal capital, and adjacent

areas. An Al Ain Plan 2030 quickly followed, while work began in late 2008 on

a new Plan 2030 for the Western Region of Abu Dhabi, now officially called

Al Gharbia, in an effort to ensure that this large area receives its full share of

economic and social development.

Foreign PolicyThe foreign policy of the UAE is based upon a belief in the need for justice in

international dealings between states, including the necessity of adhering

to the principle of non-interference in the internal affairs of others and the

pursuit, wherever possible, of peaceful resolutions of disputes, together with

a support for international institutions, such as the United Nations.

Within the Arabian Gulf region, and in the broader Arab world, the UAE

has sought to enhance cooperation and to resolve disagreement through

dialogue. Thus one of the central features of the country’s foreign policy

has been the development of closer ties with its neighbours in the Arabian

Peninsula. The Arab Gulf Cooperation Council (AGCC), grouping the UAE,

Kuwait, Saudi Arabia, Bahrain, Qatar and Oman, was founded at a summit

conference held in Abu Dhabi in May 1981, and has since become, with

strong UAE support, an effective and widely respected grouping.

In pursuit of its desire to work with other members of the international

community to promote the search for a just and lasting peace in the Middle

East, the UAE continued to urge other governments to become pro-active

on the issue throughout 2008. Leading UAE officials, including the President,

the Vice President and the Foreign Minister, have held discussions, both in the

UAE and elsewhere, with other global leaders, on ways to revitalise the peace

process. The election of a new US President in November 2008 brought the

hope that a new approach might be adopted in Washington during 2009.

www.uaeinteract.com/foreignpolicy

Government

At the same time, the UAE frequently reaffirmed its support for the

Palestinian people and for the Palestine Authority, while calling on the

Palestinians to unite so as to face effectively the challenges before them.

In particular, the UAE strongly condemned the Israeli attack on Gaza in

December 2008 and January 2009.

The UAE was an active participant in the decision of the March 2008 Arab

summit, held in Damascus, to continue to promote the initiative agreed by

an earlier Beirut summit as a practical and real solution to the Middle East

crisis, noting that it took into account the fundamental factors that must be

included in any settlement.

The UAE continued throughout 2008 to provide support to the Government

of Iraq. But this support was not confined simply to the political sphere. During

2008, the UAE was among the first Arab countries to re-open its diplomatic

mission in Baghdad while in August, on the instructions of President HH

Sheikh Khalifa, a decision was taken to write off debts and interest of over

US$7 billion owed by Iraq to the Emirates.

The UAE also continued to offer support to the Government of Lebanon and

the Foreign Minister attended the session of the Lebanese Parliament in May

during which the country’s new President was elected after a long impasse.

During the year, no visible progress was made on resolving the long-

running dispute with neighbouring Iran on the question of the three UAE

islands of Abu Musa and Greater and Lesser Tunb. Indeed, in August, the

UAE sent a letter of protest to the United Nations over a move by Iran to set

up two offices on Abu Musa in contravention of the 1971 Memorandum of

Understanding on the island.

At the end of October, however, following an earlier visit to the UAE by

Iran’s President, the Foreign Minister visited Iran and signed a Memorandum

of Understanding with his Iranian colleague to establish a joint commission

between the two countries, which, it is hoped, may lead to some steps to

resolve the dispute.

The UAE has also continued to express concern about Iran’s nuclear power

programme, and has sought reassurances that the programme is for peaceful

purposes only.


Beyond the Arab world, the UAE has pursued a policy of seeking, wherever

possible, to build friendly relations with other nations on a bilateral basis.

Another important feature of UAE policy has been its support for international

bodies, like the UN and its various agencies, through which it seeks to

reinforce the rule of international law, and to support the implementation

of internationally agreed conventions.

International relations have also been strengthened through conferences

attended by regional groupings of which the UAE is a member, such as a joint

meeting between Arab and Latin American states early in the year, followed

by another between Arab states and members of the European Union.

In October, the UAE hosted the fourth in a series of Forums for the Future,

following earlier meetings in Morocco, Bahrain and Jordan. Attended by

senior officials from throughout the Arab world, Turkey and members of the

G8 group of industrialised nations, the Forum focused on ways of promoting

political and social progress in the region.

above left: HH Sheikh Abdullah bin Zayed Al NahyanUAE Foreign Minister at the Forum for the Future conference in Abu Dhabi


Government

The UAE also hosted a major conference of parliamentarians from the North

Atlantic Treaty Organisation (NATO) for discussions on regional security.

During the year, there was the usual steady flow of high-ranking visitors

from other countries to the Emirates, both from within the Gulf and Arab world,

and from further afield. Senior UAE officials, including President HH Sheikh

Khalifa, Vice President HH Sheikh Mohammed bin Rashid and the Crown

Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed

Forces, HH Sheikh Mohammed bin Zayed, made numerous visits abroad.

Throughout the year, the UAE continued to extend all possible support to

the international fight against terrorism, while emphasising the necessity both

of a clear definition of terrorism and of ensuring that terrorism perpetrated

by states should not be overlooked. Support has been offered to countries

suffering from terrorism, including collaboration in terms of exchanges of

information designed to help law enforcement authorities track down and

arrest suspects.

The UAE believes, however, that the prevailing climate of misunderstanding

between different faiths and cultures is used by terrorists and those who

harbour them. It firmly supports, therefore, the promotion of intercultural

and interfaith dialogue.

The country took part in the Interfaith Dialogue initiated during the year by

King Abdullah bin Abdul Aziz of Saudi Arabia. Supreme Council member HH

Sheikh Hamad bin Mohammed Al Sharqi led the UAE delegation, which also

included Foreign Minister HH Sheikh Abdullah bin Zayed Al Nahyan, to the

November 2008 conference on ‘The Culture of Peace and Dialogue among

Religions and Cultures’ held at the United Nations in November. At the same

time, the UAE has continued to argue that there is a need for different cultures

to avoid acts that can further deepen misunderstandings.

During 2008, the UAE signed or ratified a number of international

conventions. Among these were the Protocol to the Convention on the Rights

of Persons with Disabilities and preparations were nearing completion at the

end of the year for the signing of the Convention against Torture and Other

Cruel, Inhuman or Degrading Treatment or Punishment.

It also signed the UN Convention for Suppression of Nuclear Terrorism,



as part of measures designed to ensure that its own programme to

develop peaceful uses of nuclear energy, within the guidelines of the

International Atomic Energy Agency (IAEA), fully complied with all

applicable global agreements.

While specifi c political issues, naturally, attracted much attention during

2008, the UAE has continued to maintain its focus on a range of topics with a

global relevance. Among these has been the issue of human traffi cking, which

came to prominence early in 2008 with the holding of a special UN forum in

Vienna to launch the UN Global Initiative to Fight Traffi cking, UN.GIFT.

The UAE is working closely with international and regional law enforcement

agencies, as well as the authorities in other countries, to apprehend those

engaged in traffi cking and the Government expended considerable eff ort

during 2008 in developing strategies with the source countries of migrant

labour to help to stamp out traffi cking in the countries of origin. A conference

of Labour Ministers from source and host countries for migrant labour was

held in Abu Dhabi early in the year, at which an Abu Dhabi Declaration on

ways of regulating the fl ow of workers was agreed. This was followed in late

October by another major conference in Manila, Philippines, attended by the

UAE Minister of Labour.

Another issue of global concern was economic in nature, rather than political,

following the depression that hit the world like a tsunami in the latter part of

the year. While moving to ensure that, as far as possible, the local economy

was insulated, the Government moved to work with multilateral institutions

like the International Monetary Fund (IMF) as well as on a bilateral basis, to

help to shore up the economies of the countries most seriously aff ected.

During the year, the United Arab Emirates established diplomatic relations

with Montenegro and Kosovo, two of the successor states to the former

Yugoslavia, continuing its active involvement in this area of south-eastern

Europe. UAE forces earlier took part in peace-keeping activities in Kosovo.

Foreign AidSince the establishment of the UAE, the country has played an active role in

the provision of aid to developing countries and has been a major contributor

www.uaeinteract.com/aid

Government

of emergency relief to regions aff ected by confl ict and natural disasters.

The philosophy behind the aid policy is two-fold – fi rst, a belief that help

for the needy is a duty incumbent on all Muslims and, second, that part of

the country’s wealth from oil and gas should be devoted to helping other

countries which have been less well-endowed.

The main UAE governmental agency for foreign aid is the Abu Dhabi

Fund for Development (ADFD). Since its establishment in 1971, the ADFD

has provided over Dh12.6 billion (US$3.45 billion) in soft loans and grants to

countries around the world. In addition, the fund also manages 61 loans and

grants provided directly by the Abu Dhabi government. Since 1971, these

have accounted for a further Dh10 billion (US$2.72 billion), bringing the total

amount of the loans, grants and investments provided by the fund or the

Abu Dhabi government, and managed by the fund, to around Dh24 billion

(US$6.54 billion), covering 258 diff erent projects in a total of 52 countries.

Other assistance has also been provided through commitments made

at various multilateral donor conferences. Between 1994 to mid-2008, for

example, around Dh15.4 billion (US$ 4.2 billion) has been provided for the

Palestinians, including, most recently, US$300 million pledged at a donor

conference in Paris and an annual commitment of US$43 million to support

the Palestine National Authority.

The UAE Federal Government also participates in a number of other

multilateral aid-giving institutions, including the International Development

Agency (IDA), and other bodies like the OPEC Fund for International

Development, the Arab Gulf Fund for the UN (AGFUND), the Arab Bank

for Economic Development in Africa (BADEA), the Abu Dhabi-based Arab

Monetary Fund (AMF) and the Islamic Development Bank (IDB). In recent years,

however, increasing attention has been paid to various forms of humanitarian

aid, destined for those in need because of natural disasters or confl ict and

for those in such poverty and urgent need that longer-term development

projects will, quite simply, not deliver help in time.

A key body in this process is the UAE Red Crescent Authority, chaired by the

country’s Deputy Prime Minister, HH Sheikh Hamdan bin Zayed Al Nahyan.

Over the last few years alone, the Red Crescent has spent over Dh2 billion


Government

(US$545 million) on relief operations in a total of 95 countries throughout the

globe, with a special emphasis on those in need in Palestine, Iraq, Lebanon,

Afghanistan, Sudan and the Horn of Africa countries.

Over the course of the last year, the UAE Red Crescent has continued

to be the country’s premier emergency relief agency, at least in terms of

the number of countries in which it operates, even though some of the

larger privately funded charitable foundations have disbursed more money.

