May 022013
 

Mehmood Ul Hassan Khan

Regard your soldiers as your children, and they will follow you into the deepest valleys; look on them as your own beloved sons, and they will stand by you even unto death.
Sun Tzu.

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Yaum-e-Shuhada is being observed throughout Pakistan on April 30. The purpose of observing this day is that Pakistanis as a nation renew resolve to never forget the sacrifices of Shuhada. Their blood is sacred and a source of pride for Pakistan Army and the Nation. It is a promise that we would never let their sacrifice go waste.

It is a tribute to unsung heroes of the soil. It stands for sacrifice, gallantry, and patriotism. Yaum-e-Shuhada is a special tribute to the enduring courage and resolute will of our great Shuhada of our Armed Forces of Pakistan. It is indeed an acknowledgment of their valuable sacrifices and to honour all those martyrs who laid their precious lives so that their nation may live long. It is true reflection of love, submission and respect to those departed souls who have always stood first for the sake of their nation’s sovereignty and pride. We have already witnessed the blood of the fearless martyrs who bravely opposed the enemy and succeeded to dismantle their evil designs. Yaum-e-Shuhada is the narrative of unlimited sacrifices of our beloved soldiers. It is a reality about those people who always keep their motherland and country beyond themselves, whenever and wherever. It provides clear guideline for the rest of the Army to follow. It is the path of glory, perfection, satisfaction and virtue. It is not just a ceremony. It is always heart-to-heart affair celebrated with pride, dignity with promise to be always ready for the sake of our country. It is faith, resolve and pride of our Armed Forces. It is also commitment of our Army to defend, protect and preserve Pakistan at all cost.

Pakistan also remembers its martyrs in golden words. The sacrifices made by these men have been acknowledged at all levels by every citizen of Pakistan. The Armed forces play such a large and vital role in our nation’s life. They are the life-line of us and time and again they proved it.

The War on Terror has caused more suffering, deaths and destruction to the people of Pakistan than of any other country in the world. It is a fact that more than 6,000 army personnel have sacrificed their lives in the ongoing war against terrorism. The officers and Jawans carry out their duties in most hostile and difficult terrain and environment. They always demonstrated height of patience, resoluteness and resilience during the course of asymmetrical warfare. They use to sacrifice their lives not opening fire at the target hiding behind the human shields.

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Every year Yaum-e-Shuhada is celebrated on April 30. There are many graceful functions and ceremonies arranged at every garrison throughout the country. Delivering a comprehensive speech on the eve of Yaum-e-Shuhada COAS General Ashfaq Pervez Kiyani COAS paid high tribute to all the unsung heroes of Armed Forces of Pakistan. He praised sacrifices of martyrs, veterans and soldiers who remain steadfast and resolutely committed in the defence of the country. He assured that the nefarious designs of our enemy, may it be internal or external, will never succeed and we shall eventually prevail.

He termed soldiers determination and love as the source of real strength, which afforded a distinct edge and dominance over the enemy. He thanked the families of martyrs, who made the ultimate sacrifice in the cause of freedom. He profoundly acknowledged their courage and valour and prayed to the Almighty to honour their great sacrifice and to bless our motherland.
He mentioned Gayari tragedy where we had lost 140 gallant companions and promised that he would not rest till the very last body of our martyrs is recovered. He highlighted the gigantic political struggle of Quaid-e-Azam and Alama Iqbal to gain an independent country for the Muslims. The spirit of sacrifice and resilience of our Nation remains undiminished he added.
He showed great commitment towards the continuation of political/democratic transition through the holding of General Elections 2013.

“This indeed is a golden opportunity, which can usher in an era of true democratic values in the country. In my opinion, it is not merely retribution, but awareness and participation of the masses that can truly end this game of hide and seek between democracy and dictatorship he further elaborated. He asked the people to vote for the right person rising above all ethnic, linguistic and sectarian biases. He reiterated to vote solely on the basis of honesty, sincerity, merit and competence, there would be no reason to fear dictatorship or to grudge the inadequacies of our present democratic system.

“Our salvation resides in transforming the government into a true platform of public representation he shared”. He said that this would come to pass once the construct of public representation in Pakistan is oriented towards affording primacy and precedence to larger public interest over personal interests. Otherwise, may it be democracy or dictatorship, governance would continue to remain a means of self aggrandizement and that of plundering national wealth and resources.

He extended the Armed Forces full support in the conduct of free, fair and peaceful elections; to the best of capabilities and remaining within the confines of the Constitution. He rightly projected that we must never forget that success of any system resides in coming up to the aspirations of the masses. “The success of democracy is intimately linked with the wellbeing and prosperity of the Nation. The real virtue of democracy ultimately lies in the safety and welfare of the masses he explained.
He anticipated that the conduct of General Elections is not an end per se, but is surely an important means towards delivering us from our present sufferings. He asked to streamline national ethos and aspirations. “The General Elections will provide us the foundation. To build on this foundation, we would have to find answers too many questions; war against terrorism being one of these questions he added.

He labeled terrorism as a menace which has already claimed thousands of lives, including those of the Army, Rangers, FC, Police, Frontier Constabulary, Levies and innocent people of Pakistan. He warned that external enemies were busy in igniting the flames of this fire. He rightly said that we must not hurt the sentiments of these saviors of the Nation through our words and deeds.

He asked to all those who have strayed and have picked up arms against the Nation, return to the national fold. “It only possible once they unconditionally submit to the State, its Constitution and the Rule of Law he added”. He feared that considering this war against terrorism as the war of the armed forces alone can lead to chaos and disarray that we cannot afford.

He expressed his profound appreciation for FC, Rangers, Police, Frontier Constabulary and Levies, who have sacrificed tremendously in the struggle against terrorism and extremism and have kept the flag of Pakistan fluttering high. He acknowledged the biggest sacrifices of the general public whose steadfastness and support is a source of immense strength for the Armed Forces of Pakistan. I salute the spirit of patriotism of the entire Nation.

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GHQ Rawalpindi and in all the Corps Head Quarters Functions are arranged to grace the sacred occasion. COAS General Ashfaq Pervez Kiyani laid wreaths on the graves of martyrs in GHQ; he met their families, and listened to their problems as well. Similarly, senior army officers in Military Garrisons visited Shuhada-e-Yadgars, laid wreath on them. Functions were arranged to greet families of Shuhada.

The Army started celebrating ‘Day of Martyrs’ since 2010, the Army is keen to resolve problems of its personnel and help them. Shuhada-e-Yadgars, conveys the message that the family members of the martyrs will not be forgotten. Pakistan Army has fought on two fronts simultaneously, the eastern border and the western border. It has launched a number of full-fledged military operation Rah-e-Rast followed by Rah-e-Nijaat to fight day and night to ensure country’s survival on national as well as global level.

