Overseas Pakistani Friends

Mehmood-Ul-Hassan Khan

Under the wise leadership of the country, UAE has been in the full spring for the last 40 years, said by Vice President and Prime Minister of the UAE and Ruler of Dubai His Highness Sheikh Mohammed bin Rashid Al Maktoum while giving an exclusive interview to CNN. It has been complete socio-economic transformation. It has been evolutionary economic development approach which has achieved elements of sustainability and strength. The ultimate goal is to be number one.

The Arab World has been under the clutches of political instability, anarchy, economic meltdown and societal unrest for the last two years. The ongoing European Union economic crisis and liquidity crunch has produced havocs in the macro-economic plans, monetary policies, political commitments and fiscal maneuverings of many member countries. Furthermore, the US economy is not in good shape.

On the other hand, UAE achieved 4.2 percent GDP in 2011. According to the Abu Dhabi Chamber of Commerce and Industry (ADCCI, 2011), GDP of the Abu Dhabi is expected to grow 4 per cent to Dh750 billion in 2012. It is forecasted that the public sector’s contribution to GDP would rise to Dh133 billion in 2012, up from Dh126 billion in 2011. ADCCI estimates also suggest that the contribution of the private sector to GDP will increase to Dh232 billion from Dh218 billion in 2011.

It is hoped that its diversification policy would bring more dividends in the 2012 as percentage of GDP. Oil’s revenue contribution in national GDP was 70 per cent in 1971 and now is reduced to only 29 per cent in 2010-2011. Dubai Economic Council study (December 2011) titled “the document of the union era” claimed that the UAE’s GDP is expected to reach at Dh1.248 trillion in current prices. It was Dh6.5 billion in 1971.

The United Arab Emirates macro-economy has been achieving new targets in every sector. There is no liquidity crisis in the UAE. Most of the countries faced huge budget deficits around the globe whereas; the UAE secured huge surplus in 2011. According to recently published Dubai Economic Council study, the UAE’s fiscal balance would record a surplus of 10.3 per cent of GDP in the current fiscal year and 9.2 per cent in 2012 against seven per cent in 2010.

The Arab World suffered badly in terms of budgetary deficits, lay-off, unemployment, poverty, and outflow of capital i.e. $50 billion during the 2011. Safe heavens fell sharply and the UAE being the one of the ideal destination of investments benefited most of with the crippling situation and received bulk of foreign direct investments (official data of the economic ministry showed that UAE has attracted more than $73 billion FDI since 1971) from other regional countries battling out for their survival during 2011. Global stock markets have dipped close to record lows but the UAE bourses outperformed the regional as well as global markets during 2011.
Furthermore, the UAE emerged as the largest capital exporter in the region and the 30th top investor in the world and it has pumped over $53 billion into foreign markets during the last twenty years.

UAE foreign exchange parity remained lucrative, stable and strong. During 2011, where EURO touched its lowest ebbs and US Dollar weakened further along with other reputable international currencies the UAE dirham has been gaining steadily against the euro and South Asian currencies in the second half of 2011.

According to recently published report of the UAE central bank, the country’s currency has gained 18.61 per cent against the Indian rupee in 2011 and 2.34 per cent euro. It has gained 0.35 per cent against the British pound, 0.69 against the Australian dollar, 2.61 per cent against Swiss franc, and 4.03 against Japanese yen over the past few months which shows its prudent monetary policies and strong banking industry. According to the report, UAE commercial exchange was at Dh13bn in 1971 which would reach to Dh1.73trn in 2011.

Big banks in Europe, USA and around the globe were perished forever. The ghost of sub prime crisis started from the USA ultimately bankrupted mega financial corporations and banks in the Europe. People suffered badly from the spillover repercussions of global economic meltdown. Fiscal cuts were imposed on social nets and resultant was poverty, unemployment, poor health care facilities and low industrial production in the world. Global economic eclipse darkened brighter socio-economic prosperity during 2011.

But, UAE stood firm and its banking remained resilient. According to most recently published report of the UAE central bank (December 2011) the net profits of banks operating in the UAE registered 11.3 percent increase during first ten months of this fiscal year to reach AED 24.98 billion.

Central Bank figures (2011) showed that the combined assets of the country’s 23 national banks and 28 foreign units swelled to an all time high of Dh1,584 billion at the end of September compared with around Dh1,519 billion at the end of 2009 and nearly Dh1,456 billion at the end of 2008. Moreover, the banks also controlled the largest capital base in the region, estimated at nearly Dh255 billion. UAE banks also dominate in loans and deposits, which stood at Dh1,038 billion and Dh1,013 billion respectively in September 2010.

According to a international trade agency (December 2010-11) the UAE ranked the 13th largest exporter with exports of around US$235 billion while it came 18th in imports which stood at US$170bn in 2010. The report added that the country’s exports and imports accounted for almost two and 1.4 per cent of the world’s total exports and imports respectively.

The preliminary statistics released by the Federal Customs Authority (FCA) verified UAE’s non-oil foreign trade has been achieving new targets during the first seven months of 2011 compared to the same period of the previous year. It indicates that UAE non-oil foreign trade has grown by 23 per cent compared to the same period of the previous year as total non-oil Foreign Trade has grown from Dhs426 billion during the first 7 months of 2010 to Dhs524 billion in the same period of 2011, i.e., an increase of Dhs98 billion. It further elaborated that imports has increased from Dhs276.3 billion to reach Dhs337.1 billion during the first 7 months of 2011. UAE exports witnessed tremendous growth by 45 per cent for the same period with an increase from Dhs44.5 billion to Dhs64.7 billion.

The report upholds that UAE total foreign trade in July, 2011 valued YoY Dhs79 billion compared to Dhs52.1 with an increase of 28 per cent. July Imports, in turn, hit YoY Dhs52.1 billion with an increase of 31 per cent. Exports achieved YoY Dhs10 billion with an increase of 51 per cent. Yet, re-exports recorded a YoY increase of 10 per cent to hit Dhs16.9 billion.

Global property markets were not in the pockets of positiveness. During 2011, the euro-zone economy was in turmoil and stock markets too on a roller coaster due to which prospects of healthier property markets remained subdued. The UAE real estate industry comparatively outclassed other competitors during 2011. The government initiated different meaningful policies to make it more attractive and safer. According to global land registry and National Association of Realtors (2011) the regional as well as global housing affordability conditions are at a record high and there is a pent-up demand and the UAE housing industry should also benefit from pent-up demand. Many mega real estate projects have been completed in UAE which would provide stabilization factor in this sector in the days to come.

Strategic Vision Abu Dhabi’s 2030 stand for further diversification of economy, better higher education, entrepreneurism, research, development of small to medium-sized businesses and knowledge-based economy would be instrumental to achieve its desired goals in the future.

According to International Energy Agency (2011), the UAE will increase its renewable energy up to 7 percent by the year 2020. The UAE Foreign Minister, Shaikh Abdullah bin Zayed Al Nahyan stated that the UAE will be a world leader in renewable energy. Despite horrible accident at Japan’s Fukushima Daiichi nuclear plant, the government of UAE followed it’s most advanced, transparent, open, reliable and viable nuclear program in the region/world as labeled by International Atomic Energy Agency (IAEA). Even nuclear regulatory body has also been institutionalized. Diversification of energy mix is one of the main pillars of UAE future energy policy.

The UAE is leading the GCC and Middle East and North Africa (MENA), in the development of renewable energy. It pursued comprehensive renewable energy policies in shape of Masdar City, the world’s first carbon neutral zero waste city, the annual World Future Energy Summit, IRENA’s headquarters, the annual Zayed Award for Future Energy, creation of Department of Energy and Climate Change Affairs and environment-friendly legislations along with building codification. Shams 1 solar plant is a remarkable addition.

Diversification drive can also been seen in the field of small and medium enterprises. UAE government introduced many measures in terms of providing business-investment friendly policies, loaning, infrastructure, training and formation of a new Development Bank. Now, SME sector is contributing its share in its GDP in a larger way.

UAE retailer confidence was among the best in the region and the world during the 2011. Despite global downturn and financial crisis, the retailer confidence of the UAE remained enacted and robust. More and more international brands landed in the UAE and benefited from higher retailer confidence.

Moreover, the UAE took the lead in terms of merger and acquisition deal volume in the Middle East and North Africa with 32 deals in 1H2011 compared to nine in 1H2010, resulting in a remarkable increase of 226 percent. Official data showed cumulative inflows of FDI into the UAE totalled $75.7 billion during 2000-2011.