During 2007, it provided a total of around Dh281 million (US$76.5 million)

in relief, humanitarian and development aid, 50 per cent higher than in the

previous year. Victims of natural disasters and armed conflicts in 40 countries

benefited. In the first half of 2008, a further Dh170.2 million (US$ 46.4 million)

was disbursed. It also handled the distribution and administration of funds

allocated by government and other private foundations, which amounted

to a substantially larger sum.

It now ranks in the top ten member organisations of the International

Committee of the Red Cross in terms of the amount of relief assistance

provided – an impressive achievement for a country as small as the Emirates.

Other partners include the United Nations Development Programme (UNDP)

the UN High Commission for Refugees, (UNHCR) the United Nations Children’s

Fund (UNICEF), the UN Office for Coordination of Humanitarian Affairs (OCHA),

the United Nations Relief and Works Agency for Palestine Refugees in the

Near East (UNRWA), and the World Food Programme (WFP).

A new initiative, The Sheikha Fatima bint Mubarak Fund for Refugee

Women, proposed by HH Sheikha Fatima, was launched during Ramadan

2008 by the UAE Red Crescent, acting in partnership with the Office of the UN

High Commissioner for Refugees. This is specifically designed to address the

needs of women and children displaced by conflict and natural disasters.

The private humanitarian efforts of the UAE’s leading figures have also been

active during the course of the year. The Khalifa bin Zayed Charity Foundation,

established by President HH Sheikh Khalifa, made several major donations,

including Dh200 million (US$54.5 million dollars) to Afghanistan, to fund

sustainable social, economic, health, educational and utilities projects and

Dh184 million (US$50 million) in emergency assistance for China, following



the Sichuan earthquake. Other assistance included help in August for residents

of areas in Pakistan hit by fl oods, while in May, in a move designed to help

those suff ering from the world shortage of wheat and consequent rising

prices, the President donated a million tonnes of wheat to Egypt and half a

million tonnes to Yemen.

The Zayed bin Sultan Al Nahyan Charitable and Humanitarian Foundation,

established by the former President, focused its attention during 2008 on

projects inside the UAE, but still spent around 30 per cent of its budget

overseas. Over the last few years, the foundation has spent nearly Dh1.25

billion (US$340 million) on projects at home and abroad.

A lead in terms of generosity in giving has also been shown by Vice

President and Prime Minister HH Sheikh Mohammed bin Rashid. His

Mohammed bin Rashid Charity and Humanitarian Foundation has provided

assistance for, amongst others, hospitals in Palestine and earthquake victims

in China and has also worked successfully to encourage Dubai-based

institutions to donate lavishly to its projects.

Much more signifi cant are two initiatives taken in the last couple of years

by HH Sheikh Mohammed that are designed to have a global reach. In 2007,

he launched the Dubai Cares campaign, with the initial goal of providing

primary education to one million underprivileged children around the world.

With well over Dh1 billion (US$273 million) raised to support its work, within

its fi rst year of operations Dubai Cares had provided education to over

four million children in 13 countries across Africa and Asia, far exceeding

its original targets.

This was followed in 2008 by another project, Noor Dubai (‘Light of

Dubai’). This initiative, which is being administered by the Dubai Health

Authority, is collaborating closely with the World Health Organisation (WHO),

the International Agency for the Prevention of Blindness (IAPB), Lions Club

International and Orbis to help at least one million people around the world

who are suff ering from blindness and eye disease.

It is not possible in a summary of a year’s events to give full details of

the extensive humanitarian assistance provided by all public and private

bodies and by individuals, both UAE citizens and expatriates, throughout


the Emirates. In response to the need to synchronise these efforts more

effectively, a new body was set up during 2008 to co-ordinate the country’s

many relief programmes and enable quicker intervention. The External Aid

Liaison Bureau, which was established in collaboration with the UN Office

for the Coordination of Humanitarian Affairs (OCHA), is also chaired by HH

Sheikh Hamdan bin Zayed. The long-term objective is to see the unification

of all humanitarian aid and assistance being provided by the UAE, and to fully

document the country’s contributions to humanitarian projects worldwide.

The aid programme, Sheikh Hamdan has stressed, is designed to help all

those in need as a result of natural or man-made disasters, irrespective of

their geographical, religious and racial affiliations.


In 1971, the year of the UAE’s formation, the country’s GDP,

a measure of the total market value of all fi nal goods and

services produced within the country in a single year, was

Dh6.5 billion. Thirty-seven years later it stood at around Dh753

billion, a multiple of 115 times its fi rst year’s performance! By

any set of criteria that is very signifi cant. But past growth rates

are unlikely to continue indefi nitely. Instead, the UAE economy

is maturing and stabilising.

The UAE’s real GDP percentage growth rates, year-on-year

from 2004 to 2008 were 7.4, 8.2, 11.5, 5.2, and 7.5 per cent.

Meanwhile, the projected growth rate for 2009 is around

3.5 per cent. As these fi gures indicate, despite the impact of

the global fi nancial crisis being felt throughout the region,

the UAE’s economy continues to expand and its fi nancial

fundamentals remain sound. These are underpinned by

many years of prudent economic policy that have been

responsible for building up the country’s signifi cant assets,

savings and investments.

But, as the Governor of the Central Bank has been quick

to acknowledge, there is no doubt that the economy is in

‘slow-down’ mode with the property market re-scheduling

The economy

‘Diversifi cation, growth and sustainability’

www.uaeinteract.com/economicdevelopment

some major projects and the banking sector reining in its lending activities,

at least for a while. However, ‘slow down’ is regarded by many as a positive

phenomenon and is valued as much for the opportunities it brings as the

challenges it presents.

Fears of fi nancial meltdown have been allayed by the UAE Government,

which has been playing a crucial role in mitigating the eff ects of the crisis

and stimulating recovery. Certainly, the Government wants to achieve

continued growth and its monetary policy remains expansionary, but the

percentage rise in GDP does not need to be in double digits, nor indeed

in high single digits. The aim is to keep moving forward and to achieve

balanced economic growth.

Not only has the slow down encouraged the property development

sector to take stock of decisions made at a time of rampant growth and

surging infl ation, it has also resulted in the stabilisation or reduction of prices

for many essential building materials, such as steel and cement, that had

rocketed in 2007 and the fi rst half of 2008. And while the fall in fuel prices

has implications for the UAE budget, it also brings a reprieve for consumers

who were facing fuel surcharges on all forms of transport – involving both

people and goods. Instead of being discouraged by the economic downturn,

UAE government departments are more focused on locking in the savings

that can be achieved on undertaking major infrastructural projects in a less

frantic economic climate.


By August 2008 it was also clear that UAE banks would be aff ected by signs

of cooling in the property sector. Prior to this, UAE banks had experienced

strong profi t growth in recent years and the UAE banking sector had enjoyed

an extremely active year in 2007 with the aggregated balance sheet of banks

operating in the UAE increasing by 42.3 per cent.

The UAE Government is making eff orts to ensure that the over-heated

credit market does not get out of control in future and has brought in more

stringent guidelines for lending to both individuals and companies. UAE

banks are also reducing their exposure to foreign debt and in September

2008 the Central Bank and the Ministry of Finance launched an emergency

fund aimed at ensuring the banking system remained stable in the tight

credit environment. In addition, the UAE Cabinet’s decision to guarantee

banking deposits helped to steady the markets. The Government also plans

to support low interest rates so that the economy can continue to fl ourish.

LIQUIDITY MEASURES

¢ 22/09/08 UAE sets up Dh50 billion emergency facility for banks operating in the UAE¢ 08/10/08 Central Bank lowers its repo rate to 1.5% from 2.0%¢ 12/10/08 UAE guarantees deposits of local banks and foreign banks with core operations in UAE¢ 14/10/08 UAE announces it will inject Dh70 billion into banking system as long-term deposits



2006 2007*Current Account Balance . . . . . . . . . . . . . . . . . . . . . . 132,375 . . . . . . . . . . . . .135,936 Trade Balance (FOB) . . . . . . . . . . . . . . . . . . . . . . . . 211,302 . . . . . . . . . . . . .309,922 Total Exports of Hydrocarbon . . . . . . . . . . . . . . . . . . . . 257,442 . . . . . . . . . . . . . . . . 257,442 Oil Exports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213,372 . . . . . . . . . . . . . . . . 261,422 Petroleum Products Exports . . . . . . . . . . . . . . . . . . . . . . 17,995 . . . . . . . . . . . . . . . . . .20,000 Gas Exports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26,075 . . . . . . . . . . . . . . . . . .28,500 Total Goods Exports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104,518 . . . . . . . . . . . . . . . . 125,729 Free Zone Exports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75,286 . . . . . . . . . . . . . . . . . .83,661 Other Exports 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,232 . . . . . . . . . . . . . . . . . .42,068 Re-Exports 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172,706 . . . . . . . . . . . . . . . . 228,694Total Exports and Re-Exports (FOB) . . . . . . . . . . . . 534,666 . . . . . . . . . . . . .664,345Total Imports (FOB) . . . . . . . . . . . . . . . . . . . . . . . . . . . -323,364 . . . . . . . . . . . . -428,194Total Imports (CIF) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .-367,459 . . . . . . . . . . . . -486,580 Other Imports 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -291,050 . . . . . . . . . . . . . . . .-395,718 Free Zone Imports. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .-76,409 . . . . . . . . . . . . . . . . . -90,866

Services (NET) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .-66,226 . . . . . . . . . . . . . . . . . -87,614 Travel. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .-14,157 . . . . . . . . . . . . . . . . . -19,174 Transport . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -8,086 . . . . . . . . . . . . . . . . . -10,165 Government Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . 112 115 Freight and Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . .-44,095 . . . . . . . . . . . . . . . . . -58,390

Investment Income (NET) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,400 . . . . . . . . . . . . . . . . . .21,500 Banking System4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8,800 . . . . . . . . . . . . . . . . . . .8,150 Private Non-Banks. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .-600 . . . . . . . . . . . . . . . . . . -1200 Enterprises of Public Sector . . . . . . . . . . . . . . . . . . . . . . 30,000 . . . . . . . . . . . . . . . . . .41,100 Foreign Hydrocarbon Companies in UAE . . . . . . . . . .-20,800 . . . . . . . . . . . . . . . . . -26,550

Transfers (NET). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .-30,101 . . . . . . . . . . . . . . . . . -34,111 Public Transfers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -2,025 . . . . . . . . . . . . . . . . . . -2,159 Workers Transfers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .-28,076 . . . . . . . . . . . . . . . . . -31952

