The 39th National Day Report
Thursday, 2 December 2010
As the seven-member federation of the United Arab Emirates celebrates on 2nd December the 39th anniversary of its establishment in 1971, it can look back on a year of continued achievement, both at home and in terms of its relationships with the rest of the world. It can, too, note that, despite the impact of the world economic crisis that unfolded in late 2008, the country's economy is clearly reviving, with investment and trade increasing. While some of the results of that crisis are still felt, there is a well-justified, albeit, cautious optimism that a process of steady development and growth has resumed.
At a political level, the death in late October of His Highness Sheikh Saqr bin Mohammed Al Qasimi, a member of the UAE's Federal Supreme Council and Ruler of Ra's al-Khaimah, represented the passing of the last of those who, led by the late Sheikh Zayed bin Sultan Al Nahyan, founded the state.
Today, under the leadership of President His Highness Sheikh Khalifa bin Zayed Al Nahyan, the Government of the UAE, headed by the Vice President and Prime Minister and Ruler of Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum, and supported by the other members of the Federal Supreme Council, a new phase of the country's development has commenced. This can be seen in a wide variety of sectors, economic, social, cultural, political and other, far more than can be adequately dealt with in a short summary.
Economic Development
Plans for the country's future growth have been laid out in a number of key documents, of which the most immediately relevant is the UAE Government Strategy 2011-2013, which was agreed following extensive consultations between Government ministries and other departments. This will prove to be a major building block in the achievement of the UAE Vision 2021.
The strategy will seek to ensure that all Government work is undertaken in accordance with a set of guiding principles that put the country's citizens first and promote an accountable, innovative and forward-looking Government administration. Key components, already being implemented, include the enhancement of collaboration between federal and local authorities, a focus on delivering high quality, integrated services to consumers and customers, an increase in transparency and accountable government mechanisms and investment in human resources.
Although the impact of the 2008 world economic crisis has continued to be felt in the United Arab Emirates, as is the case, of course, with every other country in the world, economic indicators suggest that substantial progress is now once again being made. That can be ascribed, in part, to the wise decision by Government to inject a total of 120 billion dirhams (US $ 32,.65 billion) into the banking system in the aftermath of the 2008 crash.
The Global Competitiveness Report 2010-2011 issued by the World Economic Forum ranked the UAE 25 in the world for competitiveness, with the UAE being included for the second year in the third and most advanced stage of "Innovation-driven economies" which includes the highest-ranking countries, classified on the basis of their adoption of factors that promote innovation in economic development.
The UAE has been ranked among the top 10 countries in more than 18 indicators of competitiveness globally, and has reached an advanced position among the 139 countries assessed by the report.
The UAE ranked third in the world for 'quality of infrastructure,' three positions ahead of its classification in last year's report, and also ranked third in 'government provision of high-technology products.'
In 2009, the UAE's Gross National Product, GNP, amounted to 914.4 billion dirhams (US$ 248.8 billion), and is confidently expected to cross the one trillion dirham mark by the end of 2010. This is the second largest economy in the Arab world, despite the UAE's small size and population.
The GDP figures provided clear evidence of the success of the Government's policy of economic diversification. At the time the UAE was founded, in 1971, 70 per cent of GDP came from the oil and gas sector, but in 2009, despite much higher oil prices and much higher oil production, supplemented by gas production, this sector contributed only 29 per cent of GDP.
Oil and gas will, of course, continue to play an important role in the economy. The UAE has the fourth largest oil reserves in the world, and plans to increase production capacity to 3.5 million barrels per day have involved the commitment over the last couple of years of more than US $ 30 billion of expenditure on new oil and gas facilities.
Progress in diversification continues, of course, with one particular area of success being the development of the UAE's tourist industry, with over 6 million visitors expected to visit this year. A major component in that success has been the country's two award-winning airlines, Emirates, based in Dubai, and Etihad, based in Abu Dhabi, with low-cost carriers flyDubai and Air Arabia, based in Sharjah, also playing a growing role. The re-launching late in the year of a fifth airline, RAK Airways, is expected to add further impetus to tourism. Another boost has come from the growing business from sea-borne tourism, as cruise liners opt for UAE ports as destinations or as bases for regional cruises.