According to the latest Global Competitiveness Report by the World Economic Forum (WEF), 2011, UAE has been included in the most advanced stage of ‘innovation-driven economies’ in the world for the second consecutive year. Aviation, tourism, seaports, and commercial cargos played tremendously during 2011. A record number of tourists traveled in UAE being the most comfortable, service-oriented, attractive and cheapest destination. UAE welcomes more than 13 million visitors in a year which makes its hotel occupancy highest in the region. There was a surge in the number of tourists from the GCC to Dubai and Abu Dhabi. Both emirates experienced growth in the number of hotel guests over last year. Abu Dhabi is forecast to have hosted about 2 million guests in 2012.

Media, public relations industry, event management companies, advertising agencies, telecommunication, science & technology and sovereign wealth funds maintained their positions and performed well. Moreover, UAE industrial base was expanded and further diversified. Now, manufacturing sector is active, healthy and productive. It is one of the leading sources of employment generation, exports and revenues. It is hoped that a strong manufacturing industry that meets the needs of the international markets will help protect the UAE from the continuing economic turmoil. Mega projects of industrialization are being carried forward i.e. Emirates Aluminium, a joint venture between Mubadala Development and Dubai’s Dubal and Emirates Steel, the country’s biggest steel-maker, is also forging ahead with a $500 million expansion that it expects to complete next year.

Social development is must for achieving sustainable economic growth that is why right from its inception; UAE has been giving priority to social development with a balanced approach. In every federal budget social development carries importance and substantial allocations. Even its federal budget 2012 allocated billions of funds for the social services, including health care, education and housing (47 per cent of the total budget i.e. Dh 41.4 billion (US $ 11.2 billion). Higher education, received Dh 8.26 billion (US $ 2.25 billion) or 19.6 per cent, the bulk of which will be spent on plans to build new schools and other educational institutions and to upgrade the educational environment. According to United Nations assessment, UAE would be the first country to achieve Millennium Development Goals (MDGs) in the GCC and MENA region.

UAE further democratization drive (2nd Federal Council Elections was held during September, 2011), women empowerment policy, persisted inter-faith harmony principles, global humanitarian assistance mechanism, and balanced foreign policy all gear towards a brighter, prosperous, stable and strong country. Its armed forces are the custodian of nation’s pride and sovereignty and they are doing great job in times of war and peace.

Concluding Remarks

Keeping in view UAE splendid achievements in all spheres of life, it is crystal clear that UAE has been in spring and will remain in “spring”. It has achieved diversity and stability. Sand dunes, tents and small forts have been restructured in commercial hubs, business centers, expos and world’s tallest buildings. Sandbanks have been transformed into safe heavens and law and order has been one of the main priority due to which even dignitaries can walk without any security sharing. Bedouins have become shining starts of corporate world. UAE is the homeland where dynasties and dignities live and operate together.

Mehmood-Ul-Hassan Khan

The government of Saudi Arabia announced a $187 billion surplus budget 2012 which clearly showed its wise leadership strong commitments to provide every possible facility to its people. Saudi Arabia being the largest economy of the Gulf Cooperation Council (GCC) and MENA (Middle East and North Africa) is also taking all possible measures to mitigate the spillover repercussions of so-called Arab Spring and ongoing global economic recession and financial crunch by announcing another balanced budget for 2012.

Socio-Economic Significance of building of hundreds of thousands of homes

Saudi finance minister Ebrahim Al Assaf explained the importance of building of hundreds of thousands of homes which would be instrumental to reduce future inflationary pressures. According to the finance ministry it had allocated 250 billion riyals from the 2012 budget surplus to fund the construction of 500,000 homes. Furthermore it would generate more employment opportunities in the country.

Robust Growth Patterns

According to the budget the GDP is going to achieve 6.8 percent in 2012 which was the country’s fastest expansion since 7.7 per cent in 2003. The finance ministry forecasted revenues at 702 billion riyals ($187 billion), while expenditures are projected at 690 billion riyals. Figures of the different sectors of the macro-economy strongly indicated that overall growth was higher than expectations because of robust development in the private sector and industrial sectors.

Immense Increase in Government’s Expenditure

The budget showed that the government sector grew 6.7 per cent during the current fiscal year while the private sector achieved 8.3 per cent. During 2011 revenues reached to 1.1 trillion riyals while expenditures totaled 804 billion riyals or 224 billion more than had initially been forecast.

The non-oil industrial sector grew an estimated 15 per cent and the construction sector 11.6 per cent. The finance ministry and Central Bank of Saudi Arabia earlier estimations about country’s GDP was 5.1 percent but actual GDP surpassed it i.e. 6.8 percent in 2011.

Outcome of Mega Social Development Projects

King Abdullah initiated a $130 billion public spending plan that largely benefited the kingdom’s lower income population. The funds were aimed at building hundreds of thousands of housing units, as well as creating jobs, raising salaries and offering unemployment benefits.

During the current fiscal year the government of Saudi Arabia introduced many meaningful social development schemes/projects/programs for the overall wellbeing of its people due to which its expenditures reached to a record 804 billion riyals (Dh787.01 billion) this year, a 39 per cent increase over its initial plan (its initial plan is to spend 690 billion riyals in 2012). In 2011 the concept of social nets was redesigned and succeeded to achieve desired dividends. Diversified but integrated socio-economic development projects maintained a sustainable social and economic infrastructure in Saudi Arabia during 2011.

Expected Socio-economic Benefits to the region/GCC

Economic works in integration and it is expected that higher economic growth of Saudi Arabia would also support trade and commerce activities in the region. Higher GDP percent of Saudi Arabia would be a boost for economic growth in the region. Saudi Arabia is the biggest Arab economy having free trade agreement (FTA) with six the Gulf Cooperation Council countries would be game-changer in the region for the public and private sectors. Mega investment projects of Saudi Arabia would provide hundreds of thousands new jobs in the region. There will be more exports from the GCC to Saudi because of higher local demand in Saudi.

Contributory Role of Government

Government being the major economic player contributed tremendously due to which inflation was kept within manageable limits. According to ministry the inflation is expected to average 4.7 per cent this year, below 5.3 per cent in 2010.

Economic Indicators Expected Growth %
Public Sector 6.7
Private Sector 8.3
Non-oil Industrial Sector 15
Source: Finance Ministry of Saudi Arabia (December 2011)

Concluding Remarks

Saudi Arabia being the largest economy of the region and biggest oil exporter of the world announced a balanced budget for 2012. It assures GDP, investments and greater numbers of socio-economic projects in 2012. It also promises to generate hundreds of thousands new jobs during 2012. In regional context, the higher GDP percentage of Saudi Arabia would be catalyst for the regional economic pace and business activities. Further diversification of economy and development of SMEs would bring desired dividends in the days to come.

Mehmood-Ul-Hassan Khan

H. H. Sheikh Abdullah bin Zayed Al Nahyan, Foreign Minister said on 40th Day National Day that a deliberate and carefully balanced foreign policy, therefore, is necessary to keep the United Arab Emirates (UAE) safe and ensure. UAE foreign policy stands upon three core golden principles envisioned by the Sheikh Zayed bin Sultan Al Nahyan, and continued under the presidency of His Highness Sheikh Khalifa bin Zayed Al Nahyan: striving for peaceful and friendly relations with all countries, being a good global citizen and responsible member of the international community, and always being ready and willing to help those less fortunate.

Arab world has been facing different gigantic challenges throughout 2011. It has been periods of upheavals and unfriendly heavens, bullets and ballots in most parts of the Arab world. Only few countries succeeded to initiate different effective socio-economic policies to promote political dialogue, cooperation and the resolution of conflicts in the region. UAE has been hub and leader of all these activities in the region, Islamic community and rigorously participated in international affairs.

Most recently, UAE foreign minister clearly sent a strong message to NATO and the West on their air strikes in Pakistan’s mountainous check posts. UAE demanded apology from the NATO with the promise not to repeat it again in the future. UAE appreciated Pakistan role in the war against terror as front line state.

UAE reaffirmed its continued extension of humanitarian assistance to the government and people of Pakistan in the post-flood period. UAE also appealed to international community to support the people of Pakistan in order to alleviate their sufferings caused by the recent deadly flood in the country.

UAE played an important role in the formation of Friends of Democratic Pakistan (FoDP). Initially, UAE pledged $ 300 million. UAE hosted many meetings (ministerial & public-private conference) of FoDP and tried its best to highlight the aim, importance and utility of this forum to the world at large for socio-economic development of Pakistan. Time and again, UAE government reaffirmed its support to Pakistan to overcome its macro-economic difficulties.

