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The document provides an overview of achievements in the UAE in 2012/2013 across various sectors such as economic, political, social, etc.

The Yearbook provides an authoritative review of the UAE’s most prominent achievements in 2012/13 in order to document progress in the nation.

Some of the sports covered include ice hockey, skydiving, and mountaineering expeditions such as climbing Mount Everest.

United Arab Emirates

Yearbook 2013

Elite Media wish to acknowledge and thank the National


Media Council for its encouragement and support in producing
this digital version of the UAE Yearbook, featured on the website
www.uaeyearbook.com and accessible for downloading on
multiple devices.
Elite Media also wish to thank Peter & Paula Vine of Trident Press
Ltd who shaped the Yearbook series over many years and provided
invaluable inspiration.
Publishers: David Taylor-Evans and Daniel Coyne
Associate Editors: Ibrahim Al Abed and Peter Hellyer
Text copyright 2013: Elite Media and The National Media Council.
All rights reserved. No part of this publication may be reproduced in
any material form without the written permission of both copyright
holders. Applications should be addressed to the publishers.
Design copyright 2013: Elite Media and The National Media
Council.
Photographs : Emirates News Agency (WAM), Trident Press Ltd,
The National, Gulf News, Khaleej Times, Abu Dhabi Tourism
and Culture Authority, TCA Abu Dhabi, Environment Agency Abu
Dhabi, Getty Images, Associated Press, Hanne & Jens Eriksen, Simon
Palfrader, Juan Mayer, Duncan Chard, Brian McMorrow, FAPCO,
Port of Fujairah, Istockphoto, Fotolia, Faysal Bibi, Ramesh Shukla,
Hans-Peter Uerpmann, AGEDI, Doug Perrine.
Cover Image: Shams 1, the 100-megawatt solar thermal plant,
located in Al Gharbia, Abu Dhabi. Image courtesy of Shams Power
Company .

Yearbook information is, by definition, subject to change. The


current edition is based on available information at the time of
publication. Whilst every care has been taken to achieve accuracy,
the publishers cannot accept any liability for consequences arising
from the use of information contained in this Yearbook. Statistics
are based on available sources and are not necessarily official or
endorsed by the UAE Government.
ISBN978-9948-20-419-0
Published by Elite Media
Unit P12, Rimal, The Walk, Jumeirah Beach Residence,
Dubai, United Arab Emirates.
Tel: +971 52 9247804
E-mail: david@elitemedia.ae
www.elitemedia.ae
For further information please contact:
National Media Council
Department of External Information
PO Box 3790, Abu Dhabi
United Arab Emirates
Tel: +971 2 4452922
E-mail: info@wam.ae
www.uaeinteract.com

UNITED
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Contents

UNITED
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YEARBOOK
2013

Contents
Foreword
In publishing its UAE Yearbook 2013, the National Media
Council has been keen to take advantage of the opportunity
brought by the internet and digital media to reach a wider
range of stakeholders and readers, both locally and globally.
This was why we decided to launch this digital version of the
UAE Yearbook, in both English and Arabic.
The Yearbook provides an authoritative review of the
UAEs most prominent achievements in 2012/13. Each of
these has taken place within the framework of the ambitious
development journey sustained over the past 41 years, aimed
at bringing progress to the nation and raising the countys flag
high, while achieving the best level of happiness, prosperity
and quality of life for citizens and their children in the future.
Over the past four decades, the UAE has made great
progress in the economic, political, social, scientific,
educational, health, cultural, tourism, environmental and
other fields. This progress can be observed from the statistics
and indices covered in the Yearbook, but the UN recently
confirmed its positive impact on the people living in the UAE.
In its first World Happiness Report from 2012, it placed the
UAE first among Arab countries and seventeenth globally in
terms of the populations happiness and satisfaction.
The Yearbook monitors the UAEs growing importance

at both the regional and international level. In the business


world, the UAE has gained global recognition for its excellence
in the fields of economy, finance, tourism, infrastructure,
communications, technology, satellites launch and industry,
aviation industry and peaceful nuclear energy. The country
takes great pride in pursuing the cause of sustainable and
renewable energy and it hosts, of course, the headquarters
of the International Agency for Renewable Energy (IRENA)
in the capital city, Abu Dhabi. It is also a generous donor of
humanitarian and development assistance. The OECD placed
the country sixteenth in the world in 2012, up from twentysixth place in 2010, reflecting its growing foreign aid efforts.
The Yearbook also reviews the subject of human rights in
the UAE, and the countrys efforts to fight human trafficking,
protect migrant workers, and empower women in the
political, economical and social fields. Women in the UAE
today occupy senior positions in each of the three executive,
legislative and judicial decision-making entities in the
country, as well as in business.
We hope that this book will help shed light on what has
been achieved and accomplished in the current and past
years, and become a useful reference for both researchers and
stakeholders alike.
Abdullah bin Zayed Al Nahyan
Minister of Foreign Affairs and Chairman of the National Media Council

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History

UAE Timeline
Historical Review
Archaeology

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1History

UAE Timeline
c. 130,000 BC
Early man crosses the Red
Sea from Africa to the
Arabian Peninsula.

20001300 BC
Number of towns declines
due to a more arid climate
and desertification.

55003000 BC
Evidence of extensive
human occupation by
skilled groups of herders in
eastern Arabia. Beginning
of maritime trade.

30002000 BC
Emergence of Bronze Age
culture, with oasis towns
and wide-ranging trade
relations.

1300300 BC
Explosion of new Iron
Age settlements as falaj
irrigation technology is
introduced; first use of
writing.

637 AD
Julfar (Ras al-Khaimah)
used as staging post for
Islamic invasion of Iran.
300 BC650 AD
Extensive trade network
along the Gulf linking up
the Mediterranean, Syria
and Mesopotamia with
India. Christian monastery
established on Sir Bani
Yas island off western Abu
Dhabi coast.

1095
Earliest mention of Dubai,
by Andalusian geographer
Abu Abdullah al Bakri.
1498-1557
Portuguese circumnavigate
the Cape of Good Hope,
prompting PortugueseOttoman rivalry in the Gulf.

630 AD
Arrival of envoys from the
Prophet Muhammad and
conversion to Islam.
632 AD
Death of the Prophet
Mohammed; a widespread
rebellion against the
teachings of Islam is
defeated.

1700s
Growth of British trade
interests in the Gulf.
Emergence of local naval
power Qawasim.

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1790s
Leader of Bani Yas tribal
confederation moves to
Abu Dhabi, a major port
and pearling centre. The
confederation is led by the
Al Nahyan family.
1800-1819
Conflict between the
Qawasim navy and the British
over trade routes to India.
1820s
Britain signs peace treaty
with sheikhs of Ras
al-Khaimah, Umm alQaiwain, Ajman, Sharjah,
Dubai and Abu Dhabi.

1930s
Rulers of Dubai, Sharjah
and Abu Dhabi sign first
concession agreements for
oil exploration.
1945-1951
Oil exploration agreements
finalised in Ras alKhaimah, Umm al-Qaiwain
and Ajman.

2004
Sheikh Khalifa Al Nahyan
is elected as new President
of the UAE on the death of
Sheikh Zayed.

1962
First export of oil from Abu
Dhabi.

1969
First export of oil from
Dubai.

1966
Sheikh Zayed becomes
Ruler of Abu Dhabi.

1971
Rulers of the emirates create
the United Arab Emirates;
Sheikh Zayed is chosen as
the first UAE President.

1833
Al Maktoum family, part
of the Bani Yas, establish
control in Dubai.
1853
Signature of Perpetual
Treaty of Maritime Truce
with Britain; area becomes
known as the Trucial States.

1968
Britain announces its
intention to withdraw from
the Gulf region.

2006
Sheikh Mohammed bin
Rashid Al Maktoum is
chosen as Vice President
and Prime Minister of the
Federation following the
death of his brother, Sheikh
Maktoum.

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Historical Review
Throughout its history, the UAE has been at the crossroads
of many cultures. Recent archaeological finds at Jebel Faya,
on the eastern side of the Hajar Mountains, have pushed the
earliest evidence of man in the Emirates as far back as 130,000
years ago, in the Palaeolithic or Old Stone Age period. It was
around this time that modern human beings first emerged out
of Africa and the finds from Jebel Faya, including early stone
tools, coupled with the results of a global DNA project, have
suggested that the UAE may have been on the route for the
migration of early humans into Asia. If that is proved, it will
revolutionise our understanding of the history of Mankind
it was previously thought that this migration did not begin
until around 80,000 years later.
Only scant evidence of that period in the UAEs history
has yet been found, however. Not until the Neolithic period,
which began after the end of the last Ice Age, around 12,000
years ago, does the country appears to have been extensively
occupied. The climate was then wetter than it is today and
food resources were abundant, both plants and animals. Much
evidence of human occupation may lie under the waters of
the Arabian Gulf, which had been dry during the Ice Age,
apart from rivers, but which gradually filled up as the ice caps
that covered much of the north of Asia, Europe and North

America melted, leading to a rise in sea levels.


By around 7500 years ago, or 5500 BC, the waters of the
Gulf had reached roughly their present level and numerous
archaeological sites have been found on offshore islands and
along the coast, as well as in the interior. Among them are sites
which have produced evidence of the early use of pottery and
of the beginnings of the pearling industry, as well as of trading
by sea with Mesopotamia (Iraq), the start of the UAEs long
tradition of maritime trade.
By around 4000 BC, the climate was much more arid and
the nature of settlement changed, but the foreign connections
continued. During the early Bronze Age, which began around
3000 BC, copper was mined from the Hajar Mountains and
exported by sea to Iraq, while the presence of pottery from
there, as well as from Iran and Pakistan, on UAE archaeological
sites is testimony to the importance of foreign trade. The island
of Umm al-Nar, adjacent to Abu
Dhabi, seems to have been a port
for this trade. The first townships appeared, often centred
around large fortified buildings,
as at Hili, in Al Ain, Tell Abraq
in Sharjah and Kalba, on the
east coast, while agriculture was
Palaeolithic stone tools found
practised for the first time.
at Jebel Faya.

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Ronald Codrai

A continuing decline in rainfall


Gulf. Trading connections developed
posed a severe challenge, but late in the
with countries around the MediterSecond Millennium BC, two innovaranean Sea, modern-day Lebanon
tions appeared that revolutionised the
and Syria, Greece and eventually the
local lifestyle. The first was the domesRoman Empire.
tication of the camel. Formerly hunted
By the first century AD, overland
as a source of food, it now became an
caravan traffic between Syria and cities
animal that could carry large loads
in southern Iraq, followed by seaborne
across the deserts, permitting the
travel to the important port of Omana
The ancient falaj irrigation system.
ABU DHABI TOURISM AND CULTURE AUTHORITY
emergence of a nomadic lifestyle. The
(perhaps present-day ed-Dur, in
second innovation was that of the
Umm al-Qaiwain) and thence to
falaj, subterranean channels that tap into underground water
India provided an alternative to the Red Sea route used by the
reserves close to the mountains and distribute it for agriculture.
Romans. Pearls had been exploited in the area for millennia but
By around 1000 BC, three thousand years ago, the basic
at this time the trade reached new heights. Major fairs were held
elements of the UAEs traditional lifestyle had developed
at Dibba, on the UAEs east coast, bringing merchants from as
fishing, pearling and maritime trade along the coast, falaj-irrifar afield as China. Besides material goods, ideas passed along
gated agricultural settlements close to
the trade routes, too. Christianity had
or in the mountains and nomadism
reached the UAE and Oman by the
in the dry deserts. The use of iron first
sixth century AD and, around 600 AD,
appeared at this time, followed not
a monastery had been established on
long after by the first writing.
Abu Dhabis western island of Sir Bani
In the fourth century BC, the
Yas the only physical evidence of
Greek Emperor Alexander the Great
Christianity in the pre-Islamic period
conquered Iraq and Iran and further
yet found in south-eastern Arabia. It
east towards India, although his
survived until around 750 AD, when it
Plaster panels from the Sir Bani Yas monastery.
armies never reached the southern
was abandoned.

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Islam
The arrival of envoys from Prophet Mohammed in 630 AD
heralded the conversion of the region to Islam. By 637 AD,
Islamic armies were using Julfar (Ras 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,
from East Africa to Malaysia and China.
The Portuguese arrival in the Gulf in the early sixteenth
century had bloody consequences for the residents of Julfar
and east coast ports like Dibba and Khor Fakkan. European
interest in the Gulf grew with the British, Dutch and French
competing for naval and commercial supremacy. Meanwhile, from the late seventeenth century, the Qawasim family,
centred on Julfar (Ras al-Khaimah), began to gain strength.
By the beginning of the nineteenth century, they ruled much
of the northern UAE, as well as many islands in the Gulf and
part of the southern Iranian coastline, and could put nearly
20,000 sailors to sea. Eventually they and the British came into
conflict over control of the important maritime trade routes
between the Gulf and India.
Inland, the arc of villages in Liwa in the south-west of the
country had been a stronghold of the Bani Yas tribal confederation since the sixteenth century. In 1761, their leader,

10

Al Bidya mosque in Fujairah is the oldest in the UAE.

Sheikh Dhiyab bin Isa, an ancestor of todays UAE President, His Highness Sheikh Khalifa bin Zayed Al Nahyan,
ordered the establishment of a settlement on the island of Abu
Dhabi, where fresh water had been found. By the 1790s, this
had become an important pearling centre, and Dhiyabs son,
Sheikh Shakhbut, moved his headquarters to the growing
town. He also developed a close alliance with tribes living in
the inland oasis villages of Al Ain, consolidating the emergence of the new Emirate of Abu Dhabi.

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Ronald Codrai

Ras al-Khaimah. Agreements were signed


in 1820 between the British and all of the
sheikhs of the UAEs Arabian Gulf coastline as far west as Abu Dhabi, marking the
beginning of a relationship that was to last
for 150 years. Over the next few decades,
other agreements followed, including
several on maintaining a maritime truce
between the emirates. The area became
known as the Trucial States.
The ensuing peace at sea allowed the
pearling industry to thrive, bringing a
degree of prosperity to the ports along the
Gulf coastline while, from 1855, the long
reign of Sheikh Zayed bin Khalifa, (also
known as Zayed the Great) in Abu Dhabi,
which lasted until 1909, saw his emirate
become one of the most important powers
in south-eastern Arabia.
The First World War had a severe impact on 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.

The pearl industry was the base of Abu Dhabis importance


until the twentieth century.
ABU DHABI TOURISM AND CULTURE AUTHORITY

In 1833, members of another branch of the Bani Yas, the Al


Bu Falasah, settled in Dubai and established Maktoum rule in
that emirate.
Meanwhile, the conflict between the Qawasim and the
British had come to a head in late 1819, leading to an assault on

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Oil and Leadership


Fortunately a new source of income was soon to appear which,
managed by a visionary leader, permitted the emergence of
the UAE as it is today.
In the 1930s, oil concession agreements had been signed
with a consortium of foreign companies, and exploration got
under way in earnest just after the Second World War. In 1958,
the first commercially viable oilfield was found at Umm Shaif,
in the offshore waters of Abu Dhabi, followed by the onshore
Bab field a year later. Exports began in
1962.
As revenues began to grow, so the
pace of development in other areas
of the economy began to accelerate.
In 1966, Sheikh Zayed bin Sultan
Al Nahyan became Ruler of Abu
Dhabi, succeeding his brother, Sheikh
Shakhbut. Born around 1918 in Abu
Dhabi, Sheikh Zayed was the youngest
of the sons of Sheikh Sultan, Ruler from
1922 to 1926, and the grandson of his
namesake, Zayed the Great.
Since 1946, Sheikh Zayed had been
his brothers representative in Al Ain,

12

gaining experience of government that was to serve him in


good stead and developing a vision of how the country could
develop. Once he became ruler, he quickly put that vision into
practice, ensuring that the oil revenues were used for the development of Abu Dhabis infrastructure and social services and
implementing his belief that oil is of no use unless it is used in
the service of the people. Through contributions to the Trucial
States Development Fund and through direct grants, he also
spread the benefits of Abu Dhabis oil income throughout the
rest of the country.
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 closer ties between
the emirates. Along with Sheikh Rashid
of Dubai, who was to become Vice
President and, later, Prime Minister of
the newly formed state, he 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.
Sheikh Zayed in his youth.

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Following several years of negotiation, the rulers of Abu


Dhabi, Dubai, Sharjah, Fujairah, Umm al-Qaiwain and
Ajman agreed in July 1971 that the Federation of the United
Arab Emirates would be established on 2 December 1971. Ras
al-Khaimah joined the UAE on 10 February 1972.
Sheikh Zayed became the countrys first President, being

Sheikh Zayed discussing development plans.

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successively re-elected as President at five-year intervals until


his death 33 years later on 2 November 2004. Sheikh Rashid
was elected as Vice President, later also serving as Prime
Minister.
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 Ras al-Khaimah, and had
landed troops on Abu Musa, part of Sharjah. Foreign observers
predicted that the UAE would survive only with difficulty,
but Sheikh Zayed was more optimistic and the predictions of
those early pessimists were shown to be unfounded.
Sheikh Zayed was succeeded as the UAEs President and as
Ruler of Abu Dhabi by his eldest son, HH Sheikh Khalifa bin
Zayed Al Nahyan in 2004. The principles and philosophy that
Sheikh Zayed brought to government remain at the core of the
state and of its policies, today.
Sheikh Rashids successor as Vice President, Prime Minister
and Ruler of Dubai was his son, Sheikh Maktoum bin Rashid,
who ruled from 1990 to 2006, with another son, His Highness
Sheikh Mohammed bin Rashid, succeeding his brother in that
year.

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Archaeology

a trade network from East Africa to China. It may also have


played a crucial part in the dispersal of modern humans from
their origins in Africa throughout the rest of the world, as
mentioned above.
Unlike in many other parts of the Middle East, the study of the
Over the last twenty years, palaeontologists (experts in
ancient history of the UAE is still a relatively new process. The
fossils) have found the fossilised remains of early ancesfirst excavations did not take place until the late 1950s at the
tors of animals like elephants, giraffes, gazelles, big cats, tiny
Bronze Age site of Umm al-Nar, an island close to the counrodents, catfish, turtles, crocodiles and much more, which
trys capital, Abu Dhabi, and it was not until after the UAE was
inhabited the western areas of the country, which six or seven
established, in 1971, that surveys and excavations really got
million years ago, during what is known to scientists as the
under way.
Late Miocene period, were traversed by
In consequence, it was thought that
great rivers, 100 metres or more wide,
the area now comprising the Emirates
Fossilised elephant tracks at Mleisa.
flanked by woods and lush grasslands,
had been of little importance in the
similar to the East African savannahs.
evolution of human settlement in the
The study of these fossils has yielded
region. Indeed, one historian has said
scientific information of international
that the country was like a blank on
significance, including the discovery of
the historical map of Arabia. That has
three species not previously known to
long since ceased to be the case, thanks
scientists, including a horse now named
to extensive work that, as the title of
as Hipparion abudhabiense. Indeed,
one book on Abu Dhabis archaeology
the rocks of the Baynunah Formaexpresses it, has engaged in the process
tion of western Abu Dhabi are considof Filling In the Blanks.
ered by many experts to contain the
It is now widely recognised that the
most diverse and important collections
UAE has played an important role in
anywhere in the world of the fossils of
the emergence of human civilisations
land animals from this period.
in the region and in the development of

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Recent studies of one key site, at Mleisa, have unearthed


the well-preserved tracks of a herd of elephants, possibly
the longest preserved fossil trackway in the world. These
four-tusked animals were around 30 per cent larger than the
elephants of today and, at an estimated seven million years
old, are the oldest of their kind. Then too, as was the case with
early humans millions of years later, the UAE was a landbridge, allowing animals that evolved in Africa to disperse
throughout the Asian continent.
The study of the UAEs archaeology, from its early beginnings, has been a process of successful collaboration between
some of the worlds top museums and academic institutions,
working with local government departments throughout the
Emirates. Work in the field has been directly supported by
the countrys top leadership. The founding father of the UAE,
the late Sheikh Zayed, for example, took a personal interest in
the first excavations by Danish archaeologists at Umm al-Nar
in 1959. He invited them to the inland oasis of Al Ain to show
them many more large collective tombs dating back to the early
Bronze Age, around 5000 years ago. He remained interested in
this aspect of the countrys heritage for the rest of his life.
During the annual excavation seasons,
which last throughout the cooler winter
One of the Bronze
months, as many as fifteen foreign archaeAge collective
ological teams are active throughout the
burial tombs, close
UAE, from countries like Japan, Britain,
to Al Ain.

15

France, Spain, Germany and the United States. They work in


close collaboration with museums and archaeology departments in each emirate, their discoveries being reported in the
local media, at international academic conferences and in scientific publications.
Over the last couple of years, for example, publications have
included several volumes on excavations at Jebel Buhais in
Sharjah, where sites include a Neolithic cemetery with several
hundred burials and dozens of smaller Bronze Age and Iron
Age tombs. Another publication, which appeared in late
2012, included papers presented at a major conference, held
under the sponsorship of the Ministry of Culture, Youth and
Community Development, to mark the completion of the first
50 years of archaeological studies in the Emirates. In 2013,

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sails, permitting them to sail throughout the Indian Ocean


over 2000 years before that technique was adopted in Europe,
allowing the beginning of the great voyages of maritime exploration by European powers that transformed the world. By the
beginning of the Christian era, UAE sailors and merchants
were trading with southern China, consolidating the countrys
position as a key point on the trading network of the Indian

Ronald Codrai

yet another new book focused on excavations of an Iron Age


settlement and religious centre at Masafi, in Fujairah.
Such detailed work has made a significant contribution to
the winning of recognition abroad for the significance of the
UAEs heritage. In 2011, Al Ain, including its archaeological
sites, dating back to the Bronze Age, and its traditional oasis
cultivation, was inscribed on the World Heritage List of the
United Nations Educational, Scientific and Cultural Organisation, UNESCO, the first site in the UAE to achieve this.
Files are now being prepared on other sites, including the old
port-city of ed-Dur, in Umm al-Qaiwain, which flourished for
several centuries around the beginning of the Christian era.
The results of excavations throughout the UAE have been
of enormous significance in terms of shedding light on the
heritage and history of its people. Around 7500 years ago,
inhabitants of islands like Dalma and Marawah, in the west
of Abu Dhabi, were already trading by sea with Mesopotamia
(Iraq), while Dalma has provided the earliest evidence both
of the Gulf s pearling industry and of human consumption
of dates anywhere in the world. Some 5000 years ago, copper
was being mined in the Hajar Mountains, for export to the
emerging empires of Mesopotamia, while the invention of the
underground falaj irrigation systems took place in the Emirates
hundreds of years before the technique appeared anywhere else.
There is some evidence to suggest that over 2500 years ago
sailors from the Emirates could have learnt how to use lateen

The invention of lateen sales opened new trade routes.


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of Masfut in early 2013, for example, recorded


Ocean and beyond.
around 200 previously unrecorded sites, many
Archaeological discoveries that reveal this kind
He who does not
from the Bronze Age and Iron Age.
of information, of international as well as local
know his past
cannot make the
Other sites are discovered during the conducting
significance, are supplemented by work that,
best of his present
of baseline studies for major development projects.
steadily and painstakingly, fills in some of the
and future, for it is
While some of these may be of little significance,
details of how people lived in the UAE in the past.
from the past that
others are potentially of such importance that
The study of tombs, skeletons, settlement remains
we learn.
Sheikh Zayed
projects are put on hold while they are excavated.
and copper-mining sites all produce useful data.
One recent example of collaboration between
Detailed scientific analysis of finds can also play a
archaeologists and developers was at Qarn al-Harf, in
crucial part. One recent study of the isotopes present in the tooth
northern Ras al-Khaimah, where a large group of 4000-yearof a camel excavated at Tell Abraq in Sharjah will reveal where the
old tombs was identified on the route of a major highway.
animal spent its youth, possibly shedding light on the area where
Work on the road was suspended while the tombs were excacamels were first domesticated. Spectroscopic studies of imported
vated evidence of the way in which, despite the rapid pace of
pottery fragments can indicate the regions in which they were
the UAEs development, attention continues to be paid to the
made, helping to identify early trading connections.
need to identify and to protect the countrys cultural heritage.
Although archaeologists have been working in the UAE
The UAEs founding father, the late Sheikh Zayed, once
for over 50 years, much remains to be done. Some sites are
commented that He who does not know his past cannot make
so large and complex that many years of work are required
the best of his present and future, for it is from the past that we
before they can be properly understood. Many areas have still
learn. Through studies of the UAEs archaeology, that past is
not been properly surveyed a two-week survey carried out
gradually coming more clearly into focus, offering lessons for
by an Emirati team, under the aegis of the National Council
the countrys inhabitants of today and of tomorrow.
for Tourism and Antiquities, in Ajmans inland enclave

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Government Structures
Foreign Policy
Humanitarian Aid

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ince the Federation was established in 1971, the


UAEs seven emirates have forged a single identity
under the national flag while maintaining a large
degree of control over their internal affairs. The
Constitution granted powers to the Federal Government
as well as to the individual states, and in the subsequent
decades a number of reforms have been introduced to
modernise the countrys political structure.
Reform has been directed at a federal level since 2004
by the UAE President and Ruler of Abu Dhabi, His
Highness Sheikh Khalifa bin Zayed Al
Nahyan, and guided at an executive level by
the Vice President and Prime Minister, His
Highness Sheikh Mohammed bin Rashid Al
Maktoum, who was elected as Vice President
and appointed Prime Minister in early 2006,
following his succession as Ruler of Dubai.
To enhance decision-making, public
participation in government, especially
among women, has been gradually
expanded. In 2006, the Government
introduced indirect elections to half of
the seats in the countrys parliament, the
Federal National Council. The electorate
was greatly enlarged in the 2011 elections,

19

to nearly 130,000 people, and the FNC is now playing


an increasingly vital role in supervising and amending
legislation.
Reforms of the political system have been guided by the
launch in 2007 of the UAE Government Strategy, which
covered 21 topics in six different sectors, including social
development, economic development, public-sector
development and rural areas development. The document
also called for further development of the cooperation
between federal and local governments.

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The Federal System


Prior to the establishment of the Federation on 2 December
1971, each emirate had its own separate institutions of
government, collaborating together under the framework of
the Trucial States Council. To prepare for the future, the seven
rulers agreed to draw up a provisional Constitution specifying
the powers that were to be allocated to the new federal institutions. The Constitution granted the federal authorities explicit
powers over foreign affairs, security and defence, nationality
and immigration issues, education, public health, currency,
postal, telephone and other communications services, air

traffic control and licencing of aircraft, in addition to a


number of others such as labour relations, banking, delimitation of territorial waters and extradition of criminals.
In 1996, the UAE Federal Supreme Council approved two
amendments to the provisional Constitution, making it
permanent and naming Abu Dhabi as the capital of the state.
The federal system of government includes the Supreme
Council, a Cabinet, or Council of Ministers, the parliamentary body, the Federal National Council, and an independent
judiciary, overseen by the Federal Supreme Court.

The UAE Federal


Supreme Council
is made up of the
rulers of each
emirate.

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The Federal Supreme Council comprises the rulers of each


of the emirates, who elect a president and a vice president
from among themselves to serve for a renewable five-year
term. The Council has both legislative and executive powers. It
ratifies federal laws and decrees, plans general policy, approves
the nomination of the prime minister and accepts his resignation. The Council of Ministers, or Cabinet, is headed by a
prime minister, chosen by the president in consultation with
his colleagues on the Supreme Council. The prime minister
proposes a list of ministers; these are then ratified by the president.
Now partly elected, the 40-member Federal National
Council (FNC), with representation from each of the emirates,

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The partly elected


Federal National
Council has a
legislative and
supervisory role.

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plays an important role in consolidating


the principles of shura (consultation) in
the country. Presided over by a speaker,
or either of the two deputy speakers,
all of whom are elected from among
its own members, the FNC has both a
legislative and supervisory role under
the Constitution.
It is responsible for examining and
amending all proposed federal legislation, and may summon and question
any federal minister regarding ministry
performance. In the long term, the
objective is that it will become a wholly
elected body, although a gradual
approach is being followed in the
process of reform.
The federal judiciary, whose total
independence is guaranteed under the
Constitution, includes the Federal Supreme Court and Courts
of First Instance. The Federal Supreme Court consists of five
judges appointed by the Supreme Council. The judges decide
on the constitutionality of federal laws and also arbitrate
on inter-emirate disputes and disputes between the Federal
Government and the emirates.

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The Federal Supreme Court judges decide


on the consitutionality of federal laws and
arbitrate in disputes between emirates.

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Local Government

council has overseen a drive to improve efficiency and


co-operation between local departments, as well as efforts to
upgrade the level of services offered to the public. It also assists
the Ruler, Vice President and Prime Minister, His HighThe local governments in the seven emirates differ greatly in
ness Sheikh Mohammed bin Rashid, in preparing developsize and complexity. The largest and most populous emirate,
ment plans for the emirate and formulating local legislation.
Abu Dhabi, has its own central governing organ, the Executive
In 2012, the Ruler met with DEC members to review briefs
Council, under which there are a number of separate departon, among other things, educational strategy, governmental
ments, equivalent to ministries. The Executive Council is
service centre performance and Islamic regulations and laws.
chaired by the Crown Prince, His Highness Sheikh Mohamed
Sharjah also has an Executive Council as well as a Consultabin Zayed Al Nahyan. The emirate has three regions, Al
tive Council. With three exclaves on the countrys east coast,
Gharbia (previously known as the Western Region) and the
it has adopted the practice of devolving some authority on a
Eastern Region, headed by Rulers Representatives, and the
local basis, with branches of the Sharjah Emiri Diwan (Court),
Central Region, including the capital city, Abu Dhabi. This,
headed by deputy chairmen, in both Kalba and Khor Fakkan.
like Al Ain, capital of the Eastern Region, is administered by
A similar pattern of municipalities,
a municipality, with another municidepartments and autonomous agencies
pality also performing similar functions
can be found in each of the other emirin Al Gharbia. Abu Dhabis National
ates, while Ras al Khaimah established
Consultative Council undertakes a role
an Executive Council in 2012.
similar to that of the FNC on a countryThe powers of the various federal
wide level.
institutions and their relationship with
Dubai, the second-largest emirate,
the separate local institutions have
has its Dubai Executive Council (DEC),
evolved and changed since the estabwhich is chaired by the Crown Prince
lishment of the state. Under the terms of
of Dubai, HH Sheikh Hamdan bin
the Constitution, rulers may relinquish
Mohammed bin Rashid Al Maktoum.
The Crown Princes of Dubai (left) and
Abu Dhabi.
certain areas of authority prescribed as
Since it was established in 2003, the

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being a local prerogative under the Constitution to the Federal


Government.
As a result of the countrys rapid economic and social
development since 1971, local governments in each emirate
are now assuming, or re-assuming, some functions that had
previously been voluntarily assigned to the Federal Government. This process is likely to continue, in part because many
well-qualified Emiratis prefer to work in their home emirate.

Traditional Government
Traditionally, the ruler of an emirate, the sheikh, was the leader
of the most powerful, though not necessarily the most populous, tribe, while each tribe, and often its sub-sections, also
had a chief or sheikh. These maintained their authority only
insofar as they were able to retain the support of their people,
in essence a form of direct democracy. Part of that process
was the unwritten rule that the people should have free access
to their sheikh, and that he should hold a frequent and open
majlis, or council, in which his fellow tribesmen could voice
their opinions.
This is a continuing aspect of life in the UAE today. In larger
emirates, not only the ruler, but also a number of other senior
family members, continue to hold open majlises (or majalis),
in which participants may raise a wide range of topics, both

24

of personal interest and of broader concern. In smaller emirates, the majlis of the ruler himself, or of the crown prince or
deputy ruler, remains the main focus, often attended by large
numbers of local people.
In 1971, the rulers agreed to create a system that offered the
best of modern administration while retaining traditional
forms of government; but one that also maintained a commitment to consensus, discussion and direct democracy. As a
result, despite massive economic growth and a rapidly rising
population, the state has enjoyed political stability. During the
last few decades, there have been numerous attempts to create
federal states, both in the Arab world and elsewhere. Few, if
any, have been as successful as the UAE, which also provided
an example of successful transition following the death in
2004 of the federations founder, Sheikh Zayed bin Sultan Al
Nahyan.

Sheikh Zayed and


Sheikh Khalifa in
discussion during a
majlis.

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SUPREME COUNCIL MEMBERS

HH Sheikh Khalifa bin


Zayed Al Nahyan,
UAE President

25

HH Sheikh Mohammed
bin Rashid Al Maktoum,
UAE Vice President and
Prime Minister and
Ruler of Dubai

HH Dr Sheikh Sultan bin


Mohammed Al Qasimi,
Ruler of Sharjah

HH Sheikh Humaid bin


Rashid Al Nuaimi,
Ruler of Ajman

HH Sheikh Hamad bin


Mohammed Al Sharqi,
Ruler of Fujairah

HH Sheikh Saud bin


Rashid Al Mualla,
Ruler of Umm al-Qaiwain

HH Sheikh Saud bin


Saqr Al Qasimi,
Ruler of Ras al-Khaimah

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CROWN PRINCES

HH General Sheikh Mohamed


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 bin Sultan Al
Qasimi, Crown Prince and
Deputy Ruler of Sharjah
HH Sheikh Ammar bin
Humaid Al Nuaimi,
Crown Prince of Ajman

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DEPUTY RULERS

HH Sheikh Mohammed bin


Hamad Al Sharqi,
Crown Prince of Fujairah
HH Sheikh Rashid bin Saud bin
Rashid Al Mualla, Crown Prince
of Umm al-Qaiwain
HH Sheikh Mohammed bin Saud
bin Saqr Al Qasimi,
Crown Prince and Deputy Ruler
of Ras al-Khaimah

HH Sheikh Hamdan bin Rashid


Al Maktoum, UAE Minister of
Finance and Deputy Ruler of
Dubai
HH Sheikh Maktoum bin
Mohammed bin Rashid
Al Maktoum, Deputy Ruler of
Dubai
HH Sheikh Ahmed bin Sultan
Al Qasimi, Deputy Ruler of
Sharjah

HH Sheikh Abdullah bin Salem


bin Sultan al Qasimi, Deputy
Ruler of Sharjah
HH Sheikh Nasser bin Rashid
Al Nuaimi, Deputy Ruler of
Ajman
HH Sheikh Hamad bin Saif
Al Sharqi, Deputy Ruler of
Fujairah
HH Sheikh Abdullah bin Rashid
Al Mualla, Deputy Ruler of Umm
al-Qaiwain

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THE GOVERNMENT

THE CABINET

President: HH Sheikh Khalifa bin


Zayed Al Nahyan

Deputy Prime Minister &


Interior Minister: HH Sheikh Saif
bin Zayed Al Nahyan

Vice President & Prime Minister:


HH Sheikh Mohammed bin
Rashid Al Maktoum

Deputy Prime Minister &


Presidential Affairs Minister: HH
Sheikh Mansour bin Zayed Al
Nahyan

Cabinet Affairs: HE Mohammed


al-Gargawi

Energy: HE Suhail bin


Mohammed Faraj Al Mazroui

Economy: HE Sultan bin Saeed


al-Mansouri

Public Works: HE Dr Abdullah


bin Mohammed Balhaif Al
Nuaimi

Social Affairs: HE Mariam


Mohammed Khalfan Al Roumi

Finance: HH Sheikh Hamdan bin


Rashid Al Maktoum

Education: HE Humaid
Mohammed Obeid Al Qattami

Foreign Affairs: HH Sheikh


Abdullah bin Zayed Al Nahyan

Health: HE Abdul Rahman


Mohammed Nasser Al Owais

Culture, Youth & Community


Development: HE Sheikh Nahyan
bin Mubarak Al Nahyan

Labour: HE Saqr bin Ghobash


Saeed Ghobash

Higher Education & Scientific


Research: HE Sheikh Hamdan
bin Mubarak Al Nahyan
Development and International
Cooperation: HE Sheikha Lubna
bint Khalid Al Qasimi

Minister of State for Foreign


Affairs & Minister of State for
Federal National Council Affairs:
HE Dr Anwar Mohammed
Gargash
Justice: HE Dr Hadif Juan Al
Dhahiri
Environment and Water: HE Dr
Rashid Ahmed bin Fahad

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Minister of State for Financial


Affairs: HE Obaid Humaid Al
Tayer
Minister of State: HE Dr Maytha
bint Salem Al Shamsi
Minister of State: HE Reem bint
Ibrahim Al Hashemi
Minister of State: HE Dr Sultan
bin Ahmed Sultan Al Jaber
Minister of State: HE Abdullah
bin Mohammed Saeed Ghobash

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HH Sheikh Khalifa bin Zayed Al Nahyan,


President of the UAE
Since taking on the presidency of the UAE from his late father,
the UAE founder Sheikh Zayed, on 3 November 2004, Sheikh
Khalifa has brought his long experience at senior levels of
leadership to bear in charting the modernisation of the sevenemirate Federation and ensuring its continued relevance both
within the region and beyond. His presence on the Forbes
list of the worlds 50 most influential figures underlines how
important the UAE now is on the global stage and how
important his personal efforts have been in consolidating the
achievements of his father.
Sheikh Khalifas accession to the presidency was the culmination of a career of leadership that began in 1966 when, aged
just 18, he was appointed by Sheikh Zayed as his representative in the Eastern Region of Abu Dhabi and the head of the
emirates courts a mark of the confidence Sheikh Zayed had
in his son early on. That confidence was repeatedly demonstrated in subsequent years, as Sheikh Khalifa was appointed
to a series of high-level positions, becoming Crown Prince
in 1969 and then in 1971 assuming the role of Deputy Prime
Minister in the first federal UAE cabinet.

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Further senior posts followed, as Chairman of the Abu


Dhabi Executive Council, as Deputy Supreme Commander
of the UAE Armed Forces and then, in 1989, as chairman of
Abu Dhabis Supreme Petroleum Council, in which role he
was responsible for steering the development of the oil and gas
sector and the downstream industries that have successfully
contributed to the countrys economic diversification always
a strong personal interest of Sheikh Zayed.
Elected President of the UAE for a term of five years on the
death of his father and re-elected in 2009, the assumption of
the top job has proved a seamless process for Sheikh Khalifa,
even at a time of heightened regional tension and unprecedented turmoil in global financial markets. His steady stew-

29

ardship at this time of crisis, ensuring that the integrity of the


Federation remained intact as significant financial pressures
made themselves felt in 2009, has proved a blessing.
Central to Sheikh Khalifas presidency is his belief in the
need to enhance the active participation of UAE citizens in the
governance of the nation, to ensure that leadership skills are
passed down through the generations. In domestic terms, he
has concentrated efforts on improving education, solidifying
the social roots of the UAE with a strong emphasis on the integrity of the family unit, and increasing expenditure on the development of the infrastructure and on health and social affairs.
This means providing for the least fortunate in society.
In January 2012, Sheikh Khalifa ordered the settlement of

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being the decision in 2009


defaulting personal loans of
to locate the headquarters
6830 citizens, worth about
of the newly formed global
Dh2 billion (US$545 million).
green-energy body, the InterUnder a decree issued by the
national Renewable Energy
President, a Dh10 billion fund
Authority (IRENA), in Abu
has been established to put an
Dhabi, following a concerted
end to the phenomenon of
diplomatic effort. The headSheikh Khalifa supports relief with no strings attached
an excessive level of personal
quarters of the international
loans, which place a burden on
agency, which is dedicated to promoting the use of renewable
citizens with low incomes. In December 2012, Sheikh Khalifa
energy, is located in Abu Dhabis Masdar City complex.
issued a new decree setting up a housing authority, whose
Such moves underline the clout that the UAE now enjoys on
mission is to deliver affordable homes to Emiratis, to complethe global stage. But it also shows another facet of Sheikh Khalment the already extensive housing programme undertaken
ifas presidency, namely an emphasis on renewable energies as
over many years by the federal and local governments.
the most sustainable solution to the worlds energy requireThroughout, Sheikh Khalifa has reinforced the governments
ments. This, in a sense, represents a continuation of Sheikh
commitment to sustaining the economic diversification that
Zayeds well-known focus on the environment.
has delivered to the UAE a large part of its wealth, providing
In that vein, Sheikh Khalifas decree in December 2009
strong support for the development of the private sector as the
establishing the Emirates Nuclear Energy Corporation
essential engine of the UAE economy.
(ENEC) as the entity in charge of implementing the UAEs
Mirroring his domestic commitments to improving the
nuclear programme represents another significant milestone
lot of the poorest, Sheikh Khalifa has also ensured a strong
for the UAE. The focus on civilian nuclear energy is seen as
commitment to providing aid to those most affected by
a model in the region, and the UAE is the most advanced
regional crises, such as Syrian refugees, for whom relief is
Middle Eastern country in developing that capacity, which
provided with no strings attached.
is intended to produce 25 per cent of the UAEs electricity as
Under Sheikh Khalifas leadership, the UAE has also
early as 2020.
achieved considerable success internationally, one highlight

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HH Sheikh Mohammed bin Rashid Al Maktoum,


Vice President and Prime Minister of the UAE and Ruler of Dubai
Since assuming the role of Ruler of Dubai in January 2006
on the death of his brother, Sheikh Maktoum bin Rashid Al
Maktoum, Sheikh Mohammed has played a pivotal role in the
public life of the UAE by setting out a series of initiatives at
both the federal and local level.
One key area of focus is government performance. At the
central government level, the Federation is seeking to reinforce the effectiveness of the administration to meet the needs
of its inhabitants across all seven emirates, to ensure that
the benefits of development and growth are spread nationwide and to create an efficient support base for the economy.
In this, Sheikh Mohammeds unveiling in April 2007 of the
UAE Government Strategy Plan, aimed at achieving sustainable development throughout the country, investing federal
resources more efficiently and ensuring due diligence,
accountability and transparency across federal bodies, has
been critical. These efforts were recognised by the International Institute of Management Development in Switzerland
which ranked the UAE first globally in the category Government Efficiency and eighth most competitive nation in the

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Mohammed encouraging the participation of


world in its Global Competitiveness Yearbook
women in public life and the employment market,
2013.
Sheikh Mohammed
has overseen a
in particular. Women have been appointed to
In Dubai itself, Sheikh Mohammed has overseen
drive to reinforce
senior positions in both the Federal Government
the drive to recover from the impact of the global
the competitiveness
and the Dubai government.
financial crisis and build a sustainable economic
of the workforce
The economic context for these long-term stramodel that can maintain prosperity through diverand equip it to
tegic efforts has started to become more positive
sification in the highly competitive conditions of
hold its own in
the developing
after the difficult challenges posed by the internatodays international environment.
global knowledge
tional financial crisis, whose effects were painfully
The strategy that has shaped the Emirates
economy.
felt by an economy that is so closely integrated with
distinctive role as a trade and transport hub and
other parts of the world. However there are now
financial services centre is continuously refined
clear signs of recovering demand and personal and business
and adjusted to meet the fresh challenges presenting themspending power.
selves. Indeed, this is true at a UAE federal level as well as
Sheikh Mohammed has been pressing the UAE case for
within the individual emirates. For example, the introduction
greater regional trade integration, which would benefit the
of the tough new Basel III bank capitalisation rules will have
economies of both the UAE and the countries of the Gulf
clear implications for the banks that are such an important
Cooperation Council (GCC) as a whole. He argues that the
pillar of the UAEs position as a hub economy in the Gulf and
Gulf nations would be better able to build a stronger and more
the wider Middle East.
competitive bloc once restrictions on cross-border trade are
Similarly, the dangers of global climate change have led the
eased. He has called on the GCC to remove obstacles to crossUAE to respond by developing public transport systems. As
border trade, arguing that it is important for Gulf countries
UAE Vice President and Prime Minister, Sheikh Mohammed
to do away with procedures that hinder trade and economic
has played a key role in leading efforts at the federal level
openness, particularly in the private sector.
with the development of a national railway system now getting
In Dubai, Sheikh Mohammed has built the emirates
under way and within Dubai through the construction of a
economic strategy on twin foundations a dynamic private
metro system.
and commercial sector and a key role for major strategic corpoSocial issues have been another priority, with Sheikh

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rations. The latter are often founded with government support,


but, once up and running, they are required to operate as independent commercial sector businesses. They have enabled
Dubai to establish itself as a major force in critical sectors such
as air transport (with Emirates now the worlds largest airline
for international traffic) as well as real estate (Emaar and
Nakheel) and ports and logistics (Dubai World).
Their strength has enabled Dubai to weather the storms of
the global downturn. And thanks to their resources, market
share and business experience, both at home in the UAE and
on the international scene, they have been able to act as the
engine room for recovery.

33

In 2012, Sheikh Mohammed announced a law creating the


Dubai Corporation for Aviation Engineering Projects, which
will help the emirate make the most of its expertise in planning and developing world-class airports within and outside
Dubai. It will be attached to Dubai Aviation City Corporation,
which is responsible for developing the US$30 billion Dubai
World Central airport.
Meanwhile, Sheikh Mohammed has overseen a drive to
reinforce the competitiveness of the workforce and equip it
to hold its own in the developing global knowledge economy.
This means sustaining high investment in secondary and
higher education.

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Foreign Policy
The UAEs political leadership continues to operate within the
broad foreign policy framework established by the founding
President of the Federation, Sheikh Zayed. This approach
emphasises diplomacy, negotiation, tolerance and compassion. The UAE is mindful of its commitment to its neighbours
and the international community with regard to regional
peace, stability and human security for all. To achieve these
goals, it has purposefully promoted partnerships and dialogue.
Relying on these tools of engagement has allowed the Government to pursue effective, balanced and wide-ranging ties with
the international community.
A guiding principle of UAE foreign policy is the belief in
the need for justice in international dealings between states,
including the necessity of respecting the principle of non-interference in the sovereign affairs of other
nations. The UAE is also committed to the
peaceful resolution of disputes and backs
international institutions to reinforce the
rule of international law and the implementation of conventions and treaties.
At a time of regional unrest, UAE
foreign policy has been characterised by
a desire to maintain good neighbourli-

34

ness with its Arab partners insisting on non-interference in


internal issues while working towards the amicable resolution
of disputes. Developments in Egypt, Tunisia, Libya, Egypt and
Yemen have all found a positive response from UAE diplomatic
channels, with foreign policy officials engaging in dialogue
with world leaders to ensure that stability is maintained.
The UAE is dedicated to peace, security and stability in the
Arab region, as well as the normalisation of relations between all countries
Left The Crown
and a just and lasting solution to the
Prince of Abu Dhabi
Middle East conflict. It believes that
in talks with US
President Obama
peace cannot be achieved while the
Right Sheikh Khalifa
Israeli occupation of the Palestinian
meets French
and other Arab territories continues; it
President Hollande.

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supports an end to Israeli occupation and the establishment


of an independent Palestinian state with East Jerusalem as its
capital, within the context of an agreement based on the Arab
Peace Initiative.
Unrest in Syria since 2011 has elicited a concerted diplomatic and humanitarian initiative from UAE foreign policymakers. In December 2012, the Foreign Minister, HH Sheikh
Abdullah bin Zayed Al Nahyan, said the UAE was determined to support a non-sectarian government transformation in Syria for a future built on solid foundations. Extensive
support has been provided by the UAE for Syrian refugees
in neighbouring countries, while the UAE has participated
actively in Friends of Syria meetings, throwing the countrys
weight behind Arab and international initiatives on Syria,
while supporting the Task Force entrusted with reconstruction and rebuilding of Syrias future economy. In November
2012, at a Partnership for future investment in Syria Conference in Dubai, supported by the Ministry of Foreign Affairs,
the Minister of State, Dr Gargash, noted:
We are all aware that Future Syria should be built on solid economic
ground within a framework of transparency, power of law and the
latest economic practices. After decades of suffering of the Syrian
people, a new generation open to the world should be rehabilitated to motivate the creativity and innovation seen among Syrians
abroad.