The UAE's fine transport infrastructure of ports and airports is not, however, focussed solely on tourism, but also makes a major contribution to trade. The opening during the year of Al Maktoum International Airport, in the Jebel Ali district of Dubai, is expected to enhance Dubai's importance as a regional transport and cargo hub, while expansion plans at the Port of Fujairah on the UAE's Indian ocean coastline, the second-largest oil bunkering port in the world, will also lead to further growth in the shipping sector.
Nuclear and Future Energy
Looking to the future, one of the major challenges facing the UAE's economy is a challenge shared by many other states - that of ensuring adequate supplies of energy yet seeking a sustainability of supply. The UAE has opted for nuclear energy as a prime provider for the future, and the recently-established Emirates Nuclear Energy Corporation has now awarded contracts for its first power station to a South Korean consortium. From the very outset, the UAE has been determined to make it clear, however, that this programme is confined simply to peaceful uses of nuclear energy, in accordance with guidelines laid down by the International Atomic Energy Agency, IAEA.
Another initiative has been that of devoting time, and investment, to the development of renewable energy and Abu Dhabi's Masdar has now appointed a consortium to build the world's largest concentrated solar power plant, with a capacity of 100MW. Construction began late in the year.
Education
A continued focus has been placed on education, it being a firm belief of Government that 'the real wealth' of the nation is its people. The number of government schools has risen from 1,256 in the 2007-2008 academic year to 1,350 in the 2008-2009 academic year, with the number of students increasing from over 600,000 to more than 700,000. Higher education has also grown rapidly, with the number of accredited universities and institutes, both government and private, having reached 64 - a remarkable total when one recalls that the UAE's first university only opened in 1977.
It is not, though, simply a matter of numbers - quality has also been a focus, while considerable attention has been given to the teaching of foreign languages, to equip students for the future. One recent innovation has been the introduction of a school providing tuition in Chinese.
Health
In 2006, there were 33 government hospitals in the country. By the end of last year, the number had risen to 40, with a continuing process of construction and expansion. Supporting these and also providing care in the community are 115 primary health care centres, 67 health centres and 11 primary school health centres. In 2009, the budget of the government health sector exceeded 2.6 billion UAE dirhams (over US $ 700 million). The private health care sector has also continued to grow, ranging from large hospitals to small clinics. Here, as in the government sector, efforts have continued to be made to improve both the standard of care and the efficiency with which it is delivered to consumers, this programme being carried out in association with leading hospitals and health care institutions from overseas.
Labour
Unlike most countries, the UAE is largely dependent on an expatriate, immigrant labour force, which is estimated to account for up to 90 per cent of the total workforce. This presents a particular challenge for Government, since, while seeking to protect the fundamental characteristics of Emirati society, it is also necessary to ensure that the foreign labour force is treated in such a way as to ensure that they are guaranteed a decent living. Naturally, in a country that is growing as fast as the UAE, this has not always proved an easy objective to achieve, not least because of the mechanisms by which a large percentage of this foreign labour force are originally recruited in their countries of origin.
The Ministry of Labour, however, has undertaken a number of initiatives to improve the status of employees while, at the same time, acknowledging the legitimate rights of employers. In a programme that has been praised by the International Labour Organisation, the UAE has signed ten Memoranda of Understanding with the Asian countries that provide the majority of the expatriate labour force, with particular attention to the need for reform of the original process of recruitment. At home, other initiatives have included an expansion and streamlining of the labour courts, to which unhappy employees can take complaints, and the introduction of a mandatory system through which employees receive their salaries through the banking network, rather than being dependent on the whims of their employers. New unified standards have also been introduced for labourers' accommodation, these providing for adequate space and leisure facilities, with proper safety regulations being introduced. New work
ers' cities have been built in both Abu Dhabi and Dubai, the main centres of population, at a cost of several hundred million US dollars, and employers are now obliged to make use of these in housing their workers. There is much more yet to be achieved, of course, since hundreds of thousands of workers are involved, but the Government remains determined to improve conditions and to stamp out abuses in this important sector of the economy.