In a speech to the United Nations General Assembly in September, the UAE Minister of Foreign Affairs, His Highness Sheikh Abdullah bin Zayed At Nahyan highlighted UAE highlighted UAE coordinated preventive diplomatic efforts for escalation of tensions and resolution of conflicts occurring in the GCC, MENA and beyond during 2011. Recently, Lieutenant General Sheikh Saif Bin Zayed Al Nahyan, Deputy Prime Minister and Minister for Interior urged to have further bolster cooperation among the GCC security authorities because “the security of the Gulf is the security of the whole world. It emphasized the importance of maritime piracy and stressed the need to have mutual naval cooperation among the GCC states.

UAE stressed the need to have closed cooperation in the fields of security, defence/military, intelligence information sharing, and the last but not the least peaceful nuclear energy cooperation among the GCC states. UAE strongly suggested that the GCC states (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia must get their act together for their collective security umbrella. UAE reaffirmed their commitments to be transparent, open and fair to international regulatory bodies i.e. IAEA for the implementation and execution of their peaceful nuclear energy programs in the region.

United Arab Emirates played remarkable job to bring peace in boiling Egypt and troubling Tunisia. UAE brotherly offered its diplomatic support to restore security, social and economic development and stability in these countries. UAE has been has firm believer in collective line of action. It played an active role in the UN approved air strike campaign to protect civilians in Libya from the widening military crisis among the different factions as well provided generous humanitarian assistance for the war ragged people. Moreover, it was among the first countries to accept the National Transitional Council for the betterment of its struggling people.

UAE rigorously coordinated with Saudi Arabia to bring back peace in Syria in order to stop ongoing socio-politico saga. It tried its levels best to convinced Syrian government for the carrying out of meaningful political dialogue and reforms to fulfill the aspirations of its own people.

UAE along with Saudi Arabia successfully protected the sovereignty of Bahrain by sending troops in its time of national crisis. UAE strongly denounced foreign intervention in the Bahrain and honestly supported dialogue process. It was actively engaged in attempts to negotiate a peaceful resolution of conflicts in Yemen.

UAE reassured its commitments for the progress and prosperity of the people of Iraq through comprehensive national reconciliation without any discrimination. It also reiterated the necessity to respect the territorial integrity, sovereignty, independence of Iraq, and furthermore, safeguarding its Arab and Islamic identity..

UAE supported the efforts of the Lebanese government towards achieving security, stability and national unity and called for respecting the sovereignty of the Lebanese state and for ceasing the repeated Israeli violations of the Lebanese airspace, waters, territories and regional safety in accordance with the Security Council Resolution 1701.

Humanitarian assistance has been one of the salient features of the UAE foreign endeavors 1971. UAE government, charities and its people generously engaged in different humanitarian assistance programs around the globe for lessening the sufferings of most affected people from natural calamities. UAE significantly contributed humanitarian assistance activities in Australian, New Zealand, Palestine, Libya, Iraq, Yemen, Sudan, Bosnia and Herzegovina, Thailand, Afghanistan and the last but not the least Pakistan. UAE is now the second largest non-DAC donor of humanitarian aid since 2004.

UAE peacekeeping missions brought signs of peace, hope and life to conflict tattered countries in the world. It vigorously extended its effective contributions in peacekeeping operations, protecting civilians, and re-building efforts for states which have just emerged from violent armed conflicts. Bosnia, Somalia, Afghanistan and Sudan are the prime examples. UAE peacekeeping missions has been gained recognition and acknowledgment
from the different peacekeeping organs. In Afghanistan, UAE provided over US $ 1.5 billion dollars over the last decade for rehabilitation and reconstruction programs. It built schools, health clinics, roads, bridges, community centers and mosques.

Foreign Ministers of Gulf Cooperation Council Concluded their 120th ministerial session held in Jeddah under the chairmanship of UAE Foreign Minister HH Sheikh Abdullah bin Zayed Al Nahyan. The joint declaration contained UAE principal position on issues relating to fight against terrorism, relations with Iran, the Iranian nuclear file, the current Arab situation including the Palestinian issue and the Arab-Israeli conflict as well as the Yemeni, Iraqi, Syrian, Libyan, Lebanese, Sudanese, South Sudanese and Somali issues.

During 2011, once again through its rigorous diplomatic efforts, the world at large supported UAE genuine cause and principal stance on its three islands, Abu Musa, Greater and Lesser Tumb occupied by Iran since 1971. UAE is ready to resolve the issue through bilateral negotiations or through referral to the International Court of Justice.

UAE role in Middle East region is highly appreciated. In his speech to United Nations General Assembly in September, the UAE Minister of Foreign Affairs, His Highness Sheikh Abdullah bin Zayed Nahyan showed UAE great concerns at the deteriorating conditions of the Palestinian people. It expressed its full support for the Palestine Authority in its attempt to obtain membership of the United Nations. UAE initiated Arab Peace drive for achieving a peaceful settlement of the Israel-Palestine issue based on the relevant international resolutions that will lead to a just and lasting peace and to the establishment of a Palestinian state with Jerusalem as its capital.

In recently held extraordinary meeting Arab Finance Ministers appreciated UAE initiative of development. They all endorsed the UAE initiative for more economic and financial reforms with the participation of the national, regional and international corporations. Obaid Al Tayer, UAE State Minister for Financial Affairs called for closer economic and banking cooperation within the region for the creation of more employment, sustainable development and social development.

Concluding Remarks

Pragmatic foreign policy played very important role in the socio-economic prosperity of the United Arab Emirates. Its commercial diplomacy opened new markets for greater cooperation and collaboration.

By Mehmood-Ul-Hassan khan

Right now most of the Arab world is struggling for survival. Change is projected through the notions of so-called Arab Spring. Different models of change are at work in the Arab world which has already produced larger than life experiences. The change revolves around bloodily revolutions, massive protests, massive violence and the last but not the least, peaceful way-forwards. Obviously, change has its spillovers repercussions.

Despite major turnaround, Egypt is still at transitory stage. Syria is bleeding and burning. Jordan is under transformation and at half way. Sudan is divided. Yemen is burning and struggling for political stability and national harmony. Libyan has apparently surpassed the unthinkable but still at its fancy. Tunisia held elections and people elected their new democratic representatives. Morocco has also started its journey towards more democratic spirits and principles. Bahrain and Oman experienced new elections and prospects of normalization and greater national consensus are now bright.

It seems that Arab world the land of unlimited prophecies and pharaohs is again in search of new Moses to achieve political harmony and peace. Democratization process has already been started in many Arab countries and in this regard the United Arab Emirates played a leading role.

Regional political scientists called it miracle while international strategists are still skeptical about the ultimate outcome. People termed it silent revolution and junta supported it as timely rescue. Power brokers projected it as anti-status quo and provoking to regional stability.

For most of the people, change in Arab world is real, drastic and significant. It carries hope for better future. It guarantees greater political participation of the common people in the development process. It upholds a progressive development model which consists of stability and sustainability with gradual change through democratization drive. It protects greater civil liberty, human rights and social justice for the marginalized communities and the UAE has already secured political mileage through evolutionary approach by successfully conducting 2nd Federal National Council Parliamentary Elections in the country. Consequently, the rest of the region followed this prime example. It was not held because of fear or frustration but to comply with the strategic vision of its leadership which always cares about the aspirations of its people. Majority of the candidates were between 30-35 years category that strived to brighten the future of the younger generation of the country for a better UAE society.

UAE President Sheikh Khalifa bin Zayed Al Nahyan termed the Federal National Council (FNC) elections a perfect opportunity to make a major step towards empowerment and further democratization. Vice President and Prime Minister of the UAE and Ruler of Dubai Sheikh Mohammed bin Rashid Al Maktoum strongly stressed the need to back the “democracy test” by actively franchising in the elections 2011.
The 2nd Federal National Council (Parliament) Elections was held on September throughout the UAE. Some 468 candidates along with 86 women contested for half of the 40 seats in the seven Emirates. Arab world where people are struggling for achieving democracy, the UAE plans for further democratization is a bold and right step.

The 2nd FNC elections were the turning point in the political history of the UAE which widened popular participation in the process of government. Electoral College increased from 7,000 to 129,000. The UAE society is a politically sensible, socially dynamic and economically vibrant which can easily be judged even from its high interests in the Electoral College. Notwithstanding, turn- out was below expectation, but it was right step towards right direction.

There was no discrimination against any candidate in the elections 2011. The FNC elections 2011 offered a chance for all nationals of different age and gender to engage with the diverse processes of democracy and play important role in the decision making process. The voters were free to cast their votes.

Democracy stands for quality of life and greater good for the community. Most of the countries took centuries to reach a universal suffrage, political empowerment and the building of progressive institutions. Whereas, the UAE since, its inception 1971 has been sincerely trying to have golden principles of democracy. By any international standard or definition, the United Arab Emirates is the icon of democratic norms and traditions and recently held FNC elections further strengthened the democratic process in the country.