The UAE has reinforced its unswerving commitment to

35

Minister of State
Dr Gargash
representing the
UAEs humanitarian
foreign policy.

the Palestinian cause, providing continued humanitarian


and development assistance to the Palestinian people and the
Palestinian Authority, while promoting a forceful engagement
on the Israel-Palestine issue through a variety of diplomatic
channels.
As Ambassador Ahmed Al Jarman, the UAE Permanent
Representative to the United Nations, told the 66th Session
of the UN General Assembly in December 2012, the UAE
is gravely concerned about the deteriorating economic and
humanitarian conditions of the Palestinian people in the
Occupied Palestinian territories resulting from the continued
Israeli occupation and the blockade of the Gaza Strip.
The UAE continues to reiterate its firm support for the
Palestinian National Authority and President Mahmoud
Abbas, and for the Palestinian Liberation Organisation as the
sole legitimate representative of the Palestinian people, and to
the Palestinian government.

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The UAE is one of the major contributors to humanitarian


assistance and development projects in Palestine, as well as to
the direct budget of the Palestinian Authority. The countrys
contribution in 2011 amounted to US$34 million dollars,
earmarked for the support of the government and development projects. Overall, the UAE has provided over US$3
billion in aid to the Palestinians, including development funds
for infrastructure, housing, hospital and school projects. In
addition, the country donated US$174 million towards reconstruction in Gaza.
Relations with Egypt are strategic and long term, ensuring
continued close ties as Egypt undergoes its political transition. The UAE committed to sending US$3 billion in aid to
Egypt in 2011, following the political changes in Cairo. The
UAE Foreign Minister, HH Sheikh Abdullah bin Zayed, has
stressed to senior Egyptian officials the necessity of maintaining close ties and ensuring that the principle of non-interference in internal affairs is maintained. The UAE expressed
its satisfaction at the subsequent changes in Egypt in July 2013,
in which the countrys armed forces, religious leaders and
a broad range of political forces laid out a road-map for the
achievement of a politically-tolerant and economically-strong
society and also pledged to work for the further development
of Emirati-Egyptian relations.
In a message to Egypts President Adly Mansour, UAE President HH Sheikh Khalifa said: We have followed with appreci-

36

Foreign Minister Sheikh Abdullah addressing


the UN General Assembly.

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ation and satisfaction the national consensus witnessed by your


sisterly country. This, Sheikh Khalifa said, had enabled Egypt
to overcome its crisis in a peaceful way, while preserving its
institutions. The UAE, he said, hoped that the people of Egypt
would achieve their aspirations for stability and prosperity.
During a visit to Cairo shortly after the July 2013 change of
government by a UAE delegation, led by the National Security Adviser and Deputy Chairman of Abu Dhabis Executive Council, HH Sheikh Hazza bin Zayed Al Nahyan, the
UAE pledged to provide US $ 3 billion in assistance to Egypts
economy.
Despite the long-running dispute with Iran on the question of the three occupied UAE islands of Abu Musa and
Greater and Lesser Tunb and worries about Irans nuclear
programme, the UAE has kept open all channels of constructive engagement that could result in a mechanism for confidence-building measures and the peaceful resolution of all
outstanding issues.
Following a visit to Abu Musa island by Iranian President
Ahmedinejad in April 2012, the Minister of State for Foreign
Affairs, Dr Anwar Gargash, renewed demands for the restoration of the UAEs full sovereignty over the three islands, urging
Iran to respond to the repeated peaceful and sincere calls of the
UAE for a just settlement of this issue, either through direct,
serious negotiations or by referral to the International Court
of Justice to settle this dispute. Addressing the 67th session of

37

The UAE funds numerous educational development


projects in Pakistan.

the UN General Assembly, Foreign Minister Sheikh Abdullah


commented:
Security and stability in the Gulf region represent a high priority
in our balanced policies, which derive their principles from the
Charter of the United Nations and the provisions of international
law, especially those calling for peaceful coexistence, confidencebuilding, good neighbourliness, mutual respect, non-interference
in the internal affairs of the State, and pursuing peaceful means in
resolving conflicts and disputes.

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On the basis of these principles, my Government expresses, once


again, its regret regarding the continued Iranian occupation of our
three islands: Abu Musa and the Greater and Lesser Tunbs, and
demands for the restoration of the UAEs full sovereignty over these
islands.

The UAE continues to contribute constructively to the


international efforts aimed at stabilising Afghanistan and is
supporting its bid to restore security. The UAE has provided
Dh5.5 billion in aid to Afghanistan, mainly devoted to infrastructure: road-building, schools, mosques and hospitals. The

38

UAE is the only Arab country performing humanitarian activities on the ground in Afghanistan, while units of the UAE
Armed Forces continue to be engaged in peacekeeping operations. In his address to the 67th session of the UN General
Assembly, Foreign Minister Sheikh Abdullah reaffirmed the
UAEs commitment to the country: In the United Arab Emirates, we remain committed to supporting the security and
stability of Afghanistan, and confirm the continuation of our
humanitarian and developmental support to this distressed
country As we are approaching the year 2014, (when international forces are due to withdraw) we look forward to closer
international cooperation to ensure a future free of violence,
extremism and terrorism for Afghanistan. The UAE also
emphasises the importance of achieving harmony, building
confidence and strengthening cooperation between Afghanistan and its neighbours, particularly Pakistan.
Given Pakistans proximity to the Gulf region, the UAE has
continued to affirm the importance of stability in Pakistan.
The Project to Assist Pakistan is carrying out 28 development
and humanitarian projects worth US$54.5 million in South
Waziristan province, including schools and colleges. The UAE
has funded the construction of two bridges over the River
Swat that had collapsed in massive floods in the area in 2010
as well as providing other support for Pakistani humanitarian
and development projects.

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Strengthening Ties

Sheikh Khalifa, President of the UAE, attends


a state lunch hosted by the Queen on his visit
to the UK in 2013.

39

Beyond the region, the UAEs foreign policy continues to


adapt to accommodate the evolving changes in the global
community. As part of its pragmatic approach, the UAE is
building bilateral and multilateral relations with both industrialised and developing countries, while strengthening ties
with its traditional allies in the West.
Relations with NATO have developed significantly since the
UAE joined the Istanbul Cooperation Initiative (ICI) in 2004.
The UAE was the first partner from the ICI to establish an office
at NATO headquarters in Brussels, in April 2013, which will
permit NATO to expand its cooperation in the context of the
ICI. The UAE has closely worked with NATO for the establishment of stability and security in several regions, from Bosnia to
Afghanistan to Libya, and its forces have cooperated, with great
efficiency, with NATO forces on the ground and in the air.
Relations with the European Union (EU) have continued
to strengthen with the opening of an EU diplomatic mission
to the UAE in January 2013. Catherine Ashton, the EU High
Representative for Foreign Affairs and Security Policy, said the
decision highlighted the importance of the EUs geostrategic
interests in and its political and economic ties with the UAE,
as well as with the GCC as a whole. Sheikh Khalifa has also
worked strongly to forge closer ties with individual EU states.
One highlight, in spring 2013, was a successful state visit to
the United Kingdom, the first by a UAE president for 24 years,
during which the long-established friendship was re-affirmed

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foreign policy objectives in a speech in November 2012:

Sheikh Mohammed bin Zayed, Crown Prince of


Abu Dhabi, meets Xi Jinping, current President of
China, during his official visit in 2012.

and several new agreements on co-operation were signed.


As the second-largest Arab economy, the UAEs foreign
policy is naturally also geared towards creating greater commercial opportunities with various partners. An important aspect
of the UAEs foreign policy, therefore, places great emphasis on
nurturing an expansion of commercial and investment links
with other countries and institutions worldwide. The UAEs
fast-developing position as a financial hub for the region has
further solidified and strengthened its position as a member
of the global community. Foreign Minister Sheikh Abdullah
explained how commercial interests contribute to the UAEs

40

Promoting the investments and trade of the UAE overseas is a strategic goal set by the Ministry of Foreign Affairs which coordinates
and cooperates with its missions and the national economic sector
to protect its interests, and continues to support its plans and efforts
for foreign investments, contribute to studying the available opportunities and communicate with the national economic sector in
this regard. This strategy yielded fruits and managed to reinforce
the economic presence of the UAE in different regions around
the world and to protect national foreign investments through
embracing the issues faced by UAE investors and supporting them
through the diplomatic missions in the concerned countries.

In line with this approach, the UAEs diversification of intense


diplomatic contacts included Africa and its regional groupings.
The Governments aim is to strengthen cooperation by entering
into bilateral and multilateral partnerships with African countries in accordance with the Millennium Development Goals.
The UAE is keen to fight poverty and ensure that Africa receives
a fair and equitable share of global prosperity.
As Asia weathered the economic crisis more successfully
than other parts of the world, there were ample indications
that some of the major Asian countries would play a more
influential role in world politics. Absorbing this shift and
reflecting the desire to further consolidate ties, the UAE leadership continued to develop its relations with a number of
Asian countries, including China and India.

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Nuclear Developments
The UAEs quest for nuclear energy also witnessed intense
diplomatic efforts to develop cooperation mechanisms to
guarantee a credible and comprehensive civilian programme.
This push resulted in the signing of the UAE-US Peaceful
Nuclear Cooperation Agreement in 2009, the first such US
arrangement in the Middle East. The deal, which is touted as
a powerful and timely model for the region, allows the UAE
to buy American nuclear power equipment, technology and
fuel. In turn, the UAE a Nuclear Non-Proliferation Treaty

(NPT) signatory has agreed to open its nuclear facilities to


full international inspections and refrain from producing its
own reactor fuel.
Referring to the UAEs civilian nuclear programme, Foreign
Minister Sheikh Abdullah told the UN General Assembly:
We are confident that this will provide an opportunity to make a
positive change in the international arena. We hope that developing a peaceful nuclear energy model which complies with the
highest standards of transparency in operating the nuclear facilities and fulfills the highest requirements of nuclear safety and nonproliferation, in cooperation with the International Atomic Energy

IAEA Director General Yukiya Amano met


with Minister of Foreign Affairs, HH Sheikh
Abdullah bin Zayed Al Nahyan during his
official visit to UAE.

41

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Agency and other responsible and experienced states would


chart a new course for a large group of countries for the safe use
of nuclear energy, with international support. The UAEs commitment not to enrich uranium and reprocess fuels locally is among
the most salient features of this model. This is a model supported
by enhanced international transparency and cooperation mechanisms. The policy supports the principles of the Nuclear NonProliferation Treaty and reflects the UAEs position, which calls
for making the Middle East and the Gulf a zone free of weapons of
mass destruction, particularly nuclear weapons.

The UAE also signed a memorandum of cooperation with


Japan to explore possibilities of developing peaceful nuclear
energy. This follows similar agreements with the UK and
France in the past.
The Board of Governors of the International Atomic Energy
Agency (IAEA) approved the UAEs ratification of the additional nuclear inspection measures known as the Additional
Protocol, which ensures commitment to the NPT. During
a visit to the UAE in January 2013, IAEA Director General
Yukiya Amano expressed admiration for the progress being
made. He said the UAE played a leading role among the
nations which are developing nascent programmes, and
expressed belief that these efforts would set a model for
other nations willing to develop peaceful nuclear energy
programmes.

42

South Korean President Lee Myung-bak greets Crown Prince of Abu


Dhabi Sheikh Mohammed bin Zayed Al Nahyan at the Nuclear Security
Summit in South Korea in 2012.

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Other International Partnerships


Another key area of UAE cooperation has been in the global
fight against terrorism. While emphasising the need for a clear
definition of terrorism, the UAE has also insisted that statesponsored terror should not be tolerated. In the process, it has
collaborated with countries that have been victims of terrorism
through effective information exchange and discussing ways
of alleviating social and economic deprivation, which could
nurture terrorist recruitment. Further, international partnerships have intensified in the areas of money-laundering and
human trafficking.
The UAE has also committed to forging new institutions
that support international cooperation, including countering terrorism. In December 2012, Foreign Minister Sheikh
Abdullah launched the Hedayah (Arabic for Guidance)
Centre, the new name of the International Centre for Excellence in Countering Violent Extremism, in Abu Dhabi. We
are honoured to assume our role in coordinating international community efforts to get rid of threats posed by violent
extremism through this centre, said Sheikh Abdullah.
The Hedayah Centre will forge a series of partnerships with
credible institutions to carry out its activities, including the

43

Geneva Centre for Security Policy, the


Jakarta Centre for Law Enforcement
Cooperation, the Jump Sports Academies in Abu Dhabi, the Mohammed
bin Nayef Counselling and Care Centre
in Saudi Arabia, the Organisation for
Security and Co-operation in Europe,
and Women without Borders.

A high-level
meeting at the
Hedayah Centre,
established to
counter violent
extremism.

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Humanitarian Aid

44

Since the UAE was established in 1971, it has shown itself to


be a generous donor of humanitarian assistance and of development aid for other countries both within the region and
around the world. The philosophy behind this is two-fold: first,
it is dictated by a belief that helping those in need is a primary
duty; and second, that part of the countrys wealth from oil
and gas should be devoted to assisting other countries and
individuals that are less fortunate. According to the OECD,
the UAE was the sixteenth largest donor in 2012, measured
by the ratio of aid to the size of the economy, climbing from
twenty-sixth place in 2010.
In recognition of the importance of such assistance, a new
ministry was formed in March 2013 to coordinate all the
development and humanitarian efforts undertaken by the
UAE. The new Ministry of Development and International
Cooperation, which incorporates the existing Office for the
Coordination of Foreign Aid, is headed by Sheikha Lubna al
Qasimi, who in recent years has also served as economy and
foreign trade minister. Sheikha Lubnas new task is to boost
the role of the UAE as a major donor and a key player in global
human development. This includes setting a general policy for
UAE development and international aid, suggesting areas of
priority development, evaluating the impact of UAE foreign
aid programmes and coordinating with local and international organisations in the relief and humanitarian aid fields.
Assistance is provided through a range of instruments.

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Much of the aid is delivered directly


by the Government. For example,
it spent Dh300 million on Mrajeeb
Al Fhood, a camp the nation built
for Syrian refugees in Jordan able
to house 25,000 refugees. In total,
the UAE has pledged more than
Dh1.1 billion in aid to Syrian refugees. As part of its humanitarian aid
policy, the UAE has contributed to
building hospitals and townships
as well as assisting in relief operations in Iraq, the Palestinian
territories and Lebanon. In addition, the UAE has made major
contributions, both directly and through regional agencies
and international organisations, aimed at alleviating suffering
in countries whose populations have been affected by natural
disasters, conflict, epidemics of disease, illiteracy and poverty.
Besides assistance directly from Government, humanitarian
assistance and development aid is also provided by a wide
range of other organisations, such as the Abu Dhabi Fund for
Development (ADFD), the Red Crescent Authority (RCA),
the Zayed Foundation for Charitable and Humanitarian Aid,
the Khalifa bin Zayed Charity Foundation, the Sheikha Fatima
bin Mubarak Fund for Refugee Women, the Mohammed bin
Rashid Al Maktoum Charity and Humanitarian Establishment, Dubai Cares and the Sharjah Charity Association and

45

Humanitarian Foundation. These


have provided billions of dollars
to support disaster- and droughtstricken areas as well as for development projects. In addition, a
number of private humanitarian
efforts have also been undertaken.
One of the leading development
grant agencies is the ADFD, which
was established in 1971 to extend
assistance to Arab, Islamic and
friendly developing countries facing difficulties, challenges
and economic development problems. The main activity of
the Fund is to provide economic assistance in the form of loans
on concessionary terms, grants or contributions to project
capital. The Fund particularly strives to help achieve sustainable
economic growth and reduce poverty by providing financial
aid, forging partnerships in the public and private sectors, and
adopting international best practices to ensure aid effectiveness. In 2012, a large number of projects focused on supporting
infrastructure in low-income African countries.
Since its foundation, the ADFD has provided more than
Dh14.9 billion to 325 projects in 59 beneficiary countries.
Total loans, grants and investments, including those extended
by the Abu Dhabi government but managed by the ADFD,
amount to Dh35.3 billion.

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The RCA, established in 1983, continues to give impetus


to humanitarian efforts under the stewardship of HH Sheikh
Hamdan bin Zayed Al Nahyan, the Rulers Representative
in Abu Dhabis Al Gharbia (Western) Region. The RCA has
funded and implemented hundreds of charity projects in
countries throughout Africa and Asia, apart from a number of
projects to help the Palestinian people. Some of its most effective activities include providing drinking water in countries hit
by drought and desertification, as well as equipping hospitals
in remote areas of underprivileged countries and distributing
relief material for flood victims. It has also offered assistance
to other countries affected by natural disasters, including the
United States, following the devastating Hurricane Katrina
in 2005. These efforts have given the RCA the distinction of
being one of the top ten member organisations of the International Committee of the Red Cross in terms of the amount of
relief assistance provided.
Providing aid for Palestinians is a particular focus for the
RCA, which has offered a total of Dh900 million to fund
humanitarian, health and educational projects in Palestine.
The RCA responded to the appeal of the UN Relief and Works
Agency (UNRWA) to support Palestinian refugees caught up
in the conflict in Syria, donating US$500,000 in 2013 for food
and hygiene kits for displaced Palestinian refugees. UNRWA
commissioner-general Filippo Grandi said: We are grateful to
our consistent partner, the UAE Red Crescent Authority, for

46

this donation. It will be of very direct


The RCA has
benefit to Palestinian refugees caught
funded and
up in the Syrian maelstrom. We calcuimplemented
late that about half of the more than
hundreds of
500,000 Palestinians in Syria have had
charity projects
to move from their houses. That is a
in countries
throughout Africa
frightening statistic.
and Asia, apart
In April 2013,the Higher Committee
from a number of
of Foreign Aid at the RCA allocated
projects to help the
Dh4 million to carry out development
Palestinian people.
projects in a number of countries,
including Palestine, Yemen, Somalia, Sudan, Jordan, Pakistan,
Senegal, Bosnia, Uganda, Benin, Thailand and Chad, in addition to Ghana, Lebanon, Libya and Mauritania. The assistance
will cover health, education and social services sectors in addition to the provision of water supplies in areas of shortage.
Key charitable initiatives in Dubai include the Mohammed
bin Rashid Charity and Humanitarian Establishment, which
began its work in 1997, Dubai Cares, established in 2007, and
Noor Dubai, set up in 2008. The former has provided assistance to over twenty five countries, in the Middle East, southeastern Europe, Africa, Asia and the Caribbean, with a focus
on emergency relief aid and on helping communities shattered by natural disasters to rebuild their infrastructure.
Dubai Cares, also set up by HH Sheikh Mohammed bin
Rashid Al Maktoum, has a focus specifically on working to

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Noor Dubai works to prevent and treat blindness globally.

improve childrens access to primary education and is part


of the UAEs commitment to reach the Millennium Development Goals of the United Nations by 2015 to guarantee
universal primary education and to promote gender equality.
In partnership with over 40 governmental, corporate and
individual donors in the UAE and also numerous international aid agencies and other non-governmental agencies,
Dubai Cares has now reached more than 7 million children in
28 developing countries.

47

Noor Dubai also has a specific focus that of working to


prevent and treat blindness, and of promoting educational
programmes relating to protection of eyesight, particularly
in developing countries. Since it was established, its teams
of doctors, working in collaboration with the World Health
Organisation and other bodies, have carried out screening
operations and operations in much of Africa and Asia, as well
as in the Middle East. By mid-2013, it is estimated that its
activities had cumulatively helped over 6 million people.
The UAE Government also participates in a number of
other multilateral aid-giving institutions, including the International Development Agency, the OPEC Fund for International Development, the Arab Gulf Fund for the United
Nations, the Arab Bank for Economic Development in Africa,
the Abu Dhabi-based Arab Monetary Fund and the Islamic
Development Bank. In recent years, however, the emphasis
has been on humanitarian assistance for those affected by
natural disasters, conflict and poverty.
Overall, during the last three-and-a-half decades, the UAE
has contributed more than Dh255 billion in loans, grants
and assistance for development projects in nearly 100 countries around the world, as well as support for the programmes
of international agencies such as the International Monetary
Fund, the World Bank and specialised agencies of the United
Nations.

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48

Economic Drivers
Economic Trends
Government Spending
Trade
Banking and Finance
Key Sectors

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ince the UAE was established in 1971, its economy


has grown 200-fold, developing into a modern
and open economy. Totalling close to US$375
billion, it is now the second biggest economy in
the Arab world, after Saudi Arabia, and accounts for more
than a quarter of the gross domestic product (GDP) of the
Gulf Cooperation Council (GCC), and nearly 14 per cent
of the combined GDP of the countries in the Middle East/
North Africa region.
The pace of growth has quickened over the past year,
with GDP showing a healthy rise of 4.4 per cent in 2012,
following 3.9 per cent in 2011. One of the most important

factors is the role played by high and stable oil prices, but
early and continuing diversification efforts have paved the
way for strong growth momentum in the non-hydrocarbon
economy too, backed primarily by solid performances
in trade, financial services, tourism, real estate, logistics
and manufacturing. Through high public spending and
a steady increase in private-sector investment across the
seven emirates, the UAE has been well positioned to absorb
the shockwaves from the global economic slowdown
and regional turmoil. In 2013, non-hydrocarbon growth
continues to pick up, while oil and gas growth is slowing
slightly, as oil prices trend slightly lower.

Real GDP change %


10
8
6
4
2
0
-2

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

-4
-6

49

Source: National Bureau of Statistics

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Economic Drivers
The energy sector is the foundation of the UAEs wealth and also
a key source of revenues to finance continuing economic diversification. The country has the worlds seventh-largest proven
reserves of both crude oil and natural gas, according to the BP
Statistical Survey of World Energy 2012. Oil and gas accounted
for 42 per cent of the UAEs GDP in 2012, with Abu Dhabi
holding the overwhelming majority of the countrys reserves
(well over 90 per cent) and its world-class oil and gas companies investing heavily in increasing output. In 2012, a 5 per cent
rise in crude production along with elevated oil prices provided
a timely boost to public revenues amid the ongoing efforts to
ensure sustainable growth, despite the global slowdown.
The UAE is also pursuing groundbreaking renewable energy and energy
efficiency programmes as part of
government policy to build the foundations for a future that is less reliant on
hydrocarbons. The Abu Dhabi Government has committed to produce at least
7 per cent of electricity from renewable
The state-of-the-art
sources of energy by 2020.
Khalifa Port and
Industrial development is playing an Industrial Zone
increasingly vital role in driving UAE opened, ahead of
schedule, in 2012,
economic expansion and diversification, north of Abu Dhabi
accounting for 16 per cent of GDP. The City.

50

main pillars of UAE industry are petrochemicals, aluminium


and steel, but the automotive sector, chemicals, cement, electrical machinery, power equipment and food processing
continued to gain momentum in 2012, as partnerships with
foreign enterprises and joint ventures allowed industrial and
manufacturing companies to benefit from the most up-todate technologies. There has also been strong growth in
biotechnology, pharmaceuticals, telecommunications equipment, and aerospace and healthcare equipment.
Tourism remains a key driver of economic growth in the
UAE and sits at the heart of all seven emirates diversification
plans. Over the past decade, the industry has contributed to and

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benefited from the rise of other highgrowth sectors in the economy, such as
retail and aviation. Taking into account
direct, indirect and induced impacts,
Dh193.6 billion (US$53 billion) or 14
per cent of the UAEs GDP came from
the tourism industry in 2012, a figure
that is expected to rise in coming years.
Tourism provides one in nine jobs
in the country, which beats the global
average of one in 11 jobs. The industry
grew by 14 per cent in the UAE in 2012,
faster than the world average of 9 per
cent. The UAE aims to increase tourism
arrivals from around 15 million in 2012
to 26 million over the next ten years.
Driven mainly by rising trade and
tourism activity, the UAE has also taken
great strides towards becoming a regional hub for transport
and logistics, and for the global travel industry. The country
is currently constructing and expanding several port and
airport facilities, as well as roads and a nationwide rail network.
The aviation industry alone contributes about 15 per cent to
the UAEs GDP (and as much as 28 per cent in Dubai). With
Dubai International, the country boasts the worlds tenth
busiest airport for international passenger traffic and the sixth

51

busiest cargo airport. The UAE has over


Looking down on
Dubais Burj Khalifa
20 ports, including state-of-the-art oil
and surrounding
terminals and world-class industrial
areas.
ports and container-handling. Its newest
port, Khalifa Port Container Terminal,
opened at Taweela, northeast of Abu Dhabi City, in 2012, giving
the emirate one of the largest and most modern maritime cargo
handling facilities in the region. Fujairah is also developing fast
as an oil transport and storage hub.

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between 2011 and early 2013. Rising interest from GCC


The UAE real estate and construction sector is showing
investors and Dubais comeback have played a large role
strong signs of recovery after the property slowdown
in the continued buoyancy of the UAEs overall real estate
caused by the global financial crisis in 2009. According to
sector. The market, which was estimated at US$39 billion
2011 statistics, the sector accounts for around 10 per cent
in 2012, is expected to register a compound annual growth
of UAE GDP. The countrys economic and political stability
rate of around 9.5 per cent during 2012-16, outpacing the
has seen it emerge as a safe haven for international invesmajority of developed nations around the world.
tors during regional turmoil in recent years, a trend that
The banking and finance industry has maintained its
has played an important part in keeping the real estate
position as one of the leading contributors to the economy,
sector on track. The Abu Dhabi Government is focusing on
at around 7 per cent of total GDP. UAE banks witnessed 8
a number of significant new infrastructure developments,
per cent growth in total assets to Dh1.8 trillion (US$490
while several major real estate developments are nearing
billion) in 2012, enabling the banking sector to remain the
completion, which has contributed to a steady supply of
Arab regions largest in terms of assets. Banks in the UAE
new units into the formerly under-supplied market. Dubai
continue to achieve comfortable liquidity levels, strong
has seen a pronounced improvement in conditions, with
capital bases and a high capital adequacy ratio. In June
market confidence returning, occupancy rates on the rise
2013, the UAE market was upgraded from frontier to
and hotel and retail segments benefiting from an upswing
emerging market status by Morgan Stanley
in tourist numbers. Meanwhile, similar posiCapital International, which classifies 77
tive news emerged from other emirates in
UAE banks witnessed
markets worldwide. The shift, which comes
the UAE. Thus Ajman, the smallest emirate,
8% growth in total
into effect in May 2014, opens up new sources
saw the total value of property transactions
assets to
of longer-term capital for the UAE.
increase by 50 per cent to Dh300 million

1.8

Dh
trn
(US$490bn) in 2012.

52

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Economic
Trends

nu

fac

Wholesale
retail trad and
e 146,472
Rea
l est
ate
110,
200

RY
ST

A S

O I L

Oil and Gas


477,304

Hotels and restaurants


22,403

Dh million
2012

E
V

Nominal
GDP
by sector

n
ial iatio
c
an ed
Fin term
in ,464
85

IN

tu
99 ring
,42
5

Totals (Dh million)


Services 498,526
Oil and Gas 477,304
Industry (excl. Oil and Gas) 268,009
Agriculture and fisheries 10,481

Tr
co ansp
99 mm or
,00 un t a
7 ica nd
tio
n

Ma

n
ctio
stru ,210
Con 131

Mining and
quarrying
2,678 Agriculture
and
fisheries
10,481

s
tie 6
ili 21
Ut 24,

Amid continued uncertainty in regional


and global markets, the UAE has upheld
its commitment to economic liberalisation, the diversification agenda and
enhancements in the role of the private
sector. With both the hydrocarbon
and non-oil economy performing
well, growth has been spread across
the whole country. Buoyed by high oil
prices, the country bucked downward
international trends to grow 4.4 per
cent in 2012 while keeping inflation and
its public finances in check. In 2013,
growth of over 3.5 per cent is expected
as lower hydrocarbon prices are offset
by strong investment.

GDP by sector

O
34 ther
,98 se
0 rv

ice

Source: National Bureau of Statistics

53

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Seven-Emirate Economy

Abu Dhabi
The energy-rich capital accounts for well over 60 per cent
of UAE economic output and in 2012 saw GDP grow by an
estimated 3.9 per cent. The population of the Emirate of
Abu Dhabi in 2013, as a whole, is just over 2.5 million, with
annual growth of over 8 per cent, one of the highest rates in
the world. Abu Dhabi has diversified into cultural tourism,
aviation, manufacturing, media, healthcare, financial
services and renewable energy.
Dubai
Dubai, which accounts for around 30 per cent of the UAE
economy with a population in 2012 of 2.1 million, has
positioned itself in recent years as a regional hub for trade,
transport and logistics, retail, tourism and banking. These
key pillars have shown resilience since the financial crisis,
with overall GDP growing by approximately 4.5 per cent in
2012. Oil and gas represent only 2 per cent of the economy.

54

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Sharjah
The UAEs third-biggest emirate, with a population in
2009 according to the National Bureau of Statistics of 1.01
million, has built up a solid manufacturing sector and is
now focusing on developing green business and sustainable
tourism. Driven by Shurooq, the emirates investment body,
Sharjah accounted for some 5 per cent of the UAEs output
and 8 per cent of total non-oil GDP in 2012.
Ras al-Khaimah
With a prudent fiscal policy and expansion to the industrial,
financial services and aviation sectors, Ras al-Khaimah
has developed well in recent years. According to latest
government figures, the economy is estimated to have
grown by 8 per cent in 2012, while the population in 2009
according to the National Bureau of Statistics was 241,000.
Fujairah
Its strategic coastline location on the Gulf of Oman, outside
the Straits of Hormuz, means Fujairah is emerging as a
major oil and chemical storage and products trading hub.
With a population in 2009 according to the National Bureau

55

of Statistics of 152,000, it now ranks as the second largest


bunkering port in the world. An oil pipeline from Abu
Dhabi was opened in 2012 and a second refinery is under
construction, along with a liquified natural gas terminal.
Ajman
Ajman is the smallest emirate in size, despite a population
in 2009 according to the National Bureau of Statistics
of 250,000. It has invested steadily in its ports, roads,
transport sector and industrial zones. The government has
implemented policies to encourage foreign capital inflows,
including 100 per cent freehold ownership of real estate for
international investors.
Umm al-Qaiwain
Traditionally reliant on industries such as cement,
pharmaceuticals and glass, the emirates GDP makes up
around 1 per cent of the UAEs economy, with a population
in 2009 according to the National Bureau of Statistics of
56,000. Its recent diversification efforts include plans to
develop a sophisticated ecotourism industry around its
natural beauty and historical sites.

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Government Spending

The UAE targeted a


prudent approach
to fiscal policy
that saw growth in
expenditure slow to

6.9

%
from 11.9%

56

Government investment was key for growth in 2012 and will


remain important, not least in Abu Dhabi, where a new Dh330
billion four-year investment programme was announced in
January 2013. The focus is on upgrading physical infrastructure and social facilities in line with world standards. Much
of this investment is directed towards the construction of
residential, educational and health facilities and the improvement of transport infrastructure. In the smaller emirates, too,
there is a significant federal investment programme under
way, designed primarily to modernise and expand power and
water supply.
While spending increased, the UAE targeted a prudent
approach to fiscal policy that saw growth in expenditure slow
to 6.9 per cent, from 11.9 per cent a year earlier. After the rapid
increase in 2011, the Government embarked on a phase of
fiscal adjustment, aiming to unwind the stimulus seen during
recent years and to ensure that the budget can break even at a
time of lower oil prices, without hindering economic recovery.
Government revenues increased by 9.1 per cent in 2012 and
accounted for almost 36 per cent of GDP. Though growing, the
expansion rate was down from over 40 per cent in the previous
year when both federal and local investment programmes
were introduced to shore up economic growth in the face of
the global slowdown. As a result, despite high levels of investment, the countrys fiscal surplus grew by 14 per cent in 2012.
Hydrocarbons, which account for almost 80 per cent of total

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government revenues, witnessed a weaker momentum than


in 2011, with revenues increasing by 10.1 per cent in 2012,
compared with 54.2 per cent in the previous year as prices and
production levels remained relatively stable. Revenues generated by non-hydrocarbon activities primarily trade, tourism,
logistics and manufacturing now account for around 20 per
cent of total federal and local fiscal revenues, having shown
an increase of 9.4 per cent in 2012, following a drop of 1.3 per
cent in 2011.
Overall, growth in government receipts outpaced that
of spending in 2012, sustaining a positive balance for the
third consecutive year at 12 per cent of GDP, compared with
surpluses of 11.2 per cent in 2011 and 4.3 per cent in 2010.
Both federal and local governments played a big role in the
return of strong growth, especially through increasing investments in infrastructure projects, such as Abu Dhabis Khalifa
Port, which was officially inaugurated in December 2012, a
new Dubai airport building designed for the 380 Airbus,
the new Union Railway and new power generating stations,
including nuclear power and water desalination plants (see
Chapter 4 Infrastructure).

Inflation and Interest Rates


The UAEs annual rate of inflation in 2012 eased to 0.7 per
cent, compared with 0.9 per cent in the previous year, with
monetary conditions in the country marked by sustained
growth in the Central Banks foreign assets, amid rising oil
prices and a moderate expansion in the money supply. InflaInflation
(%) 2012
Alcohol and tobacco
Food & beverages
Education
Hotels & restaurants
Clothing & Footwear
Household Goods & Services
Goods and other services
Medical care
Transport
Entertainment
Communications
Housing, Water, Electricity & Fuels
Total Index

-3
Source: National Bureau of Statistics

57

-2

-1

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Dubais consumer
prices fell by

1.7

%
in 2012, the first
full-year deflation
since 2007

tion remains stable in 2013. The consumer price index (CPI),


an inflation indicator that measures the changes in the costs of
a fixed basket of products and services, saw a fall of 2.6 per cent
in housing and utility costs, its largest contributing segment,
while food prices, which account for around 14 per cent of the
index and are historically a large source of inflationary pressure, increased by more than 5 per cent on an annual basis.
Dubais consumer prices fell by 1.7 per cent in 2012, the
first full-year deflation since 2007, after a rise of 0.5 per cent
in 2011. In December, prices fell by 1.9 per cent year-on-year
owing to a 6.5 per cent drop in housing and utilities costs,
which account for almost 44 per cent of consumer expenses.
Meanwhile, Abu Dhabi registered an overall rise of 1.1 per
cent in consumer prices during 2012, while Sharjah, Fujairah

58

and Ajman all saw price rises of more than 3 per cent.
A low global interest rate environment and subdued inflation in the domestic markets meant that the UAEs monetary
policy remained relatively loose under the fixed exchange-rate
regime. The UAE dirham has been pegged to the US dollar
since November 1997. Since oil prices are denominated in US
dollars, this allows for greater convenience in oil transactions,
as well as helping the UAE to benefit from the USs financial
stability, keeping the dirham stable. The benchmark interest rate
remained at just 1 per cent throughout 2012, partly as a result of
the influx of foreign funds. Interest rates, set by the Central Bank
of the UAE, have averaged 1.38 per cent from 2007 to 2012,
having reached an all-time high of 4.75 per cent in November
2007.

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Trade

UAE trade activity grew solidly in 2012, with both imports


and exports rising. The net expansion was partly down to
sustained higher oil prices and partly to diversification efforts
by the Government. But the UAE proved itself resilient to
any negative impact from regional unrest. In total, exports
climbed by 7.4 per cent to US$302 billion over 2012, while
imports grew by 9 per cent to US$220 billion. Non-oil foreign
trade witnessed estimated growth in 2012 of 15 per cent.
The UAEs performance is in direct contrast to patterns of

Gold jewellery at
the Gold Souk in
Dubai, a booming
centre for trade in
gold bullion.

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growth in world trade, which fell by 2 per cent in 2012, from


its recovery in 2011. The UAE successfully avoided the impact
of the abrupt deceleration of global trade that was caused
by slow growth in many developed economies and recurring bouts of uncertainty over the future of the euro zone.
That was in large part due to Abu Dhabis energy credentials.
Revenues from the oil and gas sector made up around 42 per
cent of overall export revenues, compared with 32 per cent a
year earlier. Crude oil exports grew in value by 40.6 per cent
in 2012, following an increase of 50.8 per cent in 2011. Statistics are not yet available for liquid natural gas exports in 2012,

Revenues from the


oil and gas sector
made up around

42

%
of overall export
revenues,
compared with
32 per cent a year
earlier.

Foreign Trade
2007

2008

2009

2010

2011

178,606.04

239,179.96

191,776.20

213,509.94

281,601.69

22.7

33.9

-19.8

11.3

31.9

73,816.50

102,073.24

67,866.32

74,628.10

111,591.61

61,161.72

85,416.55

54,117.34

60,080.86

90,628.64

Refined products

4,895.45

6,016.88

5,445.14

6,679.01

8,929.21

Gas

7,759.32

10,639.80

8,303.84

7,868.23

12,033.76

Non-oil exports

34,241.22

42,965.97

43,963.79

51,003.27

62,061.80

Re-exports

70,548.33

94,140.76

79,946.09

87,878.57

107,948.27

Total imports

150,102.9

200,299.8

170,098.2

186,975.8

229,677.4

50.0

33.4

-15.1

9.9

22.8

(US$ million)
Total exports
% change
Oil & gas exports
Crude oil

% change
Source: National Bureau of Statistics

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although these have been expanding, along with capacity.


Dubais booming gold trade played a role too. The emirate
is a long-established market for gold bullion, both in the
wholesale and the retail jewellery segment, with trade fuelled
by strong demand from the Arab world and from India,
the worlds top gold market. Total trade is estimated to have
exceeded US$70 billion in 2012, hitting record highs as more
of the precious metal was exchanged and stored in Dubai,
although most is for re-export.
The UAEs healthy trade surplus reached a historical high
of US$82 billion in 2012. In terms of share of GDP, the trade
balance narrowed slightly, as imports grew faster than exports.
It now accounts for a still-large 21 per cent of GDP, compared
with a share of 23 per cent in 2011.
In 2012 the UAEs
healthy trade
surplus reached a
historical
high of

Trade and Current Account Balance


200

20

Exports as % of imports (Left)


Current account as % GDP (Right)

150

15

100

10

50

82

US$

bn

2005

2006

2007

2008

2009

2010

2011

2012*

* Estimate Source: IMF

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Exports, Imports and Re-Exports


The UAE became the worlds twentieth biggest exporter in
merchandise trade in 2011, according to the latest analysis
by the World Trade Organisation. The country accounts for
1.6 per cent of total world exports. It was the twenty-fifth
largest importer, with a share of 1.1 per cent. Although the
UAE is becoming less dependent on natural resources for its
overall revenue, petroleum and natural
gas exports still play a major role in
the economy and its trade balance.
Within the non-hydrocarbon sector,
machinery and transport equipment,
chemicals and food are some of the
primary traded commodities.
Dubai handles almost 80 per cent
of the UAEs imports, exports and
re-exports. It hosts the Middle Easts
biggest port in Jebel Ali and the largest
airport. With the exception of oil,
gas and petrochemicals, the primary
export centres in the UAE are free
zones that provide logistical, administrative and financial advantages for
exporting or re-exporting companies.

62

Cargo containers at
Terminal 1 in Jebel
Ali port in Dubai,
the Middle Easts
biggest port.

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Total 2012 trade in the free zones reached almost Dh13 billion
(US$3.5 billion) in the first nine months, including Dh6.2
billion in imports, Dh1 billion in exports and Dh5.5 billion in
re-exports.
India is the UAEs largest trading partner, accounting for
almost one-quarter of total trade, followed by China. Meanwhile the US declared that the UAE was
its largest trading partner among Arab
and Middle Eastern countries in 2012
for the fourth year in a row. US exports
to the UAE reached US$23 billion in
2012, a 40 per cent increase over 2011.
The UAEs five largest export partners
are Japan, India, South Korea, Thailand
and Singapore, while the largest import
partners are India, China, the US,
Germany and Japan. Primary exports
are crude oil, natural gas and re-exports.
Primary imports are machinery and
transport equipment, chemicals and
food.
The UAE is the worlds third-largest
re-export market (trailing only Hong
Kong and Singapore) and trades with
more than 220 countries. Re-export
involves importing merchandise of

63

Chinas former premier Wen Jibao and


Sheikh Sultan al Qasimi, Ruler of Sharjah,
at the 4th Annual China Arab Business
Conference, held in Sharjah.

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foreign origin into the country and shipping it


from where they are re-exported to Africa and
to another destination in the same condition
Europe. That makes the UAE a crucial partner
UAE re-exports to
foreign markets stood at
in which it was imported, or after reprocessing
for China and one of the greatest beneficiaries of
inside the country. The UAEs unique geographits rise. Even the UAEs largest trading partner,
Dh
bn
ical location between East and West has meant
India, relies on the Emirates for a significant
in the first nine months
that re-exporting was always a key activity; it
portion of its Chinese imports. The UAEs total
of 2012, compared with
remains essential to the growth of the UAE
trade with China was worth over US$40 billion
economy and a key driver to connecting it with
in 2012.
bn
Dh
the fast-growing emerging economies of Asia.
during the same period
In addition, the country offers world-class logisa year earlier. The
Free-Trade Agreements
decline was the result of
tics and infrastructure facilities.
a significant fall in reUAE re-exports to foreign markets stood at
exports to Iran due to
Dh153 billion (US$42 billion) in the first nine
Trade openness, driven by a network of freeinternational sanctions.
months of 2012, compared with Dh161 billion
trade agreements (FTAs), has proved vital to the
during the same period a year earlier. The decline was the
economic growth of the UAE. FTAs promote intra-regional
result of a significant fall in re-exports to Iran due to intertrade and facilitate the ease of doing global business, while
national sanctions. Diamonds, gold and jewellery are the
creating new job opportunities and opening the door to the
major re-exports followed by plastics, cars, phones (including
exchange of skills and technology.
mobiles or other wireless networks) and fibreglass. Almost
The UAE is a member of the GCC Customs Union, which
half of the UAEs food imports are re-exported to the GCC and
has a common customs law and a common external tariff,
other countries in the Middle East and Africa.
although there are exceptions on a country-by-country basis.
The rising influence of the Asia-Pacific region meant that
The other member states are Bahrain, Kuwait, Oman, Qatar
it was the largest of the re-exporting commercial partner
and Saudi Arabia. Trade between them is generally duty-free,
regions of the UAE. According to HSBC Bank, China now
and in respect of goods imported from a non-member state,
represents 10 per cent of total UAE non-oil trade, while some
customs duties are levied on the first entry of these goods into
60 per cent of Chinas tota l exports pass through the UAE,
the customs union.

153
161

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The UAE accounted for one-third of the GCCs US$1 trillion of exports in 2012. Among the UAEs trade partners in
the GCC, Saudi Arabia was most important, accounting for
34 per cent of UAE-GCC trade, followed by Oman with 24
per cent, Kuwait with 20 per cent, and Bahrain and Qatar with
around 11 per cent each.
The UAE concluded FTAs with Singapore and the ASEAN
Free Trade Area (AFTA) in 2008 and 2009 respectively,
and is now cooperating with the GCCs negotiating team to
conclude other free-trade agreements
with the EU, Japan, China, India, PakiThe UAE
stan, Turkey, Australia, South Korea
accounted for oneand the Mercosur bloc, comprising
third of the GCCs
Brazil, Argentina, Uruguay and Paraguay. All these agreements are aimed at
US$
trn
improving wider trade and economic
of exports in 2012.
cooperation based on equality and
mutual benefits and in accordance with the laws prevailing
in each country. In 2011, as part of its Economic Vision 2030,
the Abu Dhabi Government formed an Advisory Committee
on FTAs to help identify opportunities for its strategic goods
that can be exported to international markets.
The UAE is a member of the Greater Arab Free Trade Area
(GAFTA), an agreement signed in 1998 that provides for the
duty-free trade of limited goods between the 17 Arab countries that are signatories to the agreement.

65

The UAE has also entered into many agreements on the


protection and promotion of investment and the prevention of double taxation, to facilitate an attractive investment
climate and foster foreign trade in non-oil commodities. It
signed double taxation agreements in 2012 with Japan and
Latvia and, in 2013, started negotiations with India over an
investment protection agreement.

Inward FDI
The UAE has excellent conditions for foreign direct investment (FDI) and investors, both regional and international,
have sought opportunities to place capital in the country as it
earned a reputation as a safe haven. According to the office of
HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, a total of US$8.1 billion
of international investment flowed into the economy in 2012,
following US$7.9 billion in 2011 and US$5.5 billion in 2010,
according to the United Nations Conference on Trade and
Development (UNCTAD).
Historically, the UAE has been the most important destination for FDI projects in the Middle East for West European
and North American companies. The UAE alone attracted 44
per cent of projects, 20 per cent of FDI by value and 31 per cent
of jobs created by investors between 2003 and 2011, according

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to Ernst & Youngs Shifting Perspectives 2012 report. The UAE,


Saudi Arabia and Qatar have been a particularly attractive trio
within the GCC, taking 65 per cent of investment projects, 52
per cent of FDI by value and 51 per cent of total jobs created.
The UAE was instrumental in ensuring that the Middle East
and Africa region performed better than the world average in
2012. The fastest growth was recorded in transportation, warehousing and storage; information and communications technology (ICT); engines, turbines and industrial machinery;
and in the real estate and tourism sector.
The UAEs attractiveness as an FDI destination stems from
many factors including a world-class infrastructure, a politically stable economy and an expatriate-friendly culture. Abu
Dhabi and Dubai remained the leading emirates in terms of
attracting FDI in 2012, although there have been noticeable
gains posted by the smaller emirates during this period.
Abu Dhabi has focused on
attracting FDI that brings expertise, technology and experience to
improve production methods and
enhance infrastructure rather than
on the volume of money flowing
into the emirate. The Abu Dhabi
Economic Vision 2030 aims to
RAK Free Trade Zone.
transform Abu Dhabis economy

66

from oil-based to knowledge-based by attracting foreign


direct investment and encouraging the countrys private sector
to take the lead as the primary force driving the economy. The
emirate currently accounts for around one-quarter of total
foreign investment in the UAE, or approximately US$1.9
billion, according to the latest estimates for 2012. The leading
sectors attracting outside investment were oil and gas field
machinery and services, power and water, IT, medical equipment, telecommunications and franchising.
Dubai attracted the lions share of investment, with investors
drawn to its well-integrated multi-modal logistics platform
and quick connections to 2.2 billion consumers across the
Middle East, North Africa and South Asia. Between January
and June 2012 (the latest reliable data) a total of 115 FDI
projects were recorded in Dubai, equivalent to a 1.5 per cent
share of global FDI. These projects
represented a total capital investment of US$4.5 billion and a total
of 9678 jobs.
Out of a total of 24 sectors, business
services accounted for 20.9 per cent
of FDI projects in Dubai during the
first half of 2012, with the real estate
sector emerging as a key driver. Other
primary destinations for substantial
investment in Dubai included leisure

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3 Economy

and entertainment, chemicals, financial services, business services,


food and tobacco, healthcare, IT services, communications,
and metals. The top FDI source countries included India, Qatar,
Germany, the US, Switzerland, the UK, Saudi Arabia and France.
Sharjahs success in attracting FDI into environmental
sectors in 2012 gained international acclaim, with Beeah being
crowned as the Best Waste Management Company in the
Middle East by the Facilities Management Middle East Awards
in 2012. The Sharjah Government is keen to expand further
into green business through attracting FDI into solar energy
generation plants and water desalination projects. Manufacturing accounts for the largest sector of the emirates economy at
19 per cent, but there are emerging opportunities for prospective investors in services, for instance in the ecotourism industry
and the growing telecoms sector.
According to a ranking of cities by fdi
intelligence, part of the Financial Times, in
January 2013, Dubai is the Middle Easts
top FDI location by far with 1300 foreignowned companies, five times more than
any other city in the region, and top listings
for infrastructure and economic potential.
The UAEs smaller emirates are, however,
climbing up the ranking, with Ajman and
Fujairah taking the first and second slots
for cost-effectiveness. Sharjah is in seventh
place, followed by Ras al-Khaimah.