Culture and Sport
Some aspects of the UAE and its development have attracted widespread international attention over the course of the last year. One such has been the official inauguration of Burj Khalifa in Dubai, which, at over 828 metres high, with more than 160 stories, is, by far, the tallest building in the world. Like the well-known Burj al-Arab hotel, in Dubai, and the Emirates Palace hotel, in Abu Dhabi, it seems set to become a world-renowned landmark.
Another has been the remarkable success of the UAE national pavilion at the Shanghai EXPO, which ran from May to October. A stunning design inspired by the shapes of the country's sand dunes, it attracted over two million visitors and won several international architectural awards.
Also making their mark have been the plans for the new Cultural District on Abu Dhabi's island of Sa'adiyat. Work on the construction of the Louvre Abu Dhabi and the Guggenheim Museum - Abu Dhabi is now well under way while the plans for the centrepiece Sheikh Zayed National Museum were announced in late November. When completed, these and other museums, like the Maritime Museum, all designed by top international architects, will provide a strong underpinning for Abu Dhabi's ambition to become a major world cultural centre.
Sport, too, has continued to contribute to growth in a variety of ways. The top-class golfing, horse-racing and tennis events have been complemented during 2010 by the arrival of major cricket matches, all of these not only providing entertainment for residents of the UAE, but bringing visitors from overseas. As was the case in 2009, however, perhaps the top sporting event of the year was the Formula One racing-car Abu Dhabi Grand Prix, held on the Yas Island circuit near Abu Dhabi for the second time.
Political Development
In accordance with guidelines laid down at the time that the UAE federation was established, there has continued to be steady, if undramatic, progress on the path of increasing popular participation in the machinery of Government. Under the terms of an amendment to the country's constitution that came into effect in early 2009, the powers of the UAE's Parliament, the Federal National Council, FNC, have been expanded and the term of office of its 40 members, half chosen by electoral colleges and half appointed, has been extended from two to four years.
Women
More significant, however, has been the increasing role played by Emirati women in all aspects of national life. Not only are there nine women members of the FNC, or 22.3 per cent of the total, but there are also four women in the UAE Cabinet, the highest number anywhere in the Arab world, as well as three ambassadors, a consul-general. Women can be found today in a variety of roles in the judiciary, in civil and military aviation and in the armed forces and police, as well as in more traditional roles in, for example, the health and education sectors. In the Government sector, women occupy two thirds of the positions, many being in top decision-making posts.
With active encouragement from the UAE General Women's Union, led by Her Highness Sheikha Fatima bint Mubarak, the widow of the country's founding father, Sheikh Zayed, the women of the Emirates have also become increasingly active in the economy at large. This process has been strengthened following the formation of the UAE Businesswomen's Council, whose 11,000 members are engaged in over 12,000 individual projects a total investment of around 12.5 billion dirhams or around 3.4 billion US dollars. Over 37.5% of the workforce in banking and financial services is made up of Emirati women.
Foreign Policy
During the past year, the United Arab Emirates has continued to play an active role in global affairs. One topic of particular concern has been the continuing failure of the international community to achieve any progress in bringing about a just and peaceful resolution of the Palestine issue, as a result of continued Israeli intransigence and its unwillingness to engage in a meaningful dialogue to bring about an end to occupation. The assassination of a Palestinian official in Dubai early in the year but what is widely believed to have been an Israeli hit-squad, brought this issue close to home. Another issue that has engaged UAE policy-makers has been the difficulty of creating a new, broadly-based and acceptable Government in Iraq.