1 Including estimates of other exports fromall emirates.2 Including re-exports of non-monetary gold.3 Including estimate of imports fromall emirates and imports of non-monetary gold.4 Central Bank and all banks.* Adjustable fi gures and preliminary estimates

Source: Central Bank Annual Report, 2007

2006 2007* 2006 2007* 2006 2007*

ESTIMATE OF UAE BALANCE OF PAYMENTS 2006–2007 (in millions of dirhams)


2006* 2007*Capital and Financial Account (Net) . . . . . . . . . . . . . . . . . . -58,987 . . . . . . . . .41,524 Capital Account 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .– . . . . . . . . . . . . . . . .– Financial Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .-58,987. . . . . . . . . . . 41,524 Enterprise of Private Sector. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87,593 . . . . . . . . . 217,324 Direct Investment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7,030 . . . . . . . . . . . -1,400 Outward . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .-40,000 . . . . . . . . . .-53,500 Inward. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47,030 . . . . . . . . . . 52,100 Portfolio Investment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4,400 . . . . . . . . . . . .5,300 Banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,563 . . . . . . . . . 178,324 Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .-12,715 . . . . . . . . . . . -1,157 Other Investment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48,278 . . . . . . . . . 179,481 Private Non-Banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,600 . . . . . . . . . . 35,100 Enterprises of Public Sector . . . . . . . . . . . . . . . . . . . . . . . . . . . -146,580 . . . . . . . . -175,800

Net Errors and Omissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .-49,503 . . . . . . . . . . . .5,788

Overall Balance: Surplus (+) or Defi cit (-) . . . . . . . . . . . . . . .23,885 . . . . . . . 183,238

Change in Reserves (- indicates an increase) . . . . . . . . . . . -23,885 . . . . . . .-183,238 Net Foreign Assets with Central Bank . . . . . . . . . . . . . . . . . . . . . . .-24,034 . . . . . . . . -183,127 Reserve Position with I.M.F. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149 . . . . . . . . . . . . -111

5 Data not available at time of report.

ESTIMATE OF UAE BALANCE OF PAYMENTS, continued


By December 2008, the UAE Central Bank had set up a task force, the Financial

Stability Unit, to ‘keep an eye’ on potential threats to the UAE’s fi nancial system.

Proposals on the table include the introduction of ‘fi nancial vehicles’ to

underpin real estate loans.

Throughout 2007 and early 2008 the rate of infl ation, which, at 11.1 per

cent in 2007, was relatively high by global standards, was infl uenced by a

major decline in the value of the US dollar, to which the UAE dirham is linked,

against other global currencies. However, a long-awaited reversal in the US

dollar’s international valuation, along with domestic measures introduced to

dampen infl ation, brought some relief to the infl ationary cycle in the second

half of the year.

Stock markets in the UAE were also aff ected by the global turmoil in

fi nancial markets in the second half of 2008, despite the fact that the UAE

has continued to raise standards of corporate governance and transparency,

thereby helping to underpin confi dence in equity markets.


Diversifi cationThere is no doubt that revenues from oil exports

were instrumental in transforming the economy

of the country. Nevertheless, there is a deep

awareness that the security of future generations

depends on prudent investment both at home

and abroad.

Strategic overseas investments by sovereign

wealth funds have been a critical component of

the UAE’s economic development strategy for

decades as the country has consistently made

an eff ort to diversify where and how it invests its

fi nancial assets. Funds and companies such as

Abu Dhabi Investment Authority, International

Petroleum Investment Company, Abu Dhabi

National Energy Company (Taqa), Mubadala,

Dubai Holdings and Dubai International Capital

have all made their impact on the world stage.

Some are premier global institutional investors,

others take controlling interests in companies

in which they invest.

Economic diversifi cation in the UAE has also

been a key plank of government strategy since

the foundation of the state and is one of the

major reasons why the UAE had the strength and

resources to weather the worldwide fi nancial

storm that threatened to engulf all in its path in

2008. In 2007 the non-oil sector accounted for

64.1 per cent of GDP (amounting to Dh467.9

billion) and the hydrocarbon sector 35.9 per

cent. Remarkably, the non-oil sector fi gure was

achieved in a year when oil prices increased by

18.2 per cent, inevitably boosting earnings.

“It is worth

remembering

that diversifi cation

has been

a necessity

rather than

a luxury for most

of the emirates”



To date, a wide range of industrial activities have been encouraged to

establish and grow in an environment that seeks to enhance, not obstruct,

entrepreneurial talents, enabling the UAE to diversify to an extent that it is

not totally at the mercy of the fluctuating world oil price or how much oil and

gas it pumps. Depending on the regional and global situation, the different

sectors may shift in terms of their importance, but there are enough varied

ingredients to support a fairly balanced economy.

In 2007 the hierarchy of non-oil economic sectors was listed as follows,

starting with the largest: manufacturing (12 per cent); wholesale, retail and

maintenance (10 per cent); construction and real estate (each 8 per cent);

government services (7 per cent) and financial enterprises and transport/

storage/communications (both 6 per cent). Agriculture, electricity and water,

restaurants and hotels, together with social and private services, accounted

for around 6 per cent of total GDP.

Besides hydrocarbons and the downstream petrochemicals sector, the

primary sectors attracting investment and providing the main driving

force for moving the economy forward are manufacturing, transport and

communications, and real estate.

While some activities such as those involving the financial sector are

not so apparent to the general ‘man on the street’, nobody could miss the

forest of cranes that is evidence of the construction sector’s activities, or

the inescapable advertisements for new real estate projects. But the king of

the non-oil sector is still manufacturing: the UAE has pumped nearly Dh29

billion into manufacturing projects over the past four years in support of

more than 1000 projects. The sector includes huge industrial schemes such

as Dubal’s aluminium plant at Jebel Ali, the world renowned ceramics plant,

RAK Ceramics, in Ra’s al-Khaimah, large pharmaceutical plants, steel plants

and petrochemical production industries in Abu Dhabi, together with many

smaller scale but highly successful manufacturing units such as boat-builders,

furniture makers, food and clothes manufacturers.

It is worth remembering that diversification has been a necessity rather

than a luxury for most of the emirates. With Abu Dhabi holding over 90 per

cent of the country’s hydrocarbon reserves, other emirates were forced to

tHe economy


look elsewhere for economic growth. Dubai, where as little as 3 per cent

of GDP is contributed by oil, depends more on tourism, transport, trade,

construction, real estate development and fi nancial services. Each of the

emirates has adopted its own formula for growth, playing to their individual

strengths and tapping into the network of advantages that membership of

the federation has brought them.

The UAE’s extensive range of free zones has been one of the strongest

pillars of the country’s diversifi cation strategy, attracting signifi cant amounts

of foreign investment, creating thousands of jobs, and facilitating technology

transfer into the country. At US$19 billion in 2007 the value of foreign direct

investment in the UAE is the highest in the region.

Signifi cantly, the UAE is a contracting party to GATT and one of the original

members of the WTO. UAE trade in 2007 totalled Dh1.01 trillion, accounting

for 22.2 per cent of all Arab trade, despite the fact that the UAE population

is only 1.4 per cent of the total Arab population. Trade fi gures throughout

the UAE continued to show impressive increases in 2008. At the same time,

the UAE is negotiating eight free-trade agreements with key economic blocs

that will signifi cantly impact trade.

New ideas are emerging all the time, helping to keep the UAE at the head

of those countries adapting their economies to the changing circumstances

of the twenty-fi rst century. In the telecom sector, Etisalat is one of the

largest companies of its kind in the world and has exported its expertise to

create telephone networks in many new areas from Africa to the Far East.

Meanwhile, Abu Dhabi-based Thuraya has become a global leader in satellite

telecommunications systems with its unique handset that switches seamlessly

from GSM to satellite systems.

Not only is the UAE one of the most internet-connected countries in the

world, it has created its own business zone, Internet City. This has been so

successful that it has served as a model for other free zones such as Media

City and Studio City. The latter, which has facilities for movie production is

just a small part of the UAE’s move into major fi lm-making. For example.

Abu Dhabi Media Company (ADMC) has formed a fi lm fi nancing subsidiary,

‘imagenation abu dhabi’ with plans to spend more than US$1 billion (Dh3.67


billion) developing, financing and producing as many as 40 feature films over

the next five years. Such examples are few of many that surprise first-time

visitors to the UAE.

We should also mention the aviation industry, very well established already

and still growing with multi-award winning airlines such as Emirates and

Etihad operating out of two of the UAE’s seven international airports. Both

airlines have huge orders placed for Airbus and Boeing aircraft to facilitate

future expansion. There are even plans to build aircraft in the UAE.

Some will recall the complete disbelief in international circles when the

UAE announced it was going to become a major tourism destination. But the

critics were forgetting that the authorities had done their homework. They

calculated that their safe and hospitable environment, beautiful and reliable

weather for over half the year, tropical seas, desert sands, cultural riches and

much more, together with their location, equidistant between China and

Europe and in comfortable flying time from both, would be enough to bring

visitors in their millions. They were right. The UAE is expecting to attract 11.2

million tourists by 2010. It has some of the world’s most famous and iconic

hotels, such as Emirates Palace, Burj Dubai and Atlantis. Shoppers flock to

the numerous malls and it is one of the world’s main centres for gold and

jewellery trading.

www.uaeinteract.com/oilgas

Energy SectorOn the broader economic front, it is important to stress that the Government’s

strategy of economic diversification is not misunderstood as simply ‘moving

away from oil and gas’. On the contrary, the continued significance of

hydrocarbons to the economy is the means by which a broader diversification

will be achieved and supported, and not the reason it is necessary. The

Emirates exported around 2.6 million barrels of crude oil per day (bpd) in

2007 and had a production capacity of around 2.7 million bpd with work

well under way to raise that figure to 3.3 million bpd by 2010 and possibly to

over 5 million bpd by 2014. The country’s proven crude oil reserves stand at

97.8 billion barrels, or slightly less than 8 per cent of the world’s total reserves.

Abu Dhabi holds 94 per cent of this amount, or about 92.2 billion barrels.

Dubai contains an estimated 4 billion barrels, followed by Sharjah and Ra’s al-

Khaimah, with 1.5 billion and 100 million barrels of oil, respectively.

Significantly, the country’s energy sector is no longer about just oil and

gas, although those are by far the most important ingredients at this stage.