Governance system must be free from any political dogma, societal stigma, and economic barrier. Democracy is not a fairy tale or queen of happiness, keeping by which one succeeds to achieve socio-economic prosperity. Take the example of China, Brazil, UAE, Saudi Arabia and Qatar where so called highly projected Western Styled democracies are not at work but still these countries have achieved high levels of socio-economic prosperity and sense of security. The so-called democratic countries of the West were responsible for the ongoing global economic recession and financial crunch and the countries mentioned above are the sign and hope of survival for the whole world.

The political philosophy and history of the modern democratic systems reveal a conflicting reality and favours gradual and rationale changes in the governance systems. Shock-therapy, most of the time bring disastrous consequences and encourages upheavals in the countries. Eastern Europe is the classic example of it. Whereas, gradualism and rationalism always brings desired goals of socio-economic prosperity and security. UAE, Qatar, Uzbekistan, and China are the prime examples in this regard. Usually first comes the macro-economic stability and societal cohesion than surfaces political system.

Respect for local talent, indigenous wisdom, traditions, customs and special circumstances ought to be pivotal for onward march towards democratization. No system is perfect. Every system has its pitfalls. Main purpose of any governance system is to deliver and free from any gender, racial and ethnic discrimination and the United Arab Emirates upholds the true spirits of humanity, survival, production, cooperation, social justice and above all welfare spirits. It has already set high standards of stability, tolerance, modernity and cultural identity in the region. So, UAE is on right path and going towards a greater public participation after holding elections 2011 in all its seven emirates.

The Federal Nation Elections (FNC) 2011 strengthened the process of gradual process of democratization. It gave the chance to government to prepare ground for further political initiatives and the people to be the part of ongoing socio-economic prosperity and decision making.

Democracy demands greater responsibilities and duties. It evolves around the sustainable development, rule of the law, and social justice. It protects the genuine spirits of civility, rights of the minorities and upholds freedom of speech. It guarantees qualitative life, better education, health and good law and order situation. By al means and international standards, UAE is the country where all above mentioned golden principles of democracy are being followed in letters and spirits and hopefully, the recently held FNC Elections 2011 would further boost the empowerment and democratization drive in the United Arab Emirates in the days to come.

Mehmood-Ul-Hassan Khan

ABSTRACT

Easy and smooth supply of energy supplies is the mantra of each and every government around the globe. Energy gears the pace of development. It guarantees the survival of humanity on this planet. It protects the dreams of socio-economic prosperity, stability and sustainability. It provides essential inputs of industrial productivity, generation of employment, reduction of poverty and above all promotes qualitative life and renewable/alternative energy is a value-addition.

Due to deteriorating law and order situation, conflicting geo-politics realties and the last but not the least complicated geo-strategic scenarios in many crucial parts of the world, the burning issue of energy security is at stake and energy strategic landscape is on the change all the times. Old resources of energy are decreasing and reaching at critical stage and are giving way to new mix of energy. New technologies are being introduced to make it fruitful and effective.

Continued upward trends in the prices of oil and gas commodities, depletion of strategic reservoirs of energy in many countries and low investments in the exploration of new energy fields, all are supposed to be responsible for the current energy uncertainties in the world markets. Moreover, weak economies, high debts, sky-rocketing inflation and above all dim prospects of global economy revival are producing serious dints in the conventional energy’s budgets and policies of the countries around the world. Paradigm shift has already been made its roots and succeeded to change the strategic landscape of conventional energy resources and supplies around the globe especially in the Gulf Cooperation Council (GCC) and particularly in the United Arab Emirate (UAE).

Looming threat of climate change and cost-effect analysis of the renewable/alternative energy resources has forced all the stakeholders/countries to initiate sincere and concrete coordinated efforts to institutionalization of green energy policies and projects at large. Now from Greek to Great Britain, Poland to Pakistan and UAE to Saudi Arabia all are diverting their financial resources in the development of renewable/alternative green energies.

The Gulf Cooperation Council (GCC) comprising of six countries, Saudi Arabia, the UAE, Kuwait, Oman, Bahrain and Qatar are making every possible effort to gradually switch from hydrocarbon conventional resources and technologies to green clean renewable/alternative energy resources. Prospects are very healthy and bright for the cluster of renewable/alternative energy resources in the region. United Arab Emirates being the second largest economy of the region having leading status in knowledge-based economy and infrastructure is now leading the region in the pursuits of green energies and technologies.

Nature is kind to all the GCC countries and “Sun” is ready to help them all in this regard. They all have political will, vision and enough funds to pursue the renewable/alternative energy resources for further strengthening of their respective national macro-economies.

All the GCC countries, prominently UAE have comprehensive renewable/alternative energy policies, regulations and future plans to lit-up their cities, towns and villages. Mega projects are being carried out and Masdar City is the prime example of UAE strong commitment towards the institutionalization of renewable/alternative energy resources.

According to many recent reports of the Intergovernmental Panel on Climate Change (IPCC), 2011, renewable energy resource mix is essential for minimising climate risks, reducing poverty and improving global health, empowering women and meeting the Millennium Development Goals (MGDs), global economic growth, peace and security, and the health of the planet.

It has multiplier effects on economy, environment, and society. It is a value-addition to macro-economy and supports its pace. It guarantees sustainable development. It minimizes repercussions of hydrocarbons. It reduces high ratios of poverty, unemployment and speeds-up industrial production.

Green stands for prosperity, progression, productivity and protection because we all need interpreted inflows of save energy for our survival, development and industrial production.

A major expansion of renewable energy could create millions of jobs worldwide, stir economic growth in heavily indebted countries i.e. European Union (EU), United States of America (USA) and Asia. Germany has been leading the way by creating some 250,000 jobs in renewable energy in just a few years, but could do more. Greece and Portugal, for instance, could relatively quickly create thousands of new businesses and many more jobs with the right incentives for renewable energy that could trigger a boom in public-private partnerships.

It would be anti-disaster by lowering levels of carbon dioxide released into the atmosphere after replacing and start using renewable energy mix. It would be instrumental to reduce global warming which means lesser colossal natural calamities in shape of devastating floods, horrendous droughts, horrible heat-waves and rising sea levels (tsunamis) around the globe.

The mix of renewable energy has numerous social benefits too. According to International Energy Agency (IEA), 2011 it could provide electricity to over two billion people who currently have little, or very inconsistent access to power supplies around the globe. It would in turn help raise health and educational standards in developing countries.

GLOBAL EMERGING SCENARIOS

Solar Photovoltaic (PV):It global production and markets increased more than double in 2010. An estimated 17 GW of capacity was added worldwide compared with just less than 7.3 GW in 2009, bringing the global total to about 40 GW more than seven times the capacity in place five years earlier. Germany and Italy led the way.

Concentrating Solar Thermal Power (CSP: Nearly 740 MW added between 2007 and the end of 2010. More than half of this capacity was installed during 2010. Parabolic. USA, Japan, Spain and UAE registered tremendous development in it.

Solar hot water/heating: It increased by an estimated 25 GWth in 2010 to reach approximately 185 GWth. China continues to dominate the world market for solar hot water collectors. Europe’s market
shrank during 2010 due to the economic recession

Wind Power:It added 38 GW for a total of about 198 GW in 2010. China dominated it.

Biomass power and Heat:An estimated 62 GW of biomass power capacity was in operation by the end of 2010. China leads the world in the number of household biogas plants, and gasifiers.

Bio-fuels:The global ethanol industry production increased 17 percent in 2010 The US Brazil accounted for 88 percent of global ethanol production.

Geothermal Power and Heat:It operated in at least 24 countries in 2010, and it was used directly for heat in at least 78 countries. Although power development slowed in 2010, with global capacity reaching just over 11 GW.

Hydro-power:30 GW of capacity was added during the year, led by china and Brazil.

Ocean Energy:At least 25 countries are involved in ocean energy development, and wave and tidal technologies saw significant progress toward commercial generation during 2010. An estimated total of 6 MW of wave (2 MW) and tidal stream (4 MW) capacity had been installed, with most of this capacity in Europe.
Source: Renewables 2011, Global Status Report

Changes in renewable energy mix, patterns of investments, industries, and policies have been tremendous in recent years. Renewable energy which experienced no downturn in 2009, continued to grow strongly during 2010. It accounted 16 percent of global final energy consumption. Total global capacity of renewables including solar PV, wind power, concentrating solar thermal power (CSP), solar water heating systems, and bio-fuels registered 15-50 percent growth during 2010. Biomass and geothermal for power generation and heating also performed well. Wind power added the most new capacity followed by hydropower and solar PV in different countries of the world. Substantial hike in oil and gas prices in international markets, energy security issues (Iran, Sudan, Yemen, Venezuela, Libya), economic recession (EU, USA, Japan), and high human costs of using and relying so heavily on fossil and nuclear energy paved the big way of renewables. The BP oil spill in the Gulf of Mexico, the “Arab Spring” triggered oil price volatility and added instability to energy markets in recent times. Moreover, phenomenal increase in the global demand for oil outpaced the capacity for production (China, India, Brazil, USA). Last but not the least, the recently happened Japan’s Fukushima nuclear disaster has forced the countries to develop renewables for the production of low-carbon electricity. The increasing geographic diversity in markets and manufacturing is boosting confidence that renewables are less vulnerable to policy or market dislocations in any specific country.

