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Atul Aneja

Flushed with funds and confident about the direction it has taken, the United Arab Emirates (UAE) is determined to make its mark on the international horizon. Nothing better illustrates the spirit of the young nation, which marks its 36th birthday on December 2 than the remarks of its Vice-President, Prime Minister and ruler of Dubai, Sheikh Mohammed bin Rashid Al Maktoum.

Speaking at the unveiling of a long-term development plan for the country in April, Sheikh Mohammed said: “We don’t want to be first regionally or in the Arab world. It is not just talk - we are serious about being first globally.”

The country’s soaring ambition of being counted among the best in the global hierarchy is symbolised by some of the projects that it has undertaken. Burj Dubai, the world’s tallest tower in the making is coming up in Dubai. Thirty five kilometres south-west of Dubai is Jebel Ali. Today, Jebel Ali stands out as the largest manmade harbour in the world. It is also the largest port in West Asia. Close to the port, the world’s largest airport is under construction. Equipped with six runways, the Dubai World Central International Airport will have the capacity to handle 20 million passengers a year – 30 per cent more than Atlanta, the busiest passenger airport on the globe.

Sheikh Mohammed also said that it was his endeavour to raise the level of prosperity of the country’s citizens by several notches. Already the per capita Gross Domestic Product (GDP) of the UAE stands at $30,000. The country’s rulers plan to raise it to $44,000 by 2015. The UAE has come a long way since it emerged as an independent state on December 2, 1971.

At that time statehood was achieved when the six emirates comprising Abu Dhabi, Dubai, Sharjah, Ajman, Fujairah, and Umm al-Quwain came together to form a federation. Ras al-Khaimah joined the federation a year later. Sheikh Zayed bin Sultan Al Nahyan--the first President of the UAE played a key role in the formation of the new nation. The revered leader also steered his country’s development till his death in 2004.

Oil has propelled UAE’s economy forward, though economic diversification is the new call sign for its future growth. The UAE’s oil reserves stand at a whopping 97.8 billion barrels. These account for nearly 10 per cent of the world’s total oil deposits of 1,016.8 billion barrels. Consequently, the UAE holds the fifth largest reserves of oil in the world. It is also a major gas producer – in fact the world’s fourth largest, possessing reserves of 213.5 trillion cubic feet.

Among the seven emirates, Abu Dhabi, by far possesses the largest proportion of oil. The emirate’s 92.2 billion barrels amount to nearly 94 per cent of UAE’s total reserves. Nearly 50 billion barrels of oil are located in the Upper Zakum oil field--the country’s largest. The Abu Dhabi Company for Onshore Oil Operations (ADCO) generates more than half of Abu Dhabi’s oil production. Abu Dhabi also draws is output from two other major off-shore fields – Umm Shaif and Lower Zakum.

In sharp contrast, Dubai possesses reserves of only four billion barrels of oil. Most of the production comes from four offshore fields: Fateh, Southwest Fateh, Falah and Rashid. Sharjah’s oil reserves are a modest 1.5 billion barrels, and oil is ferreted mainly from the Mubarak oil field. Sharjah transfers nearly 20 per cent of the revenues generated by the Mubarak oil field to Umm al-Quwain and 10 per cent to Ajman. Ras-al-Khaimah’s hydrocarbon reserves stand at only 100 million barrels.

A traditional trading hub, Dubai decided to position itself strongly as a centre for international trade and re-export. As a result, Port Rashid was completed in 1972. This port became an instant success owing to its location near to the city centre, and because of the presence of a large business community in the city. In six year’s time, the port grew to include five births which were large enough to handle the largest container ships. Expanding on Port Rashid’s success Dubai’s late ruler Sheikh Rashid, gave instructions for the construction of the gigantic Jebel Ali port. When completed in 1979, Jebel Ali port ranked alongside the Great Wall of China and the Hoover Dam as the only three man-made objects that were visible from space. In May 1991, Jebel Ali Port and Free Zone merged with Port Rashid to form Dubai Ports Authority, resulting in a throughput jump beyond the one million TEU mark.