The long-term future lies not in diminishing resources but in sustainable

renewable energy, and the UAE has plans to leverage its involvement in

the traditional energy sector to invest in, and acquire, production capacity,

facilities and expertise in all areas of alternative energy!

OIL PRODUCTION (thousand of barrels)

Page 48 www.uaeinteract.com/oilgas

www.uaeinteract.com/oilgas

Who would have guessed that the UAE would be one of the fi rst countries

on earth to attempt to design and build a ‘zero carbon’ city? This is not a

matter of altruism or high ideals, but of hard-headed business planning. The

UAE plans to be at the head of the posse in terms of what it has to off er, sell

or supply in the energy fi eld, whether it is equipment, integrated operating

and storage systems, or actual megawatts.

Abu Dhabi’s Masdar Initiative, which is responsible for the ‘zero carbon’ city,

is establishing an Institute of Science and Technology to address issues of

importance to the region in areas as critical as renewable energy, sustainability,

environment, water resources, systems engineering and management,

transport and logistics, and advanced materials. It will be an independent

non-profi t, tax-exempt research and educational institution and is being

founded with the assistance and advice of the Technology and Development

Program at the Massachusetts Institute of Technology (MIT), all part of the

UAE’s carefully laid out plans for future growth and prosperity.

The main thrust of the UAE’s infrastructure policies is to build

better cities, thereby providing a better life for the people of

the UAE. Through visionary leadership and the philosophy

of excellence ingrained in all infrastructural developments,

the intention is to lead the region and the world in shaping

sustainable urban centres.

Abu Dhabi, the federal capital, has formulated an

ambitious urban development strategy, ‘Plan Abu

Dhabi 2030’, enabling city planners to respond to current

and future development needs. A core feature of the

plan is the concept of a sustainable city built around

vibrant neighbourhoods. It is a concept that envisages

concentrating growth, optimising transportation, creating

mixed-use, pedestrian-friendly streets, implementing

more sustainable, cost-effective infrastructure, and

protecting and enhancing the natural environment.

Plan Abu Dhabi 2030 has created a structured and

clearly articulated framework for the city’s long-term

growth. It epitomises a fresh spirit of city building and an

expansion programme that puts culture and community

ahead of pure commercialisation.

infrastructure‘Better cities, better lives’

www.uaeinteract.com/urban

A primary focus of the plan is to ensure that

Abu Dhabi’s future shape reflects its heritage

and retains its unique identity, allowing it to

become a contemporary expression of an Arab

city. To achieve this, Plan 2030 proposes a radical

transformation of the capital city, based on the

development of core districts: a new downtown

Central Business District will be centred on Sowwah

and Reem islands, two of the many islands that are

being put to good effect by the plan; a secondary

downtown development, Capital City, is destined

to be a key seat of local and federal government;

midway between these two, the Grand Mosque

District, incorporating Zayed Sports City, allows for

more residential and commercial units. Designated

areas will be dedicated to industry. In addition,

the development of a portion of Saadiyat Island

into Abu Dhabi’s Cultural District is an exciting

aspect of the plan. The district will include five

landmark museums or performance spaces,

including the Guggenheim Abu Dhabi and the

Sheikh Zayed National Museum, all designed by

world-renowned architects.

Another important part of the plan is the creation

of communities that reflect local Emirati customs

and ways of life. Sustainability initiatives such as

strict building standards and the use of solar and

wind power will also make these communities

more self-reliant in the future. Furthermore, a key

principle of the planning process is to respect,

be scaled to, and be shaped by the natural

environment, in particular the sensitive coastal

and desert ecosystems.

“a key

principle of

the planning

process is

to respect,

be scaled to,

and be shaped

by the natural

environment”

infrastrUctUre


Already aspects of the plan’s implementation are evident in and around the

capital city and approximately Dh734 billion (US$200 billion) will be pumped

into various projects in the coming five years. Aldar’s extensive Central Market

redevelopment is a prominent feature of the plan, serving the commercial

heart of the original city centre. Aldar is also working on the Al Raha Beach

project on the mainland. Nearby, the Yas Island development is being

prepared for the 2009 F1 Abu Dhabi Grand Prix. Work has also commenced

on Al Reem Island’s City of Light project. Capital Centre, surrounding Abu

Dhabi International Exhibition Centre, is well under way and the first phase

of Arzanah in the vicinity of Zayed Sports City is scheduled for completion in

2012. Meanwhile, Saadiyat Island, being developed in three phases by Abu

Dhabi’s Tourism Development & Investment Company (TDIC), is scheduled

for completion in 2018.

City planners have also drawn up ambitious new blueprints for developing

Al Ain and the Western Region (recently renamed Al Gharbia). The prospect of

large-scale development in Al Ain coincides with the city’s bid to be selected

as a World Heritage Site by Unesco. Tourism, especially eco-tourism centred

on the area’s unique coastline and offshore islands, is a key feature of the

radical regeneration programme planned for Al Gharbia.

Efforts are also being made in the other constituent emirates of the UAE

to ensure that development is planning-led, as opposed to demand-led,

which is the case in many of the world’s major cities. As already emphasised,

the objective is to provide the infrastructure that will attract tourism, trade

and industry, including valuable service industries, at the same time creating

living sustainable communities.


Dubai Urban Development Framework (DUDF) is an integrated master

plan that provides a comprehensive roadmap for Dubai’s future up to 2020

and beyond, hopefully solving the main concerns of today’s urban life. A

measure of the priority being placed on infrastructural development is that

more than a third of Dubai’s budget expenditure in 2009 will be earmarked for

infrastructure projects. The Dh36 billion 2009 public expenditure will meet the

cost of construction of the Metro, the new Al Maktoum International Airport

at Dubai World Central, bridges, roads and other infrastructure projects.

Dubai has gained a reputation for executing innovative infrastructural

projects such as the three Palms and The World, executed by Nakheel, and

Dubai Marina led by Emaar. The latter is also responsible for the world-

renowned Burj Dubai. With an original design height of 808 metres and a

final height that remains a closely guarded secret, the towering structure is

now virtually complete. It meets all four criteria listed by the Council on Tall

Buildings and Urban Habitat, which classifies the world’s tallest structures. Burj

Dubai also anchors Emaar’s Downtown Dubai featuring the Old Town quarter

and Souk al-Bahar, a new leisure and retail destination set within the context

of a traditional Arabian souk, phase one of which was opened in 2008.


However, the global financial crisis has impacted on some of the more

ambitious projects planned for Dubai and Nakheel announced in December

2008 that it was delaying long-term infrastructure work on some of its projects,

including Palm Deira and the Arabian Canal.

The northern emirates are also undergoing a major transformation to

one degree or another, depending on their size and inclination. Sharjah,

the third largest of the seven emirates, is developing Al Nujoom Islands

amongst other projects. Freehold developments in Ajman, spearheaded by

Ajman Development and Investment Authority, are being undertaken in a

sustainable manner so that Ajman can acquire its own unique identity. The

emirate’s most ambitious development is its Dh220 billion (US$63 billion) Al

Zorah project, which has free zone and freehold status.

The government of the northernmost emirate, Ra’s al-Khaimah, is working

on several major projects in real estate, tourism and industry. Again, freehold

rights and the granting of free zone privileges have been stimulating factors

in the mushrooming of projects in this emirate.

Meanwhile, in the stunningly beautiful Emirate of Fujairah the real estate

emphasis is naturally on improving tourism infrastructure, with several new

five-star hotels having opened their doors to the public in recent years, and

many more under construction.

www.uaeinteract.com/transport

TransportEfficient transportation is at the very core of the UAE’s infrastructural planning

and current developments. Abu Dhabi’s five-year strategic plan for 2008–2012

creates guidelines for motor, maritime, civil aviation and public transport,

aimed at delivering an effective transport system that contributes to the

economic growth, quality of life and environmental sustainability of the

emirate. The plan includes a metro system, high-speed rail throughout Abu

Dhabi and linking to other emirates, buses, trams and water taxis.

Road projects worth Dh20 billion (US$5.44 billion) are under way in Abu

Dhabi, including the network of highways that will be required to service the

massive new real estate, tourism and industrial developments taking place

in the city. The new road projects are focused on facilitating traffic flow on

main arteries into and out of the capital, such as Al Salam Street and Airport

Road. Another massive road project has been partially completed along

Corniche Street. The road bridge linking Saadiyat Island with Abu Dhabi

Island is nearing completion and Aldar and TDIC have formed a consortium

to construct the Dh1.83 billion (US$500 million), ten-lane Shahama–Saadiyat

highway and associated bridges, which will link the Central Business District,

Saadiyat Island, Yas Island, Al Raha and the airport.

Dubai’s Road Transport Authority (RTA) has initiated a transport master

plan that will see the emirate spend about Dh80 billion (US$21.7 billion) by

2020 on expansion of the road network and development of a mass transport

system, including Dubai Metro, buses and marine transport. The challenge is

to cope with the expected increase in population from the current 1.4 million

to 5.2 million by 2020.


The Dh15.5 billion (US$4.2 billion) Dubai Metro project is the most ambitious

part of the RTA’s integrated mass transport system. The 52-kilometre Red Line

viaduct was completed in August 2008 and track laying and stations’ fit-out

are under way to meet the 9 September 2009 deadline. Green, Purple and Blue

lines are also planned. In addition, at least eight to ten new monorails will be

installed in various part of Dubai.

Elsewhere, massive mixed-use developments in some of the northern

emirates necessitate a restructuring and upgrading of road systems. Arterial

routes between Dubai and Sharjah have already been improved and highways

linking the northern emirates to their southern counterparts are constantly

being upgraded.

Aviation is a key element of the UAE’s transport infrastructure with over

Dh77.5 billion (US$28.4 billion) earmarked to develop seven international

airports. This pattern of regional airport expansion is being fuelled by strong

economic growth and the rapid development of locally based aviation

companies, including Emirates Airline, Etihad Airways and low-cost operators

such as Air Arabia.

When fully operational, Abu Dhabi International Airport’s new terminal will

accommodate 5 million passengers, bringing the total passenger capacity to

over 12 million. The new terminal, which is for the exclusive use of Etihad Airways

and is capable of handling wide-bodied aircraft, will meet Etihad’s needs until

the first phase of a huge Midfield Terminal Complex is completed in 2012. This

will boost the airport’s overall capacity to around 20 million passengers a year,

with room for further phased expansion to 40 million by 2016.