China, India and Brazil led the world in renewables during 2010. Out of the 118 countries that now have renewable energy policy targets or support policies, at least half of them are in the developing world. There is also a large diversity of policies in place at state/provincial and local levels. Globally, there are more than 3.5 million direct jobs was created from the mix of renewables in 2010.

China was the top installer of wind turbines and solar thermal systems and was the top hydropower producer too in 2010. India remained fifth worldwide in total existing wind power capacity and is rapidly expanding many forms of rural renewables such as biogas and solar PV. Brazil produces virtually all of the world’s sugar-derived ethanol and has been adding new hydropower, biomass, and wind power plants, as well as solar heating systems.

New reports of the Intergovernmental Panel on Climate Change (IPCC) uphold that renewable energy is indispensable to achieve our targeted socio-economic short and long terms objectives. The Special Report on Renewable Energy Sources (SRREN) 2011, also highlights the potential of renewable energy to play the key role in mitigating climate change and increasing energy access, equity and security.

United Nations Secretary General Ban Ki-moon strongly urged to have a clean energy revolution which would reduce climate risks, cut poverty and improve global health. He predicted that in the next 20 years, global energy demand would be increased by 20 per cent mostly in developing countries where 1.6 billion still lack access to electricity and 3 billion rely on traditional biomass fuels for cooking, heating and other basic household needs. So, to make renewable energy available and affordable for all is the need of the hour.

The International Renewable Energy Agency (IRENA) is of the opinion that renewables can enhance energy security, reduce greenhouse gas emissions, mitigate climate change, and boost the global economy; all of which have a multiplier effects. It further elaborates that renewable energies amount to only 18 per cent of the global energy consumption currently, but most forecasts predict this will increase to 50 per cent by 2050. There should be no lack of energy if the potential of renewable energy is utilised adequately. Moreover, solar energy alone could provide 2,000 times the current global energy demand.

It is predicted that the global cumulative CO2 savings between 2010 and 2050 will total 220 to 560 giga-tonnes (Gt) from fossil fuel sources. Renewables have the potential to bring power to the world’s poorest regions, boost energy security for nations dependent on imports, and curb the CO2 emissions that fuel global warming, The report suggests that renewable technologies, such as solar, could supply 80 per cent of our energy needs by 2050.

Comparative Study Electricity Demand, 2010

Country % of Renewables Addition
USA 10.9 5.6
China 26 12
Germany 11 16.8
Denmark - 22
Portugal - 21
Spain - 15.4
Ireland - 10.1
Source: Renewables 2011, Global Status Report

Renewable Energy Share of Global Electricity Production (2010)

Renewable energy accounted for approximately half of the estimated 194 gigawatts (GW) of new electric capacity added globally during the year. Renewables delivered close to 20 percent of global electricity supply in 2010, and by early 2011 they comprised one quarter of global power capacity from all sources.

It is estimated from different research reports that renewable energy contributes by 11 percent to main energy output today, while the total energy used from renewable energy sources is expected to amount to 60 percent by 2070. Nearly half of the 300 giga-watts of new electricity generating capacity added in 2008 and 2009 around the world, with more than 50 percent installed in developing countries more than 40 per cent came from renewables. Today, almost half of global investment in electricity generation is going into renewables.

Among the six major renewable energy sources bio-energy (agricultural and industrial residues, waste, forests, energy crops), geothermal, hydropower, ocean (wave, tidal, osmosis, thermal), solar (photovoltaic, solar thermal) and wind (on-shore and off-shore) has the greatest potential. The Middle East is abundantly blessed with sun.

GLOBAL INVESTMENTS IN RENEWABLES

According to the UNEP report (2011), “Global Trends in Renewable Energy Investment 2011, despite the recession, total global investment in renewable energy broke reached to its new height in 2010. Investment in renewable power and fuels reached $211 billion, up 32 percent from $160 billion in 2009. State-owned multilateral and bilateral development banks played an important role in the development of renewables in 2010.

Global News Investments in Renewable Energy (2004-2010)

According to International Renewable Energy Agency, 2011 (IRENA) sustainable energy investment was 70.9 billion US dollars in 2006, an increase of 43 percent over 2005. Furthermore, according to Bloomberg New Energy Finance (2011) global investment in renewable energy increased to US$243 billion in 2010, up five-fold from 2009. But it needs another US$6 trillion investment from China, EU and UK till to 2035. It is predicted that investment in renewable energy is set to triple between 2008 and 2035, mainly driven by the demand for power generation, but that the current glut of cheap gas and government fuel subsidies for generating power poses a threat. However, one of the key drivers to seeing growth in renewable energy will be government support and increase in private sector investments. The sectors with the highest levels of investment are wind, solar and bio-fuels, which reflects technology maturity, policy incentives and investor appetite.

COST-EFFECT ANALYSIS

Different research papers and statistical data of many international regulatory bodies suggest that costs for renewable energy development are falling due to huge demand from China: China’s drive for low-carbon energy is helping with economies of scale and we may see China dominating clean energy technology which will have a huge impact on western economies, especially in the automotive sector.

With higher prices and growing scarcity of fossil fuel, solar power has finally emerging as a viable and efficient source of energy. It witnessed a 53 per cent increase in installed capacity during 2009 and its price has dropped by 50 per cent in the last 10 years. It is estimated that at this rate, renewables will soon beat nuclear and fossil fuels in terms of offering. There are number of policy challenges to its large-scale manufacturing and placement. The lifecycle of the PV cells is very short due to extreme heat. A better solution might be represented by solar thermal power, which gathers solar energy though concentrators.

There is also a high potential for wind energy which has already been making its inroads for the last five years around the globe. To a certain extent, biomass could also represent a good alternative to manage the huge amount of waste that the country produces. Concrete efforts have also been initiated at replacing conventional fuel with hydrogen, which is a clean energy carrier and could be used to power cars.

UNITED ARAB EMIRATES’S DRIVE FOR RENEWABLES

UAE has been supplying energy, and has contributed to the growth of the global economy for over five decades. The United Arab Emirates has the 10 percent of the world’s oil reserves and 3.3 percent of the world’s gas reserves, but these are depleting by the passage of every day. Currently, the UAE has the world’s largest per capita carbon footprint because of power needed for desalination and air conditioning. But now, UAE has become a global hub for renewable energy and clean technology innovation and development.

Nevertheless, UAE is committed to develop renewable energy and reducing the amount of carbon emissions emitted into the airs that is why its leadership has already initiated diversified renewable energy policies for securing better future. According to International Energy Agency (2011), the UAE will increase its renewable energy up to 7 percent by the year 2020. The UAE Foreign Minister, Shaikh Abdullah bin Zayed Al Nahyan stated that the UAE will be a world leader in renewable energy. The UAE has signed a memorandum of understanding with the Global Green Growth Institute (GGGI), for further strengthening of its pursuits of renewables. The goal is to increase the growth of renewable energy on a daily basis.

Undoubtedly, the UAE is leading the GCC and Middle East and North Africa (MENA), in the development of renewable energy. Its sincerity levels can be judged through its comprehensive renewable energy policies and diversified initiatives not confined to Masdar City, the world’s first carbon neutral zero waste city, the annual World Future Energy Summit, IRENA’s headquarters, the annual Zayed Award for Future Energy, creation of Department of Energy and Climate Change Affairs and environment-friendly legislations.

Climate change, energy security issues, depleting of oil and gas reservoirs (the UAE demand for gas will reach to 6 billion cubic feet a day by 2020 which means that, even with the supplies from the Dolphin gas project, the UAE will struggle to meet demand), diversification of macro-economy, export of green energy & technologies in the future and the last but not the least to meet the ever-increasing demands of power to support the socio-economy of the country, all compelled the leadership of the UAE to adopt saver, cheaper, sustainable and green solutions in shape of renewables.

Many regional research studies strongly indicate that UAE must excel and speed-up its clean energy education and empowerment women’s initiative, the clean energy solutions centre, the carbon capture use and storage action group, and the multilateral working group on wind and solar technologies for the further development renewable energy in the country.