It has also been taking leading role in the socio-economic development of the country. It is also lending support in field of education as the army is running a network of 126 schools and colleges all over the country under the banner of APSACS.

On this remarkable days the soldiers marched supporting coffins of their comrades wrapped in green and white, with solemn faces they proceeded unaware of the breeze that blew ferociously in salutation to its valiant heroes who were lying peacefully after bestowing their lives for the nation.

The sweet fragrance emanating from them was spreading across, mesmerizing and engulfing everyone present to view the funeral procession and to pay tribute to those who had confirmed our security and wellbeing by shedding their life blood, nurturing the tree of freedom and liberty under which we now seek shelter unflinchingly and in the freshness of which we copiously breathe the unsullied air of freedom. Stopping right in the mid of the ground, the group of soldiers gently laid down the coffins with such extreme affection and devotion, for those who were sleeping within, that only a mother exhibits for her infant child.

The Pakistani nation, the Pakistan Army, the Pakistan Navy and the Pakistan Air Force, the Pakistan Police Force, Pakistan’s paramilitary and second tier security force, the state, the federal and the provincial intelligence agencies in fact everyone is no doubt, fortunate to have such flowers that blossom on its soil who feel proud to give their lives for their nation.

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Commander Lahore Corps Lieutenant General Masqood Ahmad said the supreme sacrifices, rendered by the Shuhada of the Pakistan Army was a glorious chapter of our national history. The bravery and courage displayed by officers and men in the call of duty bear testimony to our commitment and resolve for defence of the country. An impressive ceremony was held at the Yadgar-e-Shuhada in Lahore Garrison to pay homage to the Shuhada of the Armed Forces of Pakistan.

The ceremony was attended by a large number of serving and retired military personnel, high ranking civil officials representatives from cross section of society and the families of Shuhada. We as a nation owe a lot to our Shuhada who sacrificed their lives for the good of the country, the Crops Commander said. It reminds us of our duties and obligations towards our motherland, he added. Pakistan Army has never shield away from their duties responsibilities, he reminded. Commander Lahore Corps urged the officers and soldiers to follow the footsteps of their valiant predecessor and spare no effort whatsoever to ensure impregnable defence of the country.

Yaum-e-Shuhada is the icon of martyrdom which is a great honour and fortunate are those who are blessed with it. We all sincerely pray for the families of the Shuhada.

Apr 222013
 
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By Mehmood Ul Hassan Khan

Most recently the 18th international conference was held titled “The Future of Warfare in the 21st Century” at the Emirates Center of Strategic Studies and Research (ECSSR). It was attended by a large number of researchers, academicians, experts of informational technology and the last but not the least renowned strategists. It was well planned and well-staged. Even the level of participation of the VIPS, guests and media was healthy and productive.

The conference comprised four sessions, during which 12 research papers were presented by prominent experts, intellectuals, researchers and officials from the UAE, the Gulf region and the rest of the world. The said conference offered a proper forum to exchange ideas and enrich discussions among experts and specialists on all the important subjects and drew a clearer vision about its limits and direction, and to highlight future options and alternatives.

The dawn of information technology has already brought about a revolution in the military and defense industries around the globe. The advanced technological revolution has been emerged into a new reality that altered previously recognized concepts of wars and armies, whereby asymmetrical warfare dominated traditional forms of conflict between adversaries. The technological evolution requires the provision of electronic warfare units in many of the world’s armies, where their role includes maintaining internal civil security and stability. Such technology advances have had implications for the quality and form of naval, air and land-based weapons, whether defensive or offensive. During two days of the said conferences experts, strategists and speakers highlighted the importance of informational technology, intelligence sharing, proper utilization of human resources, training, military and public cooperation and coexistence along with the role of private companies in the battle fields.

It was held under the patronage of H.H. General Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, Deputy Supreme Commander of the UAE Armed Forces and President of the centre, the two-day conference was inaugurated in the presence of diplomats and a select group of researchers, security experts and media persons. The 18th Annual Conference of Emirates Centre for Strategic Studies and Research (ECSSR) called for international efforts to tackle terrorism, which remains one of the most prominent future challenges threatening global security and stability.

Dr. Jamal Al Suwaidi Director-General of the ECSSR thoroughly discussed the each and every aspect of the future of warfare in the 21st century in his welcome speech. He mentioned various state and non-state actors. He highlighted the growing role of information technology within traditional warfare; and the diminishing role of geography as wars are now waged in trans-border dimensions. He termed information technology crucial for the future wars. He predicted the enhanced role of informatics within traditional combat theories in naval, land and air services, and their expanded role in managing battles, decision-making and command and control mechanisms in the years to come. He rightly pinpointed the diminishing role of geography since wars are conducted across transnational spaces. He also thoroughly discussed the diminishing role of the human factor and the enhanced role of technological equipment and computer systems. According to him, margin of maneuverability and mobility and the enhanced impact and attack effectiveness through novel combat elements such as cyber warfare, which is completely different from traditional combat would be greatly affected by the emerging mix of information technologies.

He highlighted the importance of accuracy, efficacy and speed of the information infrastructures to counter the cyber-attacks on the capacities of states, command and control systems of communications and banks, financial markets, oil companies, etc. Cyber threats are the one of the leading challenges facing the national security of states in the 21st century, and the emergence of protection of state cyber space as one of the security and military priorities, he added. He accentuated the necessity of enhancing international cooperation to protect trade, economies and intellectual property in encountering current and anticipated cyber challenges. He elaborated that many researchers are increasingly convinced that cyber combatants have become a vital element within the armies of the 21st century. It explains the record increase in the cyber security allocations of many countries in spite of the reductions in military budgets in the last few years.

He identified the growing importance of deployment of small light forces with significant destructive and operational capacities to deal with sudden crises. He talked about the emergence of different patterns of challenges as a result of non-conventional security environments which would enhance the importance of understanding the present situation and information collection and analysis as a prime priority in field operational theaters, with the addition of the cyber dimension to the prevailing traditional military concepts and theories. He labeled terrorism as one of the main challenges threatening global security, since the existing counter-terrorism strategies are still partial and limited. Eliminating the roots of terrorism requires pragmatic policy to tackle the issues such as poverty, illiteracy and underdevelopment he added. He was of the view that ideological and political issues would be key drivers for the future terrorist organizations in which the e-social networks would be optimally utilized at their virtual centers for directing their operations. Easy and smooth supplies of energy and trade would be badly hit by the terrorists in the future.

Talking about the emerging geo-political and geo-strategic scenarios in the Gulf Cooperation Council (GCC) and MENA, he said there should be spirits of cooperation, coordination along with strong political commitment among the regional countries. Cyber threat is a potential security challenge he elaborated. UAE should play the key role to enhance awareness of “Internet Sovereignty” in the region since it is a leading country adapting to the digital age, knowledge economy, innovation, and IT technologies.