Abu Dhabi is also creating the Middle East’s first dedicated executive airport

at Al Bateen just 10 kilometres from Abu Dhabi city centre. And new airports

at island resorts such as Sir Bani Yas and Dalma are enabling easy access via

air taxis or air-shuttle services operating from both Bateen and Abu Dhabi

International Airport.

Approximately 40 million passengers used Dubai International Airport

in 2008. A phased transition of Emirates Airline operations to the airport’s

impressive new Terminal 3, a multi-level underground structure with a 40

million passenger capacity, commenced in October 2008. This new terminal

is equipped to service wide-bodied aircraft. Dubai is also building a new

airport on the outskirts of the city. Al Maktoum International, when it is fully

operational, is expected to handle 120 million passengers a year.

Sharjah International Airport (SIA) has also recorded steady growth in

passenger traffic and the launching of the very successful Air Arabia has

played a major role in overall activity at the airport. Ongoing developments

are expected to boost the capacity of SIA to handle more than 8 million

passengers a year.

Ra’s al-Khaimah International Airport is implementing a four-year plan to

construct new arrival and departure lounges, a free zone, automated cargo

warehouses, parking lots, offices and restaurants. Plans are also in place to

construct a new five-star airport hotel and build a new runway. Fujairah is

planning a new airport near Siji, on the western side of the Hajar Mountains,

close to the new Fujairah–Dubai highway.

Whilst the aviation industry is vital for the UAE economy, the vast bulk of

the UAE’s imports and exports pass through its sea ports of which the UAE

has 20, ranging from state-of-the-art oil terminals, world-class industrial ports

and container-handling facilities to smaller dhow and wooden-boat wharfs. All

UAE ports experienced record performances in 2008 as the region’s economic

boom meant that imports of the necessary materials, foodstuffs and luxury

goods flooded into the country.

Eighty per cent of goods arriving into Abu Dhabi emirate do so by sea.

Until recently, Mina Zayed, on the edge of Abu Dhabi City, played the key role

in the emirate’s port operations. This is set to change in 2011 when Khalifa


Port and Industrial Zone (KPIZ) will take over as the emirate’s primary port.

The Dh37 billion (US$10 billion) greenfield port project is being constructed

4.6 kilometres offshore of Taweelah on 3.4 square kilometres of reclaimed

land, roughly halfway between the two cities of Abu Dhabi and Dubai. The

adjacent industrial, logistics, commercial, educational and residential zones

are spread over 137 square kilometres.

Meanwhile, Dubai’s Jebel Ali, the largest port in the Middle East, and Port

Rashid, also in Dubai, have been going through rapid expansion phases. As

with Mina Zayed, cargo operations at Port Rashid are being scaled down and

moved to a more efficient location, in this case Jebel Ali with its new container

terminal (T2) adding 3 million tonnes increased handling capacity. Between

them terminals 1 and 2 can now handle 15 million tonnes of cargo per year.

Sharjah Container Terminal (Port Khalid) (SCT) on the Gulf and Khor Fakkan

Container Terminal (KCT) on the east coast have also undergone major

expansion to keep pace with demand. The Port of Fujairah, also on the east

coast has recently raised Dh900 million to expand existing operations.

www.uaeinteract.com/elec_h2o

Electricity and WaterAn adequate supply of electricity and water

is an absolute prerequisite to fuel the massive

economic and infrastructure developments

described above. It is no surprise, therefore, that

considerable eff ort is being expended to meet

burgeoning demand. The Federal Electricity and

Water Authority (Fewa) is the body responsible

for overseeing federal utilities, whilst authorities

in emirates such as Abu Dhabi (Adwea), Dubai

(Dewa) and Sharjah (Sewa) oversee power and

water generation in their individual areas.

Residents in the UAE draw on around 11,000

kilowatt hours per person per year. The national

annual peak demand for electricity is rising at

an overall cumulative annual growth rate of

roughly 9 per cent per annum. But key centres

such as Abu Dhabi are seeing much higher rises

in consumption with peak demand predicted to

reach 18,574 MW by 2010. Today, independent

water and power projects (IWPPs) supply the

bulk of electricity and water in Abu Dhabi, and

Taweelah A-2, the UAE’s fi rst IWPP, is being used

across the region as a blueprint for a successful

privatisation strategy. Overall industry estimates

expect electricity capacity in the UAE to rise to

26,000 MW by 2010, but this fi gure is constantly

under review.

So far, Dubai has been able to meet demand

for electricity and water, which has been growing

in the emirate at a rate of 15 per cent and 12

per cent respectively, but this is set to escalate.

“Despite the

scarcity of

natural water

resources,

residents of

the UAE

are among

the highest

per capita

water users

in the world”



Some of the northern emirates are currently experiencing power shortages,

a situation which is being rapidly addressed by local and federal authorities.

Despite the scarcity of natural water resources, residents of the UAE

are among the highest per capita water users in the world, consuming

an average of 550 litres per day. The UAE relies on renewable and non-

renewable groundwater and desalinated water for supply. It plans to build

68 rechargeable dams in the coming five years to augment the 114 dams

in existence, all but two of which are rechargeable. Irrigation for agriculture,

forestry and amenity plantation accounts for a massive 83 per cent of

total groundwater use and it is generally recognised that this position is

untenable. Groundwater is being severely degraded and aquifers depleted.

However, desalination now supplies almost all of the water used for human

consumption and for industry. Five of the world’s top-ten desalination plants

are located in the UAE. Most desalination plants are co-generation projects

using excess heat from power production.

The UAE’s investment in power and water projects increased by 20 per

cent from Dh42.64 billion (US$11.62 billion) in 2007 to Dh51.34 billion

(US$14 billion) in 2008, 50 per cent of which was earmarked for processing

wastewater, while water generation and transportation accounted for 36 per

cent and 13 per cent respectively.

Most of the UAE’s power and desalination plants are fuelled by gas. As

we have already seen in the chapter on the Economy, the UAE has invested

heavily in projects to increase gas production over the past 20 years and the

country is also importing Qatari gas through Dolphin pipelines for supply to

power and water plants in Abu Dhabi, Fujairah and Oman.

The Government recognises that the water issue is not just one of supply;

demand management is equally vital for sustainable development and long-

term water security. The aim is to reduce usage to 350 litres per capita per

day over the next five years.

Alternative low-carbon energy sources, such as solar, wind and hydrogen

power, are becoming increasingly attractive in the UAE, especially since the

US$15 billion Masdar Initiative was launched in 2006, marking Abu Dhabi

as the first major hydrocarbon-producing nation to embrace renewable


and sustainable energy. Masdar City will be powered entirely by renewable

energy. Covering an area of 6 square kilometres, electricity will be generated

by photovoltaic panels, some of which will be manufactured in Abu Dhabi,

while cooling will be provided via concentrated solar power. Water will be

supplied through a solar-powered desalination plant. Landscaping within

the city and crops grown outside the city will be irrigated with grey water

and treated wastewater produced by the city’s water treatment plant.

In 2008, the UAE set up the Emirates Nuclear Energy Corporation (ENEC)

to assess and develop a peaceful nuclear energy programme with a view

to meeting future energy needs. The move followed consultations with

the International Atomic Energy Agency (IAEA) and the governments of

France, the US, the UK, Russia, China, Japan, Germany and South Korea. The

Government has stressed that it will work closely with the IAEA on the planned

peaceful nuclear power programme.

infrastrUctUre

CommunicationsThe UAE Government recognises that connectivity is a key component

of public infrastructure. Today, telecommunications across all platforms

in the UAE are fast and eff ective with fi xed-line, internet and mobile

connectivity among the best in the world. The UAE is presently serviced

by two telecommunications operators, Etisalat and du. Etisalat has been

investing in communications infrastructure providing fi xed-line telephony,

fi xed and wireless secure internet access and mobile coverage to the UAE

since its establishment in 1976. Relative newcomer du off ers voice, data

and entertainment on mobile networks and converged broadband, TV,

and landline.

Abu Dhabi-based Thuraya Satellite Telecommunications Company is a

leading provider of cost-eff ective, satellite-based mobile telephone services

through dual-mode handsets and satellite payphones. The company launched

a third geosynchronous satellite in January 2008, thus extending its coverage

to nearly two-thirds of the globe’s population.

Emirates Postal Corporation (EPC) has modifi ed its business model and

operational strategies, including the introduction of integrated IT systems,

automated sorting centres and agreements with international postal

authorities, as well as the addition of new business streams in cargo and

logistics, fi nancial services, direct marketing, mail fulfi lment and other areas. A

holding company, Emirates Post Group, oversees a rapidly expanding family of

subsidiaries that now includes Emirates Post, the postal corporation, Empost,

the UAE’s national courier company, the Electronic Documentation Centre,

Emirates Marketing and Promotions, and the Wall Street Exchange Centre.

people and society

‘Our greatest asset is our people’

This chapter is based on the statement delivered before the

third Upper Working Group of the UN General Assembly in

November 2008 by Anwar Gargash, Minister of State for

Foreign Affairs, in which he reviewed social development

in the UAE and underlined the country’s commitment to

respect human rights enshrined in international conventions

and customary norms.

The UAE believes that its people and their continued well-

being are at the heart of a healthy and stable polity. Though

the impact of social change has been significant and has

resulted in several challenges, the UAE is proud to be a

tolerant and open society that nonetheless cherishes its

traditional roots.

The UAE population enjoys a high standard of living and

is now reaping the benefits of considerable investment in

education, health and social services. For example, more

than 648,000 students were enrolled in 1259 public and

private schools in 2007/08 and the Government’s policy

of guaranteeing free education up to university level for

all citizens has resulted in a 93 per cent literacy rate.


Today, the UAE has over 60 public and private universities and its drive to

improve education across the board, hand-in-hand with the private sector, is a

key component of Government strategy. In this regard, the UAE is committed to

raising the age for compulsory education to 18 years. The objective is to provide

graduates with the skills required by the swiftly changing labour market.

In other fields, rapid advancement in healthcare facilities since the

establishment of the federation drastically reduced infant mortality to about

eight per thousand births in 2008 and raised the average life expectancy age

to 77 years for men and 80 years for women. In addition, world-class private

healthcare services are being built throughout the country as the Government

redefines its role from provider to regulator.

Government strategy focuses on ensuring country-wide sustainable

development, inclusive of all stratas of society. Initiatives to realise this

objective include enacting legislation and special regulations for the

assimilation of members of society with special needs and other vulnerable

groups into the development process; increasing rehabilitation and training

programmes in partnership with other local and private institutions; providing

free or subsidised housing; training social welfare dependents for the job

market; providing financial assistance to those in need; as well as enacting

legislation and laws to encourage local institutions, individuals and the private

sector to provide social services.