MAJOR PROJECTS

(a) Masdar City

Masdar City (solar energy project) is a key element of the “Abu Dhabi 2030 Plan” and the government of Abu Dhabi’s strategic policy framework. Its projected cost is US$22 billion resulting in savings of US$2 billion in oil over 25 years.

It includes projects targeting solar, wind power and hydrogen fuel and reduction and management of carbon emissions. It aims to be the first zero carbon emission and car free city in the world, housing 50,000 inhabitants and 1,500 companies. It integrates the R&D, energy production, and commercialization efforts. The ultra modern city will be completed by 2015. It is claimed that, when complete, it will use 70 per cent less electricity and 60 per cent less water than a conventional city. It was launched in April 2006.
Its Masdar Carbon unit offers comprehensive Carbon Management Solutions and specializes in developing energy efficiency and clean fossil fuel projects that reduce carbon emissions while creating additional value through carbon monetization under international policy.

Masdar City: An International Brand

During 2011, it has achieved many international recognitions including ‘Best Carbon Markets Renewable Energy Project Developers, Middle East 2011’ Award from the prestigious World Finance magazine. Even World Bank endorsed its viability and importance. It succeeded to expand its overseas exposures in different countries. Details are given bellow as:

Projects Names Types of Renewables Countries
London Array offshore Wind United Kingdom
Thermal power plants Solar Spain
Carbon-Tri-Ocean Ocean Egypt
6-megawatt offshore Wind Seychelles
280 MW of thin-film Solar Eastern Germany
Source: Different Research Journals

Most recently, it has completed its joint venture with Torresol Energy, the world’s first commercial scale plant (CSP) in Spain which will help to reduce carbon emissions by over 30,000 tonnes a year. It will fulfill the requirements of 25,000 homes throughout Spain’s Andalusia. It will produce round 24/7 electrical power from renewable sources of energy i.e. 19.9 megawatt. The technology behind the plant allows solar power to be stored and electricity produced from it even during hours of darkness or poor daylight in winter.
Masdar City is also proposing to build the Gulf’s first geothermal energy facility. The US$11 billion project will be partially built by the Icelandic company Reykjavik Geothermal. When complete, the geothermal project will be used to power the city’s 5- MW air conditioning system in the future.

(b) Shams 1

Shams-1 is the first full scale renewable energy plant in the Abu Dhabi and largest CSP plant in the world. It will generate 100 MW covering an area of 2.5 km², with plans to increase capacity to 2000 MW in the future. It is estimated to cost US$600 million, and is being developed by Masdar alongside Spain’s Abengoa Solar and France’s Total S.A.
It consists of 768 parabolic trough collectors. It will be completed by 2012. According to Masdar claims it would displace approximately 175,000 tonnes of CO² per year, which is the equivalent to the planting of 1.5 million trees in the days to come. The Shams II plant will be completed in mid-2013.

(c) Hydrogen Power Abu Dhabi (HPAD)

It is a 60:40 joint venture between Masdar and BP to construct the world’s first commercial scale hydrogen fuelled power plant, utilising fossil fuel feed stock and CCS. The project will require a total capital investment of about AED 7 billion i.e. US$2 billion. The project will take natural gas from the grid and convert it to hydrogen and CO². The hydrogen power plant will generate approximately 400 MW of low-carbon electricity, and could provide more than 5 per cent of all Abu Dhabi’s current power generation.

(d) Private Sector Solar-Grade Poly-Silicon Plant

A lot of new projects have been carried out in the UAE by its private sector which is taking steps to promote sustainable, cleaner and greener technologies in the country.
In this regard, MBM Holdings has recently announced the formation of MBM Solar Holding Inc of worth US$400 million. It will build a solar grade poly-silicon plant in the country. The project will be the first upstream plant and is the largest planned solar plant in the region, anticipated to cover a total area of approximately 250,000 square metres. The planned plant will have a total capacity of 2,500 tons per annum of high quality solar-grade poly-silicon product and is expected to start production in early 2012.

(e) Dubai Solar Power Plant

Dubai Water and Electricity Authority (DEWA) plans to build the first solar power plant in Dubai. Its capacity will be ranging between 10 and 100 MW. It will be UAE’s second solar power station Masdar’s Shams 1 solar power station in Abu Dhabi being the first solar plant in the GCC region. The plant will use either photovoltaic or thermal solar technology. Construction is scheduled to commence in 2011.

(f) Different Ongoing Projects/Efforts

Other than, these mega renewable energy projects the UAE’s government tried hard to develop a 30 MW wind energy project but wind would not play a key source as it had initially anticipated. Notwithstanding, sincere efforts are still going on in this field. UAE also dig into geothermal energy and drilled two, 2.5 kilometer test wells. The end result was not up to the mark. But the resource could be enough to run heat exchangers to run air conditioning and pipe the cold air throughout homes and offices in a district-wide network.

Diversification of Energy Mix

More than big and small 17 projects of the better conserve energy and drive sustainable development are being carried out throughout the UAE. It includes the Department of Municipal Affairs (DMA) and the three regional municipal administrations: Abu Dhabi Municipality, Al Ain Municipality, and Western Region Municipality projects of the renewable energy which also showed the gradual lessen reliance of the UAE on more traditional forms of energy. Moreover, adoption of the International Energy Code, use of LED technology, anti-plastic bag legislation and massive plantation are the few prominent features of the UAE government towards the further development of renewables by increasing public awareness.

Opportunities

The UAE is one of the largest consumers, per capita, of electricity, cars, fuel and water in the world which urgently needs transformation from fossil fuels to renewables. UAE by investing so heavily and responsibly in renewable energy, has become the renewable energy hub in the region. Its strong political commitment and substantial funds allocation in renewable energy mix to reduce dependence on fossil fuels and stem global warming show the way for other countries.

Solar power is just one form of clean energy available in UAE and region. Wind, the power of ocean waves and currents can also be used to generate electricity in the UAE. Masdar is also assessing whether to build a wind farm of up to 30MW on Yas Island. Biomass could also be used as a good alternative to manage the huge amount of waste that the country produces. Prospects are bright even for replacing conventional fuel with hydrogen, which is a clean energy carrier and could be used to power cars.

Expected Benefits

It is estimated that the renewables would generate $6-8 billion, i.e. Dh22.02bn in alternative energy infrastructure development, which will incentives local as well as businessmen and investors to invest in the UAE. It seems that renewables is an excellent choice for economic diversification in the UAE. It is hoped that the Abu Dhabi based solar integrator, renewable energy and clean energy sector would help revive and protect nations’ environmental and economic health.

It is predicted that in the ongoing global economic recession millions of people may get jobs in the renewable energy sector around the globe and UAE is not any exemption.

Renewable Energy’s Multiplier Effects

It is predicted that alternative/renewable energy would have multiplier effects on humanity, society, business, economy, nature, and politics in the years to come.

(a) Reduction of carbon emission.
(b) Increase in agro-productivity
(c) Easy and smooth means of energy
(d) Decrease in cost of production
(e) Effective control on deteriorating levels of climate change
(f) Diversification of economy
(g) Generation of employment and creation of millions of new job.
(h) Transformation of labour based economy to a knowledge based economy.

Challenges

Renewable energy mix provides energy security, improves climate change conditions and facilitates sustainable development for matching the rapid growth of the country.
Solar energy is by all means the best. However, there are number of obstacles to its large scale deployment. Normally, the lifecycle of the PV cells is very short due to extreme heat. Solar thermal power which gathers solar energy though concentrators may be better solution for it in the UAE.

Challenges vary from country to country and from region to region. It is not confined to financial scarcity (research and development is very expensive, and there is no guarantee of success) technological backwardness (we do not have the systems, materials and parts necessary to harness efficiently the almost limitless available energy from sun, wind and waves and distribute it to homes, offices and factories) economic inadequacies (limited funds for the development of renewables, taxation, exemptions) administrative delays (bureaucratic systems, legislation), marketability (still limited marketplace for renewable) and the last but not the least human capital (shortage of skilled people, professionals). Future investment in the renewable energy sector faces challenges from policy development, regulatory frameworks and economic market forces.
State funding to support research and development for renewables, is needed to drive micro innovation that will refine efficiency and cost. Marketplace incentives such as feed-in tariffs payments for contributing power to the grid and renewables obligations will also be required to drive adoption of molten salt storage. Investment-friendly policies would encourage the funding necessary for these huge projects. Nevertheless, proper policy framework, financing and human capacity building are supposed to be main hurdles in the development of renewables.

GCC RENEWABLES EMERGING TRENDS

Gulf Cooperation Council countries strongly urged to consider alternative energy instead of peaceful nuclear energy amid perceived high risks the latter entails. The GCC countries are in need of power and water, with multi-billion dollars worth of projects have been announced. Saudi Arabia, along with many other GCC states have been making significant strides in the field of renewable energy resources. High levels of climate change, energy security fears, depleting of regional natural energy and the urgent need to modernize the economic systems to push the wheel of sustainable development forward to serve the development process have forced all the GCC states to invest for the development of renewables.