Outward FDI
The Middle East and Africa was the only region to increase
its volume of outbound FDI in 2012, according to UNCTAD,
with UAE enterprises leading the way by increasing their
outward FDI flows by 26 per cent. The countrys market share
of outward FDI from the Middle East and Africa increased
to 34 per cent, with 220 projects recorded in 2012, compared
with 174 projects in 2011. Overall, the regions outward FDI
grew by 9 per cent last year, driven by growth in overseas FDI
from the UAE, South Africa and Saudi Arabia. The key driver
has been growth in intra-regional FDI in the Middle East.
In total, the UAE has pumped over US$55 billion into foreign
markets over the past three decades to emerge as the largest
Arab capital exporter, accounting for around
one-third of Arab capital flows. The highest
FDI outflows from the UAE were during
2006-08, when they totalled nearly US$41
billion, according to UNCTAD. The outflow
slowed in the following years to reach an
average of US$2 billion per year, although
figures are not yet available for 2012.
Abu Dhabi Investment Authority is one of the
largest sovereign wealth funds in the world.

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The UAE has
pumped over

55

and between 55 and 85 per cent of the total fund


China and India have become new favoured
US$
bn
portfolio is targeted at Europe and North America.
destinations for Arab investors, although Southinto foreign
In 2012, approximately 75 per cent of ADIAs assets
east Asian countries have also offered distinctive
markets over the
were managed by external fund managers, subject
and profitable investment markets, featuring high
past three decades
to careful oversight by internal ADIA teams, and
demand and relatively low labour costs in recent
to emerge as the
largest Arab capital
approximately 55 per cent of ADIAs assets were
years. The country has also made significant investexporter
invested in index-replicating strategies.
ments into Europe, including the UK.
The Abu Dhabi-based Mubadala Development
The UAEs largest institutional investors, soverCompany made its biggest ever investment in Latin America
eign wealth funds, have been leading from the front. The
in 2012 after announcing it would buy a US$2 billion stake
Abu Dhabi Investment Authority (ADIA), which was estabin Brazils EBX Group. Mubadala, which also has stakes in
lished in 1976, is one of the largest sovereign wealth funds in
General Electric and private equity firm Carlyle, has increasthe world, responsible for investing a significant portion of
ingly looked to emerging markets for faster growth.
Abu Dhabis oil revenues. ADIA invests funds on behalf of the
Meanwhile, 2013 began with news that Dubai Holding,
Government of Abu Dhabi to make available the necessary
a conglomerate owned by the Ruler of Dubai, had bought a
financial resources to secure and maintain the future welfare
US$1 billion stake in DaimlerChrysler. The purchase makes
of the Emirate. Its investment decisions are based solely on its
Dubai Holding the third-biggest shareholder in the Germaneconomic objective of delivering sustained long-term finanAmerican auto manufacturer.
cial returns.
In early 2013, the Abu Dhabi National Energy Company
ADIA manages a diversified global investment portfolio
(TAQA) announced a major investment in the Turkish power
across more than two dozen asset classes and sub-categories,
sector, potentially paving the way for investment in Turkeys
including quoted equities, fixed income, real estate and infranuclear programme. The deal will see Abu Dhabi develop
structure, private equity and alternatives. Since its inception,
coal-fired power plants across Turkey at a cost of up to US$12
ADIA has built a strong reputation across global markets
billion. The company has also been actively acquiring in the
as a highly professional, trusted and responsible investor.
North Sea in recent years, buying up over US$1 billion in
According to ADIAs latest portfolio overview, between 5 and
additional assets from BP in 2012.
10 per cent of the fund is allocated to real estate investment,

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Doing Business, World Bank Report

Doing business in the UAE has never been easier. The UAE
climbed the World Banks global rankings on the ease of
doing business in 2013, improving its score by three places
to 26, compared to an average for the Middle East and North
Africa region of 98. The report, which assesses regulations
affecting domestic firms in 183 economies around the
world and across 10 categories, found in particular that
the UAE had further streamlined the requirements for
business start-ups, raising its rank 24 places to 22. Merging
the requirements to file company documents between two
governmental entities helped in this.
The UAE ranks first place in the world in the category
of paying taxes, partly due to zero tax in some categories
but also as a result of online payments for labour taxes
and other fees. The country comes fifth globally and first
regionally in the ease of cross-border trading.

69

Ease of Doing Business Index (UAE results)


DB 2013
Rank

DB 2012
Rank

Change in
Rank

Starting a Business

22

46

24

Dealing with Construction


Permits

13

14

10

Registering Property

12

12

No change

Getting Credit

83

80

-3

128

124

-4

Paying Taxes

Trading Across Borders

No change

Enforcing Contracts

104

108

Resolving Insolvency

101

105

26

33

Getting Electricity

Protecting Investors

Overall ranking
Source: World Bank

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Banking and
Finance

The UAE Central


Bank building.

70

The UAEs financial sector largely escaped the buffeting felt


by international banks in 2012 in the wake of the euro-zone
crisis. Indeed national banks performed better in 2012, with
their net earnings increasing by around 11.4 per cent. There
have been increases in bank assets and loans, prompt repayment of bonds and loans, and progress in key restructurings. However, the sector still faces a number of challenges, in
particular an increase in non-performing loans in the banking
sector.
Central Bank governor Sultan bin Nasser Al Suwaidi
was reappointed for a further four-year term in July 2012,
following his successful introduction of banking reforms and
smooth handling of the fall-out from the global downturn.
Financial regulators introduced various liquidity-orientated
policies to boost recovery, as well as stabilising measures such
as a mortgage loans cap, the monitoring of large exposure
limits, and the establishment of the Al Etihad Credit Bureau.
The Central Bank issued its first-ever Financial Stability
Review in September 2012, assessing the performance and
prospects of the financial sector, based on 2011 data. The
Reviews Executive Summary gave the following verdict on
the countrys banks.
Banks operating in the UAE are well equipped to deal with
major stress scenarios and contingencies. Banks high capital
adequacy levels, together with robust provisioning policies
and high profitability, enhance their capability to cope with

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Bank Credit to Residents by Economic Activity (Dh million)


Agriculture
Mining and quarrying
Manufacturing
Food, beverages and tobacco
Textile and leather products
Furniture and other wood products
Paper and paper products
Chemicals and chemical products, petroleum and petrochemicals
Basic metal products (including aluminium)
Fabricated metal products, machinery and equipment
Other manufactured products
Electricity, gas and water
Construction
Trade
Wholesale
Retail
Transport, storage and communication
Financial institutions (excluding banks)
Government
Personal loans for business purposes
Personal loans for consumption purposes
All others*
Total
Source: Central Bank. Amount outstanding excluding inter-bank lending, net of provisions and interest in suspense
*Including Loans to Service Sector and Non-Profit Institutions

71

2008
2,391
11,853
45,668
5,170
955
1,324
823
6,265
8,139
3,386
19,608
20,250
119,251
124,243
75,510
48,733
25,039
72,772
72,260
160,103
67,039
203,516
924,383

2009
642
6,729
44,192
4,550
959
1,189
564
5,925
10,580
2,581
17,844
24,886
126,010
100,489
63,053
37,436
27,523
86,150
91,873
171,352
66,561
212,181
958,588

2010
712
6,717
45,897
3,440
909
1,397
624
6,188
13,492
2,442
17,405
23,742
122,683
97,087
63,347
33,740
26,450
81,879
99,982
181,949
65,172
219,837
972,107

2011
1,221
27,905
45,319
3,209
889
1,211
598
5,119
13,709
2,750
17,834
22,198
116,066
105,420
74,792
30,628
25,362
72,905
102,390
182,950
69,141
222,029
992,906

2012
2,055
21,961
46,165
3,472
806
1,298
642
6,180
12,185
3,576
18,006
19,538
129,188
106,213
75,933
30,280
32,568
73,534
121,334
179,654
81,199
212,850
1,026,259

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major global or domestic stress. Looking forward, the UAE


banking system will continue to show a high level of resilience
to future shocks owing to the following factors:
l A conservative and traditional banking model with a
strong focus on the UAE
l Sound financial indicators
l Low dependence on overseas funding
l A capped real estate exposure
l A high loss-absorbing capability as demonstrated by
stress testing
The biggest challenge is non-performing loans, and specific
provisions for these continued to rise, amounting to Dh68
billion at the end of the year, up 23 per cent. The UAE banking
system had a non-performing loan ratio of 7.2 per cent at
the end of December 2011, the Central Bank noted in the
review. The Central Bank argued that while NPLs were likely
to increase in the short term as banks finalised major restructuring deals, the NPL ratio was expected to peak at around 8-9
per cent.
Credit issued to residents net of provisions and interest in
suspense grew to Dh1.02 trillion in December 2012, a yearon-year increase of 3.4 per cent. This compared favourably
with increases of 1.4 per cent and 2.1 per cent in 2010 and 2011
respectively, but was still significantly lower than the doubledigit growth figures of 2008-9. Credit to the construction and
government sectors increased by 11.3 per cent and 18.5 per

72

Banking Indicators (Dh billion)


Dec-10

Dec-11

Dec-12

Total Bank Assets (net of provisions)*

1,605.6

1,662.1

1,791.6

Certificates of Deposit held by Banks

94.0

80.4

95.1

1,049.6

1,069.7

1,167.8

Resident Deposits

929.3

957.3

1,033.7

Non-Resident Deposits

120.3

112.4

134.1

Loans & Advances: (net of provisions)*

1,031.3

1,071.0

1,099.1

of which: Personal Loans to Residents

247.1

252.1

260.9

Total Private Funds


(Capital + Reserves)**

256.0

258.4

276.4

Specific Provisions for NPLs

44.3

55.3

67.9

General Provisions

12.5

16.3

17.5

Total Investments by Banks

124.2

143.0

155.2

Capital Adequacy Ratio


(Tier 1 + Tier 2 )

20.8%

20.8%

21.0%

Bank Deposits

Source: Central Bank


Data for Year 2012 are estimates subject to revision.
* Net of interest in suspense,specific provisions and general provisions
** Excluding current year profit

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The Central Bank


wants new limits
to be set at 100 per
cent of the capital
base for all lending
by a bank to local
governments of
the Federation
and their noncommercial
entities.

cent respectively in 2012. However, credit to the


trade sector increased only marginally by 0.75 per
cent, while personal loans for business purposes
decreased by 1.8 per cent.
The Central Bank is currently in consultation with
UAE banks over new risk-management measures. One set of
guidelines is for loans to governments and government-related
entities. The Central Bank wants new limits to be set at 100 per
cent of the capital base for all lending by a bank to local governments of the Federation and their non-commercial entities, and
25 per cent to individual borrowers. Negotiations are ongoing
about the timing for complying with this rule.
The other area of discussion is liquidity requirements, with
the ultimate aim of ensuring that banks have efficient and
effective measures in place for liquidity risk management and
governance, and are well prepared to implement the require-

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ments of Basel III, which establishes voluntary


standards for capital adequacy, stress tests and
market liquidity risk for banks around the world.
Proposals on the table include new provisions
requiring banks to hold 10 per cent of their liabilities in high quality liquid assets, including cash, certificates of
deposit and highly-rated local government bonds, in preparation for a more complex liquidity coverage ratio (LCR) as
mandated by Basel III from 2015, according to the Central
Bank.
In addition to the Central Bank guidelines, Abu Dhabi
issued new rules on the organisation of public debt in Abu
Dhabi, which set out a new framework for the provision of
Abu Dhabi government guarantees and established a public
debt committee to bolster the emirates public debt office,
which was formally set up in 2009.

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Equities Markets
The UAE was upgraded from frontier to emerging market
status by Morgan Stanley Capital International in June 2013,
joining countries such as China, Brazil and Turkey and
opening up new source of longer-term investment flows. The
re-categorisation recognised significantly improved liquidity,
along with numerous improvements introduced in the trading
environment over the past few years.
The UAE has three separate stock exchanges: the Abu Dhabi
Securities Exchange (ADX), the Dubai Financial Market
(DFM) and NASDAQ Dubai, a bourse which operates out
of the free zone of the Dubai International Financial Centre
(DIFC). The ADX and DFM are regulated by the Emirates Securities and Commodities Authority (ESCA), while
NASDAQ Dubai, where equities are traded in US dollars, is
regulated by the DIFCs Dubai Financial Services Authority.
New regulations introduced by the ESCA during 2012
include regulations on market making, short selling and
liquidity provisioning, together with new guidelines on margin
trading and refreshed regulations on investment funds.
The DFSA introduced a new markets law and associated
markets rules module in 2012, replacing the framework introduced in 2004. The new law and rulebook introduced significant changes in a number of areas, including prospectus
disclosure requirements, what activities constitute an offer,

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market misconduct provisions and corporate governance.


Both the ESCA and NASDAQ Dubai took steps in 2012 to
encourage the listing of small and medium-sized enterprises
(SMEs), in line with a series of government initiatives in the
sector during 2012. NASDAQ Dubai signed an agreement
in December with Dubai SME, an agency of Dubais Department of Economic Development, to provide assistance to
Abu Dhabi Securities Exchange.

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SMEs looking for financing


per cent respectively. The
options, including possible
consumer staples index
listings on NASDAQ Dubai.
enjoyed the highest increase
At its board meeting in
of the year with 49.46 per
September 2012, the ESCA
cent, followed by real estate
discussed the establishment
with 42.38 per cent and
of a secondary financial
banking with 17.81 per cent.
market for SMEs and newly
The DFMs general index
established companies, with
saw an increase of 19.9 per
its own separate rules and
cent in 2012, ending the year
regulations, as part of the
at 1622.5 points. While the
regulators efforts to increase
value of shares traded during
Dubai Financial Market in the World Trade Centre in Dubai.
liquidity in local markets.
the year increased by 51.4 per
The main Abu Dhabi Index of the ADX finished 2012 at
cent to reach Dh48.6 billion, total market capitalisation rose 1
2630.86, up from 2396.98 at the beginning of the year. Market
per cent year-on-year to Dh181.9 billion. The total number of
capitalisation of the exchange grew by 8.9 per cent to Dh249.6
shares traded increased by 60.8 per cent during 2012 to 40.5
billion (US$68 billion). Total trading volume for the year
billion, while the number of transactions executed during the
stood at Dh22.3 billion, a 10.5 per cent decrease on 2011. Yet
year was up by 39.7 per cent to reach 621,400.
while the number of trades fell by 8.7 per cent to 258,685, the
The real estate and construction sector ranked highest in
total traded volume increased by 3.4 per cent to 16,394 billion
terms of traded value, accounting for 47.7 per cent of the
traded units.
DFMs traded value in 2012. This was followed by the banking
The real estate sector was responsible for the largest contribusector, which accounted for 18.2 per cent of traded value. The
tion to total trading value, contributing 39.6 per cent, followed
real estate and construction index increased by 44.6 per cent
by banks and telecommunications with 24.9 per cent and 17.4
during the year.

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Fixed Income Market


The UAEs fixed income market was buoyed in 2012 by a series
of early repayments of existing facilities, together with significant progress in a number of the larger restructuring operations in the country.
DP World repaid a US$3 billion credit facility out of its cash
resources, six months ahead of schedule, while DIFC Investments repaid a US$1.25 billion sukuk in June after arranging
a fresh US$1.035 billion facility. JAFZA also repaid a US$2.04
billion sukuk five months early, via a new US$1.2 Shariacompliant loan, a new US$650 million sukuk and the companys internal cash resources. Such moves saw an increase
in pricing across a number of the countrys bonds, and a
narrowing of credit default swap (CDS) spreads.
Of particular note was the restructuring of US$2.2 billion of
debt by Drydocks World, which became the first company to
take advantage of a special insolvency regime created in 2009
for Dubai World companies. Drydocks took advantage of the
insolvency regimes protection in April, after its attempts to
restructure its debt were blocked by a US-based hedge fund.
Dubai International Capital clinched an agreement to
restructure US$2.5 billion of debt, while Dubai Group and Al
Jaber Group inched towards restructuring US$10 billion and
US$1.91 billion of debt respectively.

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DP World repaid a

US$
bn
credit facility out of
its cash resources,
six months ahead
of schedule.

In the light of such progress and record-low borrowing costs,


appetite for new issues has been high. A dual tranche US$2
billion bond issued by TAQA of Abu Dhabi in December 2012
was particularly well received; a US$ 750 million five-year
tranche with a coupon of 2.5 per cent attracted US$9 billion
worth of orders, while the remaining US$1.2 billion ten-year
tranche with a 3.625 per cent coupon attracted orders worth
US$11 billion. Emirates NBD issued a US$1 billion, five-year
bond at a coupon of 4.625 per cent in March 2013, attracting
US$3 billion worth of bids.

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Key Sectors

Oil and Gas


Hydrocarbons are an integral part of the UAE economy. That
is not surprising since the country has the worlds seventhlargest proven oil and gas reserves. According to BPs Statistical Review of World Energy 2012, the UAEs 97.8 billion
barrels of proven oil reserves will offer a steady flow for
another 80 years at current production rates, with an assumed
70 per cent overall recovery. The sustainable oil production
average for the first quarter of 2013 was 2.7 million barrels per
day (mbpd), up from 2.5 million bpd in 2011, according to
the International Energy Agency (IEA). This makes the UAE
the worlds fifth-largest producer, with 3.8 per cent of global
production, up from 3.2 per cent in 2010.
The UAEs gas production has also grown steadily over the
past five years, rising from 1.7 trillion cubic feet (cf) in 2006 to
1.8 trillion cf in 2011. This represents 1.6 per cent of global gas
supply, though reserves account for 3.2 per cent of the world
total. In the past, associated gas was largely a byproduct of oil
and, given its high levels of sulphur dioxide and other impurities, this sour gas was difficult to process. However, strongly
growing domestic demand for gas is prompting enormous
investment to boost both production and import capacity.
The rapidly expanding electricity grid relies on natural gas
for around 80 per cent of its feedstock, industrial demand is

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rising too, while some 30 per cent


through the federal budget, as well
of the UAEs gross gas production
as through development grants
is re-injected into oil fields. As a
from Abu Dhabi and through
result, the Government is focusing
employ ment opp or tunit ies,
on finding technological solutions
supporting diversification efforts.
to developing its sour gas deposits,
Oil and gas revenues account for
while improving import capacity.
over 80 per cent of government
As both the oil price and oil
revenues. Other emirates are also
output have risen, the share of oil
active in services to the oil and gas
and gas in the economy has grown
industry, including exports and
from just 26 per cent of GDP in
storage.
2009 to 42 per cent in 2012. Indeed
Since 1962, when Abu Dhabi
ZADCO is one of Abu Dhabis major offshore operators.
hydrocarbon revenues reached
became the first of the emirates
a record high in 2012 at around
to begin exporting oil, the UAEs
US$125 billion (Dh458 billion), according to the Institute for
hydrocarbon sector has developed into one of the worlds best.
International Finance. Oil and gas have also spawned a major
Huge discoveries and a decision to continue partnership with
associated petrochemicals industry along with energy-inteninternational oil companies (including BP, Shell, Total, Exxonsive industries like fertilisers and aluminium that rely on gas
Mobil and the Japan Oil Development Company) under longfeedstock.
term production-sharing agreements transformed the sector
The bulk of the UAEs hydrocarbon activity is in the Emirate
quickly. The biggest such concession, accounting for over
of Abu Dhabi, where the sector accounted for 58.5 per cent of
half of UAE oil production, comes up for renewal in January
GDP in 2011. Several multi-billion dollar projects are under
2014. Signed in 1939 for 75 years, it covers the onshore fields,
way to increase oil and gas production, transport as well as
including the three giant fields of Asab, Bab and Bu Hasa. Bids
downstream refining capacity. Abu Dhabi holds around 95
from the main existing foreign shareholders, along with oil
per cent of the UAEs crude and more than 92 per cent of gas
companies from Japan, Korea, China, Norway, Russia and the
reserves, but the other emirates benefit from the revenues
US, for a stake in the new concession are under review and a

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decision is due to be made by the end of 2013.


According to Suhail bin Mohammed Faraj Al Mazroui,
Minister of Energy, the UAEs aim is to increase production
capacity from the current level of around 2.9 mbpd to 3.5
mbpd, with the aim of contributing to the stability of global
markets. Abu Dhabi has set 3.5 mbpd as its own target for
production and, along with international partners, is investing
US$40 billion (Dh147 billion) into crude, natural gas, petrochemical and refinery projects from 2010 until 2014.
Although the country is continuing to explore for new
fields, the main focus is to extend the lifespan and capacity of
existing oil fields. It is doing this partly by a combination of
advanced and traditional techniques, including enhanced oil
recovery (EOR), water-flooding and lateral and horizontal
drilling. It is also completing full field development projects
for existing fields, many of which are huge in global terms, to
extend their production plateaus, while developing previously
discovered, but smaller, fields, such as Bida al-Qemzan, which
came into production in early 2013 but was first discovered
nearly 50 years ago.
Another key project, completed in 2012, was the 370 kilometre oil pipeline that links Habshan, in the Western (Al
Gharbia) Region of Abu Dhabi, and Fujairah. The first oil shipment left the port of Fujairah in July 2012. The US$3 billion
pipeline was financed by the International Petroleum Investment Company (IPIC), owned by the Abu Dhabi Government.

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Abu Dhabis Oil and Gas Industry


According to the 1971 Constitution of the UAE, natural
resources are the public property of each emirate. In Abu
Dhabi, oil and gas fall under the jurisdiction of two bodies. The
Supreme Petroleum Council (SPC), chaired by HH Sheikh
Khalifa bin Zayed Al Nahyan, President of the UAE and Ruler
of Abu Dhabi, directs overall oil and gas policy for Abu Dhabi.
The Abu Dhabi National Oil Company (ADNOC) runs the
sector on a day-to-day basis, is the key shareholder in nearly
Das Island is key to Abu Dhabis oil and gas production.

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all upstream and downstream activity in Abu Dhabi (both


with and without foreign partners) and has its own exploration programme for oil and gas.
ADNOC operates 15 subsidiaries organised into six different
categories, including oil and gas exploration, processing and
distribution, petrochemicals, fertilisers and others. Its largest
onshore operator is ADCO, which runs the 1939 concession
that is up for review. It has extended its sustainable production capacity to 1.4 mbpd in recent years and is aiming for
1.8 mbpd by 2017. The major Asab Full Field Development
project, ADCOs largest-ever, was recently completed, the
Prefabricated modules shipped from Korea
for construction on Das Island.

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Bida al-Qemzan field came on stream early 2013 and another


new field, Qusaihwira, is due to come into production soon,
adding 30,000 bpd. The Habshan-1 reservoir in the Bab field
is currently under development and is expected to increase
production by 30,000 bpd by January 2015. ADCO awarded
the first engineering, procurement and construction contract
(EPC), worth US$203 million, to Petrofac Emirates, a joint
venture between Sharjah-based Petrofac and Abu Dhabis
Mubadala Petroleum, in June 2013. Two of the North East
Bab fields are expected to increase production by 2016 and
2017. Another Thamama reservoir and Habshan-2 will also
be developed to raise production by 80,000 bpd. ADNOC has
recently signed concession agreements for three new onshore
ventures, in 2008 with Occidental Petroleum for the Jarn
Yaphour and Ramhan fields, in 2012 with the Korean National
Oil Company, KNOC, for two onshore fields and one offshore,
and with a consortium of Austrias OMV, 24.9 per cent owned
by Abu Dhabis IPIC, and Wintershall, for an onshore sour gas
and condensate field.
Offshore capacity is also growing. One of Abu Dhabis
major offshore developers is the Zakum Development
Company (ZADCO), owned by ADNOC (68 per cent share),
ExxonMobil (28 per cent), and the Japan Oil Development
Company (12 per cent). It is in charge of developing and
operating the giant Upper Zakum field, along with the small
Satah and Umm Al Dalkh fields. The Upper Zakum field

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currently produces 520,000 bpd and its planned development to increase production to 750,000 bpd by 2017 is one of
the largest ongoing projects. Four artificial islands are being
constructed that will house drilling platforms, oil production facilities and supporting infrastructure. These will be
connected to the present facilities to increase oil production.
Capital expenditure for the upgrade of Upper Zakum is estimated at over US$10 billion. In March
2012, ZADCO awarded a construction
ADCO, ADMAcontract to Al Jaber Energy Services for
OPCO and
basic construction of the islands built in
ZADCO account
water of depths ranging from 6 metres
for around 90
to 14 metres. In July 2012, it awarded the
per cent of Abu
Dhabis oil and gas
EPC 1, worth US$800 million, to Abu
production
Dhabis National Petroleum Construction Company and Frances Technip,
with a scope of work including about 240 km of sub-sea pipelines and 128 km of subsea composite and fibre optic cables,
besides the initial production facilities and brownfield modification. The larger EPC 2 offshore section, estimated to cost
between US$2 billion and US$4 billion, is yet to be awarded.
The Lower Zakum field, operated by the Abu Dhabi
Marine Operating Company (ADMA-OPCO), is also being
expanded, with production expected to reach some 400,000
bpd, up from 300,000 bpd currently. The company is also
reviewing bids from contractors to develop the Umm Lulu

81

and Saath al-Razboot (Sarb) oil fields, which together are


expected to add 100,000 bpd. With field developments also
planned in the Nasr field, ADMA-OPCO hopes to increase its
total capacity to 970,000 bpd by 2020. In 2012, ADMA-OPCO
recorded the highest levels of oil production in its history and
celebrated the 50th anniversary of the first oil shipment from
Abu Dhabis offshore fields.
ADCO, ADMA-OPCO and ZADCO account for around
90 per cent of Abu Dhabis oil and gas production, although
smaller players are also active. At the end of 2012, for example,
the Japanese Abu Dhabi Oil Company (ADOC) received an
additional concession to develop the Hail oil field, located
above the Hail sour gas deposit.
Abu Dhabi also accounts for over 90 per cent of the UAEs
natural gas reserves. ADNOC is the main player in this sector
too, and is currently investing some US$25 billion, with its
partners, on projects to expand gas supply, amid rapidly
growing demand. In 2012, the company set up a gas directorate to coordinate its efforts to maximise gas production.
Onshore, ADNOC, through ADCO, is currently developing the Bab Gas Compression project, which will add total
additional output capacity of 2.4 billion cubic feet per day
(cfd) when fully commissioned at the end of 2015. Following
the successful implementation of Phase 1, ADCO awarded
the US$500 million Phase 2 contract to Petrofac Emirates in
June 2013.

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ADNOC also completed in June 2013 a US$11 billion Integrated Gas Development project to process and bring to land
offshore gas from Umm Shaif and Das Island. The project
will add 800 million cfd of gas per day to domestic supply and
marks a shift towards offshore gas to meet local demand that
has been increasing at a rate of 15 per cent a year.
ADNOC is bringing in new partners as it focuses on finding
solutions to the development and processing of its sour
gas deposits, which have a high sulphur content that slows
their exploitation. A key gas project that is expected to have
a dramatic impact on the UAEs ability to meet its own gas
needs is the Shah Gas Development, a Dh37 billion (US$ 10
billion) project in the Empty Quarter desert, 210 km south
west of Abu Dhabi city. It is the first unconventional development of sour gas resources in the Arabian Gulf. The work is
being carried out by Al Hosn Gas Company, a joint venture
between ADNOC and Occidental Petroleum. Operating the
Shah gas field is challenging as it requires poisonous hydrogen
sulphide to be removed from 1 billion cfd of raw gas, and then
turned into sulphur pellets for the commercial market, leaving
the UAE with 500 million cfd of clean gas. With work on the
facilities and pipelines more than half finished and drilling
under way, Al Hosn aims to deliver the first gas by late 2014.
Abu Dhabi will deploy the expertise it gains through the
Shah project, which has the highest sulphur content of all the
sour gas deposits, to open up similar fields. One such project

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could be the Bab sour gas reservoirs, which also has a high
content of hydrogen sulphide. Royal Dutch Shell won the
bid for the project in 2013 and will be ADNOCs partner in
a 30-year joint venture. There are also longer term plans to
develop another major sour gas reservoir offshore at Hail.
Abu Dhabi Gas Industries Limited (GASCO) is another
key player, created as a joint venture
between ADNOC, Shell, Total and
Abu Dhabi will
Partex, tasked with processing Abu
deploy the expertise
Dhabis onshore natural gas, as well
it gains through the
Shah project, which
as the associated gas recovered from
has the highest
onshore oil operations. Another imporsulphur content
tant player in Abu Dhabis natural gas
of all the sour gas
sector is Abu Dhabi Gas Liquefaction
deposits, to open up
Limited (ADGAS), which controls the
similar fields.
production and export of Abu Dhabis
liquid natural gas (LNG) and liquefied petroleum gas from
the offshore fields via the Das Island terminal.
Abu Dhabi is also investing in the development of import
capacity to facilitate industrial expansion. The CEO of
GASCO, Mohammed Sahoo Al Suwaidi, announced plans
in 2012 to build a liquefied natural gas (LNG) bunker station
in Fujairah. Abu Dhabi also announced plans to add a second
re-gasification terminal, Emirates LNG, offshore at Fujairah,
with an initial capacity of 600 million cubic feet per day (cfd)
and the potential for expansion to 1.2 billion cfd. The project

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is scheduled to be operational in late 2014, with the location ensuring that the country could still receive shipments if
the Straits of Hormuz were to become impassable. The new
terminal will be built by an alliance between Abu Dhabis
International Petroleum Investment Company (IPIC) and
Mubadala.
Through these projects, Abu Dhabi seeks to provide gas
supplies to its Khalifa Industrial Zone Abu Dhabi, KIZAD,
and the Industrial City of Abu Dhabi as well as to cities in the
northern regions. Currently, some 80 per cent of domestic
gas demand is met by ADNOC through its operating companies; the remaining 20 per cent is provided by Dolphin Energy
from the Qatari North field.

Jebel Ali port in


Dubai handles a
large part of the
UAEs trade in
refined petroleum.

83

Other Emirates
Dubai is the UAEs second largest oil-producing emirate, but
oil-related GDP has dropped from 50 per cent at the establishment of the UAE in 1971 to just 2 per cent in 2008 and has
remained at or around that level since. Reserves are estimated
at around 4 billion barrels. In early 2013, it announced a new
offshore find which could boost reserves and allow for an
increase in production, which is currently below 80,000 bpd.
As a result, the emirate now imports most of its petroleum
requirements but it remains deeply involved in the petroleum
sector, as a hub for oil trading and energy services. The port

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of Jebel Ali, located about 35km southwest of the city of Dubai, handles a large
part of the UAEs trade in refined petroleum products and can accommodate
tankers of up to 80,000 tonnes capacity.
Four of the UAEs other emirates
also produce minor amounts of oil
and gas. Crescent Petroleum, a private
Sharjah company, is the major player
in the emirate. It produced oil from the
Mubarak field near Abu Musa Island
until the end of 2009, when it determined that, after 100 million barrels, the field had reached the
end of its productive life. Focus has now shifted to the undeveloped Sir Abu Nuair field, with Crescent conducting an
airborne gravity and magnetic survey in 2012 to develop the
exploration work programme. In the gas sector, the Sharjah
Government produces gas and condensate from onshore fields,
such as Sajaa and Moveyeid. Crescents Dana Gas subsidiary
is developing the Zora gas field, located in territorial waters
shared by Sharjah and Ajman. Dana and Emarat, a federally
owned marketer of petroleum products, have jointly developed a common-user gas pipeline to serve Sharjah customers.
RAK Petroleum in Ras al-Khaimah holds interests in oil
and gas concessions in Sharjah, the Sultanate of Oman and its
home emirate. Following the acquisition of a controlling stake

84

in Norways DNO International, the


company reported that the Bukha and
West Bukha fields in Omani territorial
waters off the Musandam peninsula
had been returned to production. DNO
is now focusing on the nearby Saleh
field in Ras al-Khaimah, formerly seen
as depleted, with the aim of bringing it
back on stream in the near future.
In Umm al-Qaiwain, an offshore gas
field has been developed by Abu Dhabis
Mubadala in partnership with Atlantis
Holdings, a Chinese-owned firm. Gas production began in
2008. Fujairah does not produce oil or gas, but hosts the worlds
second-largest bunkering port. The port of Fujairah, on the
Arabian Sea, handles about 1 million tonnes per month of
marine transportation fuel and other oil products.

International Oil and Gas Activities


As the UAEs oil and gas sector has become more sophisticated, it has spawned a number of public- and private-sector
companies that pursue energy development abroad. In Abu
Dhabi, three government-owned entities, Mubadala Petroleum, the Abu Dhabi National Energy Company (TAQA) and

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IPIC, are the main investing vehicles.


Mubadala Petroleum, established as
a 100 per cent subsidiary of Mubadala
Development in 2012, is the controlling
shareholder of Dolphin Energy, a joint
venture with Occidental Petroleum and
Total, also producing gas and condensates in Qatar. It is engaged in EOR
projects in Oman and, through a partnership, in Bahrain. It produces oil and
gas in several south-east Asian countries, following the 2008 acquisition of Pearl Energy, and has
concessions in Libya, Kazakhstan and Libya.
TAQA, established in 2005 as a diversified international
energy group, produces most of its oil from the UK North Sea.
It completed its most recent US$1.1 billion acquisition there
in June 2013, taking over from BP as operator of the Harding
field and production platform, and so adding some 20,000
bpd to its existing production. In February 2013, it announced
that it had discovered oil in the new Darwin acreage. TAQAs
gas production is concentrated in Western Canada and the
Dutch North Sea. The company also owns interests in pipelines, production platforms and gas storage facilities in those
areas, and is leading a project in the Netherlands to develop a
major gas storage and marketing hub for Western Europe. In
addition, TAQA has a substantial international and domestic

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TAQAs Eider platform in the UK North Sea.

portfolio of power generation assets.


In addition to its domestic financing
activities, such as the Fujairah refinery
and the Habshan-Fujairah oil pipeline,
IPIC has 15 investments throughout
the world, mostly in large oil companies
such as Austrias OMV (24.9 per cent)
and Spains CEPSA (100 per cent).
The Dubai Governments Emirates
National Oil Company also invests overseas through its 52
per cent interest in Dragon Oil, which produces oil in Turkmenistan, has exploration concessions in Tunisia and Iraq and
won an invitation, as part of a consortium, to negotiate with
the government in Afghanistan. The Al Thani Corporation, a
private-sector Dubai company, has oil and gas assets in several
African countries, including Egypt and Libya. Sharjahs Crescent Petroleum and Dana Gas are jointly producing gas in Iraqi
Kurdistan and are the largest oil and gas investor there to date
with over US$1 billion invested since 2008. Dana also produces
oil and gas in Egypt. RAK Petroleum is involved in oil and gas
exploration and production in Oman, produces oil in Iraqi
Kurdistan and Yemen through its acquisition of DNO International, and has acquired a minor interest in Heritage Oil, a
Canadian company with a big oil discovery in Kurdistan.

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Win-Win Technology
ADNOC injects around half of its natural gas production into its maturing oil fields to compensate for
their depletion. To reduce that consumption, it is cooperating with Masdar Carbon, a subsidiary of
renewal energy firm Masdar, to experiment with using carbon dioxide instead of gas. Ultimately, the
big prize will be in the offshore oil fields, but in 2012 ADCO, ADNOCs onshore company, completed
a two-year pilot project at its Rumaitha field. Having injected 1.2 million cfd of carbon dioxide, the
results were promising enough to plan four further projects onshore, requiring up to 30 times as
much carbon dioxide and increasing oil recovery by 10 per cent. If rolled out across all ADCO fields,
the additional production would be twice as high as current levels, but would require more than 400
million cfd of carbon dioxide. The additional cost per barrel would be around US$20 clearly viable
even offshore with an oil price of around US$100 per barrel.
To produce a sustainable source of such large quantities of carbon dioxide, Masdar Carbon and
ADNOC are cooperating on carbon capture and storage, a technology that is being developed to
reduce the carbon footprint of fossil fuels. One plan under consideration is to build a plant next to
Emirates Steel to capture some 800,000 tonnes per year of carbon dioxide prior to emission. The
feedstock would be compressed, transported through a 50km
pipeline and injected into the onshore oil fields. For Emirates Steel,
this would bring the benefit of much greener steel production.
For ADNOC, it would solve the gas dilemma. And for the UAE,
according to Suhail bin Mohammed Faraj Al Mazroui, UAE
Minister of Energy, this approach could be cheaper than importing
or developing new gas. It also allows the UAE to develop a new
industry around decarbonising the oil/gas and industrial sectors.

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Masdar Carbon
and ADNOC are
cooperating on
carbon capture
and storage, a
technology that is
being developed to
reduce the carbon
footprint of fossil
fuels.

Energy Minister
Mazroui.

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Downstream
As part of its oil and gas expansion projects, Abu Dhabi is
investing in its refining and other downstream capacity with
the aim of increasing total UAE refining capacity to 1.35 mbpd
by 2017. That would mean the country could refine close to
half of its crude oil production and become a major petroleum
products exporter.
Abu Dhabi has two refineries, Umm an-Nar Refinery and
Ruwais Refinery, with a combined current capacity of 485,000

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bpd. They are managed by the Abu Dhabi Oil Refining


Company (Takreer), established in 1999 to take up the refining
responsibilities for ADNOC. Ruwais, the largest plant, is
currently undergoing a US$10 billion expansion plan that will
nearly double Abu Dhabis total refining capacity to 907,000
bpd by mid-2014. The expansion will make Ruwais the largest
refinery in the region and one of the largest in the world. The
additional output will allow the UAE to be self-sufficient
in petrol, meeting export commitments and domestic fuel
needs, while providing feedstock for the growing petrochemicals industry.

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Abu Dhabis IPIC
is going ahead with
plans to build a

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In addition to the Ruwais expansion, which


oil and liquid petroleum gas. In 2010 the refinery
includes a catalytic cracking unit, Takreer is also
also began producing 102 octane reformate and
US$
bn
installing a delayed coking unit of 30,000 bpd
ultra-low sulphur naphtha.
refinery in
capacity to enhance production of gasoline and
ADNOCs petrochemicals subsidiary is
Fujairah, located
other light products. The project, which costs
Borouge, established in 1998 as a joint venture with
near the recently
opened Abu Dhabi
US$2.5 billion and is scheduled for completion in
Borealis, itself owned 64 per cent by Abu Dhabis
Crude Oil Pipeline
2016, includes construction of a 40,000 tonne a
IPIC and 36 per cent by OMV, the Austrian oil and
terminal.
year carbon black production facility to supply the
natural gas group. The company supplies polypetrochemical and aluminium sectors.
ethylene and polypropylene to the UAE as well as
Abu Dhabis IPIC is going ahead with plans to build a US$3
Middle Eastern and Asia Pacific markets. In 2010 Borouge
billion refinery in Fujairah, located near the recently opened
tripled polyolefins production to around 2 million tonnes a
Abu Dhabi Crude Oil Pipeline terminal. The refinery, which
year, with an investment of some US$1.5 billion. It is currently
aims to complete in 2017, will be able to process UAE crudes
undergoing another round of expansion, known as Borouge3,
such as Murban, Upper Zakum and Dubai. Abu Dhabi plans
which is intended to raise Borouges olefins and polyolefins
to add petrochemical units to the refinery in a second phase.
capacity at Ruwais to around 4.5m tonnes a year from 2014.
Fujairah already has refining capacity of 80,000 bpd, operated
Some of the additional capacity will be used to export to
by Fujairah Terminals Limited (FTL), a private company which
Europe.
is 10 per cent owned by the Government of Fujairah. FTL is in
ADNOCs downstream industries also include Fertil, a
the process of dramatically expanding the emirates oil storage
producer and supplier of urea and ammonia fertilisers. Fertil, a
capacity, adding an additional 1 million cubic metres, taking
joint venture with Frances Total, started production in Ruwais
advantage of Fujairahs strategic location on the Indian Ocean,
in 1983, with the aim of using associated gas to manufacture
outside the Straits of Hormuz.
fertilisers for export. In line with its drive to boost production
Emirates National Oil Company (ENOC), owned by the
capacity and technologies to meet the demands of the domestic
Dubai Government, operates a petroleum refinery in the Jebel
and global market, Fertil expanded its urea plant in 2009. As
Ali Free Zone. The 120,000-bpd complex refines condensate
a result, daily production of ammonia and urea has reached
and light crude oil to produce naphtha, jet fuel, diesel oil, fuel
1,310 and 2,200 metric tons, respectively. Over 90 per cent of
the fertilisers are exported.

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Industrial Development
Industry contributed some 16 per cent to the UAEs GDP in
2012 and the Government is targeting a 25 per cent share by
2021. The country has made significant strides in adopting
technologies and best practices from countries such as
Germany, Austria and Japan. Although petrochemicals
(see Oil and Gas above) and metals dominate, along with
ceramics and cement, industries such
as the automotive sector, chemicals,
electrical machinery, power equipment and food processing continued
to gain momentum in 2012, as partnerships with foreign enterprises and joint
ventures allowed industrial and manufacturing companies to benefit from the
most up-to-date technologies. There
has also been strong growth in biotechnology, pharmaceuticals, telecommunications equipment, and aerospace
and healthcare equipment.
The UAE has emerged as a metals
production powerhouse in the Middle
East, with aluminium and steel
producers making some impressive

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gains. The UAE has a 46 per cent share of the total Middle East
aluminium production, followed by Bahrain and Qatar. In
June 2013, the country took a significant step to improve efficiency and remain competitive within the region by merging
its two state aluminium companies, Dubai Aluminium
Company (DUBAL) and Emirates Aluminium (EMAL) into
one huge player the worlds fifth largest now known as
Emirates Global Aluminium, with a value of US$15 billion.
Dubai Aluminium Company (DUBAL) was established in
1979 and operates the largest singlesite smelting facility in the world. Built
on a 480-hectare site in Jebel Ali, the
complexs major facilities comprise a
980,000 metric tonnes/year primary
aluminium smelter, a 2335 megawatt
power station (at 35C), a large carbon
plant, casting operations with a capability of more than 1.27 million metric
tonnes/year, a 30 million gallon/day
seawater desalination plant, laboratories, and port and storage facilities. It
has the capacity to produce more than
1 million metric tonnes of high quality

Production at Emirates Global Aluminium.

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finished aluminium products per year.


Emirates Aluminium (EMAL), a green-field smelter development at Taweelah in Abu Dhabi, has embarked on a US$4
billion phase 2 expansion project intended to create the worlds
biggest aluminium smelter. The merged entity, Emirates Global
Aluminium, will have production capacity of 2.4 million tonnes
per year from 2015, following the completion of EMALs expansion. It currently produces 800,000 tonnes a year.
In steel, the UAE is the second largest producer in the GCC
behind Saudi Arabia and is expanding capacity rapidly. The
industry has been through a recovery period after a drop in
demand during the post-financial crisis years. However, with
strong market fundamentals in 2013, supported by large-scale
developments occurring throughout the UAE, all of which
require steel in their construction, the sector is proving resilient.
UAE steel plants contribute greatly to the economy and are
counted among the major heavy industries of the country.
The largest UAE steel plant is Emirates Steel Industries (ESI),
which utilises the latest rolling-mill technology to produce
reinforcing bars for the construction industry. Established in
2001 to satisfy the growing demand for quality steel products
for the UAEs fast developing construction sector, ESI is the
only significant domestic supplier of deformed reinforcing
steel bars. In 2012, following two expansions involving an
investment of Dh10 billion, ESI began producing at a capacity
of 3.5 million metric tonnes per year.

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RAK Ceramics
Ras al-Khaimah is home to the worlds
is the worlds
largest ceramics manufacturer, RAK
largest ceramics
Ceramics, which exports 75 per cent of
manufacturer.
its output and supplies to more than 160
countries around the world. Established in 1991 to exploit the
large limestone deposits in the emirate, the company continues
to register solid growth and in 2012 reached a major milestone
by becoming the first ceramics firm in the region to produce
1 billion square metres of tiles. At 117 million square metres
of ceramic and porcelain tiles, its average production is nearly
double the UKs total tile production. The companys profits
rose 9 per cent in 2012 to Dh223 million.

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The UAE is ranked as the second-largest producer of cement


in the Middle East and North Africa region, after Saudi
Arabia. The Al Ittihad Cement Company in Ras al-Khaimah
started commercial production in 1975, making cement one
of the oldest manufacturing industries in the country. This

A spinning factory at Dubai Textile City.

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was followed by the construction of several other factories


in Al Ain, Dubai, Fujairah, Ajman, Umm al-Qaiwain and
Sharjah. There are currently 12 cement factories in the UAE
producing clinker, Portland cement and white cement. In
2012 Sharjah Cement reported a 76 per cent increase in net
operating profits to Dh44 million (US$12 million).
While domestic textile manufacturing has declined due to
rising business costs in the UAE over the years, green shoots
appeared in 2012, when the biggest textile factory in the
Middle East opened in Fujairah at a cost of Dh225 million
(US$61 million). Producing 10,000 tonnes of cotton yarn
each year, the plant was built by the Azerbaijani government,
in partnership with the Government of Fujairah. While, even
with this investment, the UAE is no longer a major textiles
manufacturer, it has garnered a reputation as a trading hub
for the re-export of textiles and related materials from Asia.
Dubai has put itself at the heart of this trade by successfully
exploiting its locationat the centre of a massive consumer
market extending from the CIS to Africa and the Indian
subcontinent and by creating a free zone, Dubai Textile
City, for the warehousing needs for such trading activities.
Imports of both fabrics and garments come mainly from
South Korea, Japan, China, India, Indonesia and Thailand,
while re-exports head mostly to the Middle East, East Africa
and Russia.

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3 Economy

In the control tower


at Jebel Ali port in
Dubai.

Transport and Logistics


The transport and logistics industry is one of the UAEs key
economic sectors. Economic recovery and a surge in trade
flows between the country and its key trade partners, the
GCC, West Asia, Africa, India, China and the Commonwealth
of Independent States (CIS), including Russia, has opened up
huge opportunities for the logistics sector in the free zones.

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The UAEs overall logistics market grew last year to approximately Dh33 billion (US$9 billion).
The World Economic Forums 2012 Trade Enabling Index
places the UAEs transport infrastructure first in the region, with
revenues rising to reach an estimated US$8.1 billion in 2012,
equivalent to an average annual growth rate of 8.5 per cent since
2009. Bank loans allocated to the transport and storage sectors
reached their highest level in 2012 of nearly US$27.8 billion,
above the previous record of 2009.
The UAE has over 20 ports, ranging from state-of-the-art oil
terminals, world-class industrial ports and container-handling
facilities, to smaller wharves that accommodate dhows. Abu
Dhabi received a boost with operations commencing in
September 2012 at its newest port, Khalifa Port Container
Terminal, giving the emirate one of the largest and most modern
maritime cargo handling facilities in the region. A decline in sea
and air cargo volumes to Europe, the US and other recessionaffected regions has seen the UAE shift its focus to new trade
corridors, such as Asia, Africa and Latin America.

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3Economy
Free Zones Focus

The UAEs first free zone, the Jebel Ali Free Zone, was
established in 1980, and since then the objective has been to
foster economic success by attracting foreign investment and
technological expertise. The growth of re-exports and transshipment as a major commercial activity led all the emirates
to create such free zones to attract inward investment,
generate jobs and yield significant economic development.
The policy of clustering businesses and industries to achieve
economies of scale and to exploit synergies for the mutual
benefit of enterprises operating within these specialised zones
has been hugely successful in the UAE. The clustering has
taken three main forms: free zones, where businesses united
by common interest factors may enjoy 100 per cent foreign
ownership and special tax and administrative incentives;
industrial cities, which provide coordinated services and
facilities for similar industries; and special zones, which may
not offer all the business and tax incentives of free zones, but
which create a critical mass that enables the participating
establishments to benefit, either in terms of labour pool and
facilities, licencing, raw materials, manufacturing facilities
and expertise, or in terms of cooperative sales, marketing and
distribution strategies.