WARFARE

The panels of the first day was comprised of an inaugural session launched by H.E. Dr. Jamal Sanad Al-Suwaidi, Director-General of the ECSSR, who delivered the welcoming remarks, followed by the keynote address of H.E. Michèle Allot-Marie, former Minister of Defense and Foreign Affairs, Republic of France.

Panel I “Contemporary Threats and the Changing Nature of Warfare”

Chaired By Designation Research Papers
H.E. Saif Sultan Al-Aryani Secretary-General of the Supreme Council for National Security, UAE
Dr. Austin Long Assistant Professor at the School of International and Public Affairs and Member of the Arnold A. Saltzman Institute of War and Peace Studies, Columbia University, USA Asymmetrical Warfare and International Terrorism.
John Bassett OBE Associate Fellow, Cyber Security, Royal United Services Institute (RUSI), UK Cyber Warfare: Offensive and Defensive.’
Dr. Christopher Kinsey Reader in Business and International Security, King’s College London, and Defense Studies Department, Joint Services Command and Staff College, UK The Rise of the Contractor in 21st Century Warfare.

The first day covered discussions of the changing nature of warfare and the new challenges facing national security such as terrorism and electronic warfare. The topic of innovation in the defense industry and the future role of technology in military use were also discussed. Furthermore, on the first day of the conference, discussions were held on the changing nature of warfare and the new challenges facing national security such as terrorism and electronic warfare. It was very interactive session which diagnosed different complicated aspects of the said subject. All the speakers talked highly about the infusion of information technology in warfare in the 21st Century.

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Michele Alliot-Marie, former French Minister of Defence and Foreign Affairs, in her key-note address praised the UAE leadership and the country’s peaceful approach in dealing with international affairs based on the principles of justice and respect for all. She pointed out that the UAE plays a vital role in fighting various forms of terrorism and stressed that technological innovation is crucial for any country in counter-terrorism efforts, especially cyber-attacks which pose a threat to national security as well as information security. She mentioned the importance of leadership, conflict resolution, crisis management and human resource management in the future. She also stressed the importance of information technology and intelligence sharing to counter the various threats of terrorism.

All the speakers jointly pinpointed that cyber-warfare and the rapid development and dissemination of cyber weapons threatens to far outstrip international efforts to secure cyberspace as a domain for all. John Basset, Associate Fellow, Cyber Security, Royal United Services Institute, UK said “these cyber weapons are all too often used without regard to international law and international norms. There is a real risk that unrestricted offensive cyber operations will poison and corrode wider international relations”.

Bassett said the way in which cyber-warfare is employed can range from sophisticated operations to the common kinds of hacking techniques employed by individual users of the internet. “Securing information technologies from cyber-attack requires a range of measures to ensure that operations systems are secure, that equipment is not vulnerable to hacking from external sources, and that emergency responses to protect systems from attack are effective and easily activated,” Bassett said.

He argued guaranteeing cyber-security requires a holistic approach base on the cooperation of all concerned public and private agencies. “There are several reasons why governments would want to establish effective international norms for cyber-security: to promote a rules-based approach to global problem-solving; to ensure that international norms are representative, balanced and effective and to enhance operational effectiveness, for example by sharing situational awareness information to improve network defence. Bassett said cyber-warfare and the development of related weapons might provide opportunities for agreement in the areas of arms control and shared operational effectiveness.

“At present, the attacker has the edge in cyber-warfare. This is not because the attacker has a technological advantage; it is rather that the defenders do not have their defences properly organised.”

Bassett sees that potential areas for cooperation may include: information-sharing to gain improved situational awareness for network defence for example within an alliance; evolution of a joint approach to concepts and doctrine; and better crisis management capability and resilience arrangements across security and regional alliances. Defeating the threat of cyber-attack in the future will require both a full understanding of the technologies involved and an understanding of how human nature affects the ways in which individuals seek to use technology and exploit the weaknesses of others.

Panel II “Innovation in the Defense Industry: Future Military Technology”

Chaired By Designation Research Papers
Major General (Staff) Pilot Rashad Mohamed Salem Al-Saadi Commandant of the National Defence College, UAE
Peter Singer Director of the Center for 21st Century Security and Intelligence, USA Next War: Key Trends Shaping the Future of War.
Riad Kahwaji Founder and Chief Executive Officer of the Institute for Near East and Gulf Military Analysis (INEGMA), UAE Command and Control: Evolution and Requirements for Modern Arab Militaries.’
Prof. Wesley K. Wark Munk School of Global Affairs, University of Toronto, Canada Information and Intelligence in the 21st Century.’

All the speakers highlighted the importance of command and control systems in the future of warfare in the 21st century. Peter Singer briefed about the evolutionary expansion and different development stages in the warfare patterns along with weaponry. He outlined the different important tasks or policies needed to be implemented in the modern arena.

Riad Kahwaji explained the trends in the command and control systems in the globe and how the Arab militaries could adapt to it. The subject was interesting and interactive. It outlined the multidimensional benefits of having better command and control systems. It would speed-up response time. It would guarantee peace and stability in the country, he added. He emphasized the need to have communication experts, computer strategists and the last but not the least, strong political commitment to institutionalize the command and control systems in the Arab Militaries.

Prof. Wesley K. Wark displayed an interesting presentation with a mild mode. He termed financial intelligence, economic intelligence and of course human intelligence as the things to remain even in the future. He suggested that digital divide should be discourage and there should be greater informational pool in the region and the world.

The second day’s discussions included political and civil aspects affecting the future of warfare such as relations between civil and military institutions, the future role of armies in war prevention, peacekeeping, and the close and strategic relationship between arms manufacturers and military institutions. The proceedings of the conference concluded with a session on the future of warfare and stability in the Middle East, which included topics related to the region such as the purchase of weapons, nuclear weapons proliferation, and the risks facing the region’s security.

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Panel III “Political and Civilian Impacts on the Future of Warfare”

Chaired By Designation Research Papers
Major General (Ret.) Khaled Abdullah Al-Bu-Ainnain Former Commander of the UAE Air Force and Air Defense, President of the Institute for Near East and Gulf Military Analysis (INEGMA), UAE
Dr. Alan Ryan Executive Director of the Australian Civil–Military Center, Australia Future Trends in Civil-Military Relations.’
Richard Gowan Associate Director for Crisis Diplomacy and Peace Operations at the Center on International Cooperation, NYU, UAE. War Prevention and Peacekeeping
Dr. Henrik Heidenkamp Research Fellow, Defence, Industries and Society, Royal United Services Institute (RUSI), United Kingdom The Private Sector’s Role in Defence: Challenges and Opportunities for Governments and Industry.