The inter-related topics of terrorism and the conflict in Afghanistan have also been of concern, with the UAE continuing to offer dedicated support to the global war against terrorism. The discovery by UAE authorities late in the year of a parcel bomb designed to destroy aircraft, which had arrived in a freight consignment from Yemen, provided a further reminder that terrorism, and the fight to eradicate it, recognise no boundaries.
In pursuit of the development of cordial relations, political, economic and other, with other countries, numerous official visits have been exchanged with other countries. Two highlights of the year, insofar as visits to the UAE were concerned, were the November state visits by Britain's Queen Elizabeth and Indian President Pratibha Patil, reaffirming the long history of friendly relations and political and economic partnership.
One aspect of the UAE's foreign policy has always been a commitment to working with international organisations, like the United Nations and its specialised agencies. The youngest such organisation, the International Renewable Energy Agency, IRENA, created in 2009, has now established its headquarters in Abu Dhabi.
UAE Foreign Aid The United Arab Emirates is fortunate that its economy is underpinned by its oil and gas reserves, as well as by its successful diversification into other sectors such as tourism, shipping and services. It has long been a feature of the country's philosophy of governance, however, that some of its wealth should be devoted to helping other countries who are less well-endowed.
A first annual report from the UAE Office for the Co-ordination of Foreign Aid, OCFA), covering all UAE overseas aid activities in 2009 and published during the course of the year, showed that a total of 8.93 billion dirhams (US $ 2.43 billion) had been provided in humanitarian and development aid. . Of this, 95 per cent was in the form of grants with no debts incurred by the recipient countries.
As His Highness Sheikh Mohammed bin Rashid Al Maktoum, the Vice President and Prime Minister, noted, "In a year that witnessed a global financial crisis that forced major donor countries to cut down their aid, the UAE has continued to play its role as an important member of the international community, delivering much needed humanitarian and development aid to those in need around the world. This is an achievement that would not have been possible without the wise leadership of His Highness Shaikh Khalifa bin Zayed Al Nahyan.
Overall, since 1971, the UAE is estimated to have provided over 163 billion dirhams (US $ 38 billion) in foreign aid, which, says Sheikh Mohammed bin Rashid, "demonstrates the generous traditions of giving that are well-established in our country and deeply rooted in Islam and Arab culture."
At a political level, the death in late October of His Highness Sheikh Saqr bin Mohammed Al Qasimi, a member of the UAE's Federal Supreme Council and Ruler of Ra's al-Khaimah, represented the passing of the last of those who, led by the late Sheikh Zayed bin Sultan Al Nahyan, founded the state.
Today, under the leadership of President His Highness Sheikh Khalifa bin Zayed Al Nahyan, the Government of the UAE, headed by the Vice President and Prime Minister and Ruler of Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum, and supported by the other members of the Federal Supreme Council, a new phase of the country's development has commenced. This can be seen in a wide variety of sectors, economic, social, cultural, political and other, far more than can be adequately dealt with in a short summary.
Economic Development
Plans for the country's future growth have been laid out in a number of key documents, of which the most immediately relevant is the UAE Government Strategy 2011-2013, which was agreed following extensive consultations between Government ministries and other departments. This will prove to be a major building block in the achievement of the UAE Vision 2021.
The strategy will seek to ensure that all Government work is undertaken in accordance with a set of guiding principles that put the country's citizens first and promote an accountable, innovative and forward-looking Government administration. Key components, already being implemented, include the enhancement of collaboration between federal and local authorities, a focus on delivering high quality, integrated services to consumers and customers, an increase in transparency and accountable government mechanisms and investment in human resources.
Although the impact of the 2008 world economic crisis has continued to be felt in the United Arab Emirates, as is the case, of course, with every other country in the world, economic indicators suggest that substantial progress is now once again being made. That can be ascribed, in part, to the wise decision by Government to inject a total of 120 billion dirhams (US $ 32,.65 billion) into the banking system in the aftermath of the 2008 crash.