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Jebel Ali Free Zone in


Dubai was the UAEs
first and remains its
largest.

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3Economy

twofour54 is Abu
Dhabis media and
production free zone.

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The UAE free zones have been one of the strongest


pillars of the countrys economic performance, attracting
significant amounts of foreign investment, creating
thousands of jobs and facilitating technology transfer into
the country. The combined output of the countrys free
zones accounts for more than half of its non-oil exports and
underpins the UAEs ranking as the third most important
re-export centre in the world.
The main free zones across the UAE are Jebel Ali Free
Zone, Sharjahs Hamriyah Free Zone, the Fujairah Free
Zone, Ajman Free Zone, the Ahmad Bin Rashid Port and
Free Zone in Umm al-Qaiwain, and Ras al-Khaimah Free
Trade Zone.
The industrial clusters in Abu Dhabi include the Industrial
City of Abu Dhabi, Twofour 54 Media and Production
and Masdar City. Dubais include Dubai Media City,
Dubai Academic City, Dubai Knowledge Village, Dubai
International Financial Centre and Dubai Maritime. Other
free zones include the RAK Industrial and Technology Park
and the Fujairah Creative City.

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Maritime Industries

required by key marine- and maritime-related industries from


six diverse sectors marine services, marine management,
product marketing, marine research and education, recreation, ship design and manufacturing offering world-class
The UAE Governments policy of harnessing the counfacilities and services to maritime businesses in the region and
trys unique geography between East and West and quickly
worldwide. The Business District was opened in 2011 and the
building up the local maritime industry has paid dividends
Goltens ship repair facility opened in 2013.
over the last decade. As trade increased and more foreign
Meanwhile, seeking to capitalise on the growth in the shipbusinesses set up onshore, the UAE shipping industry has
ping industry in the UAE, the Sharjah-based Hamriyah Free
become a truly global shipping hub. Currently, services range
Zone Authority also set up a new maritime city in the zone for
from import and export of goods to ship repairing and refuelmarine- and maritime-related industries.
ling. Half of the worlds internationally trading fleet of tankers
Abu Dhabi Ship Building (ADSB) is a
passes through UAE waters twice a year.
A ship under construction at
UAE public joint-stock company listed
The shipping industry in the UAE
Abu Dhabi Ship Building.
on the Abu Dhabi Securities Exchange
spent around US$500 million in 2012
(ADX) and is a leading provider of
to buy materials for building, repairing
construction, repair and refit services for
and servicing ships and vessels. Marinaval, military and commercial vessels.
time cities have been established in
Headquartered in Abu Dhabi and estabmost emirates to accommodate the
lished in 1996, ADSB was originally
growing demand. Dubai Maritime City
formed to support the repairs and refits
(DMC) is a new multipurpose mariof UAE Navy vessels and now has a porttime zone situated between Port Rashid
folio of construction and refit projects
and Dubai Dry Docks and is a member
worth over Dh3 billion. The company is
of the Dubai World group of compa40 per cent owned by Mubadala, 10 per
nies. DMC is an integrated state-of-thecent by the Abu Dhabi government and
art development that aims to provides
50 per cent publicly traded.
ever y element of infrastructure

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Aerospace and Aviation


A focus on creating an easier environment in which to do business, a sound university and training system and high levels of
investment have shown that the UAEs aerospace star is on the
rise. Mubadala has been a leading investor in the industry so
far, with companies such as Abu Dhabi Aircraft Technologies,
Gulf Aircraft Maintenance Company and Horizon International Flight Academy in its stable. It is creating a new global
aerospace industry for Abu Dhabi focused on an integrated
approach, including manufacturing, maintenance, repair and
overhaul.
Dubai Aerospace Enterprise (DAE), whose shareholders
include the Investment Corporation of Dubai, Dubai Silicon
Oasis Authority, Dubai International Capital, Istithmar World
and EMAAR Properties, has been establishing a global aerospace manufacturing and services corporation based in
Dubai. While creating an innovative business that builds on
Dubais continuous growth in aviation, the company has
established subsidiaries in six key sectors: research and development, manufacturing, maintenance, repair and overhaul,
aircraft leasing and aerospace services. The group is forming
international partnerships at the highest level of industry
with the aim of establishing one of the most innovative and
successful businesses in the global aerospace industry. DAE is

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expected to grow through a series of phased developments to


produce an integrated aerospace cluster.
With both Abu Dhabi and Dubai developing their aerospace capabilities, the aviation industry is seen as an important plank in the countrys industrial diversification. The
aviation industry, led by Emirates Airline, contributes about
15 per cent to the UAEs GDP (and as much as 28 per cent
of Dubais GDP). Dubai International Airport, home to flag

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Sharjahs transport
and logistics sector
was worth

3.6

Dh
bn
in 2012. Officials
predict that the
sector will be worth

4.1

Dh
in 2013

carrier Emirates Airline and budget airline Flydubai, was the


tenth-busiest airport in the world in 2012 according to Airport
Council International, welcoming 58 million passengers and
achieving 13.2 per cent annual growth in passenger traffic in
2012.Dubai World Central near the Jebel Ali free zone and
port currently operates cargo services only, but will open to
passenger traffic from late 2013.
Abu Dhabi airport already welcomes 18 million passengers
a year and is expanding capacity to 40 million. It is home to the
UAEs national airline, Etihad, which became profitable in 2012
for the first time in its nine-year history. It also hosts Rotana Jet,
which was the first airline to launch daily domestic flights last
year from the capital to Fujairah, Al Ain and Sharjah. Sharjah
Airport is home to Air Arabia, the Middle East and North Afri-

97

bn

cas first low-cost carrier, with hubs in Sharjah, Alexandria and


Casablanca, which grew 21 per cent in 2012. RAK Airlines, flag
carrier of Ras al-Khaimah rebranded and relaunched in 2010,
registering a 60 per cent increase in passenger numbers in 2012
while launching regular domestic flights across the UAE.
According to Shurooq, Sharjahs transport and logistics
sector was worth Dh3.6 billion in 2012. Officials predict that
the sector will be worth Dh4.1 billion in 2013, with growth
driven mainly by Sharjahs marine and air freight industry.
Having access to three deepwater ports, including Khor
Fakkan on the East Coast, and being host to one of the regions
fastest-growing international airport and free zone, means that
Sharjah has been a draw for investors who wish to export goods
to the rest of the Middle East as well as the Indian subcontinent.

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Tourism

as an intriguing traditional culture and a safe


and welcoming environment. In addition to
Dubai
standard leisure tourism, the UAE also attracts
10.2
visitors around business and other special
The UAE is one of the fastest-growing travel
Abu Dhabi
events, cruises and, increasingly, ecotourism.
destinations in the world. The UNs World
2.3
The UAEs tourist industry began in the
Tourism Organisation ranks the country 31st
Sharjah
late 1980s in Sharjah, followed by Dubai. But
in the world, measured by receipts from hotels
1.7
the country turned into a globally recognised
and air travel which measured US$10 billion in
Ras al-Khaimah
tourism destination with the establishment of the
2012. That puts it in first place in the Arab world,
1.1
Dubai Department of Tourism and Commerce
just ahead of Egypt. By 2023 international
Sources: DTCM, ABTCA, SCTDA.
Marketing (DTCM) in 1997. This was followed
tourist arrivals to the UAE are forecast to total
by the launching of the world-famous Burj Al Arab hotel in
26 million (up from around 16 million in 2012), with visitor
1999 and the flood of hotels, resorts and entertainment faciliexpenditure rising 5 per cent per year.
ties that have since been developed. Now each of the seven
The tourism sector has been of critical importance to the
emirates has orchestrated its own unique action plans, usually
countrys ambitious economic expansion plans over the past
by establishing a tourism authority or launching an economic
two decades. Tourism contributed 14 per cent to the overall
vision roadmap. Fundamental to this shift has been the realieconomy in 2012 and attracted nearly a quarter (23 per cent)
sation of the importance of the sector to their sociof the countrys total investment at Dh82.8 billion,
etys future prosperity. This has given rise to a huge
while supporting more than 380,000 jobs. In addiOverall, the UAE
range of travel propositions for tourists.
tion, tourism has benefited from, and helped
can confidently
In Dubai, the tourism sector continued to
spawn, a number of high-growth areas of the UAEs
boast essential
holiday ingredients
achieve noticeable growth. The Emirate recorded a
economy, most notably hotels, airlines and airports,
such as sun,
9.3 per cent rise in the number of hotel guests and
and retail.
sand, sea, sports,
cruise passengers in 2012, to 10.2 million visitors
Overall, the UAE can confidently boast essential
shopping, top topping the 10 million mark for the first time.
holiday ingredients such as sun, sand, sea, sports,
class hotels and
restaurants.
The number of passengers passing through Dubai
shopping, top-class hotels and restaurants, as well

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Tourist Arrivals 2012


(million)

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Ecotourism is a growing trend, as here on


Sir Bani Yas Island in Abu Dhabi.

Airport rose to 58 million. The tourism and hotel sector


accounted for 31 per cent of Dubais GDP in 2012.
Dubais visitor numbers were boosted by increases from its
largest source markets, such as a 30 per cent rise in tourists
from Saudi Arabia and a 54 per cent increase in Russian visitors, both countries which feature in the citys top five markets.
The hotel sector achieved an 80 per cent occupancy rateone
of the highest rates internationally.
While Dubai has traditionally grabbed the headlines, Abu
Dhabi has continued to make major strides towards the implementation of its Vision 2030, which seeks to find a balance
between managing growth and fostering tourism and trade,
while preserving the citys cultural heritage and natural environment. In 2012, the Abu Dhabi Tourism and Culture

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Authority (ADTCA) was created,


replacing both the Abu Dhabi Tourism
Authority and the Abu Dhabi Authority
for Culture and Heritage. This new
entity aims to preserve, promote and
manage the cultural heritage of the
Emirate and achieve tourism development. Tourist numbers have risen from
about 1.5 million guests in 2008 to a
record 2.3 million in 2012 and the ADTCA projects a further
rise to 2.5 million in 2013. Abu Dhabi airport handled 14
million passengers in 2012.
Abu Dhabis Saadiyat Island is currently a significant focus
of development. In addition to developing three high-profile
museums including the Louvre Abu Dhabi (for more details
see Chapter 4), it boasts a newly opened golf course, beach
club and luxury resorts as well as the Hawksbill Conservation
Programme which protects endangered sea turtles. Yas Island,
the venue for the Formula 1 Abu Dhabi Grand Prix, also hosts
Ferrari World Abu Dhabi, which is the worlds largest indoor
theme park and the first ever Ferrari theme park in the world.
The park hosts over more than 20 Ferrari-inspired rides and
attractions for the entire family including the worlds fastest

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roller coaster and the regions first duelling coaster


Sharjah, particularly, has made strides in ecotourism, which
it views as a viable way forward, as related activities have a low
environmental impact and can help further the economic
development of local communities. The Government of
Sharjah promotes itself as a green tourism hotspot with coral
reefs, history museums and farms. Mohammed Ali Al Noman,
Chairman of the Sharjah Commerce and Tourism Development Authority, explained the Emirates focus in a speech in
2012: Sharjah is ideally suited for ecotourism as it has a diverse
ecological profile that includes a long coastline, rich marine life,
mountains, valleys, deserts and natural reserves.
Sharjah launched a number of important ecotourism
projects in 2012 to be executed in its natural reserve areas.
These include the ambitious Kalba project, which is a joint

Beach at Saadiyat
Island.

100

effort between Shurooq, the Sharjah Investment and Development Authority, and the Environment and Protected Areas
Authority. This multi-billion ecotourism project is expected
to draw in private investments of over Dh1 billion and create
5000 new jobs.
In other tourism projects, Shurooq completed the Al Majaz
Waterfront in 2012, a popular recreation areas linked to the
Khalid Lagoon. At an estimated cost of Dh100 million, the
project won the Sharjah Tourism Excellence Award in the
Destination Development category. Shurooq also announced
the launch of a Dh420 million project to develop the Chedi
Khor Fakkan Resort.
The Ras al-Khaimah Tourism Development Authority
exceeded its target of one million visitors in 2012, generating a
revenue boost of almost Dh583 million.

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Urban Development Plans
Transport and Logistics
Electricity and Water
Telecommunications and the Digital Economy

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urban planning is undertaken in a sustainable manner.


n the back of rapid economic and population
The Federal Government also launched a Dh5.7 billion
growth, the UAE has pushed ahead with a
investment programme in the smaller emirates in 2011, to
vast urban development agenda, aiming to
modernise and expand existing infrastructure, especially
create sustainable cities, while at the same
power and water, thus removing bottlenecks to further
time building infrastructure that will attract tourism, trade
growth. The programme was announced by His Highness
and industry. Construction slowed markedly as the global
Sheikh Khalifa bin Zayed Al Nahyan, President of the
financial crisis hit the country in 2009, but there has been
UAE, following a tour of inspection by His Highness
a strong sense of revival across the UAE in 2012 and 2013
Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince
as a host of new projects were launched, some of which
of Abu Dhabi and Deputy Supreme Commander of the
had been re-evaluated or delayed in the difficult post-crisis
UAE Armed Forces. Further major investment has been
years. Throughout the country, government has pledged
announced subsequently.
billions of dollars of new investment as part of the long-term
The UAE construction industry witnessed rapid
commitment to ensure that development is planning-led, as
growth in 2012 as a result of ongoing projects, as well
opposed to demand-led.
as investment in new projects and strong government
These efforts were guided by frameworks such as Abu
support. The market was estimated at Dh375
Dhabis Vision 2030 and the Dubai Strategic
billion in 2011, with an expected compound
Plan 2015, while entities including Abu Dhabis
The Federal
annual growth rate of around 9.5 per cent
Urban Planning Council (UPC) and Tourism
Government has
during 2012-16. As well as upgrades to utilities
Development and Investment Company
launched a
infrastructure across the emirates, a number of
(TDIC), Dubais Urban Planning Committee
mega-projects were launched in the leisure and
and the Sharjah Investment and Development
Dh
bn
investment
hospitality segment.
Authority (Shurooq) led efforts to ensure that

5.7

programme in the
smaller emirates.

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Urban Development
Plans
Abu Dhabi has been actively and effectively managing its
burgeoning development ever since the launch in 2007 of its
Vision 2030 concept. In the past few years, the emirate has
introduced extensive spending plans to back up its urban
expansion programme. Its ratio of development spending
has been steadily rising in recent years to reach 15.2 per cent
of GDP in 2011, amounting to Dh27 billion (compared with
less than Dh24 billion in 2010), and therefore overtaking precrisis levels.
Vision 2030 was designed to help the emirate filter and
respond to current and future development needs, establish a
planning culture and introduce strong guidelines for sustainable development. Implementation and development of the
framework was entrusted to the UPC. During its 2013-17
development plan, Abu Dhabi is to invest nearly Dh30 billion,
which will spur growth, create about 5000 jobs and expand the
non-hydrocarbon sector. The emirates population is expected
to grow to about 3 million in 2030, having reached just over
2.5 million in 2013.
In addition to housing, infrastructure projects will account
for a large proportion of these investments, particularly the

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Etihad Rail will link thirteen locations across


the UAE, from the border of Saudi Arabia in
the sourth west to Ras al-Khaimah and the
east coast.

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planned expansion of Abu Dhabi International Airport and


the completion of road and communication projects. One of
the most important additions to the transport sector is the
Etihad Rail network, which will provide services (initially in
freight) from the border of Saudi Arabia in the south west
to Ras al-Khaimah and the east coast. Eight of the thirteen
planned stations are in Abu Dhabi.
Central to Vision 2030 is the creation in the capital itself
of a sustainable city built around vibrant neighbourhoods.
This has meant concentrating growth, introducing transport
choice, creating mixed-use, pedestrian-friendly streets, implementing more sustainable, cost-effective infrastructure, and
protecting and enhancing the natural environment. The UPC
has also focused attention on the rest of the emirate outside
Abu Dhabi city, with urban planners drawing up an ambitious
schedule for developing Al Ain in the east and Al Gharbia
(the Western Region).
The Dubai Strategic Plan 2015, launched in 2007, recognises that urban planning is a prerequisite to optimise land
use in order to meet the needs of sustainable development
while preserving natural resources. Dubais Urban Planning
Committee brings together key stakeholders such as the Dubai
Municipality, the Road and Transport Authority, the Dubai
Electricity and Water Authority and the Dubai Land Department, as well as developers such as Dubai Holdings, Emaar and
Nakheel, to implement the strategy. Work is ongoing to update

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the Plan to look forward to


2030 and to incorporate revised
assumptions since the disruptions of the financial crisis.
The direction of Dubais aspirations remains clear, however.
Announcing the creation of an
ambitious new city in Dubai,
Mohammed Bin Rashid City
(see more details below under
Real Estate and Construction),
HH Sheikh Mohammed bin
Rashid Al Maktoum, Vice President and Prime Minister of the
UAE and Ruler of Dubai, emphasised: The current facilities
available in Dubai need to be scaled up in line with the future
ambitions for the city. Therefore we have to start work immediately on the third phase of development that is aligned to
our Vision till 2030 and boost the UAE economy to enable it
to enter a new era in which it will become the capital of entrepreneurship, arts, culture, and family tourism for over 2 billion
peopleWe have a vision and high aspirations. The future
does not wait for those who are hesitant. We do not anticipate
the future. We build it.
In Ajman the government took the innovative step of
completely redesigning and recategorising its city. In May

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Sheikh Mohammed
inspects the layout
plans for the garden
complex in Dubais
new Mohammed bin
Rashid City.

2012, Yahya Ibrahim Al Reyaysa, Director General of Ajman


Municipality, announced that the city would be divided
into six sectors and 44 residential areas in a bid to facilitate
rapid development in the emirate, attract investors and boost
tourism. Each sector is to be surrounded by main roads to
facilitate easy access. The roads will divide the sectors and
areas, for instance residential from industrial zones, to ensure
comfort, peace and stability for the residents. The municipality has also initiated a number of green belts and residential parks in all residential areas. The roads, bridges and
highways will be named after the countrys leaders. Other
names will reflect the national culture.

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Real Estate and Construction


The UAEs real estate and construction sector bounced back in
2012, following a major slowdown in the property market in
2009. With a number of key mega-projects hitting the market
and a lot more being unveiled, there is no shortage of confidence-boosting measures as the economy recovers throughout
the country. The UAEs largest property firms began to embark
on more ambitious developments, the likes of which had
not been seen since before the financial crisis, and projects
increased in size and complexity.
The total construction market in the UAE at the end of
2012 stood at Dh375 billion, which was almost 44 per cent of
the entire GCC market. Taking into account the UAEs GDP
recovery in 2012, its thriving leisure and tourism sector and
the countrys ability to raise debt funding, it is estimated that
the construction industry has returned to near-full capacity.
Favourable government policies, such as permitting non-UAE
nationals to own freeholds and leaseholds, are also attracting
foreign direct investment in construction.
In Abu Dhabi, TDIC is working on a number of significant
projects, including its flagship development of Saadiyat Island,
where several major new museums are planned, including the
Louvre Abu Dhabi which began construction in early 2013
(see Chapter 5 for more details). The St Regis Saadiyat Island

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Resort, a 377-room, five-star hotel, opened its doors in 2012


and features a number of amenities and world-class restaurants. Also on Saadiyat is the Monte Carlo Beach Club, the
first Monte Carlo property outside of Monaco.
Sowwah Square, a newly constructed business district
developed by Mubadala on Al Maryah Island off the Abu
Dhabi coastline, started operations in March 2012. The square
is the new home of the Abu Dhabi Securities Exchange and
has already attracted a critical mass of domestic and international firms. A luxury hotel and retail complex will open in
2013, while plans for an offshore international finance centre,
to be called Global Marketplace-Abu Dhabi, were announced
in early 2013. Sowwah Square was a pillar of Abu Dhabis
Economic Vision 2030, intended to house the companies that

Sowwah Square, the


new business district
on Al Maryah Island
off the Abu Dhabi
coastline.

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will help diversify the capitals economy.


In January 2012, TDIC announced the successful completion of the Al Bateen Beach project, which consists of a beachside park that overlooks 800 metres of coastline and a number
of amenities for visitors, with an emphasis on family-friendly
fun. Al Bateen Beach is close to the Abu Dhabi Corniche and
is set to cater to the immediate local residential population, as
well as visiting residents.
Dubai is home to a number of existing high-profile
projects, several of which are steadily recovering from the
global economic crunch. Dubai Marina, Downtown Dubai
and Jumeirah Lake Towers, for example, performed well
throughout 2012 with an overall increase in rents of 16.6 per
cent, 5.8 per cent and 20.7 per cent respectively. Dubais general
economic improvement, coupled with
returning investor confidence and
rising occupancy rates in the hotel and
retail segments, gave the government
and developers the impetus to plan and
launch an array of new projects.
The largest new project is the
Mohammed bin Rashid City (MBR),
launched in November 2012 as a joint
venture between Emaar Properties and
Dubai Holding. This multi-billion dollar
project includes the worlds biggest

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shopping mall, a Universal Studios


family theme park and a park that is a
third bigger than Hyde Park in London.
Dubai Hills will be the first residential
project within MBR City and will consist
of a gated community with luxury residences similar to Emaars existing Emirates Hills development.
A Dh10-billion mega-project to
develop five world-class theme parks
has also been approved by Sheikh
Mohammed. The scheme, to be built
by Meraas, Sheikh Mohammeds own
property and investment company,
starting with Dubai Adventure Studios
fun park, had originally been discussed
in 2011 but had been put on hold. There
Computer-generated image of the future Mohammed bin Rashid City in Dubai.
was also confirmation of a Dh4-billion
investment in new and relaunched
developments, including the Dh2.5 billion expansion of the
the opening of the Sharjah Corniche after the completion of
Madinat Jumeirah Resort and a new footbridge across Dubai
the Dh21 million development. The waterfront road is situated
Creek. Meanwhile, the master plan has been published for
in the Heart of Sharjah project, a five-phase, 15-year historical
Dubai Trade Centre-Jebel Ali, which the citys authorities
preservation and restoration project that aims to revitalise the
hope will attract 25 million visitors if its bid for the World
heritage area in the centre of Sharjah. One of the regions largest
Expo 2020 succeeds (for more details see Box in Chapter 7).
tourism and heritage projects, the Heart of Sharjah is overseen
In Sharjah, the third largest of the seven emirates, 2012 saw
by Shurooq, in cooperation with a number of other govern-

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ment authorities and departments in the emirate.


Sharjah launched a number of important ecotourism
projects in 2012 to be executed in its nature reserve areas.
These included the ambitious Kalba ecotourism project,
which is a joint effort between Shurooq and the Environment and Protected Areas Authority, as well as the plan for the
green development of Sir Bu Nuair island. Mohammed Ali Al
Noman, Chairman of the Sharjah Commerce and Tourism
Development Authority, explained the emirates focus in a
speech in 2012: Sharjah is ideally suited for ecotourism as it
has a diverse ecological profile that includes a long coastline,
rich marine life, mountains, valleys,
deserts and natural reserves.
In other tourism projects, Shurooq
completed the Al Majaz Waterfront in
2012, a popular recreation areas linked
to the Khalid Lagoon. At an estimated
cost of Dh100 million, the project won
the Sharjah Tourism Excellence Award
in the Destination Development category. Shurooq also announced the
launch of a Dh420 million project to
develop the Chedi Khor Fakkan Resort.
The Al Majaz Waterfront in Sharjah at the
opening ceremony in 2012.

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Infrastructure Development
The UAE has continued to invest heavily in vital aspects of its
infrastructure in recent years, with a number of new facilities
unveiled and substantial budget allocations granted to power
generation, ports, healthcare and education. New roads and
bridges are being constructed and public transport systems
installed. Business Monitor International estimates that the
UAEs governments, both federal and local, are investing
Dh213 billion (US$58 billion) on roads and bridges alone,

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Abu Dhabis Vision 2030. The population of the region accounts


including projects under way and in the planning stage.
for just 9 per cent of Abu Dhabis total, but its contribution to
Abu Dhabi Vision 2030 was named in a list of the top 100
the emirates GDP amounted to 44 per cent in 2011. Al Gharbia
infrastructure projects worldwide, alongside a host of other
hosts the Barakah nuclear power plant, currently under
projects from the UAE and the wider Arabian Gulf. KPMGs
construction and the first in the Middle East; it also has the
Infrastructure 100: World Cities Edition profiled Vision 2030,
biggest solar power plant in the world (Shams 1), and the largest
Masdar City, Paris-Sorbonne University on Reem Island, and
petrochemicals facility in the world. Al Gharbia is also home to
Yas Island Waste Management. Relatively unknown compared
the largest oilfields and refineries in the UAE, with
with the major attractions on Yas Island, the autoMadinat Zayed,
expansion projects at the ADNOC-owned Ruwais
mated vacuum waste-management system consists
the largest city in
refinery alone running up to Dh16 billion.
of 43 inlet points and 5.3km of pipes that can suck
Al Gharbia, is set
to benefit from
In Sharjah, Beeah, a partnership between the
40 tonnes of waste every day from sites around the
the infastructure
government and the Sharjah City Municipality,
island.
projects earmarked
has become the Middle Easts leading environAbu Dhabis Al Gharbia (formerly known as the
for the area.
ment and waste-manageWestern Region) is set to be
ment company. In addition
the next investment hotspot
to engaging in a series of
in the UAE. Announceeducational and sensitisaments in 2012 confirmed the
tion initiatives on recycling
area attracted Dh300 billion
with citizens across the
in development investment
UAE, Beeah has developed
and this trend looks set to
the requisite infrastruccontinue in 2013. Al Gharbia
ture to process and recycle
covers an area of 40,000
waste, and in 2012 Sharjah
square kilometres, approxirolled out the Middle Easts
mately 83 per cent of the area
first residential recycling
of the emirate, and its develprogramme.
opment projects testify to

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Sustainable Building Frameworks


After a period of rapid development in the past few decades,
the UAE is focusing on improving its environmental
footprint as it continues to grow, with an effort to embed
green building standards into the buoyant construction
sector. Abu Dhabis Urban Planning Council led the way
in 2008 by reaching out to developers in a bid to encourage
them to meet strict sustainability standards, while adapting
international monitoring systems, like the USs LEED, to
the particular requirements of the Gulf region. Water issues
need to be handled differently, for example, while points for
cycle racks and changing rooms have less relevance in the
UAE due to both climate and culture.
In 2010, the Estidama Pearl Rating System came
into effect in Abu Dhabi, making a minimum level
of sustainability mandatory. New developments by
government entities need to score two pearls, while all
other developers in Abu Dhabi need just one. Estidama (sustainability in
Arabic) is an integrated programme, within the context of Vision 2030, that
oversees a set of discretionary guidelines and mandatory regulations for the
sustainable design, operation and maintenance of all types of buildings and
communities within Abu Dhabi. In 2012, the UPC organised the first Estidama
Developers Forum, to continue its dialogue with the construction industry and
to discuss the success of its Pearl Rating System in its first full year of operation.

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The Imperial College London Diabetes Centre


in Al Ain was one of Abu Dhabis first green
buildings.

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Estidama is gaining strong momentum, with more developers committing to its


inter-disciplinary approach and sustainability guidelines, which form a strong
part of any development.
In Dubai, awareness of the need for more sustainability in buildings has grown
too since HH Sheikh Mohammed issued a green building directive in 2007. Since
2009, all government building plans in Dubai have had to
comply with green building standards. Some 60 buildings
in the emirate, including hospitals and hotels, already have
Leadership in Energy and Environmental Design (LEED)
certification. In June 2013, The Change Initiative, a UAEbased sustainability venture, was awarded LEED Platinum
certification with 107 out of a maximum 110 points for
its flagship store in Dubai, making it the most sustainable
building in the world. In 2013, the Dubai Land Department
revealed its detailed requirements for the Dubai Certificate
for Real Estate Sustainability. As of 2014, private and public
sector firms will also have to meet these requirements.
Other sustainability issues are gaining greater awareness in
the emirate too, with a greater focus on waste management
and separation of recyclable materials at source, water and
energy conservation, renewable energy production and
sustainable transport.

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Since 2009, all


government building
plans in Dubai
have had to comply
with green building
standards.

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Transport and Logistics


As the UAEs economy enters a period of economic recovery,
the Government has increasingly focused on the expansion
of the countrys transport and logistics infrastructure, in line
with increases in air passenger numbers and freight volumes.
Investment in ports and airports runs parallel with investment

in the transport infrastructure for the countrys resident population. Increasing the capacity of public transport is a priority,
with aggressive targets set by both Abu Dhabi and Dubai to
reduce commuters reliance on private vehicles and increase
the use of public transport.

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The Crisis
Operations Centre
at the Road and
Transport Authority
headquarters in
Dubai.

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Roads, Rail and Public Transport


The Abu Dhabi Department of Transport launched its Surface
Transport Master Plan in April 2009, laying out guidelines to
achieve the transport goals set out in Plan Abu Dhabi 2030.
Similar Master Plans were published in June 2009 for Al Ain
and Al Gharbia.
The Department of Transport intends to boost the use of
public transport participation in Abu Dhabi City to 35 to 40
per cent of all daily trips by 2030. To this end, an integrated
system of buses, trams, metro and regional rail will connect
with personal rapid transit, an environmentally friendly
mode of transport in Masdar City, involving battery-powered
podcars.
In March 2012 the Department announced that it had begun
work on the design of a metro and light-rail transit system,

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after the Executive Council approved funding for the projects.


The first phase of the new network is forecast to be operational
in 2016-17. Under current plans, the metro system will be
approximately 131km long and will be supported by tram and
bus feeder networks, as well as being linked to the countrys
planned national rail network and Dubais metro system.
In February 2012, the Department of Transport invited
tenders for the construction of a new Dh2 billion (US$545
million) highway between Dubai and Abu Dhabi, as a means
of relieving pressure on the main E11 highway between the
two emirates. Major works continued on the E11 during the
year, with the construction of the Khalifa Interchange, catering
to the newly-opened Khalifa Port.
A major milestone was the opening of the 4.2km Sheikh
Zayed Tunnel in downtown Abu Dhabi in December 2012.
The tunnel is the longest traffic tunnel in the region, enabling
vehicles to travel from Sheikh Zayed Bridge to Mina Road and

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use of public transport, less use of private cars, the


the Corniche without encountering traffic lights,
The RTA has set
building of more roads, bridges and links.
helping to tackle traffic congestion heading to the
a target of
Dubais Roads and Transport Authority (RTA)
downtown core of the city.
announced the award of two contracts worth
Work continued during 2012 and the first half
%
Dh38 million in May 2012 for the construction of
of 2013 on Etihad Rail, a 1200km freight (and
of the population
new roads in Al Qusais and Al Quoz. The contracts
later passenger) railway network that will make a
using public
transport in 2020.
form the first part of the RTAs Dh1 billion Internal
significant contribution to the UAE economy, as
Roads Construction Plan, which will see a signifiwell as forming a part of the planned GCC Railway
cant upgrade in the road infrastructure of several residential
Network. The first phase of the project, a 264km stretch of
areas in the emirate over the next five years.
railway linking the oil and gas facilities at Shah and Habshan
The RTA has set a target of 30 per cent of the population
to the port of Ruwais, is forecast to be operational by the end
using public transport in 2020, compared with a figure of
of 2013, with the first consignment of wagons arriving in
just 12 per cent in 2010. The RTA is confident that this target
December 2012. The company launched tenders in July 2012
will be met; the emirates public transport system served 368
for the second phase of the project, a 628km stretch of railway,
million passengers during 2012, up from 347 million in 2011
which will connect Phase One to Mussafah Port and Khalifa
and 323 million in 2010. More
Port in Abu Dhabi and to Jebel Ali
than a million commuters a day
Port in Dubai, further extending
on average used public transport
to the countrys borders with
during 2012, the RTA noted.
Saudi Arabia and Oman.
One of Dubais great success
The guiding policy document
stories in recent years has been
for Dubais transportation policy
its metro system, launched in
is the Dubai Strategic Plan 2015,
September 2009. The system,
unveiled in 2007. On transportation, the Dubai Plan emphasises
the need for improving mobility
and safety, including an increased
Dubai commuters take the metro.

30

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An 820-metre
consisting of two interconnecting
air-conditioned
lines, carried 110 million passengers in
walkway connects
2012, compared with 69 million in the
the Dubai Mall to
the metro station.
previous year. The RTA confirmed its
intention in early 2012 to seek government approval for a 20km extension to the metros Green Line,
extending the line from Etisalat station to the areas of International City, Academic City and the Dubai Lagoons. The
authority is also proposing a 12km extension of the Red Line
from Jebel Ali station to the emirates border with Abu Dhabi.
The RTA has plans to launch three more metro lines by 2030,
covering an area of 421km with 197 stations.
The metro system will intersect with Dubais new Al Sufouh
tramline, currently under construction with a view to an
initial launch in 2014. Upon completion, the tramline will
extend 14km from the Jumeirah Walk to the Mall of the Emirates and will have 19 passenger stops, three of them interconnecting with the Dubai metro, served by a fleet of 25 trams.
Dubai saw the introduction of the Middle Easts first public
rent-a-bike service In February 2013. In the first four months,
6000 people signed up to the scheme, which offers 160 bikes
in 10 locations around the city, following a German business
model.
Sharjah has taken a number of steps to upgrade its transport network in response to an increased volume of cars on its
roads. The emirates Department of Public Works commenced

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a Dh11.3 million expansion of Sheikh Salim bin Sultan Al


Qasimi Road in June 2012, and in September opened the
newly redeveloped Al Bahr Road, one of the main arterial
roads delivering traffic to surrounding freeways. In November
2012, the Department announced the provision of five new
zebra crossings and two new underpasses, responding to residents concerns about pedestrian safety.

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Airport Expansion
Dubais International Airport has seen passenger traffic at
the airport grow to 58 million passengers in 2012, an annual
increase of 13.2 per cent. Passenger numbers are projected to
rise to 65 million in 2013 and 98 million by 2020.
Faced with such an increase in passenger traffic, the airport
is undergoing significant expansion works; Arabtec Construction was awarded a Dh561 million contract in January 2012
for the expansion of Terminal 2. Terminal 3s new Concourse
A opened in January 2013. Used exclusively by Emirates
airline passengers, is the worlds first purpose-built facility
for Airbus 380 planes, with an annual capacity of 19 million
passengers.
The expansion of Dubai International Airport runs parallel
with the development of Dubai World Central Al Maktoum
International Airport, designed as
the worlds largest airport. Open to
cargo operators since 2010, the airport
Dubais
International
handled 219,092 tonnes of air freight in
Airport has seen
2012 up from the 2011 total of 89,729
passenger traffic at
tonnes. Construction of the passenger
the airport grow to
terminal building, capable of accommodating 5 million passengers per year,
m
was completed in 2012, with passenger
passengers in 2012.

58

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The new Dubai World Central Al Maktoum International Airport is


planned to be the worlds largest upon completion around 2025.

services scheduled to commence in October 2013. Upon


completion around 2025, Dubai World Central will become
the worlds largest airport with an ultimate capacity of 160
million passengers and 12 million tonnes of cargo per annum.
To handle an anticipated surge in air traffic through the
emirate, Abu Dhabi Airport Company (ADAC) is undertaking a series of upgrades to Abu Dhabi International
Airport. Passenger numbers grew by 18.9 per cent to 17.7
million in 2012, while gateway cargo traffic increased by 17.9
per cent to 567,965 tonnes.
ADAC received formal approval from the emirates Executive Council in February 2012 to begin construction work

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on the airports flagship Midfield Terminal Complex. The


complex will provide capacity for a further 20 million passengers per year in its first phase, and more than 40 million
passengers per year when fully completed.
The key component of the project, the X-shaped Midfield
Terminal Building, will significantly increase the airports
passenger handling capacity, whilst offering a smoother customer
experience. ADAC signed a Dh10.8 billion contract in June 2012
with a joint venture of Arabtec, TAV and CCC for construction
of the terminal. The building will be the
largest in Abu Dhabi, and is expected to
open in the first half of 2017.
Meanwhile, passenger traffic at
Sharjah International Airport grew
by nearly a million to 7.5 million in
2012, primarily as a result of the rapid
expansion of Sharjah-based airline Air
Arabia. The airlines passengers grew by
13 per cent to 5.3 million in 2012.
Ras al-Khaimah International Airport
saw a 24 per cent growth in passenger
The X-shaped Midfield Terminal Building at
Abu Dhabi International Airport will increase
capacity by 20 million passengers when it
opens in 2017.

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numbers in 2012, following the appointment of a new management team earlier in the year. The airports revenues increased
60 per cent over the same period, with aircraft movements,
duty-free sales and cargo tonnage also showing positive growth.
The UAE also has a small airport at Al Ain, which predominantly services flights to India and Pakistan and is popular
for its ease of use and friendly staff. Both Al Ain and Fujairah
airports saw new passenger growth as Rotana Jet introduced
regular flights from Abu Dhabi.

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Ports
At the heart of Dubais trade and logistics sector is Jebel Ali
Port, the largest port in the Middle East and the largest situated between Europe and the main Asia markets. The ports
container throughput stood at 13.3 million TEU (twentyfoot equivalent units) in 2012, more than the total container
throughput of India for the year.
The ports owner, DP World, announced in December that
upgrades to the ports Container Terminal 2 were nearing
completion. As part of the expansion project, the ports quay
wall has been extended from 400m to 3000m, allowing
the simultaneous handling of six 15,000 TEU mega ships.
Terminal 2 is scheduled to be inaugurated in mid-2013,
expanding the ports capacity by one million TEUs. Work has
already begun on a third terminal for the port, which will have
a further capacity of 4 million TEUs. Upon completion of the
project in 2014, the port will have a total capacity of 19 million
TEUs per year.
One of Abu Dhabis infrastructure highlights of 2012 was
the official opening of Khalifa Port.
The new container port, occupying 51
Cargo containers
square kilometres and built at a cost of
in Dubais Jebel Ali
Dh26.5 billion, replaces Mina Zayed as
Port, the largest in
the emirates main general cargo port.
the Middle East.

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Abu Dhabi Terminals (ADT), which manages the commercial ports under the direction of Abu Dhabi Ports Company,
completed the redirection of container traffic from downtown Abu Dhabi to the new terminal three months ahead of
schedule.
When the first phase of the new port is completed by the
end of 2013, it will have an initial capacity to handle 2 million
TEUs of container traffic and 12 million tonnes of general
cargo annually. By 2030, Khalifa Port will have the capacity
to handle 15 million TEUs and 35 million tonnes of general
cargo. It is estimated that, by that stage, Khalifa Port and the

The fast-expanding Fujairah port.

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surrounding industrial zone, Kizad, will


contribute 15 per cent of Abu Dhabis
Khor Fakkan
Container
non-oil GDP.
Terminal, located
Sharjah witnessed increased traffic at
on the Indian
its two ports during 2012. Khor Fakkan
Ocean coast of the
Container Terminal, located on the
UAE, experienced
Indian Ocean coast of the UAE, experienced 28 per cent annual growth with a
%
annual growth.
throughput of over 3.3 million TEUs for
the year. A recently completed expansion project increased the number of gantry cranes now in
operation to 20, with the overall storage space increased to
450,000 square metres. Sharjah Container Terminal, situated
on the Arabian Gulf, is near to completing expansion work to
increase its draft to 12.5 metres, with an increase of its storage
and stacking area by 30,000 square metres.
Ras al-Khaimahs Mina Saqr port plans to expand its
capacity to 3 million TEUs by 2020, in line with expanding
activity in the surrounding Ras al-Khaimah free zone.
The Port of Fujairah, strategically located outside the Strait
of Hormuz and the second-largest oil-bunkering centre
in the world, is also expanding. In June the port awarded a
contract for two new oil berths of 830 metres length and 18
metres depth, in addition to its existing seven oil berths, totalling 2340 metres in length. The port aims to provide over 10
million cubic metres of oil storage by the end of 2014.

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Electricity and Water


The UAEs demand for electricity and water continues to
grow rapidly, driven by an increasing population and an
expanding economy, especially given the return of big public
projects to the country as recovery solidifies. Ensuring an
adequate supply is an absolute prerequisite to fuel further
development and the country is focusing on building up its
power and water capacity in response to sustained growth in
demand nationwide.

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Demand for electricity in Abu Dhabi is expected to grow at


an annual rate of 11 per cent up to 2015, while Dubai expects
electricity consumption to grow by 3.5 per cent over the next
decade. One of the countrys greatest challenges, however,
remains the supply of power and water to the northern parts
of the country, with capacity often struggling to meet soaring
demand from burgeoning real estate projects and new businesses. In 2011, President HH Sheikh Khalifa ordered the Abu
Dhabi Water and Electricity Authority (ADWEA) to increase
its supply of power and water to parts of the country that need it.
In Sharjah, ADWEA is supplying an additional 700 megawatts

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(MW) of power and an additional 10 million imperial gallons a


day (MIGD) of water to meet local requirements.
The production and distribution of water and electricity in
the country is handled by four authorities. The Abu Dhabi
Water and Electricity Authority (ADWEA) is responsible
for the Abu Dhabi region, but also supplies other emirates
through the operation of power and water plants outside Abu
Dhabi and by exporting spare power
to other providers over the national
DEWA recorded a
grid. The Dubai Electricity and Water
Authority (DEWA) and Sharjah Elec%
tricity and Water Authority (SEWA)
increase to 9646
supply their respective emirates,
MW in installed
while Ras al-Khaimah, Ajman, Umm
capacity during
2012.
al-Qaiwain and Fujairah are supplied
by the Federal Electricity and Water
Authority (FEWA), with additional power supplied to FEWA
from Abu Dhabi-owned power plants at Qidfa in Fujairah.
ADWEAs installed capacity stood at 13,842 MW at the end
of the year, down slightly from 2011. However, power generation grew to 62,165 gigawatt hours (GWh), up from 56,576
GWh in 2011. ADWEAs peak electricity generation exceeded
10,000 MW for the first time in early July 2012. About 80
per cent of this record generation was accounted for by Abu
Dhabis electricity demand, with the remainder exported to

10.6

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FEWA and SEWA. Peak electricity generation is expected to


increase markedly in 2013-15, being principally driven by
higher exports to FEWA and SEWA and significantly higher
supplies to the Abu Dhabi National Oil Company (ADNOC),
following a decision by Abu Dhabis onshore operating oil
and gas companies to cease generating their own power and
to link up to the emirate-wide grid. ADWEAs energy exports
to SEWA grew by 9.6 per cent to 5501 GWh, while exports to
FEWA grew by 13.2 per cent to 8163 GWh.
In Dubai, DEWA recorded a 10.6 per cent increase to 9646
MW in installed capacity during 2012, while demand for electricity grew by 4.9 per cent to 36,299 GWh in 2012. In Sharjah,
SEWAs power production capacity grew to 2384 MW in 2011,
with figures for 2012 not yet available. SEWAs maximum peak
load in 2011 grew to 1968 MW in mid-August, up from its
2010 peak of 1936 MW, although power cuts still occurred at
times of peak demand in summer.
In the smaller emirates, demand grew by approximately
20 per cent to an estimated 2200 MW in 2012, prompted by
a surge in real estate projects and new businesses, according
to FEWAs Director General, Mohammad Saleh. Of this,
FEWA produced just 700 MW, with the remainder imported
from ADWEA. FEWA spent Dh3.4 billion in 2011 and 2012
to upgrade its distribution and transmission network, in an
effort to eliminate summer power cuts.

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Increasing Capacity
A number of large power and desalination plants were opened
in 2012 and 2013 as plans to increase capacity to meet the
needs of the growing population and of industry are implemented. In addition to conventional plants, the Government
is committed to diversifying its energy mix and reducing its
dependence on natural gas, with firm targets set for the provision of energy from other sources, including solar and nuclear.
Abu Dhabis Shuweihat S2 power and water plant
commenced operations in October 2011 and was formally
opened in April 2012. The plant is a partnership between the
Abu Dhabi National Energy Company (TAQA) and ADWEA
(with stakes of 54 per cent and 6 per cent respectively),
IPR-GDF SUEZ (20 per cent), and Marubeni and Osaka
Gas of Japan (both 10 per cent). It has a production capacity
of 1510 MW of electricity and 100 Million Imperial Gallons
per Day (MIGD) of water. TAQA, which provides 98 per cent
of Abu Dhabis electricity and water in its eight power and
desalination units, expects Shuweihat 3, a 1600 MW plant,
to be commissioned in 2013. This adds to the capacity of the
Taweelah water and power plant, completed in 2003.
ADWEA announced in June 2012 that it had received
approval from Abu Dhabis Executive Council to develop
further power generation and desalination facilities at an

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The opening
ceremony of Dubais
Jebel Ali M Station,
the largest power
and desalination
plant in the UAE.

existing site near Mirfa, primarily to supply Sharjah and the


smaller emirates. The greenfield power generation plant has an
expected net power generation capacity of 1100 MW, in addition to the installation of four gas turbines of 400 MW and 30
MIGD greenfield reverse osmosis desalination unit added
to the 23 MIGD currently installed at the plant. The plant is
expected to start operations in 2017.
TAQA is also developing a 100 MW waste-to-energy facility
in Abu Dhabi with the Centre of Waste Management Abu
Dhabi. The Memorandum of Understanding for the joint
project was signed in June 2012 and the plant is expected to
start operations by 2016. The facility, the first of its kind in the
UAE, will be one of the largest waste-to-energy plants in the
world and will be capable of processing up to 1 million tonnes
of municipal solid waste per year.
Dubais Jebel Ali M Power Station was commissioned in

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A power and seawater desalination plant at Qidfa, Fujairah.

April 2013. It is the largest power and desalination plant in the


UAE, with six gas turbines capable of producing 2060 MW and
140 MIGD of water. With this new capacity, increasing efficiency and the slowdown in growth over the past three years
in the emirate, DEWA announced in April 2012 that it was
postponing plans indefinitely for the construction of a US$1.3
billion power and water plant at Hassyan, 60km south-west of
Dubai, which would have had a total production capacity of

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900 MW of power and 720 MIGD of desalinated water. The


Hassyan project was to have been the Government of Dubais
first use of a public-private partnership (PPP) model to fund
the construction of a project, and it had already received four
shortlisted bids in 2011 for the plants construction.
In Sharjah, SEWA announced in October 2012 that it was
launching a project for a power station in Musla, which will
have a total generating capacity of 225 MW.
In 2011, President HH Sheikh Khalifa bin Zayed Al Nahyan
ordered the investment of Dh5.7 billion in the expansion of the
water and electricity supply sector in the north of the country,
and the establishment of a special committee comprised of
representatives from ADWEA, FEWA and the municipalities to
tackle supply problems. FEWA in turn announced in May 2011
that it would build four new power plants in Umm al-Qaiwain
as part of its efforts to boost its power-generating capacity. The
utility is also overseeing the upgrade of its reverse osmosis
desalination plants in Ajman and Ghalilah, Ras al-Khaimah.
In Fujairah, Abu Dhabi has also constructed two power
and desalination plants at Qidfa. The newest, the Fujairah F2
Plant, is a greenfield power generation and seawater desalination plant with 2000 MW of net power capacity. It started
operating in December 2010, increasing production capacity
in ADWEAs Fujairah plants to 2850 MW of power and 230
MIGD of water.