In his well prepared speech Richard Gowan, associate director for Crisis Diplomacy and Peace Operations at the New York University Centre on International Cooperation, USA said that UN needed helicopters and combat aircraft from the UAE in its peacekeeping missions. The UAE’s soft power and well-trained military can fill gaps in the United Nations peace-keeping missions around the world. “A regional power such as the UAE has the capacity to fill gaps in the United nations peace-keeping missions around the world and especially in Syria he added. He said the UAE military’s experience in Afghanistan were a valuable asset in conducting peacekeeping operations, which require the effective management of sophisticated military and development policies across a range of multi-national actors.

He stressed the need to have people having diversified expertise and professions to tackle the emerging geo-political and geo-strategic issues in the region and around the globe. United Nations badly needed experts of conflict resolution, crisis management, strategists, political scientists, personnel of global media and the last but not the least, cultural diversification oriented people from all of the world and especially dedicated people from this region in order to make the organization more vibrant and independent. He categorically said no to infantry while delivering his speech. He highlighted the success stories of the UN interventions which have stabilised Sierra Leone, Liberia and Haiti. The UN has played an important role in managing the difficult post-conflict situation in Libya after the fall of the Muammar Gaddafi regime. He was of the opinion that peacekeeping forces would also be required in Somalia, both to contain the threat of piracy and to help with the reconstruction of the country.

He ironically admitted some mistakes and failures of the UN which was highly appreciated by the participants. He pinpointed that the UN lacked helicopters and other aircraft, combat aircraft even Special Forces. He acknowledged the need of overhauling in the UN technology and logistics departments. UN has struggled to manage the flow of refugees into Turkey, Lebanon and Jordan he added.

He confessed that the crises in Libya, Mali and Syria have highlighted the limitations of international crises management. In each case, diplomats and international officials responded to the first signs of conflict with a mixture of caution and confusion, allowing violence to escalate.
He explained that while a NATO-led coalition eventually responded to the deteriorating situation in Libya with significant force, the campaign was hampered by gaps between the European military capabilities. The coalition left the post-conflict peace building to a small UN mission, which was able to facilitate credible elections, but could not prevent southern Libya slipping into chaos.

He further shared that a similar series of events is now unfolding in Mali, where the French intervention has finally brought an escalating crisis under control, but the transition to a UN-led peacekeeping force has been confused. The situation in Syria is far worse. A series of diplomatic efforts to resolve the conflict have failed, in part because of tensions between Russia and the West. “Syria didn’t truly have a peacekeeping force, but a war watching one,” stressed Gowan. There may not been any effective UN intervention in Syria yet, but he claimed the organisation is ready to go back in. He wished the greater participatory roles of the Arab League and the African Union in order to durable peace in the turbulent areas. He emphasized the need to have better command, better communication and better cooperation.

Panel IV “The Future of Warfare: Conflict and Order in the Middle East”

Chaired By Designation Research Papers
Dr. Albadr Alshateri Researcher at the GHQ of the UAE Armed Forces.
Dr. Anthony Cordesman Arleigh A. Burke Chair in Strategy, Center for Strategic and International Studies (CSIS), United States of America The Future of Warfare: Conflict and Order in the Middle East”

Major General (Ret.) Khaled Abdullah Al-Bu-Ainnain Former Commander of the UAE Air Force and Air Defense and President of the Institute for Near East and Gulf Military Analysis (INEGMA) The Future of Warfare: Conflict and Order in the Middle East”

Brigadier General (Ret.) Elias Hanna
Military Strategist and Senior Lecturer at the American University of Beirut and Notre Dame University, Lebanese Republic The Future of Warfare: Conflict and Order in the Middle East”

The whole panel spoke about the future of warfare in the Middle East region. They also highlighted the emerging conflicts and order in the Middle East. Dr. Anthony Cordesman said the Arab Gulf states would face major challenges in terms of their stability and security interests. He suggested that each state should revisit its security apparatus and streamline its national security challenges in order to establish an advanced security shield to meet the internal and external security threats. He emphasized the need to have a closed coordination among the internal security mechanism, counter-terrorism strategies and the last but not the least, civil-military stability operations. He pinpointed that Arab states must develop the professional skill to deal with the weapon of mass destruction, weapons of mass effectiveness, cyber warfare and wild card patterns of conflict and escalation. He strongly focused to have an effective mix of deterrence and defense by radically further strengthening of their security cooperation and coordination.

Brigadier General (Ret.) Elias Hanna talked about different centers of power in the Middle East. He tried his best to shed light on these emerging geo-political and geo-strategic trends on micro and macro levels with all expected regional and global spillover repercussions. He outlined the different types of weaponry existed in the region and how power brokers have been playing with the souls in the region in the shape of proxy wars and full-fledge outside support. He narrated interesting comparison of warfare based on sophisticated and simplicity mentioning the example of Israel and Hezbollah conflict. He suggested the role of leadership and HRM must be integrated to tackle the future security concerns in the region.

He termed geo-politics and geo-strategic actors important to resolve any conflicting realities in the region. He emphasized the need to have new paradigm shift in security, deterrence and defense. He tried to convince to make alternative routes of energy supplies and trade in the future. He supported the concept of diversification of resources and alternativeness in the marital philosophies and prophecies. Being a strategist he mentioned different existed axis of power, and angles of coaxes and emerging power players in the region. He also showed different models of resistance, co-existence, hegemony and anti-hegemony in the region conflicting for strategic cushion, greater political superiority and socio-economic prosperity in the days to come.

Closing remarks was delivered by H.E. Dr. Jamal Sanad Al-Suwaidi, Director General of the ECSSR. He praised all the speakers, researchers, security experts, academicians and guests who made this conference a great success in order to promote the principles of security, stability and peace in the region and beyond. The said conference provided an opportunity to discuss the future risks and threats to humanity and to explore what possible measures to be taken to protect humanity from the evils and threats of war, he added.
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Suggestions and predictions are given below as:

Actors/Factors Present Assessments & Future Predictions
Terrorism Terrorism is complicated and complex phenomenon which will remain one of the most bulging future challenges threatening global security and stability.
Counter-Terrorism Strategies Existing counter-terrorism strategies are still partial and limited. There is a long way to go to achieve elements of perfection in preemptive measures and interception.
EU-GCC Partnership The level of military cooperation is at its initial stage right now which needs to be further strengthened. The well-established partnership between the European Union and the GCC can play an important role in international security in the 21st century
Cyber-Attack Cyber-attach are a potential threat in the world. It requires a range of measures at operational and tactical levels. Operations system must be secured from hacking from the external source. Emergence response and activation response must be quick.
Drones Drones have multiplier effects. It is being used as one of the most important means of countering the growth of asymmetric warfare. Role of drones in the future of warfare in the 21st century would be on the rise.
Private War Contractors Although controversial and conspiratorial in nature but it would remain in the greater picture of war and conflict engagements. Its role in logistics would be increased.
State-of-the-art Weaponry Old gadgetry of mass destruction would be replaced with the weapons of effectiveness. Smart improvised explosive devices, nanotech applications, bio-agents and genetic weaponry, chemical and hardware enhancements to the human body, autonomous armed robots, and electromagnetic pulse weaponry; all may be applied in the days to come.
C4ISRs Effectiveness of effective C4I structures combined with the best possible use of new technologies must be followed and implemented. Arab Armies may not be at easy path to install effective command and control systems in Arab armies.
Digital Divide Digital divide harms the prospects of mutual cooperation and coordination which needs to be rectified within the region and at global level too.
Counter-Intelligence It has great role to play in the future. It would be used in collaboration of drones and super computers. Climate change and expertise of economic would play an essential role in the future.
Civil-Mlitary Relations It must be further strengthened, transparent and opened. It requires more comprehensive long term strategies based on greater knowledge of organizational behavior and theory, cultural diversity, HRM, crisis management and conflict resolution.
Preemptive & Surgical Strikes It is a sensitive issue which needs thorough reconsideration and re-collaboration. International military interventions in the Middle East and North Africa must be revisited
Greater Role of Private Sector Greater role of private sector in the warfare of 21st century. But there should be some regulatory mechanism and limits.
Security Paradigm Shift Gulf Cooperation Council and MENA must reshape their existing security structures. There must be paradigm shift from conventional warfare to modern weaponry systems in order to meet the challenges of internal security and counterterrorism, asymmetric wars, conventional wars. Progress in weapons of mass destruction and cyber warfare must be preferred.
Joint Security Shield Joint security shield would be answered to many potential security challenges in the GCC and MENA. It would one of the ideal means to control the foreign infiltration, issues of civil unrest and deteriorating of law and order situation.
Reevaluation of Chinese Greater Role China’s geo-political and geo-strategic role would be further enhanced which needs to be recounted and revalued especially in the GCC and MENA.
Fault-lines of Geo-Political and Geo-Strategic Nature Serious research work is needed to pinpoint the faulty lines of red zones of geo-politics and geo-strategy in the region.
Diversification of Resources and Routes Diversification of resources (oil & gas) is the need of the hour. Renewables have a great scope in the future of warfare in the 21st century. Routes of trade & commerce and easy & smooth of energy supplies would be in the line of fire in the days to come if not manage properly.
Diplomacy War starts when diplomacy fails. Role of pragmatic/interactive diplomacy would be great in resolving the conflicting realities.

Apr 052013
 

Mehmood-Ul-Hassan Khan

Media the 4th pillar of the state has become crucial in safe guarding the national identity and security. It is the gatekeeper of national culture, heritage and traditions. It is one the key mediums of soft image projection. It supports nation’s commercial diplomacy efforts.

The United Arab Emirates (UAE)’s National Media Council (NMC) is playing an important role in further enhancing of national drive of Emiratization, building of strong national character, promoting of national resilience against alien cultures and detrimental traditions. It also highlights and protects the government’s efforts to achieve greater political participation, social cohesion and cultural chasteness. It shows the miraculous socio-economic prosperity and religious tolerance through its editorials, news reports articles and special awareness programs. It takes care about UAE national geo-political issues and regional geo-strategic vested interests. It keeps on sharp eyes on emerging regional and international changes.

UAE national media works as a one coherent team guided by prudent policy towards development and progress. It plays a positive role in promoting and fostering the spirit of inter-sectoral cooperation, solidarity and harmony. It does not believe in yellow journalism, sensitization, seditious and rumormongering. It always stands for perfection, authentic values, and responsible attitude.

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UAE media has been contributing positive and healthy inputs in the formation of national agenda about education, health, clean drinking water or food security problems. It has succeeded to build a tolerant society, institutionalization of transparency in the different organs of the state including corporate sector. It has the ability to excel and led. It has unparalleled professional qualities to differentiate between the reality and fiction, good and bad, truth and falsehood and ecstasy and responsibility. Right from its inception, UAE media has been one of the key organs of the state to stand first against any external cultural threat and dealt with devastating ideas which seek to undermine security and stability, and twist and distort the facts. It has complete vision against foreign illusionists. It counters their baseless allegations with reason, logic and objectivity. It always digs hard to come up with more credible facts and figure and reached to reality.

It is the matter of carbon footnotes or water security, consumer rights or irresponsible advertising, endangered species or environment public awareness, the UAE media in general and the National Media Council in particular always stood first and firm to project all these issues in the country. It is the matter of cultural reinforcement or tradition transition, hotelier or heritage tenacious, NMC always worked hard to maintain its high quality. NMC played an important role to maintain cultural pluralism and spirits of coexistence between different beliefs and cultures. It has been showing keen interest to hold on to its national identity and cultural particularity, including its traditions, norms, values and ways of living.

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NMC has been instrumental in winning the hearts and souls in the foreign lands around the globe by greater connectivity, cooperation and coordination. NMC has been hosting and inviting intellectuals, experts, researches, media personnel, writer, reporters and editors to showcase the levels of socio-economic prosperity, political activation, tourism heavens and the last but not the least, corporate entities.

NMC is an independent federal government body established by Federal Law. It oversees the development of media in UAE and to support media initiatives. It has the vision to meet the international standards in media regulation to achieve sustainable development in the country. It has mission of development and regulation of an integrated and distinguished national media system leading to enhancing the UAE’s national and international position through evolving appropriate media policies and regulations and coordinating their implementation in conjunction with relevant parties.

It has values of greater participation by connecting and activating all internal and external channels of communication and building strategic alliances and partnerships with all media stakeholders at national and international levels to achieve common goals are achieving skies. The core essence of the NMC is the utmost professionalism which encourages professional practices through commitment to credibility, efficiency and distinction. It upholds transparency by promoting attitudes and conducts within the organization. It is the icon of truth, straightforwardness and credibility in the delivery of specialised media and information services.

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It has the unmatched leadership qualities to be always proactive and innovative in all sectors to achieve sustainable development in the UAE. NMC stands for responsibility and dutifulness by promoting a spirit of responsibility towards the community in all its work sectors. Now due to which the UAE is endowed with an unparalleled viable media scene in terms of the GCC and MENA region.