Ground-Breaking Activities

Renewables Initiatives Country
Enpark development UAE, Dubai
Energy Park Qatar
Shams Maan project Jordan
Zero emissions Saudi Arabia

Saudi Arabia recently announced major solar investment with the King Abdullah University of Science and Technology (KAUST) having its roof layered with solar panels. In addition to the $22 billion Masdar City project in the UAE similar carbon neutral initiatives are under development in Saudi Arabia, Qatar and Jordan too.

GCC Renewables Initiatives and Projects

Country Initiatives and Projects
Kuwait
It started its renewables (solar) journey in 1970s but nothing succeeded. Now, it has plans to generate electricity from solar, capacity of 1,250MW, at $650 million. In this connection, government signed MOU with Toyota Tsusho Corporation in 2008.
Bahrain A wind energy plant, and two new “hybrid” power plants for solar and wind energy are at completion stage of worth $8 million.
Qatar Solar thermal cooling part of 2022 FIFA World Cup is at final stage.
Oman Reviewing potential solar plant between 50 and 200 MW for electricity is at completion stage.
UAE It plans to generate 7 percent renewable by 2020. Noor 1. 100 MW PV plant under preparation. Abu Dhabi Solar Roof Program. Masdar and Abu Dhabi Gov. Eventual capacity 500 MW over 10 years (50 MW per year are successfully carried out.
Saudi Arabia It plans to generate 15 percent of energy from solar by 2020. It wants to develop regulatory regime and incentives to encourage investment in solar energy. It estimates to invest $100 Billion in solar and nuclear for next 10 years.
Right from 1960s Saudi Arabia initiated different meaningful projects. 10 MW of solar Carport System at North Park at Aramco Headquarters in Dhahran contract was awarded to Belectric company of Germany. In January 2010 KACST launched major initiative to produce desalinated water and electricity using solar power.

It has plans to generate 500 MW of solar energy in the next 3 years. It aims to make solar energy a major contributor to power supply in the next 5-10 years. It has an average solar radiation of 1,700-2,200 kWh/m2 per year, among the highest in the world. Its private sector has the financial strength to launch solar power generation and manufacturing. SOLERAS and Aramco are carried out different big and small projects.
Source: Energy Security Initiatives (June, 2011).

Regional Renewables Initiatives

Interest in renewables surged in recent years due to, increase in oil prices, looming threats of climate change and energy security. Details of two important regional initiatives are given below as:

Name Details
Desertec Industrial Initiative It launched in 2009. It will cover Europe’s 15 percent electricity demands generated from solar power in the desert south of the Mediterranean by 2050. It costs $570bn. Egypt, Morocco, Tunisia, Algeria and Mauritania will be main stakeholders in terms of financial benefits if the plan takes off. Moreover, many regional countries and Turkey could earn some $90bn a year by 2050 from their solar energy exports.
The Mediterranean Solar Plan It was initiated in July 2008 for the Mediterranean Region. It will generate 20 GW of power by 2020 i.e. 3-4 GW PV, 10-12 GW CSP, 5-6 GW wind. France and Egypt will jointly prepare an Action Plan for implementation.

Suggestions

The need for developing a global partnership on renewable energy, particularly solar and wind resources involving public and private sectors, to ensure availability of affordable energy to the common man is immense. UAE has demonstrated to the world that trade and commerce, innovation and invention, ideas and enterprise could make a desert bloom. It is now heavily investing in the fields of renewable energy mix particularly in solar energy.

The deteriorating global warming levels and drastic changes in the climates have compelled us to find new sustainable, renewable energy resources to power the planet without further damages to environment equilibrium. The exemplary role of the UAE is highly appreciated. Solar as well as the other renewable energy mix are key opportunities for energy diversification in the region, with UAE taking a regional leading role in these sectors.

(a) Governments must develop a well-designed, long term and consistent price support mechanism, which is able to adapt predictably over time to changes in technology and costs.
(b) Strong political will is urgently needed to bring changes and achieving desired goals of renewable energy resources and reducing levels of emissions.
(c) Urgent need for greater government involvement in moving things forward on renewable energy resources around the globe.
(d) More incentives for the private sectors to make huge investments in the renewable energy resources.
(e) Regional cooperation and collaboration must be promoted
(f) Organisations, institutions and all members of community projects to shift towards renewable energy technologies and clean energy solutions in order to further the use of these solutions and innovations to ensure the preservations of environment and contribute to reducing the impact on climate change
(g) More emphasize must be given to importance of nurturing the national talent and growing national capabilities in the development and implementation of renewable energy technologies in the UAE.

Mehmood-Ul-Hassan Khan

United Arab Emirates being the second largest economy and hub of digital revolution and mega infrastructure is now leading the region in the pursuits of renewable/green energies and technologies. Renewable energy gears the pace of development. It guarantees the survival of humanity on this planet. It protects the dreams of socio-economic prosperity, stability and sustainability. It provides essential inputs of industrial productivity, generation of employment, reduction of poverty and above all promotes qualitative life and renewable/alternative energy is a value-addition.

Moreover, renewable energy stands for prosperity, progression, productivity and protection because we all need interpreted inflows of save energy for our survival, development and industrial production.

UAE has been supplying energy for the development of global economy for over five decades. The United Arab Emirates has the 10 percent of the world’s oil reserves and 3.3 percent of the world’s gas reserves which are depleting with the passage of time. Currently, the UAE has the world’s largest per capita carbon footprint because of power needed for desalination and air conditioning. But now, UAE has become a global hub for renewable energy and clean technology innovation and development.

Nevertheless, UAE is committed to develop renewable energy and reducing the amount of carbon emissions emitted into the airs that is why its leadership has already initiated diversified renewable energy policies for securing better future. According to International Energy Agency (2011), the UAE will increase its renewable energy up to 7 percent by the year 2020. The UAE Foreign Minister, Shaikh Abdullah bin Zayed Al Nahyan stated that the UAE will be a world leader in renewable energy. The UAE has signed a memorandum of understanding with the Global Green Growth Institute (GGGI), for further strengthening of its pursuits of renewables. The goal is to increase the growth of renewable energy on a daily basis.

Undoubtedly, the UAE is leading the GCC and Middle East and North Africa (MENA), in the development of renewable energy. Its sincerity levels can be judged through its comprehensive renewable energy policies and diversified initiatives not confined to Masdar City, the world’s first carbon neutral zero waste city, the annual World Future Energy Summit, IRENA’s headquarters, the annual Zayed Award for Future Energy, creation of Department of Energy and Climate Change Affairs and environment-friendly legislations.

Climate change, energy security issues, depleting of oil and gas reservoirs (the UAE demand for gas will reach to 6 billion cubic feet a day by 2020 which means that, even with the supplies from the Dolphin gas project, the UAE will struggle to meet demand), diversification of macro-economy, export of green energy & technologies in the future and the last but not the least to meet the ever-increasing demands of power to support the socio-economy of the country, all compelled the leadership of the UAE to adopt saver, cheaper, sustainable and green solutions in shape of renewables.

Many regional research studies strongly indicate that UAE must excel and speed-up its clean energy education and empowerment women’s initiative, the clean energy solutions centre, the carbon capture use and storage action group, and the multilateral working group on wind and solar technologies for the further development renewable energy in the country.

MAJOR PROJECTS

(a) Masdar City

Masdar City

Masdar City (solar energy project) is a key element of the “Abu Dhabi 2030 Plan” and the government of Abu Dhabi’s strategic policy framework. Its projected cost is US$22 billion resulting in savings of US$2 billion in oil over 25 years.

It includes projects targeting solar, wind power and hydrogen fuel and reduction and management of carbon emissions. It aims to be the first zero carbon emission and car free city in the world, housing 50,000 inhabitants and 1,500 companies. It integrates the R&D, energy production, and commercialization efforts. The ultra modern city will be completed by 2015. It is claimed that, when complete, it will use 70 per cent less electricity and 60 per cent less water than a conventional city. It was launched in April 2006.

Its Masdar Carbon unit offers comprehensive Carbon Management Solutions and specializes in developing energy efficiency and clean fossil fuel projects that reduce carbon emissions while creating additional value through carbon monetization under international policy.