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Renewable and Nuclear Energy


The UAE has shown increased determination in recent years
to reduce its reliance on gas-powered plants, which account
for about 98 per cent of the countrys electricity generation, in
favour of renewable and nuclear energies.
The Abu Dhabi government announced in January 2009
that it would seek to generate 7 per cent of electricity from
renewable energy sources (not including nuclear) by 2020,
with solar power expected to be the main contributor to
meeting this target. At the same time, it launched the UAEs
nuclear industry, culminating in the award of a contract in
December 2009 for the construction of the countrys first four

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nuclear plants.
The Ministry of
Dubai in turn launched its Dubai
Economy predicted
Integrated Energy Strategy in April
in 2011 that
2011, which includes targets of reducing
energy consumption by 30 per cent and
US$
bn
significantly diversifying the sources of
would be spent on
its energy supply. The strategy envisalternative energy
investment in the
ages that by 2030 the emirate will derive
UAE.
5 per cent of its energy needs from
renewables, 12 per cent from clean coal,
12 per cent from nuclear power, and 71 per cent from gas.
In the face of such targets, the Ministry of Economy
predicted in 2011 that US$100 billion would be spent on alternative energy investment in the UAE in the coming decade.
However, the drive to invest in renewables is limited by the lack of a comprehensive renewables policy agenda on a
federal level that would provide predictability to investors.
The difficult issue remains how to
Dr Sultan al Jaber,
Special Envoy for
absorb the relatively higher costs of
Energy and Climate
generating energy from renewable
Change and CEO of
sources in a way that provides discounts
Masdar, addresses
the International
for reducing carbon emissions and
Renewable Energy
encourages sustainable energy soluAgency, located in
tions. One possible solution under
Abu Dhabi.

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discussion is the introduction of green tariffs. These would


enable companies generating renewable energy to feed electricity into public grids, obtaining fixed rates for each kilowatt-hour produced. The formalisation of such a policy would
significantly boost confidence in the countrys renewables
sector in the coming years.
The UAEs drive towards the large-scale adoption of renewable energy is being led by Masdar, founded in 2006 as a wholly
owned subsidiary of Abu Dhabi investment vehicle Mubadala,
and comprising four main initiatives. Masdar Clean Energy
invests in the development of large-scale clean energy projects
as a means of diversifying Abu Dhabis energy mix, together
with investment in similar projects worldwide, while Masdar
Capital invests in the commercialisation of promising renewables technologies via two clean-technology funds of US$540
million under management.
Masdar City is a community project located 17km from
downtown Abu Dhabi, near Abu Dhabi International Airport,
and is designed as a model for sustainable urban development
with the lowest possible ecological footprint. The community
houses the Masdar Institute, established in 2007 with cooperation from the Massachusetts Institute of Technology (MIT)
as an independent, research-driven, graduate-level university
focused on advanced energy and sustainable technologies.
Recognition of the UAEs renewable energy efforts received
a significant boost in June 2009 when members of the UNs

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six-month-old International Renewable Energy Agency


(IRENA) selected Abu Dhabi to host its headquarters. The
bodys relationship with the UAE was further cemented
in June 2012 with the signing of the IRENA Headquarters
Agreement by IRENA Director-General Adnan Z. Amin and
the UAEs Minister of State for Foreign Affairs, Dr Anwar
Gargash, in a ceremony at the Foreign Ministry in Abu Dhabi.
The agreement formalised Abu Dhabi as the permanent seat
for the Agency.

The Masdar Institute of Science and Technology, part of Masdar City in


Abu Dhabi.

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Shams 1 in Al
Gharbia, the worlds
largest concentrated
solar power plant,
inaugurated in
February 2013.

Renewable and Clean Carbon Technologies


The countrys nascent renewable energy sector has started
to become a reality, with the inauguration in February 2013
of the countrys first major solar plant, Shams 1, which is the
worlds largest concentrated solar power project. Shams (sun
in Arabic) will produce 100 MW of power, using 250,000
parabolical mirrors spread over an area of 2.5 square kilometres. Construction of the plant, a joint venture between

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Masdar (60 per cent), Frances Total (20 per cent) and Spains
Abengoa (20 per cent), began in the second half of 2010.
Shams 1 is to be followed by the Nour 1 solar plant, to be
set in a site of 3 square kilometres east of the city of Al Ain.
The plant will use photovoltaic (PV) cell technology, will have
a capacity of 100 MW, and will generate 170 GWh per year.
The sector received another boost with the announce-

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MW wind farm near the border with


ment by Dubais Supreme Council of
Saudi Arabia.
Energy of the Mohammed bin Rashid
In addition to renewables, Masdar
Al Maktoum Solar Park. The Dh12
plans to apply carbon capture, use and
billion project, to be managed and
storage (CCUS) in the UAE, both for
operated by DEWA, will be constructed
environmental reasons and for use in
in stages. The first phase, which will use
enhanced oil recovery (EOR), thereby
PV cell technology, will begin power
increasing yields from the countrys
production with a capacity of 10 MW
oil operations. A pilot CO 2 injecby early 2014. The parks total production capacity will eventually rise to 1000
tion project, undertaken at Rumaitha,
MW on completion in 2030. DEWA
south-west of Abu Dhabi, by the Abu
announced in October 2012 that it had
Dhabi Company for Onshore Oil Operawarded the contract for the construcations, ADCO, has already proved
Wind turbine on Sir Bani Yas Island.
tion of the first phase of the park to a
successful, and a full-scale project, the
US-based company, First Solar, one of
first of its kind in the region, is due to
six bidders for the initial project.
commence by 2015. Masdar announced in December 2012
While the UAE does not experience the high winds of other
that it had completed the front-end engineering and design of
regions, Masdar is planning a wind farm on Sir Bani Yas Island
the Abu Dhabi CCUS network, with the first element of the
with a production capacity of 30 MW and is considering a 100
network due to commence operations by 2015.

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Nuclear Energy
The Federal Authority for Nuclear Regulation formally gave
the green light in July 2012 for construction work to begin
on the countrys first nuclear reactor at Barakah, with work
proceeding briskly by the end of the year.
Despite the great strides made in the field of renewables in the
past few years, the UAE believes that the most environmentally
friendly and most sustainable solution to its energy requirements is electricity generated by nuclear plants. Therefore,
nuclear reactors are destined to become the second most important source of energy in the UAE after natural gas, producing
about 25 per cent of the UAEs electricity by 2020 and ensuring
the continued economic development of the nation.
The UAEs nuclear energy programme was formally
launched in April 2008 with the release by the UAE Foreign
Minister, HH Sheikh Abdullah bin Zayed Al Nahyan, of the
full text of a policy white paper entitled Policy of the United
Arab Emirates on the Evaluation and Potential Development
of Peaceful Nuclear Energy, following its endorsement by the
UAE Council of Ministers.
Sheikh Abdullah stressed that the UAEs interest in nuclear
energy stems exclusively from a desire to meet growing
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Construction at the
ment would not develop any domestic
Barakah nuclear
enrichment or reprocessing capabilities
power plant started
in favour of long-term arrangements
in 2012.
for the external supply of nuclear fuel.
In October 2009 the Federal Government approved a law
that formally set the nuclear programme in motion, with
the creation of an independent nuclear safety regulator, the
Federal Authority for Nuclear Regulation (FANR), which is
responsible for the oversight of the peaceful nuclear energy
sector within the country and the enforcement of nuclear
safety and radiological protection standards. FANR is also
responsible for the licencing of operators in the nuclear sector

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and the monitoring of radiological materials.


President HH Sheikh Khalifa bin Zayed Al Nahyan issued
a decree in December 2009 that formally established the
Emirates Nuclear Energy Corporation (ENEC) as the entity
in charge of implementing the UAEs nuclear programme.
ENEC oversees the construction and operation of nuclear
plants and coordinates the distribution of electricity across
the country with federal authorities. At
the same time, a consortium of South
Unit 1 is scheduled
Korean and US companies led by Korea
to begin providing
Electric Power Corporation (KEPCO)
electricity to the grid
was awarded a Dh75 billion contract
in 2017.
to build and operate an array of reactors in the UAE, following a three-way competition between
consortia from France, South Korea, Japan and the US.
Construction of the first 1400-MW unit got under way in
2012 with the start of safety-related construction. The first two
units are situated at the coastal site of Barakah, in the far west
of Abu Dhabi; Unit 1 is scheduled to begin providing electricity to the grid in 2017. ENEC plans to apply for licences for
the third and fourth units in 2013.
The UAE signed nuclear cooperation agreements with
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agreements signed with the US, the UK, South Korea and Japan
since 2009. The UAEs legislative framework governing the
nuclear sector was boosted in October 2012 with the issuance of
a new federal law concerning civil liability for nuclear damage.
This Law was drafted in accordance with the Vienna Convention on Civil Liability for Nuclear Damage as amended by the
1997 Protocol, to which the UAE acceded in August 2012,
said Hamad Al Kaabi, the UAEs permanent representative to
the International Atomic Energy Agency (IAEA) and Special
Representative for International Nuclear Cooperation, at a press
conference held at FANRs headquarters in Abu Dhabi.
The law aims to regulate the provisions and determine
the scope of the civil liability and compensation for nuclear
damage that could occur as a result of a nuclear accident. It
determines the financial security that the operator must maintain and further elaborates on the implementation of the 1997
Vienna Convention on Civil Liability for Nuclear Damage.
Under the new Federal Law by Decree, the operator of a
nuclear facility is solely and exclusively liable for damages
arising from a nuclear incident as defined in the 1997 Vienna
Convention. The operators liability under this Federal Law by
Decree is set not to exceed 450 million Special Drawing Rights
(SDRs), which is equivalent to roughly Dh2.5 billion.

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Water
The UAE faces a key challenge in the area of water supply,
with one of the highest per-capita consumption rates in the
world and dwindling groundwater reserves. While the countrys consumption still trails the US and Canada at 500 litres
per person per day, the UAE uses three times as much per
person as the European Union. Groundwater use exceeds
regenerating capacity by a factor of 15 and demand for water
is expected to grow 30 per cent by 2030. The Environment

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Agency in Abu Dhabi estimates that the countrys groundwater supply will run out within 55 years if use is not restricted.
The Ministry of Environment and Water, as well as local
environment agencies, are actively promoting water conservation, especially by farms and parks, which use over 70 per
cent of water supply. The country is also trying to maximise
its rainwater harvest. Its hundred-plus dams are undergoing
maintenance, more than 30 remote-controlled water-moni-

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production capacity of 17 per cent in 2012 to 470 MIGD,


toring stations were installed in 2012 and there are plans to
compared with 400 MIGD in 2011. As with electricity, water
build further dams.
capacity in Sharjah and the smaller emirates is often barely
But the country has become increasingly reliant on water
sufficient to cater for the needs of growing industries and
production via desalination plants, often through co-generarising populations.
tion with power stations, at a cost of more than Dh11 billion
In the smaller emirates, the Federal Government is investing
per year. More than 90 per cent of the countrys potable water
some Dh5.7 billion in water and power supply alone, with a
is produced via desalination.
100km main water pipeline under construction from Kalba, at
ADWEAs water production capacity stood at 916 Million
the southern end of the UAEs east coast, to Dibba,
Imperial Gallons per Day (MIGD), according
in the north, passing through the cities of Fujairah
to the companys January 2013 announcement.
and Khor Fakkan. Estimated to cost Dh900 million,
ADWEAs most recent project, the Al Mirfa
In the smaller
emirates,
the pipeline will supply 23 MIGD to Fujairah, 5
IWPP, is expected to have a maximum capacity
the
Federal
MIGD each to Khor Fakkan, Dibba and Kalba,
of 1,600MW and 52.5 MIGD, 30 MIGD of which
Government is
and 3 MIGD to Dhadnah. Another 60km pipeline,
will be produced through reverse osmosis, offering
investing some
costing Dh300 million, will be built to supply 18
greater flexibility than traditional thermal desalinaMIGD of water to the emirate of Umm al-Qaiwain.
tion. Water demand in Abu Dhabi is estimated to
bn
Dh
The water will be supplied from the ADWEA power
be growing by 5-6 per cent per year.
in water and power
supply alone.
and desalination plants in Fujairah.
DEWA recorded an increase in desalinated water

5.7

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Wastewater
Sewage works have been stretched by the unprecedented rate of
urbanisation throughout the UAE, making large-scale upgrades
to the system a priority. The Abu Dhabi Sewerage Services
Company (ADSCC) launched its Strategic Tunnel Enhancement Programme (STEP) in February 2009 for the immediate
short- and long-term needs of Abu Dhabis wastewater and
drainage system. The Dh5.7-billion project includes completing
41km of deep sewer tunnels, 43km of smaller diameter link
sewers, and a pumping station with a pumping capacity of 30
cubic metres per second.
The project reached a significant milestone in December

The STEP project


achieving its fifth
breakthrough in
December 2012.

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2012 with the projects fifth breakthrough, marking the


completion of work between work shaft 9 and work shaft 8
at Al Wathba area in Abu Dhabi. Approximately 33km of the
41km project were completed by January 2013. The project is
expected to be completed in the final quarter of 2015.
Sharjah Municipality opened a new underground sewage
treatment plant in the emirate in April 2012, catering for the
residential areas of Al Majaz, Al Taawun, Al Nahda and Industrial Area 1. The plant was built at a cost of Dh60 million, and
construction had been under
way since late 2010.

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Telecommunications and the


Digital Economy

The UAE has a


mobile penetration
rate of

168

Fostering telecommunications is a major part of UAE governinformation and communications techone of the highest
ment strategy, based on the awareness that connectivity is a
nology (ICT) on new services and prodin the world.
key component of public infrastructure. Today, telecommuucts, and was equal first in the measure
nications across all platforms in the UAE are fast and effecof mobile network coverage.
tive with fixed-line, internet and mobile connectivity among
The countrys reputation for advanced telecoms infrastructhe best in the world. Indeed, in May 2013, the Vice President
ture and services was underlined when it hosted the landmark
and Prime Minister, HH Sheikh Mohammed bin Rashid Al
World Conference on International Telecommunications,
Maktoum, launched a two-year programme intended to
organised by the UNs International Telecommunication
ensure that all services of governUnion (ITU) in December 2012.
ment will, in future, be accessible
The UAE is ser ved by two
through mobile phones.
providers of fixed, mobile and
The UAE ranks third in the Arab
internet services. The countrys first
World in the World Economic
operator, Etisalat, began offering
Forums Network Readiness Index
telecoms services in 1976, taking
(NRI) for 2011-12, and thirtieth
over from foreign-owned compaout of 142 countries assessed.
nies, while the second entrant, du,
The country achieved the highest
commenced operations in 2006.
ranking for an Arab country in
The UAE Government is the largest
several measures, including the
shareholder in both operators. The
number of broadband internet
telecoms sector is regulated by the
Sheikh Mohammed launches the Mobile Government
subscribers and the impact of
Telecommunications Regulatory
Initiative in 2013.

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the internet, with Apples iPhone


Authority (TRA), which was
accounting for 26 per cent. Both
established as an independent
operators launched 4G mobile
regulator in 2003.
services at the end of 2011, with
The UAE has a mobile penetrathe further expansion of their
tion rate of 168 per cent, one of
networks set to offer such highthe highest in the world. A TRA
speed services as a priority in the
survey conducted in October
years to come.
2012 found that nearly oneThe countrys more estabthird of the population of the
lished residential and business
UAE had more than one mobile
Du service store in Khaleej Centre in Bur Dubai.
communities are typically served
account. The two operators had
exclusively by Etisalat, while du is
a combined total of 13.8 million
typically the exclusive fixed-line and broadband carrier available
active mobile subscriptions at the end of 2012, a year-on-year
to residential and business subscribers in newer developments.
increase of 17.5 per cent. Prepaid subscriptions account for 87.5
Total fixed-line subscriptions in the country reached almost
per cent of total subscriptions.
2 million in December 2012, an annual increase of 7.8 per cent,
Faced with a growing number of unregistered prepaid SIM
according to the TRA. Broadband subscriptions increased by
cards in the country, the TRA launched its My Number, My
9.8 per cent during the year to 954,988, with broadband peneIdentity campaign in 2012, in conjunction with both operatration ending the year up 11.6 per cent.
tors, obliging all prepaid mobile users in the UAE to register
The Government introduced a new Internet Law in
their SIM cards.
2012, clarifying a range of non-permissible online activiMobile data are an increasing priority for Etisalat and du,
ties including the transmission, publication or promotion
especially given the increased popularity of smartphones and
of pornographic material, gambling activities, cyber fraud,
social networking sites in the country, which has led to a surge
insulting religion and inciting conspiracy. In accordance with
in usage. Around 45 per cent of mobile users in the UAE access
TRA regulations on content, both operators filter websites not
the internet on their handsets, the TRA survey noted. Blackin compliance with UAE laws through proxy servers.
Berry handsets account for 51 per cent of devices used to access

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Telecom Operators
Etisalat is 60 per cent owned by the UAE Government. Its
remaining shares are publicly traded but are currently only
available to Emirati investors. In addition to its operations
in the UAE, Etisalat has operations in 14 markets across the
Middle East, Africa and Asia, including Saudi Arabia, Egypt,
Nigeria and Pakistan. The groups revenues reached Dh32.9
billion in 2012, an annual increase of 2 per cent, while net
profits rose by 16 per cent to Dh6.7 billion. The UAE remains
the companys largest area of activities, generating Dh22.7
billion of revenues in 2012.
The Ministry of Finance announced in December 2012 that
Etisalats royalty payments to the Government, previously
calculated as 50 per cent of its annual net profits, would in
future be calculated as 15 per cent of annual revenues and 35
per cent of net profits, the latter figure
falling to 30 per cent in 2016.
Among Etisalats key priorities in its
Etisalat is the
home market is the continued upgrade
th
of both its mobile and fixed-data
largest mobile
networks, together with enhancing the
network operator
services offered over such networks.
in the world, with
To this end, it continued to roll out its
a total customer
4G mobile network in 2012, which
base of 100 million.

13
136

All of the iconic


Etisalat buildings are
easily recognisable
due to the dimpled
spherical structure
that sits atop of each
of them.

covered 82 per cent of the population at the end of the year.


In September 2012, Etisalat recorded the highest 4G mobile
speed test in the world, with speeds of 300 Megabites per
second (Mbps).
On the broadband side, the operators high-speed Fibre to
the Home (FTTH) progressed to reach 1.5 million homes. The

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4 Infrastructure

remaining shares publicly listed. Unlike Etisalat,


operator is migrating a significant number of its
there is no restriction on foreign ownership of
existing fixed-line subscribers to its eLife suite of
Dus mobile data
increased by 74% to
dus shares.
products, which are carried over its fibre network.
The operators revenues reached Dh10.2 billion
The eLife segment, which encompasses fixedDh
bn
in 2012, an increase of 14.7 per cent on 2011, with
line, broadband and Internet Protocol Television
in 2012
net profits before royalty increasing by 55.8 per
(IPTV) services, grew by 46 per cent during the
cent year on year to Dh2.8 billion.
year to over 500,000 subscribers.
While Etisalat remains the countrys
Etisalat was the first provider in the
largest mobile operator, the gap is
UAE and the wider region to offer 3D
rapidly being closed by du; the opertelevision with the broadcast of the
ator estimated that it had captured
2010 FIFA World Cup. In 2012 the
48.7 per cent of mobile subscriptions
operator claimed another regional
and a 32.5 per cent value share of the
first with the launch of a dedicated 3D
countrys mobile sector by the end of
entertainment and lifestyle channel.
2012.
In 2013, it launched the first cloud
A significant portion of dus
data storage service offering in the
marketing presence is at music events;
UAE, providing a choice of public,
the operator sponsors the prestigprivate and hybrid cloud services.
ious du Arena on Abu Dhabis Yas
Du is 39.5 per cent owned by the
Island, which in 2012 hosted concerts
UAE Federal Government via its
by Eminem, Nickelback and Kylie
sovereign wealth fund, the Emirates
Minogue. The operator also sponInvestment Authority. Mubadala,
sored concerts by Jennifer Lopez,
owned by the government of Abu
the Eagles, Coldplay and Amr Diab
Dhabi, holds a stake of just over 20
during the year.
per cent and Dubai Holding a stake
Kylie Minogue plays at the du Arena on Yas Island
One of the operators big successes
of just under 20 per cent, with the
as part of the F1 weekend entertainment.

1.76

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Sultan Al Ghafli,
Acting CEO of
Thuraya Telecom,
showing the Thuraya
XT satellite phone.

of the year were mobile data revenues, which increased by 74 per cent
to Dh1.76 billion in 2012, accounting
for 22.4 per cent of total revenues. The
increase in mobile data revenues will
be one of the main focuses for du in
the coming years, with the operator
securing additional financing in 2012
to expand its 4G service throughout the
country.
In addition to Etisalat and du, the UAE is home to two satellite communications providers. Abu Dhabi-based Thuraya
Satellite Telecommunications Company, a leading provider
of cost-effective, satellite-based mobile telephony services
through dual-mode handsets and satellite payphones, is
majority-owned by Etisalat. Thuraya empowers people in rural
and remote areas as well as those at sea or beyond the reach of
terrestrial networks by giving them reliable access to voice and
data communications.

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During 2012, Thuraya launched the XT-Dual, the worlds


first GSM/Satellite dual-mode satellite phone, and the
XT-Hotspot, the worlds fastest handheld hotspot. The operator also announced roaming agreements with, among others,
T-Mobile in the US and GTNT in Russia.
Al Yah Satellite Communications Company (YahSat), owned
by Mubadala, is the regions first hybrid military and commercial satellite firm. YahSat has spent over US$1 billion on its
space programme, consisting of two satellites that are used

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Al Yah Satellite
communication
centre at YahSat.

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for both civilian and military purposes.


YahSats first satellite, launched in 2011,
provides communications to the UAE
Armed Forces, as well as commercial links to corporate customers and
TV broadcasters. The second satellite,
launched in April 2012, also provides
broadband internet (YahClick) in a
number of markets, thereby giving users
a third choice of provider in the UAE.
DubaiSat-2, the second UAE-owned
and -operated earth imaging satellite,
which is being built by a team of Emirati
engineers from the Emirates Institution
for Advanced Science and Technology
(EIAST) in conjunction with South Koreas
Satrec Initiative, will be launched towards
the end of 2013. It has been designed to
provide high quality images at a one-metre
resolution, which is needed for environmental projects, urban planning, telecommunications and electricity projects. EIAST, which was established in 2006, launched
DubaiSat-1 in July 2009. The next satellite, DubaiSat-3, will be
designed with Satrec but then built wholly in the UAE. EIAST is
now building a manufacturing facility for the satellite. DubaiSat-3 is
scheduled for launch by 2017, followed by DubaiSat-4 in 2020.

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Social Media and E-Services


The increase in broadband subscriptions and mobile data
usage in the UAE is bound inextricably with the increasing
usage of social networking sites such as Facebook and Twitter.
The TRA survey found that visiting social
networking sites is second only to email as
the most common mobile internet activity.
The UAE has the highest Facebook
user penetration in the Middle East, with
an estimated 40.6 per cent of the population registered users of the service in June
2012, according to the Arab Social Media
Report, published by the Dubai School of
Government. The report found that 54 per
cent of Facebook users in the UAE were
between the ages of 15 and 29.
The country has the third-highest
number of Twitter users in the Gulf Cooperation Council, behind Saudi Arabia and
Kuwait, with 263,000 active users as of
June 2012, the survey found.
Twitter is a medium that has been
embraced by both UAE citizens and
other residents and the Government. HH

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Sheikh Mohammed bin Rashid Al Maktoum, Vice President


and Prime Minister and of the UAE and Ruler of Dubai, regularly tweets on both personal and state matters and has more
than one million followers. HH Sheikh
Abdulla bin Zayed Al Nahyan, the UAEs
Foreign Minister, has accrued more than
half a million followers since joining
Twitter in 2012.
Several UAE government entities are
using eParticipation and social media
channels to communicate with the public
and respond to their queries. These channels include discussion forums, blogs,
surveys and online chat in addition to
Facebook, Twitter and YouTube, among
others.
The UAEs efforts in the field of eParticipation were acknowledged in the UN
E-Government Survey 2012. It ranks the
UAE in sixth place globally for its eParticipation channels, up from eighty-sixth in
the 2010 report.

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The UAE and World Expos


The UAEs Participation
in the World Expo
The UAE has a long history of
participating in World (Universal)
Expos and International Expos
stretching back more than four
decades to Abu Dhabis participation
in the 1970 World Expo in Osaka,
Japan. Since then, the UAE has
participated in four World Expos
in Seville in 1992, Lisbon in 1998,
Hanover in 2000, and Shanghai in
2010, together with two International
Expos at Zaragoza in 2008 and Yeosu,
South Korea in 2012.

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Expo 2010, Shanghai, China


The UAE participated in World Expo 2010, held in
Shanghai from May to October 2010, with a pavilion on
a 6000 square metre plot, the largest available to country
exhibitors. The general theme of World Expo 2010, with
over 200 countries and institutions taking part, was Better
City, Better Life.
Comprising two dune-shaped peaks, the highest reaching
20 metres, the UAE Pavilion attracted almost two million
visitors. Now permanently located on Saadiyat Island
in Abu Dhabi, the Pavilion is a landmark exhibition
centre and is gaining maximum value from the extensive
planning, design and construction that is involved in Expo
participation.
Praised for its sustainable design, the pavilion was
designed by Foster + Partners, who won awards from the Illinois Society
of Structural Engineers and the National Council of Structural Engineers
Associations. In order to mimic the way the desert is shaped by wind, the
building is rippled on the windward side and smooth on its sheltered side
The UAE chose The Power of Dreams as the central thread of its participation
in Expo 2010. The exhibitions within the pavilion expanded on this unifying
concept to show how the UAE has harnessed its dreams of a better life and
applied imaginative thinking to lead the twenty-first century urban agenda. The
theme explored in historical, social and contemporary contexts how economic
prosperity, assisted by innovations in science and technology, transformed the

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The UAEs duneshaped Pavilion at


the Shanghai Expo,
2010.

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UAE from a rural society to a group of thriving urbanised communities where


over 200 diverse cultures live and work.
The University of Southern Californias Center on Public Diplomacy
commended the UAE Pavilion in their research paper Nation Branding at Expo
Shanghai 2010 concluding that:
Our results also indicate that, with sensory stimulation and dramatic resonance,
the UAE pavilion was the most successful in presenting its national image at the
Shanghai Expo. It serves as a revealing case of strategic narrative in nation-brand
storytelling by achieving an even balance between credibility and novelty
through its content and expressions. Most important, this was accomplished with
an adept grasp of the contextual dynamics of the Shanghai Expo. It is therefore
reasonable to conclude that the UAE pavilion made a distinctive, positive impact
on the image of the country among the Chinese public.
Shanghai Jiao Tong University conducted an official study, entitled State
Research Project on The Image of EXPO. The survey-based research paper
analysed how 1,500 members of the general public actually perceived the
participating countries pavilions. Based on overall criteria, the top pavilion at
EXPO 2010 was that of the UAE.

Expo 2012, Yeosu, South Korea


The 2012 Expo theme, The Living Ocean and Coast, resonated deeply with the
UAE, which has a proud seafaring history. The UAE Pavilion in Yeosu reflected
the nations commitment to the responsible development and protection of its
coastline and marine habitat and included a timeline detailing key events in the
countrys history.

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the UAE
pavilion was the
most successful
in presenting its
national image at
the Shanghai Expo.
The University of
Southern Californias
Center on Public
Diplomacy

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The Living Ocean in


the UAEs Pavilion at
Yeosu, 2012.

The UAE Pavilion was designed to reflect the countrys relationship with the sea
and to shed light on its ancient maritime heritage as well as on the important role
the UAE has played in maritime trade in the past and the present. It was awarded
a Silver Medal for its creative display. With over 100 participating countries,
categorised into A, B, and C classes, depending on their level of participation, the
UAE was assessed alongside ten other major nations in the top-rated A Class.
The UAE Pavilions films, all of which were strongly focused on the Yeosu
theme, were selected by the judges for their high quality and strong impact on
audiences. The main film, The Turtle, drew considerable praise. The international
judging panel of the Bureau International des Expositions Medal Awards made
special mention of the film in their comments at the award ceremony, prior to the
closing of the exhibition.

Expo 2015, Milan, Italy


The UAE is making preparations for participation in EXPO 2015 Milan, where
the theme is Feeding the Planet: Energy for Life. The UAE has chosen its own
theme, within the overall criteria, of Food for Thought. The EXPO development
team established by the National Media Council once again includes the
architectural team of Foster + Partners. The project is also being developed in
close cooperation with Masdar, the sustainability hub headquartered in Abu
Dhabi. Masdar will play a significant role in helping the Expo 2015 team adhere
to One-Planet guidelines and achieve a carbon neutral project.

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Expo 2020: Dubais Bid


For its bid to host the 2020 World Expo in Dubai, the UAE
selected the theme Connecting Minds, Creating the Future.
A World Expo in Dubai in 2020 would be the first to be held
in the Middle East, North Africa and South Asia region
(MENASA). Its focus is one that reverberates both in the
country and around the world. As the global community
faces more complex and increasingly interconnected
challenges, the links between people, societies and ideas
have never been more important. Dubai Expo 2020 would
strive to be a platform for connectivity to help pioneer new
partnerships for growth and sustainability for the future.
An independent study conducted for Dubai Expo 2020
by Zogby Research Services in 2012 found an impressive 92
per cent of business leaders rating it favourably and 85 per
cent saying it was relevant. The study, which questioned top
level executives in Kuwait, Qatar and Saudi Arabia and the UAE, also found that
nine in 10 said the image of the UAE and commercial activity and tourism in the
region would be positively impacted by hosting the Expo 2020. At the same time,
85 per cent of UAE respondents said Dubai is a good venue to host the World
Expo in 2020 and 89 per cent supported the UAEs bid. Business leaders also gave
a favourable rating to the theme Connecting Minds, Creating the Future with
80 per cent saying they are likely to attend and 82 per cent saying they would
encourage their employees to attend.

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Connecting Minds:
the proposed UAE
Expo, 2020.

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EXPO site to boost Private Sector


The proposed Expo 2020 site, which is integral to Dubais wider urban
development strategy, is adjacent to the new Al Maktoum Airport in a previously
undeveloped area. It is equidistant from Abu Dhabi International Airport and
Dubai International Airport. The area, known as Dubai Trade Centre - Jebel
Ali, will be a concrete interpretation of aerotropolis, a city integrating with its
airport to develop new services. As the site is undeveloped, it will not require any
displacement of people, businesses or infrastructure. The emirate is preparing to
invest over US$3 billion to build the infrastructure.
In June 2013 HH Sheikh Mohammed bin Rashid Al Maktoum, Vice-President
and Prime Minister of the UAE and Ruler of Dubai, led a delegation that unveiled
one of Dubai Expo 2020s flagship initiatives, Expo Live, in a presentation to
the 166 member nations of the Bureau International des Expositions (BIE) in
Paris. HRH Princess Haya Bint Al Hussein, wife of HH Sheikh Mohammed,
highlighted the importance of partnerships under the bids overarching theme,
Connecting Minds, Creating the Future, and discussed what would be the
foundation and the legacy of Dubai Expo 2020.
If the UAEs bid to host World EXPO 2020 is successful, Expo Live, a global
engagement platform, will ignite the best ideas with an Expo Partnership Fund
of 100 million. The fund will accelerate entrepreneurial spirit around the world
and support projects of varying size, scale and stages of development all with
the same objective of delivering a lasting and positive impact.
Results of a BIE Enquiry Mission to the UAE, which took place in February
2013, were announced at the June 2013 BIE General Assembly in Paris. A series

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The aerotropolis
proposed for the
2020 World Expo.

HRH Princess Haya


bint Al Hussein,
wife of HH Sheikh
Mohammed,
highlighted what
would be the
foundation and the
legacy of Dubai
Expo 2020.

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of Enquiry Missions had been conducted to


each of the competing nations with a view to
assessing the feasibility of each proposal. The
BIE General Assembly formally approved the
candidature of the UAE, stating that it had
complied with all the required criteria. BIE
commended the UAE for the level of national
support, as well as for the strength and vision of
its bid in line with the traditions and values of
World Expo.
In accordance with BIE regulations, every
country must submit an aid package as part of
their file. The UAE presented a development
assistance package of 150 million, ensuring
strong representation for all developing nations.
Voting and announcement of the successful
bidder to host EXPO 2020 was scheduled to take
place at the November BIE General Assembly
Meeting in Paris.

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The Burj al-Arab


hotel in Dubai,
supporting the
2020 bid.

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Labour and Social Affairs


Housing
Women
Education
Healthcare
Media
Culture

5 Society

and Culture
148

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he UAE has experienced rapid economic and


demographic growth in the past few decades,
transforming the life of its citizens and other
residents in many ways and integrating the
country closely into developments in the rest of the world.
All of the emirates have worked hard to preserve their
traditional values, embracing the opportunities brought
by rapid change and diversity, while
Emirati girls at the
tackling the challenges.

National Day parade


at Emaar Boulevard
in Dubai.

UAE Total Population (million)


10
8
6
4
2

149

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996

1995

1994

1993

1992

1991

1990

1989

1988

1987

1986

1985

1984

1983

1982

1981

1980

1979

1978

1977

1976

*1975

1974

1973

1972

1971

0
* Bold are census years Source: National Bureau of Statistics

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5 Society and Culture

Population and Demographics


The UAEs enviable track record of economic growth going
back decades has ensured continued growth in both Emirati
and expatriate population numbers. According to the
National Bureau of Statistics, the population had reached 8.3
million by the end of 2010, more than double the 4.1 million

150

residents recorded in the last national census undertaken in


2005. UAE citizens account for just under 1 million (947,947)
of the total population, against a non-national population of
7.3 million. Males also outnumber women by around three to
one, due to the migration flow of working-age men.
In spite of the substantial increase
in population, among the highest in
the world, the UAE has managed to
absorb the increased numbers without
eroding the national fabric. Compared
with other countries in the region,
the UAEs demographic trends have
served to solidify the existing characteristics of stability, innovation and
tolerance.
The UAE Government is now formulating a population strategy that aims
to define a satisfactory demographic
mix between Emiratis and expatriates. Under the ethos of sustainable
development laid down by the UAEs
founder, Sheikh Zayed bin Sultan Al
Nahyan, the authorities guide policy

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151

Female

000 Total male and female


1.8
1.6
1.4
1.2
1.0

152,000

241,000

56,000

1,017,000

0.2

Sharjah

0.4

1,722,000

0.6

250,000

0.8

Dubai

Fujairah

Ra's al
Khaimah

Umm
al-Quwain

Ajman

of Interior, conducts research on population issues with the


emphasis on socially relevant developments and problems. Its
board members include the key ministries with responsibility
for population issues: the Ministries of Labour, Economy,
Foreign Affairs and Social Affairs.
The responsibilities of the FDC are to review demographic policies and work to develop strategies and national initiatives, coordinating with relevant authorities including ministries, federal
institutions, local departments and agencies and research centres.

Male

2.0

1,628,000

Much of the
population
growth reflects
the economic
dynamism of
the individual
emirates.

Population by Sex in Each Emirate 2009


(million)

Abu Dhabi

to ensure that the livelihoods of present and future generations


are protected, and that increases in population do not imperil
the delicate environmental balance.
As part of this approach, the Federal Demographic
Council (FDC), created in 2010, has been actively working to
re-balance the UAEs demographic structure while strengthening the loyalty of UAE citizens to their leadership and
homeland. The Council, chaired by HH Lt. Gen. Sheikh Saif
bin Zayed Al Nahyan, Deputy Prime Minister and Minister

Source: National Bureau of Statistics, Ministry of Economy

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Age Pyramid of Citizens 2005

Age Pyramid of Non-Citizens 2005

(000s)

Female

Male

Female

80-84

80-84

70-74

70-74

60-64

60-64

50-54

50-54

40-44

40-44

30-34

30-34

20-24

20-24

10-14

10-14

0-4

0-4
60

40

20

20

40

60

Source: National Bureau of Statistics

152

(000s)

200

100

100

200

300

400

Male

500

Source: National Bureau of Statistics

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5 Society and Culture

Dubais population
was estimated in
2012 at

2.1

m
according to
the Dubai
Statistics Centre,
representing a 5
per cent increase
annually.

Above all, the FDC is charged with establishing what proportion


of the population should be Emirati citizens by 2021.
Much of the population growth reflects the economic dynamism of the individual emirates. Abu Dhabi has announced a
population of 2.5 million in 2013, compared with 1.96 million
at the end of 2010. To put this in perspective, Abu Dhabis
population in 1975 was just 211,000.
The Emirates population grew by an annual average of 7.7 per
cent in 2005-11, well above the 4 per cent growth rate recorded
in 1995-2005, according to Abu Dhabi Statistics Bureau figures.

153

This growth is concentrated in the expatriate population, which


increased by an average of 8.8 per cent annually during the
2005-11 period, compared with 3.8 per cent in 1995-2005.
Dubais population was estimated in 2012 at 2.1 million,
according to the Dubai Statistics Centre, representing a 5 per
cent increase annually. Of the other emirates, Sharjah is the
largest with a population estimated by the National Bureau
of Statisics in 2009 at 1.01 million followed by Ajman with
250,000, Ras al-Khaimah with 241,000, Fujairah with 152,000
and Umm al-Qaiwain the smallest with 52,000.

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5 Society and Culture

Developing an Identity Strategy


Although a national census has not been undertaken since
2005, the UAE authorities are attempting to obtain a more
accurate picture of demographic trends through the use
of cutting-edge technology. At the centre of this effort is the
Emirates Identity Authority (EIDA), a government body
that was launched in 2003 to develop the infrastructure for
a national identity management programme. As part of this
effort, all citizens and legal residents are issued with unique
identification numbers and smart cards that hold their
personal information and biometric details.
The move to an advanced and integrated system for
managing personal IDs is in line with the UAEs shift to online
government services under the federal e-government plan
and the UAE Vision 2021.
EIDA is focused on ensuring the accuracy of the data of the
population register, supporting the Governments decisionmakers by providing accurate and smart information on the
demographic structure of the UAE population.
To achieve this strategic objective of having an accurate
and up-to-date population register, the Government has
conducted a detailed analysis of how citizen and resident
information can be continuously updated. The development
of a smart identity card with a five-year validity provides a

154

single secure identification document, furthering the streamlining and simplification of government procedures.
EIDA has achieved a rapid increase in the annual registration rate in the population register since its initial introduction in 2005. By 2012, EIDA had registered a total 4.2 million
people, raising the number of people registered by 44 per cent
for the year. To assist in this effort, it operates 53 registration
centres, enabling it to register up to 27,800 citizens per day in
2012, against 12,000 per day the previous year. By 2012, nearly
92 per cent of UAE citizens had been registered for the scheme.
Identification cards connect a unique 15-digit personal
number, known as the identity number, with the biometric
attributes. Some of the data are encrypted and can only be
read or updated by the relevant authorised department to

Registering for ID
cards at the Emirates
Identity Authority in
Dubai.

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protect the privacy of data. In February


2013, the name of the Emirates ID card
for non-UAE citizens was changed to
Resident Identity Card, but the features
and security specifications of the ID
card remain the same.
The identity cards have multi-use
Dr Ali Al Khouri,
functionality. Cardholders benefit from
Director General of
access to all governmental services and
Emirates Identity
some services provided by non-governAuthority.
mental and private entities that require
proof of identity. The smart card is used, for example, in eGate
systems at all airports in the Federation, for accessing e-government services and for voting in elections to the Federal National
Council (used with great success in the
FNC elections held in September 2011).
Nine separate
They also act as a travel document,
UAE entities now
enabling UAE citizens to travel within
require the ID card
the Gulf Cooperation Council countries.
as proof of identity.
Nine separate UAE entities now
require the ID card as proof of identity. Beyond the evident
improvements in administrative efficiency delivered so far,
the identity card is also designed to reinforce security for UAE
residents, guarding against fraud and ensuring better preparedness against crime and terrorism.
The EIDA Director General, Dr Ali Mohammed Al Khouri,

155

has been spearheading the development of the authoritys new


strategic plan (2014-19), which will focus on developing a
comprehensive roadmap to achieve the UAE 2021 Vision and
develop the necessary infrastructure to support e-government
and integration with key governmental institutions.
Addressing a conference on digital security in Abu Dhabi
in April 2013, Dr Al Khouri said that as a result of the ID
programme, the UAE was now one of the leading countries
globally in the development of advanced infrastructure for
digital security. According to Dr Al Khouri, EIDA continues
to develop its infrastructure, which is based on advanced and
modern information and communications technologies, to
create new means and applications in order to enhance the
security of digital transactions and increase peoples confidence in such types of transaction.

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The Human Development Index

156

Published annually since 1990, the UN Human Development Index (HDI)


introduced as an alternative to conventional measures of national development
has pushed for a broader definition of well-being. It is a measure on which
the UAE scores highly. According to the latest HDI value for 2012, based on a
composite measure of three basic dimensions of human development, namely
health (including life expectancy), education (adult literacy and gross enrolment)
and standard of living (measured by purchasing power parity income), the
UAE ranks forty-first out of 187 countries globally with a score of 0.818, which
puts it in the very high human development category.
The UAEs ranking places it above the Arab states average HDI score, which
stands at 0.652.
The fundamental drivers of the UAEs strong showing in the HDI reveal health,
education and social improvements as having delivered consistently better life
chances and life expectancy for Emiratis and expatriates alike. Between 1980 and
2012, life expectancy at birth in the UAE increased by 8.5 years; mean years of
schooling increased by 5.3 years; and expected years of schooling increased by
3.5 years. According to the UN Human Development Report (HDR), average life
expectancy for Emirati nationals is 76.7 years, and the mean years of schooling
are 8.9 years.
The UAE is experiencing continued improvements across a range of measures.
According to the Health Authority-Abu Dhabi, Emirati average life expectancy
increased in the emirate from 79.9 to 80.4 between 2008 and 2010. This places it
above the United States, where average life expectancy is 79, and Qatar, where it is
78.

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UAE in HDI Perspective 2013

Human Development Index 2013 (selected countries)


Countries

Life expectancy, GDP per capita


years, 2012
$ at PPP

Expected years
of schooling

Overall HDI rank

Overall

Norway

81.3

46,982

17.5

Health

United States

78.7

43,480

16.8

Japan

83.6

30,660

15.3

10

Korea

80.7

27,541

17.2

12

Singapore

81.2

53,591

14.4

18

Spain

81.6

27,063

16.4

23

United Kingdom

80.3

32,474

16.4

26

Czech Republic

77.8

23,967

15.3

28

Poland

76.3

18,087

15.2

39

UAE

76.7

42,293

12.0

41

Bahrain

75.2

21,345

13.4

48

Russia

69.1

14,808

14.3

55

Saudi Arabia

74.1

21,430

14.3

57

Malaysia

74.5

13,672

12.6

64

Lebanon

72.8

12,900

13.9

72

Ukraine

68.8

6,359

14.8

78

Oman

73.2

25,330

13.5

84

Brazil

73.8

10,278

14.2

85

Turkey

74.2

13,466

12.9

90

China

73.7

7,418

11.7

101

Source: UNDP, Human Development Indicators

157

Education
Income
0.0

0.2

0.4

0.6

0.8

1.0

Sources: UNDP, Human Development Indicators

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Labour and
Social Affairs

158

With unprecedented levels of change sweeping through the


UAE, the Government has made a concerted effort to ensure
that reform does not undermine the essential social cohesion
that is the cornerstone of the Federation. This means focusing
resources on areas such as employment, housing and social
welfare, to ensure that the advances in wealth seen over the past
few decades are spread as widely as possible and that the traditional hallmarks of Emirati culture respect for tradition, religious faith and tolerance for others remain firmly embedded
in the national fabric.
Addressing unemployment remains a serious
issue in the UAE, with 20.8 per cent of Emirati
citizens of working age being without work,
according to a National Bureau of Statistics
Report issued in June 2012. However, overall, the
unemployment level taking into account both
Emiratis and expatriates is significantly lower, at
4.6 per cent of the workforce. Among expatriates,
the unemployment level in 2011 was estimated at
just 3.2 per cent.
Employment of UAE citizens is skewed towards
the public sector. Of the four million employed
in the private sector, Emirati citizens account for
just 20,000 jobs. In contrast, Emiratis accounted
for 60 per cent of government sector jobs in 2010.
The highest proportion of UAE citizens employed

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in the private sector is in the service, shop and market sales


segment, which absorbed 19.8 per cent of the Emirati workforce, according to National Bureau of Statistics figures from
2009. This was also the sector with the highest employment
of expatriates, at 21.6 per cent. The armed forces, employing
19.6 per cent, were the next-biggest employer of UAE citizens,
followed by technical and associate professions at 18.1 per cent.
According to the International Monetary Fund (IMF),
foreigners comprise 96 per cent of the UAE workforce, with
the largest communities coming from South Asia, although
there is also a substantial presence from the Middle East and
North Africa (MENA) region. Foreign workers remittances
out of the UAE in 2012 were estimated at almost US$20
billion, a quarter of the GCCs total remittances.
The Government is working to ensure that the imbalance
of UAE citizens in the private sector is addressed with active
Emiratisation efforts under way. At the same time, bodies
such as the UAE National Human Resource Development
and Employment Authority (Tanmia) are working hard to
develop the skills and competitiveness of citizens. The broad
aim of policy is to ensure that Emiratis entering the labour
market are able to compete more effectively with expatriate
labour. Initiatives are designed to create a level playing field
through the targeted use of incentives and penalties.
The main challenge is not in creating jobs: the UAE economy
is sufficiently vibrant to produce suitable employment oppor-

159

Employment by Sector (ranked by 2010 data)


2004

2007

2010

Construction

780,439

1,374,566

1,553,733

Wholesale & retail trade

484,457

654,071

868,012

Manufacturing

271,541

376,721

407,369

Real estate and business


services
Transport, storage &
communications
Hotels and restaurants

109,295

214,324

339,137

142,959

196,311

258,114

87,584

105,558

133,011

Community & personal


services
Education

41,917

57,361

118,148

27,054

40,391

57,142

Financial services

19,714

31,202

39,843

Mining

14,895

17,123

36,777

Healthcare

13,835

20,154

33,767

Agriculture

8,212

13,038

23,846

Utiliites

790

2,438

5,675

Fishing

10,122

9,764

5,624

709

296

2,013,523

3,113,022

3,880,494

Not stated
Total
Source: Ministry of Labour

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tunities in the private sector. Indeed, according to the Labour


Minister, Saqr Ghobash, speaking in December 2012, around
300,000 private-sector jobs were suitable for UAE citizens.
Rather, the key ambition is to address the structural imbalance
that makes it more attractive for some employers to employ
non-UAE citizens rather than nationals. As Minister Ghobash
told a meeting of G20 labour ministers in 2011, most UAE job
creation has been concentrated in low-skilled, labour-intensive sectors that are unattractive to national job seekers.
The challenge then is to upgrade the skills base of citizens.
As Ghobash noted, even attractive employment opportunities
in the private sector require skills that the UAEs educational
and skills development systems have been slow to promote,
given the traditional orientation towards public sector needs.
The imperative to act now is strong. Ghobash estimated that
while the number of Emirati jobseekers was just 35,000, this
figure could rise to more than 200,000 over the next decade.

An Emirati woman
working at the
Etihad call centre in
Al Ain.

160

The Year of Creating Jobs for Emiratis


The campaign to boost the employment of UAE citizens has
gained vigour after HH Sheikh Mohammed bin Rashid al
Maktoum, Prime Minister and Vice President of the UAE
and Ruler of Dubai, announced in November 2012 that
2013 would be the year of creating jobs for UAE nationals, a
national priority for which all efforts must unite. As a result, a
series of initiatives and policies are being launched to promote
Emiratisation the positive promotion of UAE citizens in the
workforce.