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National Media Council is the most connected organization in the region and around the globe. Every day there any signing ceremony is staged with the other regional and global news agencies and media houses/departments or miniseries. The Emirates News Agency (WAM) has already applied new standards for the development of its online news to achieve the highest degrees of social networking web pages and reach millions of readers and visitors around the world. Due to which WAM is the most visited web on social media. It is most advanced web. It is customer friendly, easy to connect and browsing. Millions of visitors can now follow WAM on Facebook and Twitter and benefit from the flow of news, photographs and television broadcast around the clock to the most important/prominent events and activities of political, economic, cultural, tourist and social development in the UAE. The initiatives of the NMC and WAM to expand online news on the global level, keep pace with the tremendous development in social media and find new outlets for the agency is now paying its dividends. WAM has established a page on Facebook and Twitter to disseminate important news on a daily basis in both Arabic and English, while the number of news.

The NMC’s External Information Department produces publications and other media materials, in several languages, for distribution both inside and outside the UAE, and also provides facilities for foreign media visiting the Emirates.

NMC is also the licensing authority in the country. It follows up on media content and the registration of foreign media correspondents working in the country. It also supervises the import of newspapers, magazines and books from abroad. It is also responsible for the UAE’s participation in international EXPOS, these providing a valuable platform for the introduction of the country’s heritage and progress to audiences overseas. UAE pavilion won the silver medal in the top category of participants. A film produced for the Yeosu EXPO, ‘The Turtle’, promoting marine conservation, won two gold medals at international film festivals in Cannes, France and Dubai, a great achievement by the NMC. In addition to this previously UAE pavilions at international EXPOS have also been medal winners, in Shanghai in 2010 and in Zaragoza, Spain, in 2008.

To further participate in the international EXPOs and project the soft image of the country, the NMC signed a contract to participate in EXPO 2015 in Milan, Italy, in which over 200 countries are expected to take part in October 2012. NMC is also striding to project the Dubai bid to host the 2020 EXPO.

To make it more effective and assertive, H. H. Sheikh Abdullah bin Zayed Al Nahyan, Foreign Minister and Chairman of the National Media Council (NMC) has issued a resolution forming the consultative council of the NMC. It includes officials from media institutions and academics. It will discuss, follow up, and coordinate joint initiatives between NMC and media sector, as well as form sub-committees to enable NMC explain the state’s general media policy media to the media organisations. The new body will review topics referred to it so as to make recommendations ahead of submitting them to the chairman of NMC.

Most recently, the representatives from the National Media Council, (NMC) and the Emirates News Agency, (WAM) met with a delegation of the Dubai Press Club (DPC) and discussed various areas of cooperation including cooperation at the media level to support the government’s drive to choose 2013 as a year of nationalisation, the exchange of experiences, future projects of DPC and the Media office of the Government of Dubai as well as a series of activities and events organised by the club and the NMC throughout the year.

Media has become modern deity which has the power to rock the world and shake the governments. It has capitalistic origin. But in case of United Arab Emirates, it is the ideal combination of modernity and civility. It stands for professionalism and avoids irresponsibleness. It is mouth-organ of common people at large. It protects the native/national culture, preserves traditions, history and heritage through constant produces materials, policies and programs.

National Media Council is a live-wire to generate new ideas of excel, progress, unity, and connectivity. It works for the pride, dignity and comfort of the people. It spreads the message of tolerance, equality and fair play. Now, the role of NMC has been established and consolidated under the supervision of H.E. Ibrahim Al-Abed Director General, NMC.

Apr 042013
 

Mehmood Ul Hassan Khan

United Arab Emirates is already on the path of socio-economic prosperity and diversification of national economy. Despite, havocs of socio-economy in the region and weak economic prospects at international levels, the macro-economy of the UAE stable, strong and sustainable. Even continued global economic and financial crises, tumbling oil markets and freezing credit markets could not produce any substantial dint in the economy of the UAE.

Gradual economic liberalization, public-private sector collaboration, financial and banking reforms, industrialization, and above all diversification drive has made it one of the best destinations of FDIs, and doing businesses and projects. Most recently, Abu Dhabi launched its second five-year financial plan. It sought to set out the emirate’s short-term development priorities/programs to keep it in line with Vision 2030.

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It is based on the further economic diversification in eight key sectors namely: cultural tourism, aviation, manufacturing, media, health care, petrochemical, financial services and renewable energy. Moreover, these priorities are reflected in the list of projects announced by the Executive Council in January 2012. The Abu Dhabi Louvre and the Abu Dhabi Guggenheim museums projects on Saadiyat Island will form the cornerstone of Abu Dhabi strategy of diversifying cultural tourism. On the other hand, more focus is given to capacity building in the high-tech aviation industry which will be achieved through Mubadala’s investment in Strata, investment in the aluminium, steel, copper and petrochemicals sectors. Media is the part and parcel of ongoing soft image projection drive in the country. The Executive Council is also reviewing its investments in the media sector to ensure that it generates a contribution to GDP. The proposed investments in the media sector include Abu Dhabi Media, which owns several entities including The National, and twofour54, the media zone.

Private sector is a must for achieving desired goals of socio-economy in the country. It encourages healthy competition between the service entities. It enhances levels of productivity and efficacy. It generates job opportunities. It is embraced as a strategic partner that effectively supports the public sector and contributes to the implementation of the government’s economic plans in the recently announced second five-year financial plan. Electricity, maritime transportation and aviation, among others, are critical areas of involvement for the private sector. It is assured that the investment programme must be carried out by the private sector. Investments in energy and industry would likely be given even more priority in the future. Real estate sector would play an important role in the days to come.

Abu Dhabi initiated a long-term plan for the transformation of the Emirate’s economy, including a reduced reliance on the oil sector as a source of economic activity over time and a greater focus on knowledge-based industries in the future. It provides a comprehensive plan for the diversification of the Emirate’s economy and a significant increase in the non-oil sector’s contribution to the Emirate’s Gross Domestic Product (GDP) by the year 2030.

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It identifies two strategic areas for economic development in Abu Dhabi; building a sustainable economy, and, ensuring a balanced social and regional economic development approach that brings benefits to all. It is the result of an integrated effort among a number of public sector and joint public-private sector entities.

Short Term Economic Priorities

• Providing an open, efficient, effective and globally integrated business environment
• Pragmatic fiscal policy which is responsive to economic cycles and growth patterns
• Establishing a resilient monetary and financial market environment with manageable levels of inflation
• Driving significant improvement in the efficiency of the labour market
• Developing a sufficient and resilient infrastructure capable of supporting anticipated economic growth
• Developing a highly skilled and highly productive work force
• Enabling financial markets to become the key financiers of economic sectors and projects.

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The Abu Dhabi Economic Vision 2030 establishes a common framework for integrating all policies/plans and programs that contributes to the ongoing development of the Emirate’s economy. It encourages the local and international private sector in the Emirate of Abu Dhabi. It would be a new employment opportunities for the people of the UAE. Abu Dhabi’s vision growth strategy is based on entrepreneurism, qualitative education, innovation and diversification. Small and medium enterprise development is another area of its foremost priority.