The Global Competitiveness Report 2010-2011 issued by the World Economic Forum ranked the UAE 25 in the world for competitiveness, with the UAE being included for the second year in the third and most advanced stage of "Innovation-driven economies" which includes the highest-ranking countries, classified on the basis of their adoption of factors that promote innovation in economic development.
The UAE has been ranked among the top 10 countries in more than 18 indicators of competitiveness globally, and has reached an advanced position among the 139 countries assessed by the report.
The UAE ranked third in the world for 'quality of infrastructure,' three positions ahead of its classification in last year's report, and also ranked third in 'government provision of high-technology products.'
In 2009, the UAE's Gross National Product, GNP, amounted to 914.4 billion dirhams (US$ 248.8 billion), and is confidently expected to cross the one trillion dirham mark by the end of 2010. This is the second largest economy in the Arab world, despite the UAE's small size and population.
The GDP figures provided clear evidence of the success of the Government's policy of economic diversification. At the time the UAE was founded, in 1971, 70 per cent of GDP came from the oil and gas sector, but in 2009, despite much higher oil prices and much higher oil production, supplemented by gas production, this sector contributed only 29 per cent of GDP.
Oil and gas will, of course, continue to play an important role in the economy. The UAE has the fourth largest oil reserves in the world, and plans to increase production capacity to 3.5 million barrels per day have involved the commitment over the last couple of years of more than US $ 30 billion of expenditure on new oil and gas facilities.
Progress in diversification continues, of course, with one particular area of success being the development of the UAE's tourist industry, with over 6 million visitors expected to visit this year. A major component in that success has been the country's two award-winning airlines, Emirates, based in Dubai, and Etihad, based in Abu Dhabi, with low-cost carriers flyDubai and Air Arabia, based in Sharjah, also playing a growing role. The re-launching late in the year of a fifth airline, RAK Airways, is expected to add further impetus to tourism. Another boost has come from the growing business from sea-borne tourism, as cruise liners opt for UAE ports as destinations or as bases for regional cruises.
The UAE's fine transport infrastructure of ports and airports is not, however, focussed solely on tourism, but also makes a major contribution to trade. The opening during the year of Al Maktoum International Airport, in the Jebel Ali district of Dubai, is expected to enhance Dubai's importance as a regional transport and cargo hub, while expansion plans at the Port of Fujairah on the UAE's Indian ocean coastline, the second-largest oil bunkering port in the world, will also lead to further growth in the shipping sector.
Nuclear and Future Energy
Looking to the future, one of the major challenges facing the UAE's economy is a challenge shared by many other states - that of ensuring adequate supplies of energy yet seeking a sustainability of supply. The UAE has opted for nuclear energy as a prime provider for the future, and the recently-established Emirates Nuclear Energy Corporation has now awarded contracts for its first power station to a South Korean consortium. From the very outset, the UAE has been determined to make it clear, however, that this programme is confined simply to peaceful uses of nuclear energy, in accordance with guidelines laid down by the International Atomic Energy Agency, IAEA.
Another initiative has been that of devoting time, and investment, to the development of renewable energy and Abu Dhabi's Masdar has now appointed a consortium to build the world's largest concentrated solar power plant, with a capacity of 100MW. Construction began late in the year.
Education
A continued focus has been placed on education, it being a firm belief of Government that 'the real wealth' of the nation is its people. The number of government schools has risen from 1,256 in the 2007-2008 academic year to 1,350 in the 2008-2009 academic year, with the number of students increasing from over 600,000 to more than 700,000. Higher education has also grown rapidly, with the number of accredited universities and institutes, both government and private, having reached 64 - a remarkable total when one recalls that the UAE's first university only opened in 1977.
It is not, though, simply a matter of numbers - quality has also been a focus, while considerable attention has been given to the teaching of foreign languages, to equip students for the future. One recent innovation has been the introduction of a school providing tuition in Chinese.