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triates, so long as they meet the official 15 per cent


Federal programmes such as Work is Life, which
quota for employing Emiratis in skilled labour
has trained 300 Emirati women and provided vocaIn 2011 the
Government
positions. Mindful that many Emirati citizens are
tional courses for a further 250, have been effective
announced the
reluctant to take private-sector jobs with lower
at the micro level. But much greater emphasis will
creation of the
salaries and fewer benefits and holiday provision,
in the future be placed on the need to ensure that
Khalifa Fund
the authorities are also looking to reform working
Emiratisation is strengthened, with a reboot of the
for Enabling
Emiratisation,
practices to allow for a two-day weekend in the
existing quota system to make it more effective at
with a budget set at
private sector, with increased working hours to
moving citizens into private-sector employment.
compensate for the extra day off.
The system has worked on the basis of quotas for
m.
Dh
Public money is being made available to smooth
certain sectors where citizens were considered able
the process. In 2011 the Government announced
to compete for jobs, such as banking and insurthe creation of the Khalifa Fund for Enabling Emiratisation,
ance, retail and wholesale commerce. The 1998 UAE Emirawith a budget set at Dh440 million. The fund provides subsitisation Decree stipulated, for example, that banks operating
dies to employers to offer salaries to Emiratis that can compete
in the UAE should employ citizens at an incremental rate of 4
with the salaries offered in the public sector, as well as funding
per cent annually, which would imply that 60 per cent of bank
the training of Emiratis on university courses that are geared
employees should by now be Emiratis. However, by the end of
to the needs of the employment market.
2010 the average rate of Emiratisation in the banking sector
Another key endeavour to promote the employment of
was just 35.4 per cent.
Emiratis in the private sector is the Absher Initiative, launched
The renewed emphasis on the Emiratisation strategy also
by the UAE President, HH Sheikh Khalifa bin Zayed al
means greater use of the carrot rather than the stick. Instead
Nahyan, in 2012. This project, which aims to place Emiratis in
of forcing companies to reduce their expatriate headcount
the private sector, has already created 3768 new jobs, with the
and potentially lose out on valued skills and experience
target of 20,000 jobs by 2017. HH Sheikh Mohamed bin Zayed
the UAE authorities are looking to devise mechanisms that
al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme
instead create more incentives to recruit Emirati workers,
Commander of the Armed Forces, launched the second
rather than punish firms that fail to do so. One such incenphase of the Absher Initiative in June 2013, forming partnertive is the provision of reduced fees for firms employing expa-

440

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Emiratis registering
their resumes
during the Tawdheef
Recruitment Fair in
Abu Dhabi.

162

ships with 17 new companies. Candidates for Absher must


be at least 20 years of age and have completed a minimum of
two years in further education. The Ministry of Presidential
Affairs pays for the recruits training. Graduates will be trained
in different organisations, with the ministry bearing the cost
of 30 per cent of their total salary. Participating companies
also offer special discounts on their products to those on the
scheme.
Another strong focus of UAE policy is to address areas of
high joblessness outside of Abu Dhabi and Dubai. In a 2011
assessment of the UAE economy, the IMF encouraged the
Government to consider launching active labour market
policies in the less developed emirates and to locate some of
its agencies and entities there to promote job-creation measures in these areas. This challenge is being taken up, with the
Government keen that these pockets of unemployment are
tackled head-on. In March 2013 the UAE Government allocated Dh243 million in grants for employment, education and
housing in the north of the country, with the largest portion of
this funding Dh160 million to be used in Ras al-Khaimah
for the training of unemployed Emiratis.

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Protecting Migrant Workers Rights


In concert with the labour market reforms under way, the UAE
Government is also committed to improving the protection of
migrant workers rights. In June 2013, the UAE agreed to adopt
in full or part 161 measures out of the 180 recommended by
the 2013 UN Universal Periodic Review, a mechanism of the
Human Rights Council aimed at improving the human rights
situation in each of the UN member states. The UAEs Standing
Committee will work to implement these measures, including
the creation of a human rights institution. Members praised
efforts made by the country since its first review in 2008, while
calling for improvements to the welfare of migrant and domestic
workers. In December 2011 Sheikh Khalifa announced that
children of Emirati women married to foreigners could apply for
citizenship once they reached the age of 18.
Many of the protections afforded to foreign workers are
safeguarded under the UAE Constitution, which guarantees
respect for the safety of every individual, ensures equality and
social justice, establishes the fundamental freedoms of all individuals, prohibits torture and arbitrary detention and respects
civil liberties, including freedom of expression and freedom of
religion. There are additional layers of support for non-Emirati
workers. Under the UAEs kafala system, a number of rights
are given to workers, such as the right to accommodation,

163

health insurance and the repatriation of the body in the event


of death. The Ministry of Labour works to protect workers
and has established a unit in every large labour camp to deal
with complaints, including running a hotline for workers to
report any problems with employers.
The Ministry also set up a human-trafficking department
to investigate exploitation and has more than 400 inspectors.
Meanwhile, the UAEs human-trafficking legislation is being
amended to enshrine victims rights, including the right to
psychological help and shelter.

Social Welfare
The UAE remains strongly committed to ensuring that the
fruits of economic success are shared widely, instituting an
efficient social welfare network dedicated to assisting the
most vulnerable members of society. Social security benefits
are administered by the Ministry of Labour and the Ministry
of Social Affairs, while practical help is offered by a network
of ministry-supported social centres run by the General
Womens Union (see section on Women for further information). Government-supported social welfare and rehabilitation centres provide assistance to the disabled.
The Government dispenses financial assistance on a
monthly basis to 20 categories of persons provided the

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person is a UAE citizen or the mother of a UAE citizen


including those with disabilities, widows and divorcees. The
programme benefits 40,121 families. A total of 4882 children,
862 of whom are orphans, receive assistance, in addition to
3697 children with disabilities and 323 children of unknown
parentage. In 2012 the amount disbursed to these families was
Dh7.14 billion. Social welfare assistance is also provided to
14,075 older people, representing 37 per cent of the total over

164

60s population.
Alongside state support, voluntary organisations play a vital
role in UAE society. According to official figures, the number
of registered non-profit associations rose to 145 in 2012. These
associations play an important role in the field of social development, education and health and in the provision of finance
for projects for women and young people, so that this sector
has become a key partner for social projects.

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Housing

A government
housing project in
Abu Dhabi.

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A modern, comfortable home is considered to be the right


of every UAE citizen. There are three types of housing
programme assistance: the first provides home loans and
grants to citizens who own a piece of land; the second advances
interest-free, long-term loans for citizens who can repay them;
and the third provides free housing for low-income citizens.
The Sheikh Zayed Housing Programme, established in
1999, funds housing projects for citizens with low incomes by
providing interest-free loans repayable over a 25-year period.
Grants and non-reimbursable assistance are dispensed to the
poorest segments of society. The Federal Government doubled
the programmes budget in 2010, taking it up to Dh1.8 billion
per year to enable it to expand its activities. As of September
2011, the number of beneficiaries exceeded 48,000. In the first
half of 2013, the Sheikh Zayed Housing Programme approved
417 Emirati applications for home grants and loans worth
Dh208 million.
House-building efforts play an important role in ensuring
that housing needs are met. Over 14,500 Emiratis received
new houses from 2000 to 2012. In April 2013, Sheikh Khalifa
approved development and housing projects worth Dh800
million, which includes building new homes and refurbishing existing ones. The Presidents Initiatives Follow-up
Committee has also approved the construction of more than
760 houses for Emiratis.
Housing assistance is also provided at the emirate level.

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In Abu Dhabi, a total of 7500 integrated units have been


built at a cost of Dh33 billion. In December 2012, the Abu
Dhabi Housing Authority was created to coordinate all
housing-related projects, including the loans programme.
In Dubai, the Mohammed bin Rashid Housing Foundation

provides support for Emiratis to access decent housing by


providing housing loans or buying turnkey homes. A similar
programme, the Sheikh Saud Housing Programme, was
launched in 2008 to meet the housing needs of citizens in
Ras al-Khaimah.
The Abu Dhabi 2030
plan on display at
Cityscape in Abu
Dhabi, 2013.

166

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Women

Attendees at the
Arab Women
Leadership Forum
in Dubai.

167

Dont think because we are covered, we are not empowered,


said Rafia Ghobash, one of the UAEs most influential women,
at the opening of her new Womens Museum in Dubai (see
section on Museums for more information). Indeed, women
are recognised as critical partners in the UAEs development
and institutional changes at both the national and the emirate
level and the role of women in social and economic life
continues to expand. For 2012, the UAE was ranked fortieth
out of 148 countries, and ahead of all other Arab nations, by
the UNs Gender Inequality Index, which reflects genderbased inequalities in three dimensions reproductive health,

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Gender Inequality Index 2013 (selected countries)


GII
Country
Rank
1
Norway

2005

2010

2012

0.105

0.083

0.076

0.065

0.133

0.083

0.101

13

Singapore

15

Spain

0.119

0.118

0.113

0.103

19

Ireland

0.204

0.195

0.174

0.121

20

Czech Republic

0.205

0.153

0.136

0.122

27

Korea

0.116

0.106

0.153

29

Estonia

0.29

0.242

0.158

34

UK

0.228

0.216

0.207

0.205

35

China

0.579

0.225

0.207

0.213

40

UAE

0.625

0.602

0.234

0.241

42

USA

0.288

0.288

0.256

44

Malaysia

0.311

0.304

0.28

0.256

47

Kuwait

0.581

0.36

0.256

0.274

51

Russia

0.425

0.325

0.329

0.312

57

Ukraine

0.357

0.35

0.338

78

Lebanon

0.433

84

Morocco

0.683

0.534

0.498

0.444

85

Brazil

0.516

0.473

0.446

0.447

91

South Africa

0.518

0.507

0.47

0.462

130

Kenya

0.682

0.642

0.606

0.608

145

Saudi Arabia

0.685

0.656

0.682

Source: UNDP; HDI

168

2000

empowerment and economic activity.


With 17.5 per cent of parliamentary seats held by women
and 73.1 per cent of adult women having reached a secondary
or higher level of education, compared with just 61.3 per cent
of their male counterparts, the index highlights the great
strides women in the UAE have made. High-quality healthcare also means that the maternal mortality rate is just 12 in
100,000. In 2012 a survey conducted by research firm TNS
MENA found that of 2500 women surveyed across all seven
emirates, 91 per cent said they were happy with their overall
quality of life.
The UAEs commitment to gender equality is not new. It
stretches back to the establishment of the Federation. The
Constitution of the UAE guarantees equal rights for both
men and women, ensuring that women have the same legal
status, claim to titles, access to education, employment, health
and welfare facilities. The UAE is also a signatory to the UN
Convention on the Elimination of All Forms of Discrimination Against Women (CEDAW).
Opportunities available to women, particularly in the field
of education, have broadened. The World Economic Forum
2012 Gender Gap Report ranked the UAE number one for
female educational attainment, literacy rate, enrolment in
primary education, enrolment in secondary education and
enrolment in tertiary education. Seventy-seven per cent of
UAE females go on to higher education from secondary

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A recent graduate
of the aeroplane
technician
programme working
at the Strata facility
in Al Ain.

169

school, and more than 70 per cent of Emiratis in federal higher


education institutions are women. In the academic year 201112, female students represented 75 per cent of the entire
student population at the United Arab Emirates University.
At the secondary school level, a 2012 report by the Statistics
Centre-Abu Dhabi found that dropping out of school is much
more common for boys than it is for girls.
Female graduates can be found working in all sectors from
engineering, science and healthcare to IT, law and the oil
industry. Women constitute 66 per cent of the public-sector
workforce; of these, 30 per cent are in senior posts, according
to 2010 data from the National Bureau of Statistics. In government, women are represented in the executive, legislative and
judicial branches. Women hold nine of the 40 seats in the
Federal National Council. They make up 20 per cent of the
diplomatic corps, and four UAE cabinet ministers are women.
Emirati women have also joined the police force, the military
and the air force. The UAEs Khawla Bint Al Azwar Military
School is the Gulf regions first military college for women, set
up in 1991.
Women have also excelled in the business world, and their
importance in the workplace is growing. Although senior
leadership examples are still relatively few and far between,
the number of role models is expanding. Salma Hareb is
Chief Executive Officer of Jafza Economic Zones World, Dr
Amina Al Rustamani is Chief Executive Officer of TECOM

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Business Parks, Fatima Al Jaber is Chief Operating


sector positions reflects perceptions of higher pay
Officer of the Al Jaber Group conglomerate, Raja
compared with private companies, and the governThe Booz study
showed that
Easa Al Gurg is Managing Director of the Easa
ments shorter working days.
Saleh Al Gurg Group and President of the Dubai
Despite a low representation in the private sector
%
Business Womens Council, and Noora Al Kaabi is
overall, Emirati women are 37.5 per cent of the
of those national
managing director of Abu Dhabis media free zone,
countrys banking sector workforce. Women also
females in the
twofour54.
outnumber men in professions such as teaching,
labour force
Despite their achievements, women remain a
medicine and nursing. The outlook for the future
work for the
UAE Federal
relatively untapped resource in the UAE. Female
looks promising. Statistics for Abu Dhabis higher
Government.
participation in the labour market is 43.5 per
education sector in 2011-12 reveal that, although
cent, compared with 92.3 per cent for men, according to UN
80 per cent of Emirati women in higher education attend a
figures. However, the UAE Government has recognised that
government institution, their graduation rates are far higher
women will be a key factor in the states future prosperity and
in private colleges than Emirati men. Indeed, although only
is pursuing a strategy to empower women. Increasing female
40 per cent of Emiratis in private higher education are women,
participation in the economy could lead to great economic
they make up 70 per cent of the graduates.
and social benefits for the country. If female employment rates
Employment protection for women exists in the UAE, with
were to match those of men, it would boost the UAEs gross
employers prohibited from firing an employee on the basis
domestic product by some 12 per cent, according to a 2012
of pregnancy. But more could be done by private compastudy by the consultancy Booz & Co.
nies to better match the needs of women with the workplace.
Currently most Emirati women opt to work in the governAccording to Booz & Co, family-friendly arrangements, such as
ment sector. The Booz study showed that 42.6 per cent of those
flexible hours, part-time work and on-site day care, would help
national females in the labour force work for the UAE Federal
to attract women to the private sector.
Government, 35.9 per cent for the governments of the indiThe seriousness with which the Government treats female
vidual emirates, while the private sector attracts 9.3 per cent of
economic empowerment is reflected in its policy. In December
the Emirati female labour force. The remainder are entrepre2012, the UAE Cabinet ruled that all UAE corporations and
neurs or un-defined in the study. The preference for publicgovernment agencies must include women on their boards of

42.6

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directors. The policy is the first of its kind in the Arab world.
The decision was welcomed by Hawkamah, the Dubaibased Institute for Corporate Governance. Reviewing board
memberships of companies listed on the Abu Dhabi Securities Exchange (ADX) and the Dubai Financial Market,
Hawkamah found there were only 11 women directors
serving on the boards of UAE publicly listed companies. Only
one UAE listed company had two women directors serving on
its board. As a result, Hawkamahs sister institute, the Mudara
Institute for Development, has launched a Women in Boards
initiative, based on the belief that women can be a good source
of talent for the boards of UAE companies.
In early 2012, the third Arab Women Leadership Forum,
organised by the Dubai Women Establishment, was held in
Dubai. It saw an elite group of women leaders from around
the region deliberating on topics related to women serving
in boardrooms. The conference identified the factors that
impede the progress and participation of women.
HH Sheikha Manal bint Mohammed bin Rashid Al
Maktoum, President of the Dubai Women Establishment,
commented that the annual Forum has gained tremendous
traction as one of the only platforms for women that tackles
the hard issues facing them in the workforce in addition to
professional advancement issues. Women represent an integral part of our overall human capital and human resource
and are playing an increasingly important role in the work-

171

The Arab Women


place. In light of todays global environLeadership Forum
ment, it is more important than ever to
at the Grand Hyatt
focus on leadership development as
Hotel in Dubai City.
evidenced during previous sessions of
this Forum women are going to be increasingly vital to this
effort.
The conference declared that capacity-building was
required for female leaders to be able to serve in boardrooms.
Hawkamah has also conducted a number of workshops
exploring the barriers to female representation on boards, as
well as studying best practices.

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Womens Welfare
The UAE Federal Government has established a social welfare
system operated by the Ministry of Social Affairs and makes
specific allocations to the countrys womens organisations
to ensure that all those in need, particularly women in rural
areas, have access to an economic safety net plus social care
assistance. Social welfare is not limited to the provision of
social needs, but also extends to provide for the psychological
and educational needs of all beneficiaries.
In addition to providing welfare, the UAE has also set up a
number of initiatives to prevent and deal with gender-based
violence. The Government has established and supports shelters, social support centres and a telephone hotline for women
who are victims of violence.
In 2012 the Ewaa Shelter for Women and Children moved
to new premises in Abu Dhabi donated by HH Sheikha
Fatima bint Mubarak Al Kitbi, the widow of former UAE President Sheikh Zayed. The organisation also provides shelters
in Sharjah and Ras al-Khaimah. In April 2012 a new shelter
for Emirati women who are victims of abuse was opened in
Sharjah. The shelter is named Qawarir after the word used in
the Quran to urge men to treat their wives, sisters and mothers
with love. The Dubai Foundation for Women and Children,
established in 2007, was the first licenced non-profit shelter in

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Women from rural areas of Sharjah,


Ras al-Khaimah and Fujairah attend a
business skills workshop organised by
the General Womens Union.

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pates in the process of preparing laws,


accords and agreements that directly
affect women in the UAE. The GWU is
also the official representative of Emirati
women outside the UAE. There are over
20 womens social, cultural and religious
organisations throughout the country
under the umbrella of the GWU and the
Family Development Foundation.
The GWU has launched a National
Strategy for the Advancement of
Women in the UAE, which sets the
agenda for all government institutions
within the UAE that are mandated with
empowering women. It is also working
with the UN Childrens Fund, UNICEF,
to develop a National Childhood and Motherhood Strategy
that will focus on education, health, child protection and
participation.
In 2012 the GWU, in conjunction with the UN, held a series
of workshops in Ras al-Khaimah, Umm al-Qaiwain, Ajman
and Fujairah, focusing on economic and social empowerment. The courses aimed to help women to contribute to their
local economies. The GWU has also designed a number of
training programmes to enhance administrative, technical
and linguistics skills among women.
The newly opened
Womens Museum
celebrating Emirati
females in the Deira
area of Dubai.

the UAE for women and children who are victims of domestic
violence, child abuse and human trafficking.
The General Womens Union (GWU) is a key institution
dedicated to womens welfare, established in 1975 by HH
Sheikha Fatima. She still chairs the GWU and has received
numerous awards for her role in promoting women in the
fields of education and sport including the International
Olympic Committees Presidents Trophy in 2012.
The GWU initially focused on education and illiteracy,
but today works on a wide range of programmes and partici-

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Education
Education has long been a priority for the UAE, but the sector
has taken on a renewed significance in recent years as efforts
to reduce the private sectors reliance on imported labour
have been awarded greater urgency. A series of reforms in the
education sector has been implemented to better match the
skills of graduates with the needs of the labour market.
Like other Gulf States, the UAE faces unique demographic
and employment challenges. Two-thirds of Emiratis are under
the age of 30 and youth unemployment is significantly higher

than the overall unemployment rate. The government is


actively addressing this challenge by expanding and reforming
the education sector, with both education and Emiratisation
being key government priorities.
Budgetary allocations to the sector, which offers free education to citizens at all levels, have been consistently high. The
education sector was awarded the largest allocation of Dh
8.2 billion in the 2012 budget. Higher education was given a
boost, with an increase of 28 per cent (Dh3 billion) going to
national universities and colleges. In October 2012 the federal
budget for 2013 was announced, with the education sector
receiving Dh9.9 billion, of which the Ministry of Education

The new Zayed


University Campus
in Dubai.

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received an allocation of Dh6 billion to help carry out the


ministrys plan to equip schools with modern and advanced
methods of learning. The Ministry of Higher Education and
Scientific Research is to receive Dh3.9 billion to achieve its
strategy for higher education development, and to provide
scholarships abroad for Emirati students.
The focus on education by government authorities and
educational establishments has driven illiteracy rates to
among the lowest in the Arab world. Illiteracy among Emiratis in Abu Dhabi was 75 per cent in 1971, but had dropped
to just 6 per cent in 2011, according to the Statistics CentreAbu Dhabi. Only 7.5 per cent of the entire population of the
UAE both expatriate and national was recorded as illiterate. Consequently, the focus has turned to improving both
the quality and relevance of education.

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Primary and Secondary Education


In 2008 the Ministry of Education introduced the K-12 system
to organise public education from kindergarten to high school.
Schools are divided into four age groups, ranging from kindergarten (four to five years) and elementary (six to 11 years), to
intermediate (12 to 14 years) and secondary (15 to 17 years).
Education at primary and secondary levels is universal and
compulsory up to the ninth grade.
Authority for primary and secondary education has been
devolved in the two largest emirates. In Abu Dhabi, the Abu
Dhabi Education Council (ADEC) oversees schools, while in
Dubai, the Knowledge and Human Development Authority
(KHDA) has the authority to inspect schools and the Dubai
Education Council (DEC) seeks to meet global standards,
focusing on international accreditation and comprehensive
quality assurance programmes. Schools in Umm al-Qaiwain,
Sharjah, Ras al-Khaimah, Ajman and Fujairah operate under
the federal Ministry of Education.
In Abu Dhabi there are 299 government schools and 181
private schools, in Dubai there are 79 government schools
and 148 private schools, while Sharjah has 140 schools, 86
of which are private. The UAEs public sector curriculum is
taught in Arabic. Expatriates are allowed to attend government schools, admission is based on merit and fees are levied.

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The government is encouraging more


The government
Emiratis to join the teaching profession,
is encouraging
with the Emiratisation of teachers in
more Emiratis to
UAE government schools expected to
join the teaching
reach 90 per cent by 2020.
profession, with
In Abu Dhabi, government schools
the Emiratisation
of teachers in UAE
are operated by ADEC. The authorgovernment schools
itys annual External Measurement of
expected to reach
Student Achievement programme,
which assesses pupils in government
%
schools in Grades 3 to 12 in Arabic,
by 2020.
English and mathematics, showed an
overall improvement and higher academic achievement in
2012. A new curriculum was also tested by ADEC with the
number of subjects reduced from 13 to 10, and a greater focus
on technology-based teaching implemented. Teacher training
was also prioritised in 2012. ADEC report that more than
2000 teachers in Abu Dhabi had been trained between March
and July 2012 as part of the Tamkeen: Empowering Educators programme on the usage of Internet and Computer Technology (ICT), on ways to help engage students, strategies for
positive behaviour management and learning styles, special
education needs and assessment for learning and instructional strategies for the new school mode. ADECs Abu Dhabi
Future Schools Programme, which is responsible for building
educational infrastructure across the emirate, also made

90

176

headway in 2012 with the construction of new kindergartens.


KHDA, meanwhile, is responsible for the growth, direction and quality of private education and learning in Dubai
and ranks the emirates private schools on a scale of unsatisfactory to outstanding. In 2012, some 12 schools were ranked as
outstanding, up from just four in 2008. There are 13 different
types of curriculum on offer in Dubais private schools,
according to KHDA. Many private international schools are
accredited by international bodies. Most students attend UK
curriculum schools (31 per cent), Indian curriculum schools

Pupils at Al Shorouq Shool in Jumeirah.

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Higher Education
(30 per cent) or US curriculum schools (21 per cent). There are
now 25 schools in Dubai offering the International Baccalaureate, up from just three in 2005. KHDA has implemented new
rules for private schools looking to raise their fees. The system
bases annual increases of fees on inspection results and inflation. Increases in fees can only be made if a school performs
well at inspection.
Private education has expanded rapidly across the UAE.
KHDA says that at least 58 per cent of Emirati pupils pay to
attend private schools rather than attend free state schools in
Dubai. There was a 22 per cent growth in the enrolment of
pupils at private schools between 2008 and 2011, according
to education adviser Parthenon Group. Booz & Co, a consultancy, said it expects a 54 per cent increase in private school
enrolment in Dubai and Abu Dhabi by 2020, estimating that
the market value of the UAEs private education will triple in
size to reach between US$2.8 billion and US$3.9 billion by
2020.

The American
University of
Sharjah.

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Higher education is also undergoing rapid change and growth,


with the UAE evolving to become a regional centre for higher
education. The UAEs three federal universities, UAE University, the Higher Colleges of Technology and Zayed University,
are expanding to accommodate growing student populations,
while numerous partnerships with overseas universities have
allowed top international universities to establish campuses

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in the UAE. These include the New York University, ParisSorbonne University and the Massachusetts Institute of Technology in Abu Dhabi; Heriot-Watt, Manchester University,
Murdoch University, University of Wollongong and many
others in Dubai, and EPFL in Fujairah. Sharjah has the American University of Sharjah, founded as an independent institution in 1997, based on US models and with international
accreditation. Ras al Khaimah plays host to the University of
Bolton and the American University RAK.
The numbers of higher education institutions in the UAE
has soared to accommodate the growing numbers of students.
Student numbers have swelled in recent years with 95 per cent
of all females and 80 per cent of males who are enrolled in
the final year of secondary school applying for admission to
a higher education institution in the UAE or abroad. Federal
universities and institutes granted admission to 14,570
Emirati high-school graduates for the 2012-2013 academic
year, the largest number of citizens who have found places
at federal universities during one academic year. Female
students accounted for 60 per cent of the figure. A further 380
students received scholarships from the Ministry of Higher
Education and Scientific Research to pursue their education
abroad, while 3520 students joined programmes at the Abu
Dhabi Vocational Education and Training Institute (Adveti)
for the first time.

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Students at the newly opened Zayed University Campus.

Higher Education in Abu Dhabi


In Abu Dhabi, there are currently 22 accredited higher education institutions, including branches of foreign universities.
The emirate is working to match its higher education sector
with the knowledge and innovation-based society it hopes
to establish. In 2010, ADEC launched a 10-year strategic
plan aimed at putting the quality of higher education on a
par with international standards, while aligning academic
programmes with Abu Dhabis 2030 vision. The strategic
plan focuses on achieving four priorities, including elevating
the quality of higher education in Abu Dhabi to international

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standards, bringing higher education


in line with the social, cultural and
In Abu Dhabi, there
are currently
economic needs of Abu Dhabi, setting
up a research eco-system to support
an innovation-based economy, and
accredited
providing affordable higher educahigher education
tion opportunities for all qualified
institutions,
students.
including branches of
foreign universities.
The plan was developed by a taskforce comprising educational institutions and government bodies including the General
Secretariat of the Executive Council, the Executive Affairs
Authority, the Ministry of Higher Education and Scientific
Research, UAE University, Advanced Technology Investment
Company (ATIC), Harvard Business School, the University of
Oxford and Imperial College, London.
Research carried out by the taskforce identified a number of
challenges facing the higher education system and identified
several areas of mismatch between the system and the objectives set by the Abu Dhabi Economic Vision 2030. The strategy
addresses these challenges through improving the quality of
higher education, setting up committees to review the progress
of the plans implementation.

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179

Higher Education in Dubai


By the end of 2012 there were 53 higher education institutions
in Dubai, with a total of over 48,000 students. Three federal
institutions, Zayed University, Dubai Womens College and
Dubai Mens College, the latter two being part of the Higher
Colleges of Technology network, make up 6 per cent of the
total number of institutions in Dubai.
To provide high quality international degrees to its citizens
and residents, Dubai has attracted 26
international higher education instituDubai has
tions from 10 countries that have set up
attracted
branch campuses in the emirate. Dubai
has also built infrastructure dedicated
to higher education. Dubai Knowledge
international
Village (DKV) opened in 2003 as the
higher education
first purpose-built zone to house educainstitutions from
tion institutions, followed by Dubai
countries
International Academic City (DIAC),
established in 2005 to house education
institutions offering degree programmes.
The most popular field of study amongst students in Dubai
is business (42 per cent), followed by media and design (10 per
cent) according to KHDA. Significant numbers of students
are also studying engineering (9 per cent), humanities (8 per

26
10

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cent), law (7 per cent) and information technology (5 per


cent). However there are comparatively few students studying
health and medicine (2 per cent), education (1 per cent) and
natural and physical sciences (1 per cent).
The Dubai Government and KHDA hope to increase
the enrolment of Emirati students studying in the emirate.
Currently Emirati students make up 43 per cent of the total
student population in Dubai, 55 per cent of whom are males
and 45 per cent female. One method to increase enrolment
has been to guarantee government jobs after graduation. In
2012, Emirati students in Dubais free zone universities and
colleges overseen by the KHDA were given the same guarantee as enjoyed by universities accredited by the Ministry of
Higher Education and Scientific Research

Emirati students
of Masdar Institute
of Science and
Technology after
their graduation
ceremony.

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Vocational Colleges
The Higher Colleges of Technology (HCT) is the largest
federal educational institution with 17 colleges around the
country. Founded in 1988, HCT offers work-relevant, Englishtaught programmes in Applied Communications, Business,
Computer & Information Science, Engineering Technology,
Health Sciences and Education at various levels. All
programmes are designed in consultation with business and
industry leaders to ensure the students skills are job-relevant
and to a high standard. Student numbers have grown from

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250 students in 1988 to 18,000 students


In 2012, the Dubai
today.
branch of the
With applicants for the federal univerLondon Business
sities growing quickly, the HCT has
School reported its
raised its admission standards over the
highest admission
years. In 2007, the Abu Dhabi Vocain its five years of
existence, recording
tional Education and Training Institute
increased enrolment
(Adveti) opened to take on students that
from countries such
are unable to gain entry to any of the HCT
as Egypt.
colleges. Adveti has seven campuses
across the UAE. New students take a one-year intensive course
in English before embarking on a diploma in a particular subject.
Numerous business schools have also set up satellite
campuses in the UAE. One of the first business schools to
set up in the UAE was Australias University of Wollongong Business School, which launched in Dubai in 1994. It
was followed by many more, including London Business
School, Cass Business School, INSEAD, Edinburgh Business
School, Hult International Business School, and the University of Strathclyde Business School. Other schools including
Wharton and Dukes Fuqua School of Business have a presence in the UAE through research centres. In 2012, the Dubai
branch of the London Business School reported its highest
admission in its five years of existence, recording increased
enrolment from countries such as Egypt.
The UAE has a number of well-respected specialised schools

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INSEAD Business
School in Dubai.

of higher education. The Masdar Institute of Science and


Technology is a graduate school focused around renewable
energy and advanced sustainability technology and created in
collaboration with MIT. It celebrated its third graduating class
of 90 students in 2013, including its first international graduates supported though IRENA scholarships provided by the
Abu Dhabi Government. The Petroleum Institute, founded
in 2000 by the Abu Dhabi National Oil Company (ADNOC),
offers both undergraduate and graduate degrees in several
engineering disciplines for the oil and gas sector. The Dubai
School of Government, a research and teaching institution
set up in 2005, offers a Masters in Public Administration and
through its Leaders Programme provides governance training
elsewhere in the Arab world, most recently in Libya.

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Healthcare
The UAEs health sector has evolved rapidly in the past decade.
Healthcare demand has grown along with the population and
billions of dirhams have been invested to improve healthcare,
which is provided for free in government hospitals and clinics
to all UAE citizens. In 2012, the sector received a budget allocation of almost Dh3 billion, up from Dh2.3 billion the year
before. The progress the sector has made is illustrated by the
countrys maternal mortality rate, which is now among the
lowest in the world. Other indicators such as infant mortality
rate are on a par with other developed countries.
As a result of both public and private investment, the UAE
now boasts a highly-developed physical healthcare infrastructure made up of well-equipped hospitals, specialist clinics
and primary care centres. The country is home to some 70
hospitals, 15 of which are federal institutions, and more than
150 primary health-care centres and clinics. There are also 11
school health centres, 10 centres for mothers and children and
110 special units for mothers and children in hospitals and
primary health-care centres. There are also two health-care
free zones in Dubai: Dubai Healthcare City and Dubai Biotechnology and Research Park.
Healthcare is regulated at both the federal and emirate level.

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The trauma center


The UAE Ministry of Health was estabof Rashid hospital in
lished pursuant to Federal Law No. 1
Dubai.
of 1972 to, among other things, licence
companies and individuals providing healthcare services,
build and manage health facilities and regulate various areas
of healthcare, including the practice of medicine, dentistry,
nursing, pharmaceuticals and laboratories. Federal Law No.
13 of 2009 established the Emirates Health Authority (EHA),

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which has regulatory functions and initiatives to encourage


cooperation between the federal and local health authorities
and between such authorities and the private sector. EHA is
based in Sharjah and works closely with HAAD in Abu Dhabi
and DHA in Dubai.
In Abu Dhabi, HAAD was created to regulate both public
and private healthcare providers and to track and steer
progress towards realising the emirates 2006 vision for Abu

Dhabis health system. The vision has guided major reforms.


SEHA, which means health in Arabic, is the public healthcare provider. It owns and develops public healthcare facilities, including partnerships with several overseas operators to
manage them.
Dubai Health Authority (DHA) was created in June 2007, its
principal objectives include healthcare planning and promotion of healthcare investment, improving healthcare quality
through information systems and standards, regulating
healthcare services, developing a comprehensive healthcare
insurance and funding policy, public health promotion, developing medical education and research, and owning and operating Dubai government healthcare facilities.
DHA is authorised to regulate all healthcare services in
Dubai, including those in free zones. Healthcare facilities
and professionals in Dubai must be licensed by DHA. The
Ministry of Health oversees the healthcare system in Sharjah,
Ras al-Khaimah, Ajman, Umm al-Qaiwain and Fujairah.
There have been recent developments establishing new
healthcare institutions or reforming existing ones, Sharjah
has established the Sharjah Health Authority. The Ministry of
Health continues to invest substantial efforts to improve the
level of healthcare services in these emirates.
Al Noor Hospital in
Abu Dhabi.

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Policy
A number of significant developments took place in healthcare
policy in 2012. Dubai and Abu Dhabi unified their medical
licences, providing doctors with more flexibility by making it
easier for healthcare professionals to move between the emirates. The Ministry of Health, which regulates healthcare in
the other emirates, hopes to follow. In addition, a nationwide
board was also established to evaluate and approve training
programmes and examinations, with the aim of standardising
the quality of health in the UAE.

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In Dubai, every public and private


healthcare centre was surveyed to
identify gaps in services, under a
scheme called the Dubai Clinical
Services Capacity Plan, organised
by the Dubai Health Authority. A
20-year plan was also launched
to meet the needs of the UAEs
growing elderly population. In 2010
there were around 40,000 Emiratis
over the age of 60. The Ministry of Health expects this figure
to increase by 20 per cent by 2020, requiring more rehabilitation facilities, day-care centres and home services.
Moves were also made in 2012 to make healthcare more
affordable. The tariffs that healthcare providers can charge
in Abu Dhabi were capped. Under the new system, the cost
of surgery will drop by up to 14.9 per cent, while laboratory
costs will fall by 24.2 per cent.
Plans were also drawn up to increase the number of doctors
in the UAE by more than 40 per cent over the next five years.
Figures from HAAD released in 2012 showed that there are
only 16 physicians per 10,000 people in Abu Dhabi, with

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The health authority


estimates that by 2021
Abu Dhabi will require

3200
5900

additional doctors and


extra nurses.

185

shortages in emergency, neonatal, cardiology and intensive


care. HAAD plans to increase the ratio of doctors to 23 per
10,000 people over the next five years. It also hopes that Emiratis will make up at least a quarter of all doctors in Abu Dhabi,
reducing the reliance on expatriate doctors.
The health authority estimates that by 2021 Abu Dhabi
will require 3200 additional doctors and 5900 extra nurses. If
turnover remains at the 2011 level, this will require an annual
recruitment of some 1500 doctors and 1600 nurses, according
to HAAD. The authority also says that high demand projections indicate that in 2021 demand for in-patient services may
require up to 1600 additional beds beyond the current 3659
beds available.
Despite the great strides the sector has made, it still faces
a number of pressing challenges, evidenced by the large
numbers of people who choose to travel overseas to obtain
healthcare. A 2012 survey by the Dubai Health Authority
covering 2000 people, both Emiratis and expatriates, found
that almost 10 per cent did not seek local advice before travelling abroad, citing a lack of equipment and skilled staff as their
motives. Though Emiratis are broadly satisfied with healthcare in the UAE, almost two in five prefer to be treated abroad,
according to a Gallup survey carried out in 2012.

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New Facilities
Billions of dollars have been invested in new healthcare
projects across the Emirates. Abu Dhabi in particular has
attracted top overseas names to manage hospitals in the
emirate, such as Cleveland Clinic and John Hopkins University, based in the United States. The Cleveland Clinic Abu
Dhabi is a US$1.6bn multi-specialty 360-bed hospital
currently under construction. In 2013, it is hiring 175 physicians and 2500 nurses, and the hospital
is due to open in 2014. Cleveland Clinic
has managed Sheikh Khalifa Medical
City in Abu Dhabi since 2007.
In May 2012, a second Imperial
College, London Diabetes Centre
opened, following the successful establishment of the first Centre in Abu
Dhabi in 2006. The centre is a state-ofthe-art facility that provides world-class
standards of care to diabetes patients in
Al Ain. The new centre is an extension
of the partnership agreement between
The laboratory at
the Imperial College
Mubadala Healthcare, a unit of the Abu
London Diabetes
Dhabi Governments strategic investCentre in Abu
ment company Mubadala DevelopDhabi.

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ment, and Imperial College, London.


As part of the Ministry of Healths strategy to bring healthcare in the smaller emirates up to the same standards as in
Abu Dhabi and Dubai, it has invested in building a range of
new hospitals. In 2012, the Ras al-Khaimah Sheikh Khalifa
Specialist Hospital was completed, as well as new hospitals in
Sharjah, Fujairah and Ajman.
The DHA also opened a number of primary healthcare
centres in Dubai in 2012. The first federal government clinic
exclusively for mens health opened in 2012, at Muhaisnah

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Health Centre in Dubai. Meanwhile the UAEs first hospital


dedicated to paediatric care, the Al Jalila Childrens Specialty
Hospital in Dubai, is due to open by 2014.
NMC Healthcare, a London-listed but UAE-based hospital
group, which operates eight facilities across the Emirates,
opened its Mussafah day-patient medical facility in Abu
Dhabi in May 2013 and plans to open its Brightpoint maternity hospital in Abu Dhabi by the end of 2013. Mubadala
Healthcare completed construction of a spinal-care centre in
Abu Dhabi. Meanwhile, DM Healthcare Group is rolling out a
new brand of budget clinics aimed at lower-income patients. It
opened its first Access Clinic in December 2012, at the Ramla
Shopping Mall, Dubai Investment Park.

Health Insurance
HAAD launched an Abu Dhabi government mandatory
health insurance scheme, which today covers 98 per cent of the
Abu Dhabi population, in 2007, with the aim of ensuring that
all Abu Dhabi residents have access to high-quality healthcare. Employers and sponsors in Abu Dhabi are obliged by law
to provide health insurance to employees and their families.

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Eventually, in accordance with federal law, all Emiratis and


expatriates will be covered by compulsory health insurance
under a unified scheme.
The introduction of mandatory health insurance was a
major driver of healthcare reform in Abu Dhabi. As part of
the implementation of the Health Insurance Law, the thiqa
programme grants all UAE citizens in the emirate healthcare
coverage through a comprehensive network of healthcare
providers. The National Health Insurance Company Daman
was assigned to manage the programme.
In Dubai, a long-awaited health insurance law should come
into force once it has received final approval from the Dubai
Executive Council. There are at least one million people with
health insurance in Dubai, though figures from Dubais Household Health Survey in 2010 showed that three-quarters of Asian
and Arab expatriates were not covered by health insurance.
In December 2012, the DHA said it would begin regulating
services provided through health insurers in Dubai in the first
quarter of 2013 to tackle insurance fraud, abuse, and cases of
over-treatment in the emirate. Some 40 insurance companies
in Dubai and private health-care providers will be required
to register with DHA as the regulatory framework becomes
functional.

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Public Health and


Preventative Medicine
The UAE is confronting major public health challenges
brought about by poor diet, lack of exercise and tobacco use.
The country has high rates of lifestyle-related chronic diseases
such as obesity, diabetes and cardiovascular diseases. The
Diabetes 2012 Atlas Update places the UAE eleventh globally
for the disease and fifth regionally, with almost 19 per cent of
Emirati nationals already diabetic.
Cardiovascular diseases accounted for over a quarter of
deaths in Abu Dhabi in 2011, according to HAAD. Adult citizens were screened for cardiovascular risk factors in 2008 as
a condition for enrolment in thiqa insurance. HAADs early
analysis of results of the screening showed obesity rates of 33
per of males and 38 per for females, and
high proportions of people at risk of
diabetes and hypertension among UAE
citizens over 15.
UAE health authorities have recognised that a concerted effort to highlight risk factors and identify healthy
habits is needed to reduce the incidence
of chronic diseases. HAAD works with
a range of stakeholders to encourage

188

preventative measures, including with municipalities on


tobacco control, schools on healthy eating and exercise, police
on road safety and employers on workplace health promotion.
In 2009, The Fat Truth Campaign was launched in the
UAE, a three-month awareness-raising initiative developed
and implemented by UNICEF and multiple government and
private-sector partners. The campaign aimed to sensitise children, adolescents and parents to the risks of childhood obesity
and the benefits of a healthy diet and regular physical exercise.
A range of campaigns have highlighted the issue since.
Some 17,000 people joined Walk 2012 at Yas Marina
Circuit, calling attention to the crucial role of regular exercise
for a healthy lifestyle. The walk was organised in the capital
by the Imperial College, London Diabetes Centre (ICLDC)
with the support of the National Health Insurance Company
Daman. Health experts believe that increasing awareness
about the disease, specifically the risk
factors and complications of Type 2
diabetes, remains critical to reducing its
incidence over time.
Education and awareness campaigns
have also increased cancer-screening
rates for all nationalities. Cancer caused
14 per cent of all deaths in Abu Dhabi
in 2011. Because late detection of breast
cancer leads to significant increases in

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mortality, female Emiratis aged 40-69 are being screened for


breast cancer as part of their thiqa insurance renewal. In 2012,
under the patronage of HH Sheikha Fatima bint Mubarak,
HAAD launched the Cancer Wave Health Promotion Project.
The campaign aims to provide awareness on cancer, early
detection and tips for prevention. In October 2012, the Cancer
Registry started to collect data. All HAAD-licenced healthcare
facilities are now required to report new cancer cases through
an online system, which will also monitor screenings.
The Health Ministry is also fighting tobacco usage in
UAE. The ministry has established anti-smoking support
clinics, while primary health centres
and preventive medicine centres
have worked to raise awareness of the
Road traffic safety
messages have had
dangers of smoking.
success in lowering
Road traffic safety messages have
the number of
had success in lowering the number
traffic accidents
of traffic accidents and fatalities in the
and fatalities in
the UAE in recent
UAE in recent years. Salama (the Arabic
years.
word for safety) is a public awareness
initiative launched in 2008, under the
patronage of HH Lt. Gen. Sheikh Saif bin Zayed Al Nahyan,
UAE Deputy Prime Minister and Minister of Interior, in order
to address the issue of road safety throughout the nation.
Salama is an initiative supported by Emirates Foundation for
Philanthropy and Shell.

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Abu Dhabi is also continuing to raise awareness to try and


prevent injuries and deaths caused by dangerous driving. The
emirate has one of the highest rates of injuries resulting from
road traffic accidents, according to HAAD. They account for
11 per cent of all deaths and are the leading cause of death
amongst young males. Government agencies have implemented speeding fines, free provision of child seats and traffic
safety education programmes. In Dubai there is continued
focus on promoting road safety through car inspection and
safe driving, promoting road safety among all motorists.
Activities include field visits to driving schools and transport
companies.

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Medical Tourism

cent of its 231,000 patients in 2009.


Other private-sector hospitals and medical centres in Abu
Dhabi and Dubai have also reported an increase in the number
of patients coming from abroad to seek medical treatment. The
The Dubai Medical Tourism Group Initiative was estabDubai Health Authority estimated that the number of inbound
lished in 2012 following an announcement from HH Sheikh
medical tourists in Dubai grew by 10 to 15 per cent over the
Hamdan bin Mohammed bin Rashid Al Maktoum, Crown
course of the year. The UAEs medical tourism market was
Prince of Dubai and Chairman of the Dubai Executive
worth an estimated US$1.6bn in 2012, according to research
Council, with the aim of establishing Dubai as a global health
from Euromonitor International.
tourism hub. Through a partnership with the Dubai Health
The majority of medical tourists in Dubai are from the GCC
Authority and the Department of Tourism and Commerce
and the wider region, South Asia, Russia and Central Asia.
Marketing, and under the umbrella of the Dubai Medical
Reports suggest that most patients come from neighbouring
Tourism Group, Dubai Health Care City is increasingly
countries seeking surgical procedures that are not available in
promoting itself to a global audience with the aim of attracting
their home countries.
medical tourists to the free zone.
The Dubai Health Authority (DHA) said it is working on a
The group is addressing the needs of identified markets
set of guidelines that would govern medical tourism. Qadhi
and tackling issues such as visas and logistics, while working
Saeed Al Murooshid, Director-General of the Dubai Health
towards branding Dubai as a top destination for medical
Authority, said: Dubai is keen to foster the medical tourism
tourism. It also aims to reduce the number of citizens that
sector and implement several new
leave the country to obtain treatment.
initiatives to boost medical tourism
The number of medical tourists seeking
in cooperation with other governtreatment in the free zone has grown
Dubai is keen to foster the medical tourism
sector and implement several new initiatives
ment departments, the DHCA and the
significantly. Dubai Healthcare City
to
boost
medical
tourism
in
cooperation
private healthcare sector.
found that of 502,000 patients in 2012,
with other government departments, the
The authority is working to develop
about 15 per cent were medical tourists,
DHCA and the private healthcare sector.
the sector alongside government
compared with 10 per cent of its 412,000
Qadhi Saeed Al Murooshid, Director-General of
the Dubai Health Authority.
departments, airlines and tourism
patients in 2010, and an estimated 5 per

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companies. Al Murooshid said that developing a world-class


integrated health system and promoting Dubai as a globally
recognised destination for healthcare is in line with the vision
of the Dubai Health Strategy 2011-2013.
Laila Al Jassmi, CEO of Health Policy and Strategy Sector,
pointed out that Dubai has more than 4750 doctors and
physicians speaking over 40 languages: Dubai is well poised
to address the healthcare needs of this market as we satisfy
the key criteria for healthcare that theyre looking for a large
number of highly qualified medical professionals, strong
private-sector health infrastructure, ease of access and the
added advantage of multi-lingual skills given Dubais diversity.

A patient
undergoing a
CAT scan at the
DNA Center for
Integrative Medicine
& Wellness at the St
Regis Resort in Abu
Dhabi.

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Media
Facebook opened its
first MENA office in
Dubai in 2012.

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The UAE is at the heart of the Middle Easts diverse and rapidly
growing media industry. The regions most prominent television broadcasters, advertising agencies and print publications
are all based in the country, many in thriving media zones
such as Abu Dhabis twofour54 and Dubai Media City.
A more positive business environment has seen many UAEheadquartered media companies make great strides since
2012. Abu Dhabi Media, for example, launched a new radio
station while the Dubai-based MBC opened a new TV station
geared towards Egypt. While many local
media companies thrived, several bigname global brands chose to set up shop
in the Emirates in 2012, attracted by the
UAEs world-class infrastructure, business-friendly environment and growing
advertising market. Sky News Arabia
began broadcasting from Abu Dhabi in
May 2012, and the social media giant
Facebook opened an office in Dubai in
the same month. All this came against the
backdrop of an industry recovering from
the impact of the global financial crisis
and political turmoil in the region, both
of which brought big declines in regional
advertising spending, a key source of
revenue for the media industry.