According to the recently published report of the Saudi American Bank group (SAMBA), the UAE economy would achieve more than GDP 3.3 percent. High public spending, Dubai’s economic recovery and inflows of safe investment in the UAE economy may boost its economy around 3.3 per cent in 2013 despite an expected fall in crude output. Its real GDP registered around 4.9 per cent in 2011 and 4.2 per cent in 2012 and growth will likely remain relatively high this year while its fiscal system will continue to record largely surpluses.

It further elaborated that most of the 2013 growth would be in the non-oil sector, which could expand by around 4.1 per cent. Growth in the hydrocarbon sector was put at 1.5 per cent, far below the 2012 growth of 5.9 per cent. In current prices, the report showed the UAE GDP would rise by 4.6 per cent to a record high of about $395.8 billion in 2013 from $378.3 billion in 2012.

The report showed an “increasing shift” towards higher capital, including off budget, and social expenditures. The latest figures of the UN Conference on Trade and Development (UNCTAD) said that the UAE has pumped nearly US$55.5 billion into foreign markets over a period of 32 years to emerge as the largest capital exporter in the Arab world. It accounted for nearly 31 per cent of the total Arab foreign direct investment (FDI) outflow of around US$175.8 billion during 1980-2011. The UAE attracted more than US$85.4 billion in terms of FDIs.

Concluding Remarks

Abu Dhabi Vision 2030 is the collective wisdom of its visionary leadership, economic managers and commitment of its important organs and departments alike. It reflects its high aims to achieve high standards of productivity, efficiency and the last but not the least, banking stability. It shows a blueprint of further socio-economic prosperity, knowledge-based economy, innovation and above all diversification of energy demand and supply.

Booming tourism industry, healthy service sector, strong monetary and fiscal indicators and high ratios of inflows of FDIs would be useful to achieve and consolidate the national drive of diversification and lesser reliance of oil and gas traditional resources of energy in the days to come.

Apr 022013
 

Mehmood Ul Hassan Khan

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United Arab Emirates policy of diversification of energy mix is now paying its dividends. Most recently, His Highness Sheikh Khalifa bin Zayed Al Nahyan President of the United Arab Emirates officially inaugurated Shams 1, the largest concentrated solar power plant (CSP) in operation in the world. It is located in the Western Region of Abu Dhabi, the 100-megawatt, grid connected power plant will generate clean energy to power 20,000 homes in the UAE. It is indeed a great achievement in the field of renewable energy in the whole Gulf Cooperation Council and Middle East and North Africa region too. It is also an integral part of Abu Dhabi’s 2030 Vision, with its goals of diversifying the region’s energy mix and building a knowledge-based economy. It will extend the life of the UAE’s hydrocarbon resources and support our long-term energy and economic security.

His Highness President Sheikh Khalifa bin Zayed Al Nahyan expressed his pride in the inauguration of Shams 1, terming it a major achievement in the UAE’s goal of energy and economic diversification.

“Expanding our leadership into renewable sources of power demonstrates the United Arab Emirates’ commitment to maintaining its position as a major provider of energy,” said His Highness Sheikh Khalifa bin Zayed Al Nahyan. “The inauguration of Shams 1 is a major milestone in our country’s economic diversification and a step toward long-term energy security.

“Shams 1 is a strategic investment in our country’s economic, social and environmental prosperity,” added His Highness. “The domestic production of renewable energy extends the life of our country’s valuable hydrocarbon resources and supports the growth of a promising new industry he added.

The ceremony was also attended by His Highness Sheikh Mohammed bin Rashed Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai; His Highness General Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, as well as other members of the UAE leadership.

Dr. Sultan Ahmed Al Jaber, CEO of Masdar labeled the inauguration of Shams 1 as a breakthrough for renewable energy development in the Middle East. “With the demand for energy rising exponentially, the region is undergoing a major transformation in how it generates electricity, he added. He explained that in fact, the Middle East is poised for major investments in renewables, and Shams 1 proves the economic and environmental advantage of deploying large-scale solar projects.” He was of the opinion that inauguration of Shams 1 would enhance the leading role of the UAE in the region and around the globe. It is of course paradigm shift in the energy mix i.e. from exports of hydrocarbons to environmental friendly renewables.

He said that investments in sophisticated projects like Shams 1train our future energy leaders, has already created specialized jobs and encourage economic development. Renewable energy is fundamental to achieving a diversified energy mix and extending the life of our precious hydrocarbon resources. Clean energy, is aligned with the legacy of conservation instilled in us by our founding father, Sheikh Zayed bin Sultan Al Nahyan.”

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Dr Rashid Ahmed bin Fahd, Minister of Environment and Water stressed that the launch of Shams1 Plant, the largest concentrated solar power plant (CSP) in operation in the world, aimed to diversify sources of energy in the country. The launch of Shams 1 Plant represented an important era of the renewable energy in the UAE and fruit of concerted efforts exerted by Masdar notched the UAE on the world map of renewable energy in line with the UAE vision 2021, he added.

“It is an essential contribution to transforming our national economy to green economy with reduced carbon in accordance with the UAE Strategy for Green Economy declared by the UAE Vice President in 2011,” said the UAE minister.

Project’s Specifications

The Dh2.2 million or US$600m, plant covering 2.5 sq km in Madinat Zayed in the Western Region is the largest renewable energy project in the Middle East. It will generate 100 megawatts of clean and sustainable energy enough to power 20,000 homes, and the giant step so far towards Abu Dhabi’s goal of obtaining 7 per cent of its energy from renewable sources by 2020. It shows that UAE is the regional leader in the renewables mix. It is designed and developed by Shams Power Company, a joint venture between Masdar (60 percent), Total (20 percent) and Abengoa Solar (20 percent). Shams 1, Masdar’s renewable energy portfolio accounts for almost 68 percent of the Gulf’s renewable energy capacity and close to 10 percent of the world’s installed CSP capacity.

It has 258,048 parabolic trough mirrors, 192 solar collector assembly loops with eight solar collector assemblies per loop, 768 solar collector assembly units and 27, 648 absorber pipes. Eighty per cent of the Dh2.2billion of funding has come from 10 banks, including five European banks, three Japanese banks and National Bank of Abu Dhabi and Union National Bank locally.

Strategic Significance

From Qatar to Oman, Saudi Arabia, Jordan and Morocco, governments are turning to solar power as cheaper installation costs, higher oil prices and rising energy demand make it a far more attractive investment. The innovative Shams 1 reduces the UAE’s carbon emissions, displacing approximately 175,000 tonnes of CO₂ per year, an equivalent to planting 1.5 million trees, or taking 15,000 cars off the road. It is estimated that with solar power generated during peak demand, the UAE can reduce its need for “peak shaving” generators, which are expensive and idle most of the year. In addition to advancing long-term UAE energy diversification plans, Shams 1 demonstrates the rich solar potential of the whole region, where annual global radiation reaches 2000 kilowatt hours (kWh) per square metre.