“Government strategy

focuses on ensuring

country-wide

sustainable

development”

www.uaeinteract.com/socialdevelopment

The country’s social security policy illustrates this effort – in 2008 the

Government allocated over Dh2.2 billion (US$600 million) in financial

assistance to 16 vulnerable sections of society, numbering nearly 38,000

people, with the elderly, physically challenged, orphans, widows, and

divorced women topping the list of beneficiaries. Furthermore, the Ministry

of Interior has adopted a programme for the rehabilitation and employment

of physically challenged people by offering training and employment in the

emirate they reside in.


www.uaeinteract.com/humanrights

Human Rights IssuesAmid a rapid modernisation process, the UAE has had a challenging, but

progressive, track record on human rights issues. With a deep aspiration

to improve, the UAE is keen on tackling these issues head on. This stems

from a cultural heritage and religious values that enshrine justice, equality

and tolerance.

The UAE respects the integrity of every individual residing in the country

and its commitment to guarantee equality and social justice for all citizens

is ingrained in the Constitution. The Constitution expressly outlines the

freedoms and rights of all citizens, prohibits torture, arbitrary arrest and

detention, respects civil liberties, including freedom of speech and press,

peaceful assembly and association, as well as the practicing of religion.

In turn the Government has demonstrated its commitment through the

enactment of implementing legislation that safeguard these principles.

However, in recognition of the significance of its human rights record, the

Government is currently modernising laws and practices in line with best

practices. The Government is also aware that respecting human rights in

accordance with international human rights charters and customary norms

is a priority and in this regard, the UAE has already ratified a number of

international conventions. Moving forward, the UAE is committed to studying

the framework for accession to the UN Convention against Torture and other

Cruel, Inhuman or Degrading Treatment or Punishment.

The UAE’s open-minded approach has ensured a healthy amalgam of its

own traditions and values, as well as those of the rest of the world. The net

result is the existence of a balance between Islamic traditions and heritage

and the practices of other countries.

Human rights education is a key component of the UAE’s enforcement

strategy. To this end, the UAE is planning a human rights education syllabus

for students of Grades 1–12; colleges of law and police academies are required

to offer human rights courses; and a federal institute for judicial training

and studies has been established. The Government is also committed to

organising workshops focusing on spreading human rights principles in line


with the international conventions ratified by the state, in cooperation with

specialised international organisations.

In addition, the UAE is in the process of studying the establishment

of a national human rights commission in the country, in line with the

Paris Principles and the Government is also looking forward to enhancing

cooperation with the Human Rights Council.

Meanwhile, the UAE considers the following issues as critical – political

participation, women and labour. While some of these have been subjects

of international scrutiny in the past, these are also issues that the UAE has

proactively addressed.

As already outlined in the chapter on Government, major steps have

been taken during the last few years, both at the federal and local levels, to

modernise and institutionalise the UAE Government structure in order to

make it more responsive to the needs of its growing population and to widen

the avenues of participation. This objective is to ensure that government is

better equipped to cope with the challenges of development.

The process is less about political reforms, but more about what political

participation mechanism best suits the country and how these steps need

to be implemented to ensure greater national stability and security, as well

as continued progress and development for the people.


www.uaeinteract.com/women

WomenContrary to some misconceptions and stereotypes concerning the role

of women in UAE society, women are in fact to the forefront in both the

government and private sector. Furthermore, the Government is committed

to continuing the process of empowering women and utilising their skills in

the growing economy. Currently, nearly half the students registered in 1259

schools across the UAE are girls; about 75 per cent of all students attending

the UAE University are women; and, three out of every five students in the

public higher education system are women.

UAE women account for nearly 30 per cent of the national workforce

and currently occupy posts ranging from civil servants to engineers and

bankers, as well as traditional jobs in teaching and health care. Women are also

increasingly visible in the law enforcement agencies and the Armed Forces.

In addition, Emirati women are emerging as leaders in non-traditional

careers, from airline pilots to ambassadors. The judiciary has recently

appointed women to a number of high-level positions, including marriage

registrars, public prosecutors and judges. As far as political participation

is concerned, women hold a 22.5 per cent share of parliamentary seats,

compared to the world average of 17 per cent.

In February 2008, the Cabinet reshuffle increased the number of women

ministers to four, which reflects the Government’s serious commitment to

nurturing the leadership role of women in society. Women form 60 per

cent of UAE Government sector employees, of which 30 per cent are in

high-level posts.

Simultaneously, the Government’s holistic approach to women’s issues

has resulted in a number of social support initiatives across the country.

Amongst these, the Dubai Shelter for Women and Children was established

to provide support and psychological care to all women, both nationals and

expatriates, who are victims of human trafficking, domestic violence, family

neglect, employer abuse and other social problems.

Under the umbrella of the UAE Red Crescent Authority, a similar shelter

has been established in Abu Dhabi. More such shelters are planned across

www.uaeinteract.com/women

the country. Other organisations offering similar

social services are the Social Support Centre of

the Abu Dhabi Police and the Human Rights Care

Department of Dubai Police.

At a broader level, the UAE also championed

the cause of women in the region by hosting the

second Arab Women’s Organisation conference

in November 2008. Furthermore, the Government

has ratified the United Nations Convention on

the Elimination of all Forms of Discrimination

against Women, an international benchmark for

high standards of non-discrimination.

“Emirati women

are emerging

as leaders in

non-traditional

careers, from

airline pilots

to ambassadors”


www.uaeinteract.com/employment

LabourA large part of the UAE’s population is made up of culturally diverse foreign

workers attracted by the positive employment opportunities and tolerant

social environment in the country. The UAE is proud to have developed

into an open, modern Arab and Islamic model for the region with over 200

nationalities among its workforce.

However, such diversity also brings its challenges. For the UAE,

respecting labour rights is a moral, cultural and economic imperative.

As a member of the International Labour Organisation, the Arab Labour

Organisation and other labour-focused multilateral organisations, the UAE

seeks to work transparently and objectively with regard to its obligations.

Over the past few years, federal and local governments have instituted

sweeping reforms aimed at improving working conditions and workers’

rights, reflecting the UAE’s commitment to treating all guest workers with

dignity and respect.

Most labour issues concern expatriate workers, especially the unskilled

segment, which has made a significant contribution to the growth of the

economy. More than 3.1 million foreign workers are contractually employed

in the UAE. As the country moves ahead on its development path, it is doing

its best to ensure that no person living, working and contributing to this

society undergoes any form of abuse or exploitation. The Government is

fully committed to creating the necessary mechanisms and safeguards to

protect all who reside and work in the UAE, and is focusing on several fronts

to address the challenges.

The UAE considers enforcement of policies aimed at protecting the rights

of workers as critical. Ensuring the fair and on-time payment of workers is a

particular priority of the labour policy enforcement, which is beginning to

impact positively on the labour climate in the country. Improving working

conditions is another area for action that has seen noticeable progress. In

2007, 122,000 facilities were inspected by the Labour Ministry personnel,

resulting in penalties for 8588 violations related to working conditions and

workers’ rights.


More importantly, the Government is working on a new law to protect

domestic workers, which will afford them far greater protection and

assurances. The new initiative will particularly benefit women who are a

major component of this segment of the workforce. This takes forward the

2006 decision of enforcing mandatory employment contracts to protect the

rights of domestic workers in relation to salary, accommodation, healthcare

and working hours. The UAE is also in the process of finalising a revised version

of Federal Labour Law No 8 of 1980, which has already seen amendments

in 1981, 1985 and 1986.

In a move to ensure more accountability, efficiency and transparency

among its employees, the Ministry of Labour has introduced a complaints

hotline for the general public to record grievances.

Furthermore, in recent years, the UAE has improved dialogue with

individual labour-exporting countries and established consultations at the

multilateral level to encourage a spirit of partnership. This includes a pilot

project aimed at studying the difficulties faced by workers from the point of

job recruitment in their countries until they return home after employment

in the UAE.

www.uaeinteract.com/employment

The Government is working hard towards managing and governing the

working environment in accordance with international conventions and

international labour standards. The unique challenge of demographics in

the UAE remains a key issue not only in terms of national identity but also

in terms of national security. Government policies must always take this

into account.

Nonetheless, the country also takes pride in the range of multicultural

communities living and working in the UAE that contribute to its economic

and social fabric. To cite one example of efforts to ensure social cohesion,

the Constitution affirms freedom to exercise religious worship in Article 32.

Accordingly the Government has facilitated the establishment of places of

worship for various religions and sects, granting free land to build houses of

worship for many faiths. Today, in the UAE, there are a total of 59 churches,

two Hindu temples, and one Sikh temple.


UN InitiativeAnother closely related issue is that of human trafficking, a crime that the UAE

takes extremely seriously. In order to institutionalise the fight against human

trafficking and protect its victims, especially women, the Government enacted

Federal Law 51 in 2006. The law takes into account the existing federal laws

on entry and residency of foreigners, labour, and the exploitation of under-

age camel jockeys. It calls for strong punitive measures, including maximum

penalties of life imprisonment and covers all forms of human trafficking –

not just overt enslavement but also sexual exploitation, child labour, and

commerce in human organs.

PeoPle and society


Furthermore, a Cabinet order established the UAE National Committee to

Combat Human Trafficking in 2007 to give teeth to Federal Law 51 and to

create a coordinating body for anti-human trafficking efforts at all levels in

the member emirates of the federation. The Government also worked with

UNICEF, source country embassies and NGOs to identify, rescue, rehabilitate,

and repatriate children who worked as camel jockeys in the past.

Moreover, while the UAE has already ratified the United Nations Convention

against Transnational Organised Crime, the Government is committed to

ratifying the United Nations Protocol to Prevent, Suppress and Punish

Trafficking in Persons, especially Women and Children.

In addition, as part of its effort to tackle this crime globally and take a

lead in this fight, the UAE contributed US$15 million to support the United

Nations Global Initiative to Fight Trafficking. This included sponsoring the UN

Conference on Trafficking in Persons in Vienna in February 2008 and actively

supporting the United Nation’s thematic debate on trafficking in New York

in June 2008.

The UAE endeavours to improve training for law enforcement officers in

order to make them more aware of aspects of human trafficking, especially

in the areas of identifying and interviewing victims, and understanding the

transnational nature of this crime.

The Government is also committed to a national media campaign to

enhance public awareness about the crime of human trafficking, to deter

criminals and to publicise the existence of helplines and shelters for victims.