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Media Organisations
The National Media Council (NMC) was established in 2006
following a re-structuring of government ministries. The main
thrust of the NMC mandate is media regulation. In addition,
the Council oversees the Emirates News Agency (WAM), the
official state news service of the UAE, which began operations
in 1976. WAM transmits news on national, regional and Arab
affairs and has been recognised as a credible source for international media. It maintains a network of reporters outside
the UAE, and operates a website (www.wam.ae) with news
services in both Arabic and English. The NMC also supports
UAE Interact (www.uaeinteract.com), an online portal with a
searchable database of multimedia resources on the UAE. The
site presents news and information in Arabic, English, French,
German and Korean.
The NMC is also responsible for organising and manning
the UAEs pavilions at the biennial world EXPO events. The
most recent EXPO was held in Yeosu, South Korea in 2012
with the UAE pavilion winning several prizes. A conservation-oriented film, The Turtle, launched in Yeosu, has
subsequently received substantial international recognition,
winning several awards. The next EXPO event will be held in
Milan, Italy (see pages 141 147).
One of the key NMC events during 2012 was the launch

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of a television metering system to measure audience viewing


figures across the UAE. The system, now known as tview, will
be used by media industry to provide transparent and reliable
ratings on viewing figures. The project was jointly led by the
National Media Council and the Telecommunications Regulatory Authority.
It was a year of change for Abu Dhabi Media (ADM), one of
the largest media companies in the region. The company, set
up in June 2007, owns and operates five TV stations, six radio
stations, and the newspapers Al Ittihad and The National,
among other media assets. ADM celebrated the launch of
its latest radio station in conjunction with Indias largest FM
brand. Radio Mirchi, geared towards the UAEs large South
Asian community, hit the airwaves across the UAE in February
2012. Bollywood star Rani Mukherjee visited Abu Dhabi for
the launch of the station. Just ten months later, Radio Mirchi
took home the title of Best Radio Station at the 2012 Masala!
Awards, held in Dubai.
Dubai Media Incorporated (DMI) operates the television
stations Dubai TV, Sama Dubai, Dubai One, Dubai Sports,
Dubai Racing, and Noor Dubai TV. It also operates two radio
stations and the newspapers Al Bayan and Emarat Al Youm.
Highlights for 2012 included a three-year deal the Dubai media
firm struck with Metro-Goldwyn-Mayer (MGM), which gives
DMI exclusive TV rights to broadcast films such as the James
Bond movie Skyfall and The Hobbit.

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The Sharjah Media Corporation (SMC), which was established in 2009, operates Sharjah TV, Sharjah Sport TV and
Sharjah Radio, which started broadcasting in 1972. Part of
the aim of SMC is to nurture local media talents, and plan
the media strategy of the emirate of Sharjah. One landmark
moment of 2012 was SMCs workshop on Government
Authorities and Media, which was held as part of its commitment to nurture local media on the foundations of professionalism, excellence and creativity.
The Dubai Press Club was set up in 1999 as a centre for
media professionals to debate political, economic and social
issues. Created under the patronage of Sheikh Mohammed
bin Rashid, the club has sought to establish itself as a centre of
journalistic excellence and a meeting place for local, regional
and international media. The Club organises the wellrespected Arab Media Forum as well as the Arab Journalism
Awards.

Bill Gates at Media


Summit 2012, Abu
Dhabi.

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Media Events
The annual Abu Dhabi Media Summit, launched in 2010,
positions itself as the worlds most important gathering of the
leaders and companies driving the transition to a fully digital
future and places special focus on the Middle East, the Indian
Subcontinent, East Asia and China. In the third edition in
October 2012, Bill Gates, Microsoft chairman and billionaire philanthropist, gave an inspirational opening speech,
discussing the medias role in eradicating poverty and disease.
It marked a high-profile beginning to the summit, which

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brought together media executives such as Bob Bakish, chief


executive of Viacom International Media Networks, and Nart
Bouran, head of Sky News Arabia. Around 400 people from
across the global media industry participated in the invitation-only event at the Yas Viceroy Hotel in Abu Dhabi.
The Arab Media Forum, organised by the Dubai Press Club
since 2001, brings together over 9000 regional and international journalists and other media professionals to discuss the
key issues of the day as they affect media. The twelfth edition
in 2013 was entitled Arab Media: Transitional PhaseTransitional Media
and included a session on the emerging
phenomenon of Arabic satirical TV
programmes. In 2012 the focus was
on the relationship between the media
and the events surrounding the political uprisings in parts of the Arab world
and the role of religious discourse in the
Arab media. The two-day event attracts
tens of thousands of online followers
and participants from 45 nationalities.

twofour54 is a free zone committed to


establishing Abu Dhabi as a centre of
excellence for media content creation.

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Media Zones
Abu Dhabis media zone twofour54, named after the
geographical coordinates of the city, was launched in 2008, as
part of Abu Dhabis strategy to become a creative hub for the
media, as well as the arts and culture. Companies registered
there include CNN, the Cartoon Network and Bloomberg,
while other international media institutions such as the BBC
and the Financial Times also have their
local offices in the zone. Milestones for
the centre in 2012 include its support
of PopArabia, a new music-publishing
and music-rights consultancy, and
its support of a project to boost the
amount of Arabic content available on
Wikipedia.
Dubais Tecom Media Cluster, which
comprises Dubai Media City, Dubai
Studio City and the International
Media Production Zone (IMPZ), is
home to some of the regions largest
media companies, such as broadcaster
MBC, the publishers Motivate and
ITP, and the regional headquarters of
advertising firms Omnicom Media

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Print Media

Dubai Media City.

Group and Starcom MediaVest Group. The cluster attracted


257 new companies and freelance workers in 2012, including
Euronews, Ticketmaster and Getty Images, offset by the 170
media companies and freelancers who left the zones. Occupancy levels in 2012 stood at 100 per cent for Dubai Studio
City, 93 per cent for Media City and 70 per cent at IMPZ.
Dubai Internet City, another zone in the wider information
and communications technology sector, also reported more
business registrations last year.
Media zones have also been set up in the other emirates.
Fujairah Creative City, a media free zone that was established
in 2007 under the auspices of the Fujairah Culture and Media
Authority, boasts partners such as the Fujairah Media Group
and the Fujairah Media Academy. Ras Al-Khaimah set up a
media free zone, RAK Media City, in 2006.

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Newspapers and magazines are thriving in the UAE, especially in comparison to the problems the industry is facing
in other parts of the world. Print media institutions in the
country have made considerable progress in market size and
quality in recent years. There are seven Arabic newspapers and
eight English language newspapers as well a Tagalog newspaper produced and published in the UAE. The magazine
and specialist periodical sector continues to grow with a vast
number of subscription, controlled circulation and free circulation titles available. In the media free zones in Dubai, there
are over 120 publishing houses producing some 400 publications, whilst media free zones in Abu Dhabi account for 135
domestic and foreign companies producing and distributing
print and audiovisual media content. Organisations such as
the Dubai Press Club, Sharjah Media Centre and the UAE
Journalists Association, which has over 700 members, local
media outlets, and hundreds of accredited foreign media
correspondents in the UAE contribute to make the country
one of the key centres of the print and publishing industries in
the Arab world.
Two of the UAEs most prominent English-language newspapers were revamped during 2012. The Dubai-based Gulf
News became the first newspaper in the Arab world to adopt

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the Berliner format which describes a slimmer, more


compact broadsheet size. The new format was accompanied
by a host of new sections on topics like health, education and
personal finance. Gulf News rival The National, which is based
in Abu Dhabi, also announced a revamp in 2012. It launched
two monthly glossy publications to replace the weekly M
Magazine, as well as improved sport and arts sections.
Newspapers and magazines continue to attract the lions
share of the UAEs advertising spending, ahead of all other
media, attracting US$343 million in 2012. Other media,
notably internet but also television and radio, are expected to
grow revenues over the next three years. But magazines and
newspapers are forecast to see a fall in advertising spending in
line with global trends, according to the Arab Media Outlook.
Elsewhere in the print-media industry, it emerged that the
Dubai-based The Entertainer, which sells books of discount
vouchers, had sold half the company to the regional investment firm Abraaj Capital. The transaction was described as a
multimillion-dollar deal.

Broadcast Media
Television is big business in the Arab world. According to the
Arab Media Outlook, almost half of UAE residents spend
between one and three hours watching TV every day. MBC2

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is the most-watched channel in the country, followed by MBC


Action, MBC1, Dubai TV, Abu Dhabi Al Oula, MBC4, Al
Jazeera, Al Arabiya, Fox Movies and Zee TV.
The UAE is home to the main headquarters of scores of TV
channels, with at least 72 free-to-air stations operating from
the country in 2011. One notable addition came in May 2012,
with the launch of the Arabic-language Sky News Arabia, a
24-hour news station that started beaming live to more than
50 million homes across the Middle East and North Africa.
More than 400 staff were recruited to work at Sky News
Arabia at its Abu Dhabi hub and in 12 bureaus across the
globe. Sky News Arabia is part of a joint venture between Abu
Dhabi Media Investment Corporation (Admic), a private
investment company owned by HH Sheikh Mansour bin
Zayed Al Nahyan and British Sky Broadcasting (BSkyB).
Another success story in the UAEs television industry came
from the Abu Dhabi TV Network, part of Abu Dhabi Media,
which in November 2012 reported a 122 per cent increase
in subscription sales since it started broadcasting English
Premier League football games in the 2010/2011 season.
Imported TV formats adapted for the Middle East, such as
Arab Idol and a regional version of the game show Jeopardy,
ranked among the five most-watched shows in the UAE. But
the region is also producing its own original TV formats.
One home-grown TV show was The Entrepreneur, a reality
show launched in 2012 by the Dubai-based telecommuni-

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cations firm du. The show saw ten small and medium-sized
businesses compete for a Dh1 million cash prize. The Entrepreneur, which was aired on Dubai One, included a team of
judges, including Nisreen Shocair, the president of Virgin
Megastore in the Middle East and North Africa, who decided
the fate of the applicants.

Advertising
The UAE advertising market was hit hard by the global recession, as were most other markets across the Middle East and
North Africa. This was compounded by political turmoil in
the region, which prompted a heavy drop in Arab advertising
sales, especially in markets such as Egypt.
But 2012 brought hope for the Middle East advertising
industry. The Arab Media Outlook forecast that the regions
advertising market would rebound, in
stark contrast to 2011 when spending
Total advertising
fell by more than 10 per cent. Total
spending in the
advertising spending in the Arab world
Arab world was
was expected to rise to around US$5bn
expected to rise to
in 2012 and is forecast to grow annually
around
by 6.7 per cent to reach almost US$6bn
by 2016, according to the report.
US$
bn
in 2012.
In the UAE, total advertising spending

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was estimated at US$664 million in 2012, a slight increase on


the US$661 million seen the previous year, according to the
Arab Media Outlook. The industry is expected to grow by an
average of 4.4 per cent annually between 2011 and 2015. Much
of the wider regions advertising spending is also controlled
from Dubai, which is home to some of the worlds largest
media agencies, including names such as Omnicom Media
Group and MEC.
The Dubai-based pan-Arab broadcaster MBC, which is
behind some of the most-watched TV channels across the
Arab world, attracts the lions share of the regions television
advertising sales. In 2012, the network launched a new TV
channel called MBC Masr, which is geared towards the Egyptian market.

Digital and Social Media


The UAE cemented its status as a hub for global internet firms
in 2012, having seen two of the biggest names in social media
Facebook and LinkedIn set up shop in Dubai. The moves
came amid rising use of social media in the Middle East and
North Africa.
When Facebook opened an office in Dubai in May 2012, it
revealed that the region now accounts for 5 per cent of its total
user base. The worlds largest social network opened its office

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LinkedIn opened
its regional office at
Dubai Internet City
in 2012.

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at Dubai Internet City, initially with a team of three people


but with plans to expand. To celebrate the launch, Facebook
hosted dozens of the UAEs top advertising executives at an
event at Dubais lavish Burj Khalifa, in part of its continuing
attempts to boost sales in the region.
LinkedIn opened its regional office in October, also based
at Dubai Internet City, in a bid to boost sales of the sites
corporate recruiting services. LinkedIn said at the time that
it has one million users based in the UAE representing a
fifth of its entire membership base across the Middle East and
North Africa.
Facebook and LinkedIn were not the only global media
brands to boost their presence in the UAE and wider Middle
East during 2012. It was announced in June that Thomson
Reuters, the global information provider, had acquired the
Middle East business website Zawya for an estimated US$40
million. The site was originally launched in London, although it
moved to Dubai in 2002. Another big acquisition in the online
world emerged in February 2012, when it was announced
that Dubais home-grown digital agency Flip Media had been
acquired by the Paris-listed Publicis Group, which also owns
advertising agencies such as Leo Burnett and Saatchi & Saatchi.

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Culture
History and culture are key to the UAEs national
identity, and many of the cultural events held in
the Emirates reflect both the countrys important
traditions, and those of the wider Arab world. At
the same time, the cosmopolitan modern cities of
Abu Dhabi and Dubai hosted high-profile events
in recent years attracting international visitors
and interest from the global media, illustrating the
UAEs success in bridging East and West.
Key events in 2012 included the countrys main
film festivals, namely the Abu Dhabi Film Festival
and the Dubai International Film Festival. These
attracted celebrities such as Cate Blanchett and
Richard Gere, who paraded along the red carpet for
the glamorous gala ceremonies of the two events.
Other stars to visit the UAE during 2012 included
the Queen of Pop Madonna, who performed two concerts
in Abu Dhabi in early June. The festivals also celebrated Arab
cinema and the UAEs burgeoning film industry on its own.
The country also reaffirmed its commitment to the cultural
industries in future years. The Abu Dhabi Executive Council
signalled that its ambitious cultural projects on Saadiyat Island
would go ahead, giving the green light for the construction of

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museums including a branch of the


Louvre, the famous art museum in Paris,
and a branch of the Guggenheim, as well
as the locally-focussed Sheikh Zayed
Museum. Construction of the Louvre,
designed by star architect Jean Nouvel,
started in early 2013.

A swarm of camera
crews at the Abu
Dhabi Film Festival.

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Cultural Organisations and Regulators


including Abu Dhabi Art and Abu Dhabi International Book
The Ministry of Information and Culture, established when
Fair. It also promotes Abu Dhabi overseas, and in 2012 built
the UAE itself was formed in 1971, was revamped in 2004,
a majlis-style tent at Times Square in New York City, taking
losing its responsibility for information matters and becoming
some of the UAEs famed hospitality to the 500,000 people who
the Ministry of Culture, Youth and Community Developpass through the busy area each day.
ment. Several other authorities have also been launched to help
Another of its priorities is to ensure the preservation of Abu
promote cultural activities in the Emirates.
Dhabis cultural heritage, especially its historic and archaeologA major reorganisation of the Abu Dhabi governments
ical sites. It is also responsible for overseeing the development
two main tourism and culture agencies took place in 2012.
of the new, landmark museums in Abu Dhabis Saadiyat Island
The Abu Dhabi Tourism and Culture Authority (TCA)
Cultural District, including the planned Louvre Abu Dhabi,
was formed in February to replace the Abu Dhabi Tourism
Zayed National Museum and Guggenheim Abu Dhabi.
Authority (ADTA) and the Abu Dhabi Authority for Culture
The Dubai Culture & Arts Authority was established in 2008
and Heritage (ADACH). The merger, which also involves
by HH Sheikh Mohammed bin Rashid. Its focus is to spearthe Cultural Department of the Tourism Development and
head and support the development and growth
Investment Company, TDIC, wholly-owned by
of the cultural industry in Dubai and position it as
the former Tourism Authority, ordered by Sheikh
The TCAs mission,
the nerve centre that shapes art and culture across
Khalifa, maintained the staff and assets of all three
grounded in Abu
the region. Since its inception, Dubai Culture has
former institutions.
Dhabis 2030
Economic Vision,
launched several pioneering initiatives that have
The TCAs mission, grounded in Abu Dhabis
is to promote the
enriched the regions cultural scene. It supports the
2030 Economic Vision, is to promote the heritage,
heritage, culture
Gulf Film Festival and the SIKKA Art Fair, among
culture and traditions of the Emirate of Abu Dhabi
and traditions of
other initiatives. SIKKA, which is held every March,
worldwide. The TCA is the organiser of some of
the Emirate of Abu
is a showcase of Emirati art.
the major cultural events on Abu Dhabis calendar,
Dhabi worldwide.

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Dubais Bid to Host the World Expo 2020


In February 2012, Dubai formally launched its bid to host the World Expo 2020,
which, if successful, could attract 25 million visitors to the UAE. Full details of the
proposal which falls under Dubais chosen theme, Connecting Minds, Creating
the Future were set out in a 600-page bid document submitted in December
2012. The official bid dossier was submitted to the Bureau International des
Expositions (BIE), the Paris-based intergovernmental body in charge of the
bidding process, selection and eventual organisation of World Expos.
The chosen sub-themes for Dubais Expo 2020 bid include: sustainability and
the future sources of energy and water; mobility and new systems of logistics and
transportation; and new paths to economic development.
The proposed site for the World Expo 2020 Dubai was
chosen as a 438-hectare site on the south-western edge
of Dubai, known as Dubai Trade Centre Jebel Ali, and
adjacent to Dubai World Central airport.
If successful, Dubai would have the chance to host a
lucrative event spanning six months. The city was initially
up against four other contenders to host the Expo 2020,
namely Sao Paulo in Brazil, Ayutthaya in Thailand,
Ekaterinburg in Russia and Izmir in Turkey. The winner is
due to be announced in November 2013. Dubais bid to host
the event followed the success of the UAE Pavilion at the
2010 World Expo in Shanghai, which won two architecture
awards and attracted two million visitors.

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Dubais bid to host


the event followed
the success of the
UAE Pavilion at
the 2010 World
Expo in Shanghai,
which won two
architecture awards
and attracted two
million visitors.

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Film
The UAE enjoyed a blockbuster year in cinema, both at home
and abroad. Abu Dhabi even claimed its first Oscar in 2012. The
Help, which was co-produced by Image Nation, the film subsidiary of the government-owned Abu Dhabi Media, picked up a
prize at the 84th Annual Academy Awards in Los Angeles.
Image Nation also rolled out the red carpet for several of
its home-grown projects. The film companys first Emiratidirected movie, Sea Shadow, was selected to screen at the prestigious Annual Palm Springs International Film Festival in the
US. Image Nation Abu Dhabi, along with twofour54, was also
behind the Arab Film Studio short film competition, which
saw five young Emirati filmmakers compete for a Dh50,000
development deal to produce a short film.
The film, The Turtle, commissioned by the National Media
Council to be shown at the UAE Pavilion at Expo 2012 in
Yeosu, South Korea, won two international awards: the Golden
Dolphin Award at Cannes Corporate Media & TV Film Festival
2012 and The Best HD Movie of 2012 at ASBU BroadcastPro
Middle East Awards. At Cannes, the award was collected by
the star of the multi-lingual film, Ahmed Al-Dahouri, a young
schoolboy from Ras al-Khaimah, who has no formal training

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as an actor but whose performance in


The Turtle, which tackles environmental
issues through a dramatic story, has
been described as inspirational, deeply
emotional and mature.

The Turtle won two


international film
awards.

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Film Festivals
The Abu Dhabi Film Festival, rebranded from the Middle
East International Film Festival in 2010, put Arab Cinema in
the spotlight at its sixth edition in 2012, playing host to some
of the regions most celebrated stars. For the first time in the
festivals history, a lifetime achievement award was presented
to an Arab celebrity, with the Egyptian star Sawsan Badr
honoured for her achievements in
the industry. Three significant Arabic
directors presented their films, all world
premieres, at the festival.
Emirati filmmakers also took centre
stage, reflecting the blossoming movie
industry in the UAE. For the first time,
Emiratis joined international filmmakers in judging films at the Abu
Dhabi Film Festival. A record number
of submissions were also received from
Emirati filmmakers in the competition
itself.
International stars were not lacking,
with US screen legend Richard Gere
and Hollywood star Nate Parker both
appearing on the red carpet for the

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glamorous opening night gala at the Emirates Palace hotel.


Gere and Parker were the stars of Arbitrage, the opening film
of the festival. Awards were given out in several competitions and categories, including the Black Pearl, the International Federation of Film Critics (FIPRESCI) and NETPAC
(Network for the Promotion of Asian Cinema) awards. The
Emirates Film Competition and International Short Film
Competition were also part of the event.
The Abu Dhabi Film Festival was presented under the
management of the Abu Dhabi media
zone, twoFour54, for the first time in
2012, as part of the plan to strategically
align the festival alongside the emirates
other media initiatives.
The curtain was raised on the ninth
Dubai International Film Festival
(DIFF) in December 2012, with 158
films on show during the eight-day
event celebration of the silver screen.
Held under the patronage of HH Sheikh
Academy Award
Winner Cate
Blanchett on the red
carpet at the Dubai
International Film
Festival.

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festival was the Kuwaiti feature Tora Bora, which tells the story
Mohammed bin Rashid, the festival screened films from 60
of a young mans decision to join extremist forces in Afghancountries in 43 different languages. The star-studded event
istan, and his parents agonised search for him. In 2013, the
opened with a screening of Life of Pi, a 3D adaptation of the
honour went to Wajda, a Saudi film by female director Haifa
novel by Yann Martel and helmed by visionary director Ang
Al Mansour, which reflects the role of women in the Kingdom
Lee. DIFF also included the Muhr Awards, which were estabthrough the eyes of a 10-year-old Saudi girl who struggles to
lished in 2006 to honour filmmakers from the Arab world
realise her dream of riding a bicycle.
and expanded in 2007 to include an AsiaAfrica competiTROPFEST Arabia is an offshoot of the worlds largest short
tion. The awards saw an impressive 83 films compete for over
film festival and is held in Abu Dhabi in October. Supported
US$600,000 in prize money.
by twofour54, the event has a mandate of developing the Arab
The Gulf Film Festival, held every April, focuses on films
film industry by providing an opportunity for the regions filmfrom the GCC. Launched in 2008, the festival is under the
makers to show their short films to the public. The competipatronage of HH Sheikh Majid bin Mohammed bin Rashid Al
tion is open to anyone, regardless of background
Maktoum, chairman of the Dubai Culture & Arts
or experience. The second edition of TROPFEST
Authority, which supports the event, and is organThe sixth Gulf Film
Arabia in 2012 was won by Mohamed Hussen
ised by Dubai Studio City. The festival includes
Festival included
Anwar, a twenty-four year old filmmaker from
screenings in both Dubai and Abu Dhabi, and,
screenings of
Egypt, whose five-and-a-half minute film Undamaside from the headline movies, also incorporates
ageable explores the strength of ideas in a changing
short film competitions and films for children.
society. He took home the prize of US$12,500 and
The sixth Gulf Film Festival included screenings
feature films from
a trip to Los Angeles to meet film industry profesof 169 feature films from 43 nations, including 78
sionals.
world premieres. In 2012, the opening film of the

169
43
78

nations, including
world premiers.

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Film incentives
Scenes from big-name movies including The Kingdom,
Syriana and Mission: Impossible - Ghost Protocol have been
shot in the UAE over the past few years. The decision by
international studios to come to the Emirates to make such
films is indicative of the nations maturing movie industry,
but some commentators have argued that a structured,
government-sponsored scheme
of financial incentives would help
attract more filmmakers to the UAE.
Such calls from the industry were
answered in 2012, when both Dubai
and Abu Dhabi announced incentive
schemes to help lure filmmakers to the
Emirates. Under Abu Dhabis scheme,
for example, studios are eligible for
a rebate of up to 30 per cent on costs
such as temporary accommodation,
flights booked on Etihad Airways and
the contracting of UAE-registered film
crews. Film incentives are common in
many other markets, such as in the US
and Europe, where they often take the
form of tax breaks.

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The cast of Mission Impossible Ghost Protocol


attend the 8th Dubai Film Festival.

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Books and Literature


Ever since the United Nations identified a knowledge deficit
in the Arab world in its controversial 2003 Arab Human
Development Report, the institutions of the UAE have been
meeting this challenge head-on. Several translation projects
responded directly to the UNs criticism, including Kalima,
a project of the Abu Dhabi TCA which funds the translation, printing and distribution of 100 foreign books a year
into Arabic. A series of awards and events, now firmly established, have also turned the UAE into a leader in the GCCs
publishing industry.
The Sheikh Zayed Book Award was founded in 2007 in
memory of the late President and founder of the UAE. Awarded
annually in April, the Dh7 million in prize money is presented
every year in nine categories to outstanding Arab writers, intel-

Winners of the
Sheikh Zayed Book
Award 2013 receive
their awards.

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lectuals, publishers as well as young talents whose writings


and translations of humanities have scholarly and objectively
enriched Arab cultural, literary and social life. The award is
administered by the Abu Dhabi Tourism and Culture Authority.
In 2012 winners included Al Fakkah fi Al Islam (Humour in
Islam) by Leila Labidi from Tunisia in the Young Author category, and The Boy Who Saw the Colour of Air by Abdo Wazen
from Lebanon, in the Childrens Literature category. In 2013,
there were a record 1262 nominations across the Awards nine
categories. Lebanese philosopher Elizabeth Kassab won the
award for Contribution to the Development of Nations for
her book Contemporary Arab Thought, while an award for
Cultural Personality of the Year went to the Grand Imam of
Al Azhar, Sheikh Ahmad Muhammad Al Tayeb, for his role in
adopting a moderate path and encouraging a culture of tolerance, dialogue and protection of the civil society. The Literature and Childrens Literature prizes were withheld in 2013 as
they did not meet the standards and criteria of the Award.
The International Prize for Arabic Fiction (IPAF) is an
annual literary prize run with the support of the Booker Prize
Foundation in London and funded by the Abu Dhabi TCA.
Launched in Abu Dhabi in April 2007, it is modelled on the
successful Man Booker Prize and aims to address the limited
international availability of high-quality Arab fiction. Shortlisted finalists each receive US$10,000 and the winner an
additional US$50,000. The winner in 2012 was The Druze

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of Belgrade by Lebanese writer Rabee


Jaber. In 2013 it was won by young
Kuwaiti writer Saud Alsanousi for The
Bamboo Stalk, which follows the son of
a Kuwaiti father and a Filipino mother, as he returns to Kuwait
as an adult and faces both social and racial prejudice.
The annual Abu Dhabi International Book Fair, held around
April, is one of the largest and most thriving such events
in the Middle East. Held at the Abu Dhabi National Exhibition Centre (ADNEC), over 900 publishing companies from
54 countries showcased more than half a million titles in 33
languages in the event in 2012. Tens of thousands of visitors
thronged the exhibition organised by the Abu Dhabi TCA. In
2013,the Fair featured talks by international authors Henning
People attend the
first day of the Abu
Dhabi International
Book Fair.

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Mankell and Vikram Seth, along with debates over digital


publishing and the future of printed childrens books.
The Emirates Airline Festival of Literature was launched
in 2008 as the Middle Easts largest celebration of the written
and spoken world. With simultaneous translation between
Arabic and English, the festival brings world-famous authors
to discuss ideas with participants. Held annually in March in
Dubai, the event is held under the patronage of Vice President
and Prime Minister HH Sheikh Mohammed bin Rashid Al
Maktoum and in partnership with Emirates Airline and the
Dubai Culture & Arts Authority. The fifth Emirates Airline
Festival of Literature in March 2013 saw appearances from
authors Jeffrey Archer and Ben Okri, Lebanese cookbook
writer Anissa Helou, historian Simon Sebag Montefiore, poet
Roger McGough and veteran broadcasters Dan Rather, Nik
Gowing and Sandy Gall, among many others.
The thirty-first Sharjah International Book Fair was held in
November 2012 with a record participation of 62 countries
and a total of 924 publishing houses. HH Dr. Sheikh Sultan
bin Mohammad Al Qasimi, Member of the Supreme Council
and Ruler of Sharjah, inaugurated the fair, which was held at
the Sharjah Expo Centre. Pakistan was the focus at the 2012
fair, with 30 Pakistani publishers participating at the fair for
the first time. Famous Pakistani poets and writers Amjad
Islam Amjad, Anwar Masood, Ata ul haq Qasimi, and Wasi
Shah all participated in the event.

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Music and Concerts


The UAE played host to dozens of musicians during 2012
and with concerts ranging from the Bolshoi Ballet to Eminem,
there was something to cater for all musical tastes. Classical
music was high on the agenda at the Abu Dhabi Festival (see
below), which saw performances by the St Petersburg Philharmonic and a screening of the Metropolitan Operas new
production of Richard Wagners Ring Cycle. In Dubai, the
internationally acclaimed Schubert Ensemble of London
performed at Ductac, an arts centre in the Mall of the Emirates, in a concert presented by the Dubai Concert Committee.
The Abu Dhabi Festival, a month-long celebration of classical music, with performances by top international musicians
as well as community programmes and educational initiatives
in all seven emirates, celebrated its tenth anniversary in May
2013. Founded in 2004 under the patronage of HH Sheikh
Abdullah bin Zayed Al Nahyan, then Minister of Information
and Culture, it is presented annually by the Abu Dhabi Music
& Arts Foundation (ADMAF), a not-for-profit organisation
that has been advancing arts, education, culture and creativity
in Abu Dhabi since 1996. The 27-day event includes more
than 160 cultural and artistic events held across the UAE.
The United Arab Emirates National Symphony Orchestra
was founded in 2012, holding its inaugural concert at the

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National Theatre in Abu Dhabi. The conductor, Andy


Placido Domingo
Berryman, is former director of the Abu
performs at
Dhabi Police Band and used to play in
Emirates Palace.
the UKs Halle Orchestra. His aim now
is to recruit Emirati musicians. The
Emirates Youth Symphony Orchestra was established in 1993
by Riad Kudsi. The orchestra is dedicated to teaching classical
music to children and teenagers from primary school to high
school consisting of more than 50 players of violin, viola, cello,
double base wind instruments and percussion.

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Eminem plays at
the du Arena on
Yas Island as part
of the F1 weekend
entertainment.

Madonna Live: The Queen of Pop descended on Abu


Dhabi in June 2012, when fans braved the summer heat to
hear hits such as Papa, Dont Preach, Vogue and Express Yourself. Madonna, the worlds top-selling female recording artist,
made two appearances at the du Arena on Yas Island as part
of her World Tour. The first night attracted 22,000 fans, with
the concert attracting a positive review the next day in The
National, although the newspaper did also point out that
Madonna left her fans waiting in the heat for more than 90
minutes before coming on stage late.
Yasalam After-Race Concerts: Three musical megastars hit

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the stage in Abu Dhabi in November


at the famed after-race concerts held
during the Formula 1 weekend. The
triple-bill, held at the du Arena over
three consecutive days, began with
Australian singer Kyle Minogue, who sang old and new hits
for the assembled crowd. The following night the rock band
Nickelback made enough noise to compete with the roar of
the F1 cars during the day, while on the third evening Eminem
wowed both the crowds and the Gulf News the following day.
The US rapper closed out the Grand Prix with a show that
The Mariinsky Ballet
& Orchestra made
its UAE debut at the
Abu Dhabi Festival
in 2013.

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rap fans could love, and even those without an appreciation


could enjoy, the newspaper said in its review. There were also
a number of free concerts and musical events held on the Abu
Dhabi Corniche during the F1 racing event.
Jennifer Lopez: Tickets to see Jennifer Lopez sold out
months before her performance at the Dubai Media City
Amphitheatre in November. The US singer, often known as
J-Lo, wowed crowds with hits including Im Real and Dance
Again, showing no less energy than usual, despite being on the
last leg of an epic global tour.
Multi-platinum Lebanese singer and Goodwill Ambassador
for UNICEF, Nancy Ajram performed in Dubai in November
2011. Also in April 2011 at Yas Island the Egyptian performer
Amr Diab, famous for being the best-selling Arab recording
performer in the past 20 years, appeared with the Colombian

Lebanese singer
Nancy Ajram
performs at the
Madinat Arena in
Dubai.

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singer Shakira.
Other notable concerts held in the UAE in 2012 included
the American rock group the Eagles, who performed hits
such as Hotel California at a concert in April at Dubais Sevens
Stadium. In December, the platinum-selling singer Katy Perry
and Grammy Award-winning superstar Usher also performed
at the World Parachuting Championships Closing Ceremony
in Dubai. In 2013, Justin Bieber brought his Believe world tour
to Dubai for two nights.

Theatre
The Dubai Festival for Youth Theatre, an initiative by the
Dubai Culture & Arts Authority to promote the countrys
youth talent in theatre, is held annually in October at the
Dubai Community Theatre and Arts Centre (DUCTAC) in
the Mall of the Emirates. Founded in 2006, the latest edition in
October 2012 offered a compelling line-up of plays performed
in classic Arabic.
There was also a focus on youth theatre in Abu Dhabi, with
the Abu Dhabi Theatre putting on a specially commissioned
performance of A Midsummer Nights Dream, designed
for young people. The performance, part of the Abu Dhabi
Festival, was put together by the UK-based Globe Education.

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Visual Arts
The Sharjah Biennial 11 was held in March 2013 under the
theme Re:emerge, Towards a New Cultural Cartography.
Curated by Yuko Hasegawa, the Biennial brought together
more than 100 artists, architects, film-makers, musicians and
performers to reassess the Western-centric view of knowledge
and reconsider the relationship between the Arab world and
Asia, North Africa and Latin America. The first Sharjah Biennial was held in 1993.
Since the launch of Art Dubai in 2006, the global art world
has descended annually on the UAE to discover and buy the
best work of artists from the Middle East, North Africa and
South Asian regions. Held at the Madinat Jumeirah, under the
continued patronage of HH Sheikh Mohammed bin Rashid,
the event includes leading artists, curators and collectors, as
well as hundreds of museums. Art Dubai 2013 was the most
successful to date, featuring paintings, sculptures, installations
and video by more than 500 artists, half from the region. The
event also displayed works by entrants to the Abraaj Group
Art Prize.
Dubai also hosts the 10-day SIKKA Art Fair, launched in
2011 to coincide with Art Dubai. The fair promotes Emirati
and local artists and is held in dozens of locations in Dubais
historic Al Fahidi area. A number of art galleries, featuring

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Art Dubai 2013 held


both Middle Eastern and international
at Madinat Jumeirah
art, have set up in recent years, clusin Dubai.
tering in Al Serkal Avenue in the industrial Al Quoz area.
Abu Dhabi Art was launched in 2009 and is organised by the
Abu Dhabi Tourism & Culture Authority and sponsored by
Bvlgari. In 2012, architecture giants Frank Gehry, Jean Nouvel
and Norman Foster gathered on stage for an awe-inspiring
discussion about the new museums under construction on
Saadiyat Island. The event featured the works of more than

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400 artists from 50 of the worlds leading modern, contemporary art and design galleries.
The Abu Dhabi Art Hub was launched in November 2012.
Located in the Musaffah industrial zone, the Hub provides
affordable facilities for artists, including residence for international guest artists, gallery space and workshops. The Hub
was the brainchild of Emirati property entrepreneur Ahmed
Al Yafei.
At the 2013 Venice Biennale, the UAE is featuring for the
first time a solo show by an Emirati artist, Mohammed Kazem,
a former curator of the Sharjah Biennial. Walking on Water is a
video installation with sound that recreates the visceral experience of a rough sea. The UAE Pavilion was curated by Reem
Fadda, the associate curator of the Guggenheim Abu Dhabi.

Visitors to Abu Dhabi Art looking at work by


Korean artist Kim Dong-Yoo.

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Museums
In January 2012, Abu Dhabis Executive Council announced
the approval of budgets and opening dates for several museum
projects on Saadiyat Island, the UAE capitals US$27 billion
project incorporating art, culture and resorts. Louvre Abu
Dhabi, the Arab worlds first universal museum, is scheduled
to open in 2015. In April 2013, with construction of the landmark translucent webbed dome beginning, it opened an exhibition, The Birth of a Museum, with some 130 art works that
will be part of the permanent collection. Sheikh Sultan bin
Tahnoun Al Nahyan, chairman of the Abu Dhabi Tourism
and Culture Authority, said, The aim of this exhibition is to
evoke the Louvre Abu Dhabis ambiance and aesthetics, and to
begin to tell the story of the birth of this museum. The whole
exhibition experience is another chance for visitors from the
United Arab Emirates and abroad to see the remarkable art
works in the Louvre Abu Dhabis permanent collection as we
prepare for the museums opening. Even before opening its
doors, Louvre Abu Dhabi is setting a precedent as a place of
cross-cultural dialogue and exchange.
The Zayed National Museum is scheduled to open its
doors in 2016 and the Abu Dhabi branch of the Guggenheim
museum in 2017. The Executive Council also approved two
projects for the redesigning and building of a new national

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The Birth of a Museum showcases art works


that will become part of the Louvre Abu
Dhabis permanent collection.

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museum and the 5000 year-old Hili site in the city of Al Ain.
Besides these new developments, the UAE already has
many museums, including the Dubai Museum, housed in
a fort dating back to 1800, which served as both the governments headquarters and the rulers residence. All seven emirates of the UAE have museums and investment is on-going in
this vital part of the countrys cultural ambitions.
The well-established Sharjah Museums Department,
which oversees seventeen museums and cultural institutions, remains very active. In 2013, the Archaeology Museum
is celebrating its twentieth anniversary with a new exhibition
Our Monuments Narrate our History including recently
discovered objects from important excavation sites in Mleiha
and Jebel Faya on show for the first time. In 2012, the Sharjah
Heritage Museum was extended and reopened.
Dubai opened the Middle Easts first womens museum at
the end of 2012 close to the Gold Souk. Bait al Banaat (House
of Women) is a fascinating collection of original documents
and artefacts, lovingly collected from Dubai families by
Rafia Ghobash, former university president and well-known
promoter of women in science.

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Gold bridle
decorations dating
back some 2000
years at the Sharjah
Archaeology
Museum.

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and Wildlife

Protected Areas
Environmental Monitoring
Ecological Research
New Species

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The UAE has rightly earned the status of being one of the
regional leaders in the Arabian Gulf in terms of the conservation of its environment and wildlife and associated areas
of scientific research. Over the last couple of years, it has
continued to promote the protection of its natural resources
through legislation, education and engagement with international conservation bodies as well as through scientific
research, carried out by both public and private organisations.

There is, of course, much more to do, but progress continues


to be made.
The protection of the terrestrial and marine environment is
guaranteed by federal legislation passed many years ago and
implemented by the Ministry of Environment and Water.
This is often supplemented at a local level by separate decrees,
such as those applied by the Environment Agency-Abu Dhabi
(EAD).

The west coast of the


UAE is dotted with
salt domes, salt flats,
mangroves and coral
reefs.

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Protected Areas
The process of proclaiming and protecting nationally and
regionally important sites is now being supported through
recognition of key areas by global conservation bodies.
Perhaps most significant, and long overdue, was the recognition of the Mangrove and Alhafeya Protected Area, a highly
biodiverse site at Sharjahs East Coast enclave of Khor Kalba,
as the countrys third Ramsar Site. The Ramsar Convention,
which the UAE signed in 2007, is an inter-governmental
treaty that provides a framework for national action and

Mangroves on the
East Coast.

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international cooperation to conserve wetlands and use them


and their resources wisely. The Khor Kalba site, which has
been a Protected Area since 1994, encompasses 1494 hectares
of sub-tidal and intertidal zones, saltmarsh, saline flats and
alluvial plains. One of the most characteristic local plant
species is the mangrove Avicenna marina, which grows as
the tallest, most mature and luxuriant woodland in the area
and acts as a breeding, nursery and feeding ground for many
fish and invertebrate animals. A flagship species at this site

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is the collared kingfisher Todiramphus chloris, represented


by the virtually endemic subspecies kalbaensis. A thorough
population census, carried out in 2011, found 35-40 pairs.
This compares to 44-55 pairs located during the last complete
census in 1995. Whilst this decline is worrying, it is hoped
that active management by the Environment and Protected
Areas Authority for Sharjah (EPAA), initiated in 2012, will
reverse this trend. The EPAAs imaginative and wide-ranging
plans for encouraging controlled public access to less sensitive parts of the site, coupled with a strong environmental
education programme, is expected to provide a blueprint for
how other areas of great environmental importance may be
declared and managed elsewhere in the country.
Another site that has very recently received Ramsar recognition is the important Al Wathba Wetland Reserve, 40km
east of Abu Dhabi, which is managed by EAD. Artificially
formed by the damming of the outflow of treated sewage
water from the nearby Mafraq Wastewater Treatment Plant,
it also traps winter rainfall and covers an area of 500 hectares.
It is home to thousands of migrant waders and other waterbirds from autumn to spring, and was also the site, in 1998,
of the first recorded successful breeding of greater flamingos
Phoenicopterus ruber in Arabia since 1922. This charismatic
species successfully bred again in 2012. The only other regular
breeding station in the region, recently established, is on
the coast at Mussafah, a few kilometres away, with the local

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Top, Arabian oryx


and calf.
Left, Mountain
gazelle.

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flamingo population regularly flying between the two sites.


One of the most outstanding montane sites in the country
is Wadi Wurrayah National Park in Fujairah. This 12,700
hectare site is centred on freshwater springs and pools, formed
by the areas unique hydrogeological system, highly unusual in
an arid region. This site gained Ramsar recognition in 2010.
Important wildlife present include the threatened Arabian
tahr Hemitragus jayakari, 13 reptile and amphibian species (of
which five are endemic to the UAE and northern Oman) and

some 300 species of plants. The Government of Fujairah has


recently appointed the Emirates Wildlife Society-World Wide
Fund for Nature, EWS-WWF, to spearhead the development
of Wadi Wurrayah National Park and implement a management plan of international standard and quality.
Another important area maintained as a natural reserve is the
Dubai Desert Conservation Reserve (DDCR), an area of pristine
desert landscape covering some 225km2 in the south-east of the
Emirate of Dubai. This is an outstanding wilderness of rolling
dunescape and evocative, scattered ghaf
Prosopis cineraria forests. Re-introduced
populations of indigenous mammals,
including Arabian oryx Oryx leucoryx
and Arabian gazelle Gazella gazella,are
now well-established and the lappet-faced
vulture Torgos tracheliotos, a species last
recorded breeding in the UAE in 1982, is
now a regular visitor, occasionally in large
flocks. Much research into a variety of
subjects is now under way at the DDCR
(see below), part of which is carried out in
collaboration with international conservation volunteer organisations.
Greater flamingos Phoenicopterus ruber bred
successfully in the UAE during 2012.

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Environmental
Monitoring and
Strategy

tion in both government and private schools,


both with regards to the conservation of
wildlife and to promote a more sustainable
lifestyle at home, through reducing consumption of water, for example. It has also worked
with major companies, like the Abu Dhabi
Company for Onshore Oil Operations
(ADCO), to develop their environmental
Abu Dhabis environmental agency, EAD,
awareness and sustainability strategies.
has been at the forefront of efforts to
Abu Dhabi has taken many steps towards
promote sustainable development, manage
the fulfilment of other strategic prioriwaste and preserve biodiversity, all critically
ties. These have included environmental
important issues in any rapidly developing
permit provision and inspections carried
country. This is being achieved as part of
out on a large scale, environmental impact
the Abu Dhabi Environment Vision 2030,
assessments and surveys to identify mitigaa long-term plan aimed at providing a safe
tion procedures for critical national infraand healthy environment for residents and
Lappet-faced vulture Torgos
structure projects , a beach water quality
citizens. One major strand of this Vision
tracheliotos.
monitoring programme, development of a
concerns the sustainable management of
high level strategy for waste management,
water resources, including the monitoring
completion and online publication of a Greenhouse Gas
and maintenance of water levels and quality in subterranean
Emissions Inventory, expansion of the Air Quality Monitoring
aquifers, on which much of the well-being of the countrys
Network covering the whole of Abu Dhabi Emirate, various
agricultural industry depends. Advances to this end in 2012
fisheries management initiatives and engagement with the
included the completion of 22 small solar desalination plants
local population in various environmental activities.
and a media campaign to raise stakeholder awareness of the
The engagement strategy includes the use of non-governneed to conserve groundwater supplies.
mental organisations and volunteers to collect data for part of
EAD has also been active in promoting environmental educa-

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the Terrestrial Baseline Survey, plus training and instruction


to over 600 teachers and 22,000 students during almost 800
field trips. EAD funding of the publication of both Field Guide
to Birds of the United Arab Emirates and Birds of the United
Arab Emirates A guide to common and important species,
both published in late 2011, means that the UAE is the first
country in the region to be the subject of an internationally
acclaimed field guide. Both books have further promoted the
appreciation and conservation of the countrys avifauna and,
by extension, the natural environment as a whole.
EAD has also further enhanced its standing internationally
in a variety of ways, ranging from participation in the International Union for Conservation of Nature World Conservation
Congress in Korea to the translocation of a number of UAEbred Arabian oryx to Jordan where they have been reintroduced to the wild.
The colloquially named sea cow, or dugong, Dugong dugon
is another priority species for conservation in the UAE as the
country hosts the worlds second largest population of this fascinating marine mammal. Some 5000 occur in the warm, sheltered
waters of the Arabian Gulf, where they graze on the abundant
seagrasses. International efforts to conserve dugongs are co-ordinated by the international Dugong MoU Secretariat, which is
hosted by EAD on behalf of the Abu Dhabi Government.
December 2012 saw the first meeting of signatories to the
Memorandum of Understanding on the Conservation of

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The UAE is home to the worlds second largest population of dugong.

Migratory Birds of Prey in Africa and Eurasia, convened in


Abu Dhabi and hosted by EAD. The MoU grew out of a joint
initiative between EAD, on behalf of the UAE, and Britains
Department of Food and Rural Affairs.
At a more local level, controls on the operation of quarries in
the mountains of Fujairah have been stepped up, to limit atmospheric pollution of nearby areas. The quarries supply rock and
crushed aggregate for the UAEs construction industry, with
operators often displaying little concern for the environment. On
the instructions of Fujairahs Crown Prince, several have been
closed over the past two years, or have been hit with heavy penalties, for taking insufficient care to prevent dust affecting nearby
villages, as well as adjacent pristine areas of the mountains.

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Ecological Research
Due to the activities of EAD and others, including the four
branches of the Emirates Natural History Group, the UAE is a
regional leader in ecological research. Current research interests and projects across the country span a wide variety of
topics and priorities. One of the most interesting and cuttingedge areas of research currently being carried out by EAD
involves placing satellite-tracking devices on a variety of bird
species of importance to conservation. To date, twelve such
species have been monitored, including the nationally endangered sooty falcon Falco concolor, which was tracked from

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the UAE to Madagascar to study its


wintering habitat there, and the greater
flamingo, which has been tracked
across the Arabian Gulf to Iran and
the Caspian Sea, vividly illustrating the
importance of maintaining a network of protected areas for
this species across the region, and allowing the recognition
of previously unknown but important sites for the species in
other countries.
A good example of research undertaken privately comes
from the Dubai Desert Conservation Reserve, where recent
work completed has included studies into the comparative effects of grazing by camels, Arabian oryx and Arabian

Left, Sooty falcon.


Above, Socotra
cormorants.

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gazelle on the ecology and seed germination of desert plants.


As it considers habitat restoration, such work will be of wide
interest to conservation managers and agencies across the
region.
Dedicated individuals working independently of government
organisations have always been a feature of ecological research
in the UAE. A study on the Socotra cormorants Phalacrocorax
nigrogularis of Siniya Island, Umm al-Qaiwain, is currently
being carried out by researchers at the United Arab Emirates
University, investigating diet and feeding movements among
other aspects. This species is classified as vulnerable on the
IUCN Red List and the UAE holds approximately 35 per cent of
the world population, currently estimated as 110,000 pairs.
Fisheries management has been an important aspect of
resource management in the UAE for many years. The Gulf
Elasmo Project, currently being undertaken by researchers
at the United Arab Emirates University, focuses attention on
the much neglected management of shark fisheries in the
UAE. It aims to lay the foundations for the development and
implementation of national management plans for the protection and conservation of sharks, including regulations on the
exploitation of stocks.
EAD continues to work with major stakeholders in the
fishing industry to ensure the industry operates in a sustainable manner. Examples of measures implemented include

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gear regulations to prevent undersized, juvenile fish from being taken,


The Government
recognises that the
a cap on the number of commerUAE fisheries sector
cial licences issued and a limit on
occupies a very
the number of traps used per boat.
important place
Permissible fishing seasons are
in both the socioeconomic development
also constantly under review. The
of the country and
Government recognises that the
traditionally in the
UAE fisheries sector occupies a
lives of the people.
very important place in both the
socio-economic development of the
country and traditionally in the lives of the people. To this end,
HH Sheikh Hamdan bin Zayed al Nahyan, Rulers Representative in the Western Region of Abu Dhabi, recently signed a
decree allowing the fishing of a particular species of migratory
fish using gillnets. However, the permitted season is strictly
controlled, and, as for the entire industry, the catch taken is
closely monitored.
Grassroots conservation research worldwide has also benefited directly from the UAEs generosity. For example, the
Mohamed Bin Zayed Species Conservation Fund has, to date,
donated almost US$9 million to species conservation across
the globe, including US$1.5 million in 2012 alone. This has
resulted in dramatic discoveries and important work being
undertaken from Peru to New Zealand and from Mozambique to Cambodia.