Masdar City: An International Brand

During 2011, it has achieved many international recognitions including ‘Best Carbon Markets Renewable Energy Project Developers, Middle East 2011’ Award from the prestigious World Finance magazine. Even World Bank endorsed its viability and importance. It succeeded to expand its overseas exposures in different countries. Details are given bellow as:

Projects Names Types of Renewables Countries
London Array offshore Wind United Kingdom
Thermal power plants Solar Spain
Carbon-Tri-Ocean Ocean Egypt
6-megawatt offshore Wind Seychelles
280 MW of thin-film Solar Eastern Germany
Source: Different Research Journals
Most recently, it has completed its joint venture with Torresol Energy, the world’s first commercial scale plant (CSP) in Spain which will help to reduce carbon emissions by over 30,000 tonnes a year. It will fulfill the requirements of 25,000 homes throughout Spain’s Andalusia. It will produce round 24/7 electrical power from renewable sources of energy i.e. 19.9 megawatt. The technology behind the plant allows solar power to be stored and electricity produced from it even during hours of darkness or poor daylight in winter.

Masdar City is also proposing to build the Gulf’s first geothermal energy facility. The US$11 billion project will be partially built by the Icelandic company Reykjavik Geothermal. When complete, the geothermal project will be used to power the city’s 5- MW air conditioning system in the future.

(b) Shams 1

Shams-1 is the first full scale renewable energy plant in the Abu Dhabi and largest CSP plant in the world. It will generate 100 MW covering an area of 2.5 km², with plans to increase capacity to 2000 MW in the future. It is estimated to cost US$600 million, and is being developed by Masdar alongside Spain’s Abengoa Solar and France’s Total S.A. It consists of 768 parabolic trough collectors. It will be completed by 2012. According to Masdar claims it would displace approximately 175,000 tonnes of CO² per year, which is the equivalent to the planting of 1.5 million trees in the days to come. The Shams II plant will be completed in mid-2013.

(c) Hydrogen Power Abu Dhabi (HPAD)

It is a 60:40 joint venture between Masdar and BP to construct the world’s first commercial scale hydrogen fuelled power plant, utilising fossil fuel feed stock and CCS. The project will require a total capital investment of about AED 7 billion i.e. US$2 billion. The project will take natural gas from the grid and convert it to hydrogen and CO². The hydrogen power plant will generate approximately 400 MW of low-carbon electricity, and could provide more than 5 per cent of all Abu Dhabi’s current power generation.

(d) Private Sector Solar-Grade Poly-Silicon Plant

A lot of new projects have been carried out in the UAE by its private sector which is taking steps to promote sustainable, cleaner and greener technologies in the country. In this regard, MBM Holdings has recently announced the formation of MBM Solar Holding Inc of worth US$400 million. It will build a solar grade poly-silicon plant in the country. The project will be the first upstream plant and is the largest planned solar plant in the region, anticipated to cover a total area of approximately 250,000 square metres. The planned plant will have a total capacity of 2,500 tons per annum of high quality solar-grade poly-silicon product and is expected to start production in early 2012.

(e) Dubai Solar Power Plant
Dubai Water and Electricity Authority (DEWA) plans to build the first solar power plant in Dubai. Its capacity will be ranging between 10 and 100 MW. It will be UAE’s second solar power station Masdar’s Shams 1 solar power station in Abu Dhabi being the first solar plant in the GCC region. The plant will use either photovoltaic or thermal solar technology. Construction is scheduled to commence in 2011.

(f) Different Ongoing Projects/Efforts

Other than, these mega renewable energy projects the UAE’s government tried hard to develop a 30 MW wind energy project but wind would not play a key source as it had initially anticipated. Notwithstanding, sincere efforts are still going on in this field. UAE also dig into geothermal energy and drilled two, 2.5 kilometer test wells. The end result was not up to the mark. But the resource could be enough to run heat exchangers to run air conditioning and pipe the cold air throughout homes and offices in a district-wide network.

Diversification of Energy Mix

More than big and small 17 projects of the better conserve energy and drive sustainable development are being carried out throughout the UAE. It includes the Department of Municipal Affairs (DMA) and the three regional municipal administrations: Abu Dhabi Municipality, Al Ain Municipality, and Western Region Municipality projects of the renewable energy which also showed the gradual lessen reliance of the UAE on more traditional forms of energy. Moreover, adoption of the International Energy Code, use of LED technology, anti-plastic bag legislation and massive plantation are the few prominent features of the UAE government towards the further development of renewables by increasing public awareness.

Opportunities

The UAE is one of the largest consumers, per capita, of electricity, cars, fuel and water in the world which urgently needs transformation from fossil fuels to renewables. UAE by investing so heavily and responsibly in renewable energy has become the renewable energy hub in the region. Its strong political commitment and substantial funds allocation in renewable energy mix to reduce dependence on fossil fuels and stem global warming shows the way for other countries.

Solar power is just one form of clean energy available in UAE and region. Wind, the power of ocean waves and currents can also be used to generate electricity in the UAE. Masdar is also assessing whether to build a wind farm of up to 30MW on Yas Island. Biomass could also be used as a good alternative to manage the huge amount of waste that the country produces. Prospects are bright even for replacing conventional fuel with hydrogen, which is a clean energy carrier and could be used to power cars.

Expected Benefits

It is estimated that the renewables would generate $6-8 billion, i.e. Dh22.02bn in alternative energy infrastructure development, which will incentives local as well as businessmen and investors to invest in the UAE. It seems that renewables is an excellent choice for economic diversification in the UAE. It is hoped that the Abu Dhabi based solar integrator, renewable energy and clean energy sector would help revive and protect nations’ environmental and economic health.

It is predicted that in the ongoing global economic recession millions of people may get jobs in the renewable energy sector around the globe and UAE is not any exemption.

Renewable Energy’s Multiplier Effects

It is predicted that alternative/renewable energy would have multiplier effects on humanity, society, business, economy, nature, and politics in the years to come.

(a) Reduction of carbon emission.
(b) Increase in agro-productivity
(c) Easy and smooth means of energy
(d) Decrease in cost of production
(e) Effective control on deteriorating levels of climate change
(f) Diversification of economy
(g) Generation of employment and creation of millions of new job.
(h) Transformation of labour based economy to a knowledge based economy.

Challenges

Renewable energy mix provides energy security, improves climate change conditions and facilitates sustainable development for matching the rapid growth of the country.

Solar energy is by all means the best. However, there are number of obstacles to its large scale deployment. Normally, the lifecycle of the PV cells is very short due to extreme heat. Solar thermal power which gathers solar energy though concentrators may be better solution for it in the UAE.

Challenges vary from country to country and from region to region. It is not confined to financial scarcity (research and development is very expensive, and there is no guarantee of success) technological backwardness (we do not have the systems, materials and parts necessary to harness efficiently the almost limitless available energy from sun, wind and waves and distribute it to homes, offices and factories) economic inadequacies (limited funds for the development of renewables, taxation, exemptions) administrative delays (bureaucratic systems, legislation), marketability (still limited marketplace for renewable) and the last but not the least human capital (shortage of skilled people, professionals). Future investment in the renewable energy sector faces challenges from policy development, regulatory frameworks and economic market forces.

State funding to support research and development for renewables, is needed to drive micro innovation that will refine efficiency and cost. Marketplace incentives such as feed-in tariffs payments for contributing power to the grid and renewables obligations will also be required to drive adoption of molten salt storage. Investment-friendly policies would encourage the funding necessary for these huge projects. Nevertheless, proper policy framework, financing and human capacity building are supposed to be main hurdles in the development of renewables.

Suggestions

The need for developing a global partnership on renewable energy, particularly solar and wind resources involving public and private sectors, to ensure availability of affordable energy to the common man is immense. UAE has demonstrated to the world that trade and commerce, innovation and invention, ideas and enterprise could make a desert bloom. It is now heavily investing in the fields of renewable energy mix particularly in solar energy.

The deteriorating global warming levels and drastic changes in the climates have compelled us to find new sustainable, renewable energy resources to power the planet without further damages to environment equilibrium. The exemplary role of the UAE is highly appreciated. Solar as well as the other renewable energy mix are key opportunities for energy diversification in the region, with UAE taking a regional leading role in these sectors.

(a) Governments must develop a well-designed, long term and consistent price support mechanism, which is able to adapt predictably over time to changes in technology and costs.
(b) Strong political will is urgently needed to bring changes and achieving desired goals of renewable energy resources and reducing levels of emissions.
(c) Urgent need for greater government involvement in moving things forward on renewable energy resources around the globe.
(d) More incentives for the private sectors to make huge investments in the renewable energy resources.
(e) Regional cooperation and collaboration must be promoted
(f) Organisations, institutions and all members of community projects to shift towards renewable energy technologies and clean energy solutions in order to further the use of these solutions and innovations to ensure the preservations of environment and contribute to reducing the impact on climate change
(g) More emphasize must be given to importance of nurturing the national talent and growing national capabilities in the development and implementation of renewable energy technologies in the UAE.