Health
In 2006, there were 33 government hospitals in the country. By the end of last year, the number had risen to 40, with a continuing process of construction and expansion. Supporting these and also providing care in the community are 115 primary health care centres, 67 health centres and 11 primary school health centres. In 2009, the budget of the government health sector exceeded 2.6 billion UAE dirhams (over US $ 700 million). The private health care sector has also continued to grow, ranging from large hospitals to small clinics. Here, as in the government sector, efforts have continued to be made to improve both the standard of care and the efficiency with which it is delivered to consumers, this programme being carried out in association with leading hospitals and health care institutions from overseas.
Labour
Unlike most countries, the UAE is largely dependent on an expatriate, immigrant labour force, which is estimated to account for up to 90 per cent of the total workforce. This presents a particular challenge for Government, since, while seeking to protect the fundamental characteristics of Emirati society, it is also necessary to ensure that the foreign labour force is treated in such a way as to ensure that they are guaranteed a decent living. Naturally, in a country that is growing as fast as the UAE, this has not always proved an easy objective to achieve, not least because of the mechanisms by which a large percentage of this foreign labour force are originally recruited in their countries of origin.
The Ministry of Labour, however, has undertaken a number of initiatives to improve the status of employees while, at the same time, acknowledging the legitimate rights of employers. In a programme that has been praised by the International Labour Organisation, the UAE has signed ten Memoranda of Understanding with the Asian countries that provide the majority of the expatriate labour force, with particular attention to the need for reform of the original process of recruitment. At home, other initiatives have included an expansion and streamlining of the labour courts, to which unhappy employees can take complaints, and the introduction of a mandatory system through which employees receive their salaries through the banking network, rather than being dependent on the whims of their employers. New unified standards have also been introduced for labourers' accommodation, these providing for adequate space and leisure facilities, with proper safety regulations being introduced. New work
ers' cities have been built in both Abu Dhabi and Dubai, the main centres of population, at a cost of several hundred million US dollars, and employers are now obliged to make use of these in housing their workers. There is much more yet to be achieved, of course, since hundreds of thousands of workers are involved, but the Government remains determined to improve conditions and to stamp out abuses in this important sector of the economy.
Culture and Sport
Some aspects of the UAE and its development have attracted widespread international attention over the course of the last year. One such has been the official inauguration of Burj Khalifa in Dubai, which, at over 828 metres high, with more than 160 stories, is, by far, the tallest building in the world. Like the well-known Burj al-Arab hotel, in Dubai, and the Emirates Palace hotel, in Abu Dhabi, it seems set to become a world-renowned landmark.
Another has been the remarkable success of the UAE national pavilion at the Shanghai EXPO, which ran from May to October. A stunning design inspired by the shapes of the country's sand dunes, it attracted over two million visitors and won several international architectural awards.
Also making their mark have been the plans for the new Cultural District on Abu Dhabi's island of Sa'adiyat. Work on the construction of the Louvre Abu Dhabi and the Guggenheim Museum - Abu Dhabi is now well under way while the plans for the centrepiece Sheikh Zayed National Museum were announced in late November. When completed, these and other museums, like the Maritime Museum, all designed by top international architects, will provide a strong underpinning for Abu Dhabi's ambition to become a major world cultural centre.
Sport, too, has continued to contribute to growth in a variety of ways. The top-class golfing, horse-racing and tennis events have been complemented during 2010 by the arrival of major cricket matches, all of these not only providing entertainment for residents of the UAE, but bringing visitors from overseas. As was the case in 2009, however, perhaps the top sporting event of the year was the Formula One racing-car Abu Dhabi Grand Prix, held on the Yas Island circuit near Abu Dhabi for the second time.
Political Development
In accordance with guidelines laid down at the time that the UAE federation was established, there has continued to be steady, if undramatic, progress on the path of increasing popular participation in the machinery of Government. Under the terms of an amendment to the country's constitution that came into effect in early 2009, the powers of the UAE's Parliament, the Federal National Council, FNC, have been expanded and the term of office of its 40 members, half chosen by electoral colleges and half appointed, has been extended from two to four years.