In conclusion, the UAE is acting on every front of its four-pillar strategy to

combat human trafficking: legislation, enforcement, victim support, bilateral

agreements and international cooperation. It will continue to demonstrate

resolve and to acknowledge where it still needs to improve. Simultaneously,

the UAE will continue to cooperate with all appropriate regional and

international law enforcement officials to eradicate this crime.

media and culture

‘Building on the cultural heritage of the past’

The media and culture sectors are undergoing a

period of reorganisation, revitalisation and renaissance

in the UAE. Building on the cultural heritage of the

past, major investment is being made in world-class

resources, introducing international best practices into

all areas of activity, stimulating and encouraging local

participation, and at the same time forging bridges

between East and West.

In particular, the Abu Dhabi 2030 vision seeks to

establish the emirate as a regional centre for culture.

Following a period of government restructuring,

the National Media Council (NMC) was established

in 2006 to oversee media development in the UAE

and to support media initiatives. All jurisdictions and

responsibilities concerning media affairs that previously

fell under the dissolved Ministry of Information and

Culture were transferred to the NMC. In particular, the

core media bodies of the old ministry, in the form of

the Press and Publications Department, the External

Information Department and the Emirates News Agency

(WAM), are now under the authority of the NMC.


A number of carefully structured organisations are spearheading new

developments. These include Abu Dhabi Media Company (ADMC), the leading

multi-platform media and entertainment provider that is mentioned in the

chapter on the Economy in the context of the UAE’s blossoming film industry.

ADMC is a public joint stock company with operating units that include

television, radio, publishing, digital media, distribution and printing, along

with film.

The UAE is the regional centre of the print, publishing and advertising

industries with a growth rate of 15 to 20 per cent expected year-on-year. A

wide range of English and Arabic-language newspapers and magazines are

produced in the country. In addition, ADMC launched two newspapers in 2008:

a quality daily broadsheet The National, which employs world-class journalists,

published its first issue on 20 April 2008, whilst Al Mal, the UAE’s first Arabic

language weekly financial newspaper, was launched on 23 June 2008.

Despite the upsurge in print media (greatly assisted by a significant increase

in advertising spending in the first half of 2008), there is a general awareness

that journalism in the region requires assistance to develop. Groups such as

the Dubai Press Club are at the forefront of efforts to nurture local talent.

Indigenous television and radio channels, both satellite and terrestrial, are

also thriving in the UAE with homegrown TV production firms producing

some of the most successful programmes in the region.

“A wide range

of English and

Arabic-language

newspapers

and magazines

are produced

in the country”

www.uaeinteract.com/media

ADMC owns and operates Abu Dhabi TV, Abu Dhabi Sports Channel,

Emirates TV, Abu Dhabi Radio, Emarat FM Radio, Holy Quran Radio, and Sawt

Al Musiqa, and it launched a new channel ‘Plus One’ in 2008. Noor Dubai, a

new free-to-air community television channel owned by Arab Media Group,

also commenced broadcasting at the beginning of Ramadan in 2008.

Film, television and related media have been greatly facilitated by the

establishment of dedicated media free zones throughout the Emirates. Dubai’s

Tecom Business Parks brings under its ambit long-established and highly

successful media-related clusters such as Dubai Internet City, Dubai Media

City, Dubai Studio City and International Media Production Zone. Many of

the world’s top-class media companies operate from these zones. Fujairah

Creative City, on the other hand, is a media free zone that was established in

2007 under the auspices of the Fujairah Culture and Media Authority.

The year 2008 also saw the launch of a new ‘Arab-centric’ media free zone

in Abu Dhabi, another milestone in pursuit of Abu Dhabi emirate’s strategy

to become a creative hub for the media, as well as for arts and culture. Set

up by Abu Dhabi Media Free Zone Authority, twofour54 (the geographical

coordinates of Abu Dhabi) was launched with the aim of becoming a centre

of excellence for Arabic content creation. A temporary campus is located near

Khalifa Park and a permanent 200,000 square metre media park containing

production studios and post production suites, as well as transmission services

for local regional and international film, broadcasting, digital publishing and

music industries, will be constructed by 2013 in the Mina Zayed area.


www.uaeinteract.com/culture

Other organisations, public and private, have also been instrumental

in fostering media, art and culture in the country. For example, the Abu

Dhabi Authority for Culture and Heritage (ADACH), which was established

in 2005, is a government organisation with far-sighted aspirations – to

harness the pride of the people of the UAE through the development of its

cultural heritage, and to be the leading cultural development organisation

in the region. Internationally it is contributing to the strengthening of

intercultural dialogue by nurturing projects that encourage the sharing of

cultural traditions and experience.

ADACH has a holistic vision of culture, which embraces both tangible

and intangible heritage. It is committing all its resources to the preservation

of architectural and archaeological assets as well as to the development of

Emirati and international arts, music, literature and cinema.

In recognition of the significant role films can play in promoting the culture

and heritage of the UAE and the region, ADACH established The Circle in 2007.

The initiative is devoted to the production, financing and encouragement of

film-making talent in the Middle East. ADACH, in association with the world-

renowned New York Film Academy, also established a film and acting school

in 2008 that is devoted to developing the film industry in the UAE. New York

Film Academy – Abu Dhabi will assist ADACH to foster and support regional

artistic talent and to create an environment conducive to strong cultural and

artistic expression.

The result of this focus is that Emirati film-makers are the beneficiaries of

an extraordinarily rapid build-up in the infrastructure and funding needed

to nurture a local film industry, which is also supported by UAE film festivals

such as MEIFF, held in Abu Dhabi and DIFF, held in Dubai.

Significant support is also being extended to book publishing, especially

the translation into Arabic of important titles as a way to enhance knowledge

transfer to the Arab world. ‘Kalima’ is one such initiative organised by ADACH,

whilst the Mohammed bin Rashid Al Maktoum Foundation is pursuing an

ambitious target of translating more than 1000 books in three years.

ADACH is also committed to presenting the finest performing arts from

around the world to the broadest possible audience and music features

www.uaeinteract.com/culture

strongly in these plans. Abu Dhabi Music and Arts Festival and Al Ain Classical

Music Festival have been joined by a new dimension to the music scene, Abu

Dhabi Classics, a weekly blend of classic, symphony, jazz and ethnic music

that ran from October to May.

Major international art exhibitions and events also help to promote young

artists and foster contemporary art. Tourism Development and Investment

Company (TDIC) cooperate successfully with ADACH in this regard, their

public programme laying the groundwork for the opening of the Cultural

District on Saadiyat Island, which will feature the Louvre Abu Dhabi in close

cooperation with the Louvre in Paris, the Guggenheim, and the Sheikh Zayed

National Museum.

The UAE already has a wide range of museums that celebrate its unique

cultural heritage, some of which are located in renovated historic buildings

and old forts. Indeed. Sharjah’s renovation and restoration of architecturally

acclaimed heritage buildings in the Sharjah Arts Area and Sharjah Heritage

Area have earned it international acclaim. In all, Sharjah has 17 museums

ranging in subject coverage from Contemporary Arab Art to Natural History.

environment

‘Launching long-term sustainability strategies’

During the course of the last year, efforts by government,

non-governmental organisations and private individuals to

promote the conservation of the UAE’s marine and terrestrial

habitats, and the fauna and flora that live within them have

continued to grow, to meet the increasing challenges faced

by the country’s rapid programme of development.

These efforts have covered a wide variety of areas. One focus

has been on the implementation of a tighter regulatory regime

on industrial and other development activities that have an

impact not only on the environment and wildlife but also on

the country’s human population. Long-term environmental

sustainability strategies have been launched, plans have been

drawn up for a wider, and much larger, network of protected

areas and there has also been a continuing programme of

detailed scientific research.

One much-welcomed measure in terms of regulation was

the introduction of tight controls over the country’s quarrying

industry. Largely situated in the mountain areas of Ra’s al-

Khaimah and Fujairah, the quarries produce the rock and gravel

www.uaeinteract.com/environmentandwildlife


used for major construction industry projects in the coastal areas, in particular

in Dubai. Besides their direct impact on the mountain environment and its

fauna and flora, the quarries also produce large quantities of dust that threaten

the health of nearby towns and villages.

New regulations introduced by the Ministry of Environment and Water

cover air quality guidelines, noise, health and safety practices and the impact

on the environment of areas adjacent to quarry sites and their associated rock

crushers. They also give government authorities the power to order quarries

to cease work during periods when atmospheric conditions are likely to cause

dust to remain suspended in the air, threatening human health. Work close

to villages and towns will only be permitted during the day while tighter

controls have also been imposed on the use of explosives.

Of the 80 or so quarries currently operating, a few, largely managed by

international companies, are already meeting, or nearly meeting, the new

guidelines, but over three quarters of the quarries will need to improve their

performance substantially or will be closed down.

Another major initiative during the year was the launching by the

Environment Agency – Abu Dhabi (EAD) of the Abu Dhabi Environment

Strategy 2008–2012, which lays down the environmental policy agenda for

the next five years. Developed through a wide process of consultation with

major stakeholders, the strategy sets a benchmark for monitoring changes

over time, outlines the long-term vision, mission and goal of the emirate in

terms of environmental policy and provides an action plan for the future.

Two and five year targets have been identified for ten priority areas, including

environmental sustainability, water resource management, air quality,

hazardous materials and waste management, biodiversity management,

environmental awareness, an environmental health and safety management

system, and management of emergencies.

As the country’s development programme occupies an ever-growing

proportion of the UAE’s land, so too is a larger proportion of the country’s

territory now being scheduled for protection as national parks. In Abu Dhabi,

which already has several thousand square kilometres of protected areas,

both onshore and in shallow coastal waters, EAD was finalising plans at the


end of the year for the formal designation of new areas that will more than

double the amount of land and sea being protected in the emirate. Much

of the newly designated area will be in the southern and western deserts,

but the area of mangroves adjacent mudflats and channels just to the east

of Abu Dhabi Island, an important habitat for breeding fish and for birds, is

also being proposed as the first of one of five new National Parks under the

Plan Abu Dhabi 2030.

In the northern emirates of Sharjah, Ra’s al-Khaimah and Fujairah, parts of

the Hajar Mountains are also being prepared for designation as protected

areas, an important step, since the mountains are home to much of the UAE’s

endangered wildlife and provide key habitats. Large areas of Dubai’s deserts

are now also formally protected, although virtually the entire coastal zone

of that emirate has now been irrevocably altered by development. That is

not always a completely negative factor, however. For the first time in 2008,

three species of seabirds were recorded breeding in Dubai, on undeveloped

offshore islets that are part of The World project, and plans are now being

proposed to set aside islets specifically to encourage further breeding.