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New Species and


Discoveries
Both keen amateur naturalists and professional biologists and
ecologists have made exciting discoveries over the past few
years, including a number of records of species never seen
before in the country, or, in some cases, anywhere in Arabia.
Birds are an especially well studied group in the UAE; indeed
the country is a regional leader in ornithology. Nevertheless,
no less than seven species of bird were newly recorded in the
UAE in 2012, ranging from the Mesopotamian crow Corvus
cornix cappellanus from the Iraqi marshes to the whiterumped sandpiper Calidris fuscicollis, a shorebird that breeds
in the Canadian Arctic. More significant from a conserva-

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tion point of view, several species were recorded nesting for


the first time. These included Eurasian stone-curlew Burhinus
oedicnemus and purple heron Ardea purpurea. The UAE hosts
regionally important populations of several species of seabirds
that mainly breed, often in very large numbers, on remote
islands far out in the Arabian Gulf. It is most encouraging that
some of these seabirds are proving adaptable to recent development and reclamation projects with, for example, four
species of tern Sterna becoming established on the reclaimed
islands that comprise The Palm Jebel Ali. None of these species
had previously nested in Dubai. Finally,
crab-plovers Dromas ardeola, a flagship
species in the UAE and breeding on
Left, White-rumped
sandpiper.
only two islands in the Emirate of Abu
Below, Eurasian
Dhabi, re-colonised an old nesting area
stone-curlew.
on one of those islands.
Right, Purple heron.

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Almost all groups of invertebrates are much less well known


than birds, although a very
considerable body of knowledge, much of it compiled under
the auspices of the Emirates
Natural History Group, working
with associated dedicated individuals, has been accumulated
over many years. The UAE
Insect Project is an on-going
effort to catalogue the countrys arthropod fauna, utilising
the expertise of many different
international specialists. Over
Bees from Al Qasba, Sharjah.
1500 records new to the UAE
(and, indeed, hundreds new to
science!) have been published in four volumes. Two further
volumes are now being prepared and, doubtlessly there will be
many more significant records to come as this collaborative
effort nears completion. One recent discovery will suffice as an
example. In a cave on Jebel Hafit, a sightless small white insect of
the genus Lepidospora has recently been discovered. It had probably been isolated from the outside world for well over 100,000

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years before the cave was opened


up. Not surprisingly, it is another
species new to science, only one
other specimen belonging to the
same genus having been found
elsewhere in Arabia.
The rapid development
of the UAE in the past four
decades, as well as the expansion of its population, now
around 8.5 million, compared
to only around 250,000 when
the federation was established
in 1971, has presented major
threats to the countrys fragile
environment. Conservation
has, however, always been
an important Government priority, thanks to the personal
interest of the countrys founding President, the late Sheikh
Zayed. Through a continuing programme of conservation
and research, coupled with legislation and increasing efforts at
educating the population, the two objectives of a sustainable
use of, and proper protection of, natural resources continue to
remain a focus for the years ahead.

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Abu Dhabi
Dubai
Sharjah, Ras al-Khaimah and Fujairah

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he events industry meetings, incentives, conferences and


exhibitions or MICE for short is a major driver of economic
growth in the UAE. Across the Emirates, purpose-built exhibition
halls and conference rooms play host to hundreds of events, ranging
from internationally recognised exhibitions such as Cityscape and Gitex
Technology Week to more intimate business gatherings.
Aside from the state-of-the-art facilities, the high level of security and the
diverse leisure activities on offer, the UAE is also ideally positioned at the
crossroads of Europe, Asia and Africa, putting it within easy reach of millions
of businesses and therefore an ideal destination for MICE
events. Research firm Euromonitor International said
the UAE reported 2.6 million business arrivals in 2012, a
number expected to rise to 3.6 million by 2016. Exhibitions
and events an important factor in attracting business
visitors bring with them an injection of billions of dirhams
into the UAE economy, as well as the benefits of countless
business deals struck in the country and wider region.
In the capital, the Abu Dhabi National Exhibitions
Centre (ADNEC) reported a boom in visitor numbers
during the year, in line with the Abu Dhabi Vision 2030,
which includes a focus on business tourism. The ADNEC
Group comprises a portfolio of conference centres in the
UAE and abroad. These include the Abu Dhabi National

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ADNEC and the


Capital Gate hotel in
Abu Dhabi.

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Exhibitions Centre, the Gulfs largest exhibition facility,


the Al Ain Convention Centre, Capital Gate, all in Abu
Dhabi Emirate, and, in Britain, ExCeL London.
At its Abu Dhabi base, ADNEC reported impressive
growth in visitor numbers during 2012. The number of
visitors to the Abu Dhabi National Exhibition Centre
and the Al Ain Convention Centre grew to 1.4 million,
compared to around 1 million in 2011. The number of
events hosted hit 360, up from 232 the previous year.
For the second consecutive year, ADNEC was also
named the worlds leading meetings and conference
centre for 2012 at the World Travel Awards. Some of
the prominent events it hosts include the World Future
Energy Summit and the Abu Dhabi International Book Fair. The Abu Dhabi
Tourism and Culture Authority estimates that the boom in business events in
the UAE capital will bring a direct economic impact of Dh5.1 billion a year by
2020, as the sector becomes increasingly important.
Dubais key conferencing complex, the Dubai World Trade Centre (DWTC)
has played a critical role in attracting international trade to the Middle East
region since its inauguration in 1979. In 2011, a study estimated that the
DWTC generated over 2 per cent of the emirates GDP, bringing in Dh6.5bn.
In 2012, the centre had a record year, reporting more than 1.9 million visitors, a
12.5 per cent increase on 2011.

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The Dubai World


Trade Centre
attracted almost two
million visitors in
2012.

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The DWTC is home to the landmark 39-storey Trade


Centre Tower, and manages the Dubai International
Convention and Exhibition Centre and Airport Expo
Dubai. The centre hosted 106 large-scale events during
2012, each attracting thousands of visitors to shows
across sectors such as healthcare, education, technology,
construction, food, trade, security and logistics. Key events
at the DWTC include Arab Health, Gulfood and Gitex
Technology Week.
Important events are also held in other emirates
conference centres. The Expo Centre Sharjah played host
to the Sharjah International Book Fair, the GCC-Russia
Business Forum and Steelfab . Established in 1977 as the
countrys first significant exhibition space, Expo Centre Sharjah moved to a new
site in September 2002, amid increasing demand for space by its trade partners.
As the major venue on the east coast of the UAE, the Fujairah Exhibition
Centre, inaugurated in 1996, plays an important role in attracting business
and events to the emirate. In 2012 it hosted the Fujairah Career Fair, at which
companies such as the telecommunications firm du participated.
The Ras al-Khaimah Exhibition Centre opened in April 1996. The 37,400
square metre complex plays a vital role in stimulating economic activity and
tourism, and hosts events such as the RAK Book Fair and the Ras al-Khaimah
Ramadan Festival.

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Visitors browsing
at the Sharjah
International
Book Fair held at
the Sharjah Expo
Centre.

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Abu Dhabi

The updated Abu


Dhabi Vision
2030 on display
at Cityscape Abu
Dhabi 2013.

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Cityscape, ADNEC

Visitors inspect
the Najmat project
at CityScape Abu
Dhabi 2013.

Cityscape, held annually in April and now in its seventh year,


has established itself as Abu Dhabis most significant real
estate investment and development event. In both 2012 and
2013, Cityscape welcomed record numbers of visitors, with
20,504 participants from 78 countries, including 193 exhibitors showcasing their services and projects in 2012. The Abu
Dhabi event is part of a series of Cityscape events across the
Middle East.
The four-day event is a meeting point for governmental

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authorities, key investors and developers, consultants, architects, designers and other real estate professionals to drive
growth in Abu Dhabis property market. Leading developers in the local industry such as Aabar Properties, Aldar,
Mubadala, TDIC, and Reem all participate, with updates
given on the progress and completion of hundreds of key residential, commercial, hospitality and retail projects.
In 2012, a much-anticipated update on the Abu Dhabi
Vision 2030 and new market regulations was given by the
Abu Dhabi Urban Planning Council and the Department
of Municipal Affairs. In 2013, the Urban Planning Council
showcased its Emirati Housing Initiative, designed to build
7500 new homes for Emirati families around the emirates
three regions.

The opening
ceremony of the
World Future
Energy Summit in
Abu Dhabi.

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World Future Energy Summit, ADNEC


The four-day World Future Energy Summit, hosted by Abu
Dhabis Masdar, has become a major global meeting point for
the renewable energy industry. The sixth edition, which was
held in January 2013, brought together 25,831 delegates from
150 countries to discuss the theme Powering the Future of
Energy Innovation and Investment. Delegates heard addresses
from French President Franois Hollande, Siemens CEO
Peter Loescher and many other eminent policymakers and
business leaders. In 2012, the topic was Powering Sustainable
Innovation and featured Chinese Prime Minister Wen Jiabao
and UN General Secretary Ban Ki-Moon.

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With attendees including leading players from the world


of alternative energy, the Summit has helped Abu Dhabi to
demonstrate its commitment to promote and advance innovation, research and regulation of future energy, energy efficiency and clean technologies in response to the growing need
for sustainable energy.
International Defence Exhibition &
Conference (IDEX), ADNEC
Launched in 1993 and taking place biennially, IDEX is the
largest joint defence exhibition in the MENA region and the
only one to demonstrate the latest technology across land,
sea and air sectors. February 2013 saw the most successful
IDEX in its two-decade history, with 1112 exhibiting companies from 59 countries and over 80,000 visitors. Highlights
included the First Time Exhibitor
Zone, the Outside Zone, an Unmanned
2013 saw the most
Systems Area to showcase the latest
successful IDEX
in its two-decade
and future unmanned technology, a
history, with
Helicopter Demonstration Area, live
demonstrations of equipment and craft,
including choreographed displays, and
exhibiting
the Gulf Defence Conference, which is
companies from 59
the highest level conference ever held
countries and over
accompanying an international trade
80,000 visitors.

1112

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show. The event brought together six defence ministers, 12


chiefs of staff and 15 other military leaders, who joined with
analysts and decision makers to discuss the defence world.
In addition, IDEX 2013 featured the second Naval Defence
Exhibition, which doubled in size this year with over 80
exhibitors. NAVDEX provided a dedicated focus on maritime
security and included daily live waterborne demonstrations,
visiting warships, boats berthed on the marina pontoons and
an exhibition hall on the dock-edge.

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Abu Dhabi International Petroleum


Exhibition and Conference, ADNEC
The fifteenth edition of the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) continued to
showcase the regions importance in the oil and gas industry
with 51,156 people in attendance, marking out 2012 as the
most successful year since the event was established in 1984.
During the four-day conference, US$3.9bn worth of business was conducted at ADIPEC, according to the conference

An interactive
display at ADIPEC,
which attracted a
record 51,156 people
in 2012.

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organiser. Formerly held every two years, the event will now
be held annually in November.
Supported by the Abu Dhabi National Oil Company
(ADNOC) and the UAEs Ministry of Energy, ADIPEC is the
worlds second largest oil and gas exhibition and the largest in
the Middle East. In 2012 the event hosted 1625 exhibitors from
58 countries, and featured the Middle East Petroleum Club, the
ADIPEC Museum and the ADIPEC Awards. Conferences and
briefings covered technical topics on geosciences, projects, field
development, drilling and maintenance.

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GIBTM is the
leading event for the
meetings, incentives
and business travel
industry in the
GCC.

Gulf Incentive Business Travel and Meetings Exhibition,


ADNEC
Each year representatives from the meetings, incentives,
business travel and events industries gather in Abu Dhabi in
March for three days of exploring business opportunities and
professional education at the Gulf Incentive, Business Travel
and Meetings Exhibition (GIBTM). Following significant

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growth in both exhibitors and buyers in 2012, GIBTM 2013


saw a tripling of the number of corporates attending and
quadrupling of the number of association buyers. In a first for
the Middle East, the exhibition also featured a hybrid presentation format that was broadcast from the event and streamed
online across the world, reaching an online global audience of
16,000 users across ten countries.

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Power + Water Middle East, ADNEC


Power + Water Middle East, held annually in September, is
the premier regional event for professionals in these industries to address issues in this area of key concern for the UAE.
The country is expected to be one of the most active markets
in the power, water and energy sectors over the next few years,
yielding the events slogan: Supply Demand, Generating Business. In 2012, the event acted as a platform for participants
in Abu Dhabi to tackle industry concerns as well as create
and drive investment opportunities. Now in its fifth year, the
three-day event attracted visitors from 47 countries and 108
exhibiting companies from 18 countries.
Tawdheef Recruitment Show, ADNEC
This annual recruitment exhibition is targeted at qualified
Emiratis and mid- to senior-level professionals working across
a variety of industries in the UAE. In 2012, the three-day event
attracted more than 26,000 visitors, 48 per cent of whom were
UAE citizens. Similarly, Tawhdheef 2013 gave thousands of
visitors the opportunity to meet with more than 100 companies from a range of sectors.
Tawdheef provides an ideal forum for businesses with a base
in the country to learn more about Emiratisation, particularly
through the Tawdheef Emiratisation Summit, which is an

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employers forum to drive this localisation strategy forward


and tap into Emirati talent.
Visitors to Tawdheef also have access to industry networking
and educational programmes on talent management, career
development and human resources planning and implementation.
Emirati professionals attend the Tawdheef
annual recruitment exhibition.

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World Ports and Trade Summit, ADNEC


The challenges of climate change and growing energy requirements were top of the agenda at the second World Ports &
Trade Summit 2012, with 92 exhibitors and more than 4000
delegates participating in the three-day event. Industry growth
was celebrated alongside discussions on the need to tackle
accelerated growth requirements, amid mounting concerns
relating to its sustainability.
Representatives from ports authorities, shipping lines,
cargo operators, logistics companies, technology solutions
providers, investors and financiers use the event as an opportunity for knowledge-sharing with high-level policy-makers
and government representatives.
Rapidly establishing itself as the key global event for the
ports and logistics sector, the third edition of the World Ports
& Trade Summit, which took place in March 2013, focused on
increasing foreign non-oil trade volumes and took an in-depth
look at the role port infrastructure plays in region-wide
economic growth. In 2012, the Summit saw the presentation
of the first WPTS World Ports Award to Eddy Bruyninckx,
CEO of the Port of Antwerp. In 2013, awards went to Kuwait
& Gulf Link Ports International in the Efficiency category, to
the Port of Antwerp in the Environmental category and to
PSA International for Safety & Security.

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ADNOC displays
one of its liquefied
natural gas carriers
at the World Ports
and Trade Summit,
2013.

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7 Exhibitions and Events

Abu Dhabi International Hunting & Equestrian


Exhibition, ADNEC, Abu Dhabi

Al Ain Education & Career Fair,


Al Ain Convention Centre, Al Ain

The Abu Dhabi International Hunting & Equestrian Exhibition (ADIHEX), held under the patronage of HH Sheikh
Hamdan bin Zayed Al Nahyan, Rulers Representative in the
Western Region, is the only consumer and trade event dedicated to weaponry, equestrian sports and the preservation of
culture and heritage in the Middle East. In September 2012,
Abu Dhabi hosted the tenth edition of the event, which was
the largest in its history. More than 630 exhibitors from 40
countries showcased their products and services across 38,000
square metres of exhibition space.

The Al Ain Education & Career Fair marked its fifth edition
in April 2013, remaining an important event in the drive for
Emiratisation, which promotes the employment of UAE
citizens. Around three-quarters of the visitors were UAE
nationals, primarily final year students and new graduates,
who met with companies to discuss potential careers.

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Dubai

Cityscape Global, DICEC


Dubai outperformed global property markets in 2012,
regaining its position as a property hot spot. In line with
this recognition, the eleventh edition of Cityscape Global in
October 2012 also proved its resilience and played host to
25,000 participants from 93 countries. In comparison to 2011,
the event was 50 per cent larger with
more than 40 per cent of the exhibition
consisting of international real estate
firms. It featured 172 exhibitors from 31
countries and total participation grew
more than 25 per cent.
Delegates had access to a packed
schedule of events including the Cityscape Global 2012 Exhibition, Global
Real Estate Summit, World Architecture Congress, Retail City Congress,
investor roundtables and the Cityscape
Awards for Emerging Markets.

A model of a mall being built by Meraas


along the beach in Jumeirah at Cityscape
Global 2012.

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GITEX Technology Week, DICEC


A stalwart of the UAE exhibition calendar, GITEX Technology Week (GITEX) is billed as the regions leading IT
event and the ICT business gateway to the Middle East, North
Africa and South Asia regions. The thirty-second edition of
the event in October 2012 brought together over 130,000 visitors, with 3500 suppliers from 54 countries, and as many as
1000 launches, including a visit from hip-hop star 50 Cent to
unveil his SMS Audio headphones.
GITEX is credited with identifying global trends and incorporating them into the event. In 2012, the theme Where
Technology Meets Business provided a platform for industry
briefings on key verticals as well as conferences such as the
Cyber Security Seminars and a Digital Strategies Forum.
The event acts as an international trading hub for the global
technology sector and in 2012 the newly launched International Zone grouped all the country pavilions into one area,
allowing easy access to global networking. Other networking
highlights included the Africa in Focus exhibitors group and
a dedicated zone for small and medium-sized enterprises.
Running two weeks earlier than GITEX Technology Week
was the 2012 GITEX Shopper event, which attracted 206,000
attendees a 22 per cent increase on 2011 and saw sales of
electronic goods and gadgets totalling Dh237 million over
eight days, an increase of 23 per cent from 2011.

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Visitors try the new Digital Handycam during


the Gitex Shoppers-2013 at the Dubai World
Trade Centre in Dubai.

April 2013 saw the arrival of the all-new Spring Edition of


GITEX Shopper, held as a stand-alone event over four days.
With exclusive offers on more than 30,000 different products
as well as launches of the latest technology products, exhibitors reported record sales of an estimated Dh93 million and
the event attracted 123,720 visitors. DWTC says it was the
largest launch event in its 34-year history.

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7 Exhibitions and Events

Arab Health, DICEC

Arabian Travel Market, DICEC

Under the theme Addressing the Future, Arab Health achieved


a new record at its thirty-eighth edition in January 2013,
with over 112,100 healthcare professionals in attendance, an
increase of 35 per cent over 2012. More than 3500 exhibitors
from 64 countries participated in the event, including major
delegations from China and India. A total of 19 conferences
were held during the event, including three new ones in 2013
on Diabetes, Complementary Medicine and Big Data. The
Arab Health Achievement & Innovation Awards went to five
institutions and five individuals, including Young Surgeon of
the Year Award, which went to Dr Mariam AlSelami of King
Faisal Specialist Hospital, and Outstanding Contribution to
Medical Education in the Region, which went to Dr Mansour
Al-Zarouni of Sharjah Medical District.

Regarded as the regions leading trade exhibition for the travel


industry, Arabian Travel Market (ATM) continued to grow in
2013, as it celebrated its twentieth edition in May. The fourday event welcomed over 3000 exhibitors destinations,
hotel groups, tour operators, airlines and leisure companies
from across the world. Celebrating its anniversary, ATM
announced that it had begun with just 300 exhibitors, with its
growth mirroring that of the countrys travel market.

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CABSAT, DICEC
Representatives from the digital media, broadcasting and
satellite industries gathered in Dubai for the nineteenth
edition of the CABSAT expo in March 2013. Attendance at
the three-day event was up 15 per cent over 2012, with over
13,000 visitors and 850 firms participating.
New technologies, trends and innovative products were on
display and up for discussion in the seminars and workshops
run by industry experts. The event attracted global companies
and leading local players alike, with 190 new exhibitors from
10 new countries in 2013. Global industry leaders partici-

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pating in the show include Arabsat, Canon, Nilesat, Oracle,


SES, Siemens, Sony, and Yahsat, among others. Specialist
conference sessions included topics ranging from the growth
of the satellite industry and new techniques in covering live
sport, to how the service-oriented architecture can transform
automated workflows and asset management.
Dubai International Boat Show, Dubai
International Marine Club Mina Seyahi
Dubai continues to celebrate its prestigious marine heritage
and current position as a driving force in the aquatic industry
at the annual Dubai International Boat Show, held at one of

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the regions most elegant yacht clubs, the Dubai International


Marine Club at Mina Seyahi. The twentieth anniversary of the
multi award-winning event was celebrated in 2012. In March
2013, organisers welcomed around 26,000 visitors to the fiveday event, where they had the opportunity to meet with 840
exhibitors from 50 countries, including seven new countries. The exhibition, organised in four key areas equipment
suppliers, luxury good suppliers, yacht manufacturers and
boat and retail distributors attracted over 236 new international brands.
The Dubai International Boat Show held at
Dubai International Marine Club.

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The Big 5 International Building and


Construction Show, DICEC
The Big 5 exhibition in Dubai demonstrated renewed confidence in the building and construction market, with 2371
exhibitors from 60 countries convening at the Dubai International Convention and Exhibition Centre to showcase their
latest products and technologies from across the building and
construction industry.

The Big 5 in Dubai.

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Sharjah, Ras al-Khaimah


& Fujairah

SteelFab 2013 benefitted from


the upturn in the regions rail,
construction and oil & gas sectors.

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Steelfab, Sharjah Expo Center


Steelfab 2013 saw an increase in foreign participation as exhibitors look for growth from the upturn in the rail, construction
and oil & gas sectors in the region. Italy, Germany and Taiwan
all had pavilions at the event, with strong presence from key
segments such as sheet metal products, welding and cutting
equipment, machine tools and pipe and tube machinery.
Made In Sharjah Exhibition, Sharjah Expo Center
The Made in Sharjah event in December 2012 introduced, in
its third year, a conference section and an award ceremony
for the champions of the emirates industrial sector products, alongside the established exhibition. An initiative of the
Sharjah Chamber of Commerce and Industry, the Made in
Sharjah Exhibition is geared towards supporting local industries and products as well as further developing the industrial
sector.

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Ras al-Khaimah Motor Show,


RAK Expo Centre

Fujairah Career Fair,


Fujairah Exhibition Centre

The first ever Ras al-Khaimah International Motor Show


opened its doors in November 2012 and achieved a brilliant first
impression with the largest collection of luxury and custom cars
and motorcycles ever seen in the UAE. With more than 200 cars
and 40 motorcycles, including exotic cars from private collections and the worlds only Audi R8 GTR-Z PPI, this show established itself as a place where the global automotive industry
meets with motoring enthusiasts and trade professionals from
across the region. Thousands of visitors attended the much
anticipated four-day event, according to the organiser.

The eighth edition of the Fujairah Career Fair featured 103


organisations, including the Fujairah Media Academy, part
of Fujairah Media Group, Etisalat, du and National Bank
of Fujairah, offering thousands of job opportunities available to UAE citizens. Those attending the event, including a
large number of women, met with public and private sector
employers keen to recruit young Emiratis. Large numbers of
government and semi-government departments including
the air force, air defence, the Presidential Guard, naval forces
and the Dubai and Fujairah police also participated in the
event.

HH Sheikh Mohammed bin Hamad Al Sharqi, Fujairah


Crown Prince, opened the Fujairah Career Fair 2013.

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Football
Olympics
Golf
Rugby
Cricket
Watersports

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Equestrian Sports
Tennis
Motorsports
Ice Hockey
Sky-Diving

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he UAE is a hub for world-class sport, regularly playing host to some


of the best sportsmen and women on the planet. Tiger Woods, Roger
Federer and Sebastian Vettel, among others, were all on show in
recent years. The countrys sporting infrastructure is also worthy of
envy with Yas Marina Circuit, Dubai Sports City and a multitude of top-class
golf clubs, as well as several cricket stadiums, creating the perfect environment
for spectators and participants.
Sport is of huge importance to the UAE. The high-profile sports sponsorships
undertaken by UAE companies such as Emirates, which supports Arsenal
Football Club, FIFA and the U.S. Open tennis tournament among others, and
Etihad, which sponsors, amongst others, Manchester City Football Club, itself
UAE-owned, bring the UAE and its businesses to the attention of sports fans
beyond the countrys borders. Big-name tournaments hosted in the country
also have the aim of enticing visitors to the UAE and boosting its tourism sector.
UAE sport is not just for spectators. Bodies such as the Abu Dhabi Sports
Council promote and encourage the development of local and national amateur
sport clubs and participation is being encouraged for young and old to tackle
the challenge of obesity and diabetes. Indeed, the Middle Easts biggest mass
participation sports event is the Dubai Marathon. Launched in 2000, it sees
20,000 runners take on various distances in the shadow of the worlds tallest
building, the Burj Khalifa. The 2012 edition set a course record at 2:04:20, with
winner Ethiopian Ayele Abshero making the fastest-ever marathon debut.

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The Middle Easts


biggest mass
participation
sport is the Dubai
Marathon.

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Football
Football is very popular in the UAE. The Beautiful Game is
beloved by young Emiratis, with cafes packed for every big
European club match. In the past, those fans had little to cheer
at home. Until 2012, success for the national side had been
fleeting, with qualification for the World Cup in 1990 and Gulf
Cup victory in 2007 rare moments of glory.
In 2012, however, there were hints of a brighter future for
The Whites. Although the full national
side was unable to qualify for the 2014
World Cup in Brazil, the under-23
outfit became the first UAE team to
qualify for the Olympics. Coach Mahdi
Alis side got to the London Games
by memorably beating Uzbekistan in
Tashkent 3-2 having been 2-0 down.
The victory was reward for seven years
of planning and hard work for Ali and
Emirati fans
the young group of players he nurtured.
gathered around
At the Olympics, the UAE were
the screen at Abu
grouped with favourites Great Britain,
Dhabis Clubhouse
to watch Manchester
Uruguay and Senegal. Having led in two
City beat
of the matches and been level with the
Manchester United
hosts, the team failed to make it to the
in April 2012.

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quarter-finals. However, a number of young players impressed


and Ali was made coach of the full national side to give football
in the country a big boost.
The optimism created at the Olympics was not misplaced as
the UAE romped to victory in the Gulf Cup in January 2013.
The youthful vigour and confidence displayed in London
was successfully transferred to Bahrain as Mahdi Alis men

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Al Ain players
celebrate Omar
Abdulrahmans goal
against Al Hilal.

took on the best in the region. The Whites beat Kuwait in the
semi-finals, thanks to a late goal by Ahmed Khalil. They then
memorably saw off Iraq 2-1 in the final, with Omar Abdulrahman and Ismail Al Hammadi the goal-scoring heroes.
Abdulrahman was named player of the tournament leading to
growing speculation that he would become the first Emirati to
play in one of Europes top leagues.
On the domestic scene, the 2012-13 Etisalat Pro League
was won by Al Ain in the teams eleventh league title. Al Ain

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finished nine points ahead of second-placed Al Ahli, who won


the 2012-13 Presidents Cup, beating Al-Shabab 4-3 in an entertaining final at the Mohamed bin Zayed Stadium in the capital.
Facilities and climate make the UAE a sought-after destination for high-profile European clubs looking to engage in
warm-weather training during their seasons winter break. In
2012, Italys Juventus were based in Dubai, while AC Milan
beat Paris Saint-Germain 1-0 in the Dubai Football Challenge
at Al Ahlis Al-Rashid Stadium.

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Olympics
The UAE first participated in the Summer Games in 1984
and, in 2012, sent 30 athletes to London, its largest team
ever. While they didnt win any medals this time, they
showed a passion and determination that bodes well for the
future of sport in the country.
Khadija Mohammad became the first Gulf woman
weightlifter to appear at the Games. She was also the first
Emirati woman to qualify for the Olympics. HH Sheikha
Maitha Al Maktoum and HH Sheikha Latifa Al Maktoum
participated in Beijing, but they both received wild-card
invitations from the International Olympic Committee.
Khadija also became the first weightlifter to wear a hijab
at the Games. Although she didnt win a medal, coming
in twelfth in the 75kg division, she hopes to have inspired
more Emirati women to take up the sport.
In football, the under-23s became the first UAE team
to qualify for the Olympics. Grouped with Great Britain,
Uruguay and Senegal, they had little chance of making
the quarter-finals, but 21-year-old mid-fielder, Omar
Abdulrahman of Al Ain, played so well that he attracted
interest across Europe, with talk of several big-name clubs
interested in signing him.
Shooter Sheikh Juma Al Maktoum finished thirteenth

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Khadja Mohammad
hopes to have
inspired more
Emirati women to
compete.

Sheikh Saeed Al
Maktoum flew the
flag for the UAE
at the Olympics
ceremony.

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in the mens double trap. Aged only


27, he has a chance to challenge for
a medal at the 2016 Olympics in Rio
de Janeiro. Also in shooting, Sheikh
Saeed Al Maktoum, who carried the
UAE flag at the opening ceremony,
came a respectable thirteenth out of
36 in the mens skeet.
While the UAE may not have won
any medals in London, it did have a
big hand in one of the British gold
medals. Sheikh Ahmed Al Maktoum,
who won the countrys first and
only gold medal in Athens in 2004,
coached Peter Wilson to first place in
the double trap event. On receiving
his medal, the winner dedicated it to
his influential UAE coach.
Preparation is now under way
for the Rio de Janeiro Olympics in 2016. Dubai is also
contemplating a bid to host the 2024 Olympics and polls
show enormous public support.

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The UAE U23 team


celebrate scoring a
goal against Australia
to win the Olympic
qualifier 1-0.

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Golf
With over a dozen top-class courses, the
UAE has a reputation as one of the best
golfing destinations in the world and
hosts many of the planets best golfers.
Famous names such as Tiger Woods
and Rory McIlroy often play in tournaments held across the UAE.
However, golf in the country isnt all
about those marquee names. Through
Golf in Dubais creation of the MENA
Tour in 2011, it was hoped Emirati
golfers would be able to better hone
their game and enter the ranks of
professional players. In just its second
edition, the 2012 Tour saw some success
in this aim as Ahmed Al Musharrekh
became the first Emirati to turn professional.
The MENA Tour saw an expanded schedule in 2012 with six
of seven events taking place in the UAE and large prize funds
on offer. Golfers from around the region took on some wellknown names from Europe in a competition that provides a
unique platform for development. Al Musharrekh, a Sharjah-

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Golfers practice before the Dubai Desert


Classic, the most famous of the Middle Easts
golf tournaments, held at the Emirates Golf
Club in Dubai.

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Scotlands Stephen
Gallacher shows
off his trophy after
winning the Dubai
Desert Classic in
2013.

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born 21-year-old, teed it up as a pro for the first time in the


Tour opener, the Dubai Creek Golf & Yacht Open. The Order
of Merit, however, was won by Welshman Stephen Dodd.
Among the more established events, Scotlands Stephen
Gallacher won the twenty-fourth Dubai Desert Classic, the
most famous of the Middle Easts golf tournaments. Woods
and McIlroy got the year off to a memorable start at the Abu
Dhabi HSBC Golf Championship in January, although the
famous Falcon trophy went to Britains Robert Rock.
Those two events form part of the European Tours Race
to Dubai, a season-long competition that culminates in the
top 60 golfers on the Tour taking part in the DP World Tour
Championship at Jumeirah Golf Estates in Dubai. It was the
fourth staging of the event which, with a prize fund of Dh29.4
million (US$8 million), is one of the most prestigious in world
golf. Then world number one McIlroy won the event and
crossed the Race to Dubai finish line first.
The stars were once again out in force on the UAEs fairways
in 2013, with McIlroy using his appearance at the Abu Dhabi
HSBC Golf Championships to host the announcement that he
would start using Nike equipment. With much razzmatazz, the
news of the deal was beamed around the world. The championships went to Jamie Donaldson. In Dubai the Desert Classic
was won by Scotlands Stephen Gallacher.

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Rugby
2012 was a big year for UAE rugby. The Arabian Gulf Rugby
Football Union was disbanded at the end of 2010 in an
attempt to create country-based unions, with the hope that
more Arabs would take up the sport. In 2012, the UAE Rugby
Football Union (UAERFU) was awarded full membership
status by the International Rugby Board (IRB), having been an
associate nation for less than a year recognition of UAERFUs efforts to grow the popularity of rugby in the region by
helping other Middle Eastern countries and trying to increase
the number of players in the UAE.

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Belgian players
Mohammed Abbas is a great example
celebrate their
of the success the UAERFU has
victory in the
enjoyed. The former semi-professional
Emirates Cup of
Nations, held at The
footballer made his debut for the UAE
Sevens ground in
at the Shanghai Sevens and scored with
Dubai.
his first touch in international rugby.
He impressed many who saw him play with his searing speed.
Sevens coach Wayne Marsters is convinced Abbas can inspire
other Emiratis to play rugby and continue his remarkable
development on the pitch.
In the HSBC Asian Sevens Series, the UAE came tenth out
of 16. The series was a learning curve for the side and there is

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UAE play Hong


hope the UAE can do better in 2013.
Kong at the Emirates
In the UAE, rugby sevens is synonyRugby Tournament.
mous with the Emirates Airline Dubai
Rugby Sevens. Part of the nine-leg IRB
Sevens World Series, the 2012 event was in its forty-second
year and was packed with over 40,000 fans who witnessed
Samoa beat favourites New Zealand 26-15.
In the XV-man form of the game, former Australia international Duncan Hall coached the UAE team for seventeen
months, with the long-term aim of qualifying for the World
Cup in 2019. In the HSBC Asian Five Nations, where the UAE
took on Hong Kong, South Korea, Kazakhstan and Japan,
the team managed to stay in the top division in 2012, but was
relegated in 2013. In the Emirates Cup of Nations, the side
finished fourth out of four as Belgium romped to victory at
The Sevens ground in Dubai. Ian Bremner, the chief executive of the UAE Rugby Federation, said that, although Halls
departure was a blow, he believes the development work he
has carried out in the Emirati community and schools has left
them with a solid base to build from.
As rugby gains popularity in the UAE, new amateur clubs
are forming. The Abu Dhabi Harlequins gained a rival in the
city with the Abu Dhabi Saracens, founded in 2011 in conjunction with the well-known London club to ensure young UAE

255

players receive world-class coaching. In Dubai, the two most


successful amateur clubs are the Jebel Ali Dragons and the
Dubai Hurricanes. Dubai Exiles is the oldest and biggest club
with a huge junior section ensuring rugbys continued popularity in the UAE.

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Cricket
The UAE is not a Test-playing nation, but it plays a key role
in world cricket. The country is home to the International
Cricket Council (ICC), headquartered in Dubai Sports City.
With three world-class stadiums Dubai Sports City Cricket
Stadium, Abu Dhabis Sheikh Zayed Cricket Stadium and
Sharjah Cricket Association Stadium the UAE has the best
facilities of all the Associate members of the ICC. As a result,
the UAE plays host to all Pakistans home games during the
year, with international matches not allowed in the sides own
country due to the security situation. Sharjah has also become
home to the Afghanistan team.
In January and February, Pakistan completed a shock
Test series whitewash against the number one-rated side,
England, in Abu Dhabi and Dubai. The visitors then got
their revenge with victory in both the One Day International
(ODI) and Twenty20 series. Pakistan
later faced Australia in three ODIs and
Kevin Pieterson
of England runs
three Twenty20s with the Australians
between the wickets
winning the former and the hosts the
during the second
latter.
Test match between
Pakistan and
The UAE side took part in the ICC
England at Sheikh
Intercontinental Cup, a competition
Zayed Stadium in
for Associate nations not playing Test
Abu Dhabi.

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Pakistan plays
its international
home games at the
Dubai International
Cricket Stadium.

cricket. With the competition lasting from 2011 to 2013,


the team played two matches in 2012. They lost to Scotland
and drew with the Netherlands and heading into the final
year lay seventh out of eight, a position they still hold after
drawing with Ireland in Sharjah in March this year. Looking
to improve, former Pakistan Test fast bowler Aaqib Javed was
made new UAE coach.

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The UAEs importance to the sport


is appropriate since a vast number of
the countrys expatriate population hail
from the cricket-loving nations in the
sub-continent. Bodies such as the Abu
Dhabi Cricket Council, Dubai Cricket
Council and the Ajman and Sharjah
Cricket Councils, under the auspices of
the Emirates Cricket Council, foster and
encourage the development of the sport.
The ICCs Global Cricket Academy (GCA), which opened
in 2010, provides courses and facilities for locals from
toddlers upwards, but also hosts teams for out-of-season
training. In 2012, the Netherlands team trained at GCA.
Dubai regularly hosts English county sides such as Sussex
and Lancashire who come to the UAE to prepare for their
upcoming season at home.

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Watersports
With its famous coastline, the UAE is a perfect location for
all watersports. From traditional dhow racing to ultra-fast
powerboat racing, the Arabian Gulf provides an arena for a
great variety of races. The sport plays a big part in the lives of
both nationals and expatriates with numerous activities and
competitions taking place all year round.
Theres no tougher race in yachting than the Volvo Ocean
Race, which has been taking place since 1973 and sees several

crews tackle a gruelling route around the globe. It docked in


Abu Dhabi at the start of 2012, with the six teams making it to
the UAE capital at the end of the second leg from Cape Town,
South Africa. One of those crews was Abu Dhabi Ocean Racing,
skippered by Ian Walker. Abu Dhabis Corniche was packed and
those present were treated to a thrilling spectacle as the home
team put on a great display to win the in-port race.
One of Walkers crew was Adil Khalid. The Emirati, who
helped Abu Dhabi Ocean Racing to
a fifth-placed finish, made history by
becoming the first Gulf national to
complete the race. The 23-year-old,
who competed for the UAE at the 2008
Olympics, beat more than 120 hopefuls to earn his spot on board the Abu
Dhabi team boat, Azzam. His experience
has him dreaming of another assault on
the Olympics, having missed out on the
London Games.
Team Abu Dhabi and Dubais Team Victory
posted a one-two finish in the UIM Class 1
World Powerboat Championship 2012.

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Abu Dhabi will have both a team and a stopover in the


2014-15 edition of the race. Abu Dhabi Ocean Racing is
hoping to attract more Emirati sailors to its team, having
worked with Abu Dhabi Sailing & Yacht Club to push youth
sailing development forward.
In the UIM Class 1 World Powerboat Championship in 2012
the UAE posted a one-two finish with Dubais Victory team
pipping Team Abu Dhabi to the title, with the last two legs of the

UAE sailor Adil Khalid (holding UAE flag) celebrates with team mates
onboard Abu Dhabi Ocean Racings Azzam after winning the in-port
race held in Abu Dhabi as part of the Volvo Ocean Racing Series.

259

six-race season taking place in the UAE. At the midway point of


the 2013 season, Victory was again leading.
While Abu Dhabi was trailing in the 2013 championship, these
are exciting times for the team from the capital. At the Turkish
Grand Prix in June 2013, they unveiled the new partnership of the
experienced Rashed Al-Tayer and newcomer Faleh Al-Mansoori.
In Turkey the Emirati pair posted some fine qualifying times that
bode well for the rest of the season and beyond.
In June 2013, Abu Dhabi International Marine Sports Club
reached an agreement of technical cooperation with American racing legend, and owner of the highly successful Marine
Technology Inc, Randy Scism, as they look to step up their bid
to win the Class 1 World title. Scism will oversee the development, design and build of a new Class 1 raceboat with a view to
rolling it out for the 2014 season. The project will also focus on
developing the marine boat building industry in Abu Dhabi.
HH Sheikh Mohamed bin Zayed Al-Nahyan, the Crown Prince
of Abu Dhabi, revealed the deal was part of a plan to make the
emirate the capital of marine sports racing.
Sailing is a hugely popular sport in the UAE with many
boats taking part in races on the Arabian Gulf every weekend.
The oldest and best-known club is the Dubai Offshore Sailing
Club. Established in 1974, the non-profit making club has
been run with the intention of promoting sailing among all
nationalities in the UAE and has the biggest and most competitive racing fleets found in the Gulf.

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Equestrian Sports

gold. That victory was the third in a row


following gold in the 2008 World Endurance Championship in Malaysia and in
the 2010 World Endurance ChampionThanks to the world-famous Godolship in Kentucky, USA.
phin stable, based in Dubai, and the
Over shorter distances, the UAE was
historical importance of the Arabian
equally successful. The Dubai World
horse, the UAE is synonymous with
Cup Carnival (DWCC), taking place at
equine pursuits. As owner of Godolthe world-class venue Meydan, annuphin, HH Sheikh Mohammed bin
ally attracts the highest level of race
Rashid Al Maktoum, Vice President and
horses from Great Britain, Japan, USA,
Prime Minister of the UAE and Ruler of
Singapore, France, Australia, Brazil and
Dubai, has been a driver in the success
Hong Kong. It culminates in the Dubai
of various forms of horse racing in the
World Cup, recognised as the worlds
country.
Sheikh Mohammed wins the gold at the FEI
World Endurance Championship.
richest day in racing with over US$27
A keen horseman himself, he has
million being given away as total prize
led from the front in making the UAE
money for a showcase of nine races.
a world-class centre for horse racing. He achieved success
The biggest of these races is the Dubai World Cup. In the
winning the gold at the FEI World Endurance Championseventeenth running of the race, Godolphins Monterosso
ship in the United Kingdom. Riding Madji du Pont, Sheikh
beat stable mate Capponi to cap a brilliant night for the Dubai
Mohammed crossed the line at Euston Park after 180km and
operation as it became the first owner to register a first and
seven hours in the saddle.
second finish in the race.
Sheikh Rashid Dalmook Al Maktoum took silver in the event
That set up a memorable year for Godolphin which included
and Ali Khalfan Al Jahouri bronze to complete a one-two-three
an unprecedented 214 winners and record prize money of
victory for the UAE team, a result that netted the UAE team
almost US$26 million in a year that featured a host of notable
victories and ended with an eighth owners title in Britain.

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Tennis
The Dubai Tennis Championships regularly attracts the
worlds top players and has been voted the best ATP World
Tour 500 tournament by those on court for nine of the past
10 years. In 2013, world number one Novak Djokovic won
his fourth Dubai title, beating Tomas Berdych, with the Czech
Republics Petra Kvitova winning the womens tournament.
In late 2012, the Mubadala World Tennis Championship
took place for the fifth time at Abu Dhabis International Tennis
Complex, part of Zayed Sports City. The six-man exhibition
event regularly attracts the best-known players in the world,
with Novak Djokovic beating Nicols Almagro in three sets to
win his second straight title in the UAE capital.
Tennis Emirates, the body that runs the sport in the UAE,
is still searching for a UAE star. With their backing, national
team coach, Jorge Martin Munoz of Spain, initiated a plan to
tap into talent at grassroots level. He approached two UAE
schools, the Al Ittihad Private School and the Dubai International School, with the aim of identifying children with the
potential to go far on the tennis court. While the plan may
bear fruit in future, in the meantime tennis fans will continue
to cheer on the sports best protagonists rather than a local
hero.

261

Novak Djokovic during his championship match at the Mubadala World


Tennis Championship in 2012.

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Formula One driver Kimi Raikkonen heads for


victory at the Abu Dhabi Grand Prix in 2012.

Motorsports
Its almost impossible to talk about motorsport in the UAE
without mentioning Mohammed bin Sulayem, Vice President
of the global Federation International de lAutomobile (FIA)
and President of the Automobile and Touring Club for the
UAE.
The Middle Easts most successful rally driver set up the
UAE Desert Challenge in 1991. Since then it has become one
of the most important races on the rallying calendar. In 2009
the event was renamed the Abu Dhabi Desert Challenge and
the prestigious race now opens up the season for both the FIA
Cross Country Rally World Cup and its motorcycling equiv-

262

alent, the FIM Cross Country Rallies


World Championship.
The five-day motor sport spectacular, staged across the emirate of Abu
Dhabi, was won in 2012 by Spains Marc
Coma in the bike section and JeanLouis Schlesser of France in the car
section. Schlesser was unable to repeat
the trick 12 months later as he was beaten to the chequered
flag by Spains Nani Roma. Coma, however, once again proved
unstoppable on two wheels.
Bin Sulayems role isnt limited to just rallying. He is a
sporting ambassador for the Arab world and a man who plays
a vital role across all motorsports in his role as Vice President of the FIA. He was the first Arab to be a race steward at
a Formula One Grand Prix and had a hand in ensuring the
successful debut of the Abu Dhabi Grand Prix in 2009.
The 2012 Grand Prix, held for the fourth time at the Yas
Marina Circuit on Yas Island in November, was won by
Finlands Kimi Raikkonen, who registered his first victory for
three years.

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Ice Hockey
The UAE Ice Hockey Association (IHA)
was granted full membership of the
International Ice Hockey Federation
(IIHF) in 2013, becoming the first Arab
country to become a full member. An
IIHF delegation visited the IHA headquarters in Zayed Sports City, Abu
Dhabi, to review the available facilities
and get a clear picture of the mechanisms
for supporting local championships.
The UAE Ice Hockey Team made
it through the qualifying tournament
for the 2013 IIHF Ice Hockey World
Championship Division III held in
Abu Dhabi in October 2012. The team
placed first in the four-team qualifiers, but could not repeat
their success in the finals in South Africa.
In 2012, the UAE Ice Hockey Team retained their Gulf Cup
Crown, beating Kuwait 3-1 in the Zayed Sports City ice rink.
They also won the fifth Asia League Ice Hockey Championship for the second time, beating Thailand in the final match
in India. The team won the Championship for the first time in
Abu Dhabi in 2009 and ranked second in 2010 and 2011.

263

The UAE Ice Hockey


Secretary General of the Ice Hockey
Team celebrated
Federation and the UAE teams main
winning the Asia
playmaker, Juma Al Dhaheri, started his
League for the
second time.
sporting career as a promising schoolboy
player at Al Ain football club. He began
playing hockey for fun with expatriate Canadians and Americans, and has been instrumental in gaining both enthusiasm
and official support for the game among Emiratis.

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Sky Diving
Dubai hosted the FAI World Parachuting Championships Mondial 2012
at the end of the year. The 12-day event
with seven parachuting and skydiving
competitions, was held under the
patronage of HH Sheikh Hamdan Bin
Mohammed bin Rashid Al Maktoum,
Crown Prince of Dubai, Chairman
of Dubai Executive Council and
Chairman of Dubai Sports Council.

Skydivers descend in
formation over the
Palm Jumeirah.

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Arabs with Altitude


A team of four UAE residents climbed Mount Everest in
2013, the sixtieth anniversary of the first ascent, raising
money for educational projects in Nepal. Raha Moharrak, a
graduate of the American University of Sharjah, became the
first Saudi woman to scale Mount Everest. Qatari national
Sheikh Mohammed bin Abdullah Al Thani, who lives in
Sharjah, climbed as brand ambassador for the Doha-based
charity Reach Out to Asia and was the first Qatari to reach
the summit. Raed Zidan, a Kuwait-born Palestinian and
Iranian Masoud Mohammed, both of whom live in Dubai,
also reached the top, with Zidan the first Palestinian to do
so. On their website, Arabs with Altitude, Moharrak writes:
I really dont care about being the first so long as it inspires
someone else to be second. Separately, another Dubai
resident, Maria Conceicao, reached the summit to raise
money for her charity which helps children in Bangladeshi
slums. She was supported by Etihad Airways and Nike.

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