Focused on facilitating overseas trade as well as becoming a world-class maritime service provider, Dubai authorities went a step further by merging the Dubai Ports Authority and DPI Terminals. The result was the formation in 2005 of DP World – one of the largest port operators in the world. DP World currently operates 42 terminals spread across 22 countries. Steered by the vision that trade, tourism and services were the key drivers for its growth, the Dubai emirate decided to develop its aviation sector energetically.

Today, Dubai international airport not only draws a flood of tourists, it has also emerged as leading transit destination, drawing passengers from Asia, Europe and beyond.

Keen to expand its operations, Dubai undertook the development of the mammoth Dubai World Central International airport. Once completed, this gigantic structure would be ten times larger that the existing Dubai International Airport and Dubai Cargo Village combined.

In line with its emphasis on business, investment and services, the UAE has a well developed banking sector. Dubai has set on its eyes on the international financial map through the development of the Dubai International Financial Centre (DIFC) – a “free zone” which has its own regulator and court system.

The UAE’s capital markets have also undergone rapid growth and development in recent years.

For years, the UAE operated an informal over-the-counter (OTC) market.

However, a crash in the late 1990s led to the emergence of more structured markets in both Abu Dhabi and Dubai. Besides, two international financial bourses were established in Dubai in 2005.

The DIFC launched the Dubai International Financial Exchange (DIFX). The Dubai Gold and Commodities Exchange (DGCX)--the first gold exchange in West Asia, began operations later that year.

Dubai Holding, a key investment company that belongs to Government of Dubai is at the heart of the emirate’s development and rapid transformation into a world class metropolis.

The company has a foothold in 11 industries and 19 subsidiaries, covering several fields including information technology, communication, energy, health and education, tourism, real estate, finance, hospitality, biotechnology and industrial manufacturing

Development is taking place around pre-identified thematic clusters. For instance, the Dubai Internet City (DIC), an undertaking of Dubai Holding, has been built around a free trade zone.

Offering , state-of-the art IT infrastructure, it has been developed as a strategic base for companies targeting emerging markets from West Asia, the Indian subcontinent, Africa and Central Asian countries, covering 2 billion people, with a GDP of $6.7 trillion.

Similarly, Dubai Holding’s mega-project Dubailand is said to be the last world in urban tourism development.

Spread over a jaw-dropping three billion square feet, Dubailand will become one of the largest tourism destinations in the world.

In Abu Dhabi, the Mubadala Development Company has become the key player for preparing the Emirate for the future. Formed in 2002, it has the mandate to form new companies and develop partnerships with local, regional and international investors in order to generate sustainable economic benefits for Abu Dhabi. The company has invested in a range of sectors covering energy, utilities, real estate as well a basic industries and services. For instance, Mubadala has a 51 per cent stake in Dolphin Energy. The company steers the Dolphin Gas Project--a cross border venture which draws gas from Qatar’s giant North Field and funnels it through UAE to neighbouring Oman. This energy will be used for power generation, water desalinisation as well as industry in the UAE and Oman.

Abu Dhabi has recently unveiled Plan 2030, which will guide urban development in the emirate. The plan assumes that Abu Dhabi will have a population of three million by 2030. It therefore aims to develop new housing, inspired by traditional concepts, without compromising on Abu Dhabi’s aspiration to emerge as a world class capital city. An Urban Planning Council (UPC), chaired by Abu Dhabi Crown Prince, Sheikh Mohammed bin Zayed Al Nahyan, will steer the execution of the plan.

While Abu Dhabi and Dubai are truly on a fast track, other emirates, especially Ras Al Khaima and Fujairah are also showing promise. The emirate of Sharjah is an important centre of manufacturing and trade in the UAE. However, it has become better known for its heritage museums and educational activity. Thirty six years after it’s became independent; the UAE has achieved much, and won laurels for its accomplishments.

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