Another major initiative during the year was the launching by EAD of its

Environmental Sustainability Report, the first public sector report of its kind in

the Arab world. Drawn up in association with other government bodies and

public sector organisations, including the oil and gas industry, and based on

the world’s most widely accepted guidelines for sustainability reporting, the

Global Reporting Initiative’s G3 Guidelines, the report is an important step in

helping EAD to meet various aspects of its sustainability strategy.

One of the major steps taken by EAD as part of the strategy outlined in the

report will be the promotion and implementation, in co-ordination with other

stakeholders, of an integrated Environment, Health and Safety Management

System within three years, to link all factors related to economic growth,

environmental protection, health and safety of workers, and community health.

A new Abu Dhabi Sustainability Excellence Group (SEG) with representatives

of the major sectors in Abu Dhabi, including oil and gas, real estate and

construction, large private companies and the banking sector, will work to

share best practices throughout Abu Dhabi.

environment


Recognising that conservation programmes can only be truly successful

if they are multinational, the UAE was co-organiser, along with the UK, of

an international conference in Abu Dhabi in late October 2008 at which a

new multinational Memorandum of Understanding (MoU) was signed by

28 countries on conservation of birds of prey in Africa, Europe and Asia. The

formation of a new Mohammed bin Zayed Species Conservation Fund was

also announced at that time. With an initial endowment of Dh125 million

(US$34 million) provided by Abu Dhabi Crown Prince Sheikh Mohammed

bin Zayed Al Nahyan, the fund will provide grants for small-scale projects

throughout the world that are aimed at protecting individual endangered

species (http://www.mbzspeciesconservation.org/).

Scientific research into aspects of the country’s environment has

continued to yield good results, with work being undertaken by government

agencies such as EAD, the Environment and Protected Areas Authority (EPAA)

in Sharjah and the Environment Protection and Industrial Development

Commission of Ra’s al-Khaimah, non-governmental organisations such as

the Emirates Wildlife Society and the Emirates Bird Records Committee and

independent observers.

During 2008, for example,four new species were added to the UAE Bird

List, bringing the total to 445, a remarkable number for such a small and

arid country, while several species of reptiles, insects and molluscs new to

the country were also identified. It is probable that there is much more

that remains to be discovered, as investigations of the UAE’s remarkable

biodiversity continue.

One important initiative was the signing in February of a MoU between

EAD and the Emirates Bird Records Committee (EBRC) under which the

agency will maintain the EBRC database of nearly a quarter of a million

records of wild birds seen throughout in the UAE since the late 1960s. To

be continually updated with the addition of new records, this will provide

EAD with one of the most extensive national databases of wild bird records

in the Arabian Peninsula. The two will also collaborate on the preparation

of the official national checklist of birds, in accordance with internationally

accepted standards.

‘From community sports to world championships’

The UAE has already established itself on the international

sporting stage, hosting many of the world’s major events in

a wide range of sports. These events not only attract large

numbers of competing and sports enthusiasts from around

the globe to the UAE, they also see some of the country’s own

top sportsmen and women in action.

Aside from the international circuit events, the UAE has a

healthy indigenous sporting environment with the local

community taking part in a wide variety of sporting activities

at home and abroad. Teams from throughout the seven

emirates regularly compete in national leagues and cups

in a multiplicity of sports that are controlled by specialised

governing bodies. Top sporting venues (both indoor and

outdoor), along with a favourable climate, ensure that the

activities continue throughout the winter season.

In 2008, nine UAE athletes were proud to represent their

country in the twenty-ninth Olympic Games in Beijing,

pitching themselves against world-class sportsmen and

women from over 200 countries.

sports and leisure


Like any other sporting nation, the UAE has a huge interest in football.

The Emirates was host to the eighteenth Gulf Cup in January 2007 and it

proved to be a momentous occasion as the national team managed to pull

off one of its biggest achievements in football, beating Oman 1–0 to win

the coveted cup for the first time.

Cricket is another very popular sport in the UAE with events being

organised throughout the Emirates at purpose built venues such as the

magnificent Zayed International Cricket Stadium, the new Cricket Stadium

being built at Dubai Sports City and Sharjah’s world-class stadium.

Plans to nurture a UAE tennis champion are being supported by Tennis

Emirates, the governing body for the sport in the UAE. Tournaments, such as

the annual Tennis Championship at Abu Dhabi International Tennis Complex,

part of Zayed Sports City, are staged throughout the UAE with the aim of

seeking out both new and undernourished talent. In the meantime, the

UAE consistently attracts leading tennis players to compete in highly-rated

WTA tournaments.

Camel racing has developed into a professional sport with significant prize

money and is also a big tourist attraction throughout the winter months.

Horse racing is another traditional pastime that has evolved into a highly

professional sport. Races for thoroughbreds and the legendary purebred

Arabian horses take place in the country’s top equestrian clubs and courses,

“In 2008, nine

UAE athletes were

proud to represent

their country in the

twenty-ninth Olympic

Games in Beijing”

www.uaeinteract.com/sports

but the highlight of the season is the Dubai International Racing Carnival,

culminating in the world’s richest race, the US$6 million Dubai World Cup.

Endurance racing, in which UAE teams have had considerable success on

the world stage, is also extremely popular.

Golf is definitely not a traditional sport but a multiplicity of top-class golf

courses and the staging of prestigious PGA championships have guaranteed

its popularity.

The international motor sports’ calendar includes the Abu Dhabi Classic,

the UAE Desert Challenge, the FIM Cross Country Rally’s World Championship

for bikes and the Dubai International Rally. Abu Dhabi’s new world-class F1

track on Yas Island will see its inaugural event in 2009, the Etihad Airways Abu

Dhabi Grand Prix – the grand finale of the 18-race F1 calendar for 2009.

With the Arabian Gulf on its western shores and the Indian Ocean along

its eastern flanks, the UAE is particularly attractive for watersports’ fans. Both

coasts are ideal for competitive watersports, from traditional dhow racing

to jetskiing and powerboat challenges. Significantly, the UAE’s Victory team

has met with considerable success over the years in the Class One World

Powerboat Championships, which culminate in Dubai.

‘A prime venue for all events’

Investment in the exhibitions, events and conferences

industry has reinforced the Government’s plan to position

the region as a global centre of tourism and trade and a

world leader in the MICE sector. Recent estimates conclude

that the UAE has about half of the total covered exhibition

space currently available in the Gulf Cooperation Council,

but this will increase to 65 per cent by 2009.

Abu Dhabi’s involvement in exhibitions has been boosted

by the establishment of its National Exhibition Centre

(ADNEC) – the Arabian Gulf ’s largest exhibition venue.

Although it is presently undergoing further development,

including the construction of a marina, the futuristic location

already hosts some of the Gulf’s largest and most significant

international exhibitions.

The capital city also has excellent meeting and conference

facilities at its many luxury hotels, including the seven-star

Emirates Palace Hotel with its 1200-capacity auditorium, a

main ballroom that can accommodate up to 2800 people,

exhibitions and events

www.uaeinteract.com/exhibitions

48 meeting rooms, six large function terraces, a media centre and business

centre, all built within the heart of a beachfront hotel that stands on 100

hectares of landscaped gardens.

Dubai World Trade Centre (DWTC), which was built in the 1980s and which

now includes the adjacent Dubai International Convention and Exhibition

Centre (DICEC), is dwarfed by new buildings. It, nevertheless, remains at

the epicentre of Dubai’s highly successful international trade and business

industry. Meanwhile, a new purpose-built venue, Dubai Exhibition City, is

under construction at Jebel Ali and many of Dubai’s extensive range of luxury

five-star hotels also boast impressive conference and meeting facilities.

Sharjah’s Expo City, Ra’s al-Khaimah’s Convention and Exhibition Centre and

Fujairah’s Exhibition Centre have all received significant investment enabling

regional exhibitions to gain greater traction beyond the major cities of Abu

Dhabi and Dubai.

The following is a small representative selection of the many exhibitions

that take place every year in the UAE:

eXHiBitions and events

www.uaeinteract.com/exhibitions

¢ Adihex, also known as Abu Dhabi 2008, a four-day annual platform for the hunting and equine industries with a distinctive emphasis on heritage and traditional sports. ¢ Adipec, the biennial international petroleum show, one of the outstanding events of its kind in the world. ¢ Environment 2009, highlighting energy, water, waste, air and land management issues. ¢ Idex, the International Defence Exhibition and Conference, one of the largest and most important events for the global defence industry. ¢ Abu Dhabi Medical Congress, an important exhibition and conference for regional healthcare manufacturers, wholesalers, dealers and distributors.¢ Abu Dhabi Motor Show, a biennial event showcasing a wide range of vehicles.¢ Abu Dhabi Yacht Show, a yachting event of global standing to be held at ADNEC’s new marina.¢ Middle East Communications Exhibition and Conference (Mecom), one of the largest dedicated business-to-business networking platforms for the communications industry in the Middle East. ¢ Najah Education Conference, billed as the most comprehensive education, training and careers event to be held in the UAE. ¢ Power Generation & Water Middle East, for companies involved in these sectors to exhibit their products, services and solutions.¢ Roadex/Railex, focusing on all aspects of the transport industry.¢ World Future Energy Summit (WFES), one of the world’s leading conferences and exhibitions on global energy policies and the development of alternative and renewable investment and infrastructure. ¢ Arabian Travel Market (ATM), universally recognised as the leading travel industry event for the Middle East and pan-Arab region.¢ Cityscape, a major business-to-business real estate investment and development event in the Cityscape global brand with major exhibitions in both Dubai and Abu Dhabi.¢ Dubai Airshow, a biennial event billed as the world’s third largest aerospace exhibition.¢ Dubai International Boat Show, showcasing boats and companies from every part of the industry.¢ Dubai Motor Show, a biennial event targeting the buoyant automobile market. ¢ Gulf Information Technology Exhibition (Gitex), one of the three biggest exhibitions of its kind in the world.

u HISTORY AND HERITAGE

u GOVERNMENT

u THE ECONOMY

u INFRASTRUCTURE

u PEOPLE AND SOCIETY

u MEDIA AND CULTURE

u ENVIRONMENT

u SPORTS AND LEISURE

u EXHIBITIONS AND EVENTS

www.uaeinteract.com

Know UAE - At Glance

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Transcript of Know UAE - At Glance