Women
More significant, however, has been the increasing role played by Emirati women in all aspects of national life. Not only are there nine women members of the FNC, or 22.3 per cent of the total, but there are also four women in the UAE Cabinet, the highest number anywhere in the Arab world, as well as three ambassadors, a consul-general. Women can be found today in a variety of roles in the judiciary, in civil and military aviation and in the armed forces and police, as well as in more traditional roles in, for example, the health and education sectors. In the Government sector, women occupy two thirds of the positions, many being in top decision-making posts.
With active encouragement from the UAE General Women's Union, led by Her Highness Sheikha Fatima bint Mubarak, the widow of the country's founding father, Sheikh Zayed, the women of the Emirates have also become increasingly active in the economy at large. This process has been strengthened following the formation of the UAE Businesswomen's Council, whose 11,000 members are engaged in over 12,000 individual projects a total investment of around 12.5 billion dirhams or around 3.4 billion US dollars. Over 37.5% of the workforce in banking and financial services is made up of Emirati women.
Foreign Policy
During the past year, the United Arab Emirates has continued to play an active role in global affairs. One topic of particular concern has been the continuing failure of the international community to achieve any progress in bringing about a just and peaceful resolution of the Palestine issue, as a result of continued Israeli intransigence and its unwillingness to engage in a meaningful dialogue to bring about an end to occupation. The assassination of a Palestinian official in Dubai early in the year but what is widely believed to have been an Israeli hit-squad, brought this issue close to home. Another issue that has engaged UAE policy-makers has been the difficulty of creating a new, broadly-based and acceptable Government in Iraq.
The inter-related topics of terrorism and the conflict in Afghanistan have also been of concern, with the UAE continuing to offer dedicated support to the global war against terrorism. The discovery by UAE authorities late in the year of a parcel bomb designed to destroy aircraft, which had arrived in a freight consignment from Yemen, provided a further reminder that terrorism, and the fight to eradicate it, recognise no boundaries.
In pursuit of the development of cordial relations, political, economic and other, with other countries, numerous official visits have been exchanged with other countries. Two highlights of the year, insofar as visits to the UAE were concerned, were the November state visits by Britain's Queen Elizabeth and Indian President Pratibha Patil, reaffirming the long history of friendly relations and political and economic partnership.
One aspect of the UAE's foreign policy has always been a commitment to working with international organisations, like the United Nations and its specialised agencies. The youngest such organisation, the International Renewable Energy Agency, IRENA, created in 2009, has now established its headquarters in Abu Dhabi.
UAE Foreign Aid The United Arab Emirates is fortunate that its economy is underpinned by its oil and gas reserves, as well as by its successful diversification into other sectors such as tourism, shipping and services. It has long been a feature of the country's philosophy of governance, however, that some of its wealth should be devoted to helping other countries who are less well-endowed.
A first annual report from the UAE Office for the Co-ordination of Foreign Aid, OCFA), covering all UAE overseas aid activities in 2009 and published during the course of the year, showed that a total of 8.93 billion dirhams (US $ 2.43 billion) had been provided in humanitarian and development aid. . Of this, 95 per cent was in the form of grants with no debts incurred by the recipient countries.
As His Highness Sheikh Mohammed bin Rashid Al Maktoum, the Vice President and Prime Minister, noted, "In a year that witnessed a global financial crisis that forced major donor countries to cut down their aid, the UAE has continued to play its role as an important member of the international community, delivering much needed humanitarian and development aid to those in need around the world. This is an achievement that would not have been possible without the wise leadership of His Highness Shaikh Khalifa bin Zayed Al Nahyan.
Overall, since 1971, the UAE is estimated to have provided over 163 billion dirhams (US $ 38 billion) in foreign aid, which, says Sheikh Mohammed bin Rashid, "demonstrates the generous traditions of giving that are well-established in our country and deeply rooted in Islam and Arab culture."