Covering an area of 2.5 km² Shams 1 incorporates the latest in parabolic trough technology and features more than 258,000 mirrors. By concentrating heat from direct sunlight onto oil-filled pipes, Shams 1 produces steam, which drives a turbine and generates electricity. The project uses a booster heater to heat steam as it enters the turbine, dramatically boosting the cycle’s efficiency. Shams 1 also features a dry-cooling system that significantly reduces water consumption a critical advantage in the arid desert. It is hoped that when fully operational, the plant will displace carbon dioxide equivalent to planting 1.5 million trees, or taking about 15,000 cars off the road.

It has multiplier socio-economic and geo-strategic benefits. By increasing the penetration of renewables, UAE could reduce the amount of exposure to imported fuels, be it liquid hydrocarbons or gas.

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The International Renewable Energy Agency (IRENA) welcomed the activation of the world’s largest operational Concentrating Solar Power (CSP) facility, as the Middle East turns to clean energy to fuel future growth. “The UAE’s investment in renewable energy offers the region a pragmatic path to reducing per capita carbon emissions, which are currently among the highest in the world,” said IRENA’s Director-General, Adnan Z. Amin.

Concluding Remarks

Shams1 is a remarkable achievement for the UAE. It is a giant step towards achieving the targets of 7 percent of renewable energy mix in the future. It is indeed a paradigm shift to its diversification of economy and energy. UAE has been blessed with abundant hydrocarbon fossils. But its growing population and hydrocarbon resources are gradually diminishing. Diversification is the answer and Shams I stands for it. Increasing domestic demand for power, for desalination and all the other needs of an emerging economy requires diversification of energy resources especially solar energy.

It is part of the 2030 Vision for Abu Dhabi, which seeks, as a first step, to generate 7 per cent of the city’s energy from renewable sources by 2020. But at the current output level, the capital would require 15 plants like Shams 1 to reach that target. The role of Masdar, the Mubadala-owned company are very important which owns a majority share in the Shams project, is looking at other solar-power projects, as well as wind power projects elsewhere in the world.

Mar 262013
 

Wife of Honorable Saudi Arabia Ambassador in Pakistan

Mehmood Ul Hassan Khan

(She is proactive in the promotion of various socio-economic and cultural activities and programs in the country. She has been rigorously engaged in the welfare of children of lesser of God in Pakistan i.e. Sweet Homes and Orphanage Centers etc. She is great speaker having scholarship/expertise on Islam, Diplomacy, and Event Management. She is great advocator of strong bilateral relations between the two countries. She tends to stage different folk and musical shows in Pakistan for the lively interaction and promotion of better understanding of cultures).

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Which of the major sector of your economy/society where women are contributing good things?

Saudi Arabian women are now leading in many fields. They are now in more profitable propositions. They have proved themselves as successful entrepreneurs, marketing gurus, media expertise, event managers, prudent bankers, efficient lady doctors, business leaders and the last but not the least, computer experts. Opportunities are unrestrained and prospects are even brighter for the women to excel in the future in many diversified fields.


Do you have Women Chamber of Commerce in your country? What is its role in the fields of SME, IT and other sectors of economy?

Yes, we have Women Chamber of Commerce which is playing a decent role in the promotion of women empowerment in the country. It is providing basic skills to all the interested women in the country.

According to a research study at present, there are more than 20,000 firms owned by Saudi women; these range from ordinary retail businesses to various types of industry. The number of women registered in local chambers of commerce and industry is on the increase day by day. The Jeddah chamber, for example, has more than 2000 women members out of a total membership of 50,000. In Riyadh chamber, the figure is over 2,400 out of a total of 35,000 members and this represents a fourfold increase in just ten years. Businesswomen registered with the Eastern Province chamber number more than 1,000 out of a total of 14,000.

Moreover, the Jeddah Chamber of Commerce has recently established the “Khadija bint Khwailid Center” to provide services for businesswomen facilitate business opportunities and provide guidance to encourage women to run their own business.

Saudi businesswomen appreciate the efforts of the government as well as the local chambers of commerce for supporting them and providing them with service. Due to an increase in the number of Saudi businesswomen, the government has had to revise its 30-year-old labor laws and business proceedings to include women.

Now, Saudi women have substantial assets in real estate, jewelry, precious stones and metals. The new opportunities offered to women would include media and marketing, IT, banking and investment.

With the support of public-private sectors, efforts are being made to establish women specific projects that will employ more and more qualified Saudi women. The government has also allocated land for industrial projects that will employ women. Plans are also under way to establish an Industrial Training Institute for Women in Jeddah; the institute plans to train Saudi women in the manufacture of readymade dresses. One of the main salient features of Saudization drive aims to employ more women in the public and private sector.

What is the level of women entrepreneurship in your country?

Saudi Arabia’s macro-economy is stable and sustainable. It widens the scope of women entrepreneurship in the country. Gradually and surely Saudi women entrepreneurship level is on the rise in many fields. Now they have their own businesses. Information technology, software houses, handy crafts, stones polishing etc. are the new businesses owned by women in the country. Women entrepreneurs in Saudi Arabia are now establishing and managing more small and medium sized entities than at any time in the past and this trend is growing.

Saudi men have traditionally been the entrepreneurs but our women are no longer standing in the shadows. They have stepped into the light and have become the backbone of society. We in the Saudi Arabia Kingdom are fortunate to have well educated, financially powerful women.

Do Saudi Arabian women have the right of suffrage (Vote)?

The government has already announced the right of suffrage to be given in the future. Nevertheless, they are performing excellent jobs in Shura Council and Chambers of Commerce which are done through majority vote. Saudi women are also doing wonders in local councils. So they are not debarred from the voting in true sense.

Why women are suffering in most of the Muslim Countries? Suggest some measures to eliminate it.

Our religion Islam guarantees the role of women in the formation of a healthier and productive society. I think Islam protects the concept of partnership, participation, persuasion and progression associated with women for the wellbeing of the family, clan, group, society or a nation. It has multiplier socio-economic effects. It would enhance the levels of civility, responsibility, dutifulness and above all self-reliance. There should be no obstacle for the onward march of feminist participation or contribution in the world.

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What are your comments about some of the European countries legislation towards Muslim women?

With the passage of time, Muslim women have become citizenship of these European countries. They have been living in these countries for many generations. They respect the law of the land but in return law of land should respect their basic rights of privacy, veil, education or dress code etc.

Would you please tell us some ongoing social (health, education etc.) projects sponsoring by your country in Pakistan?

In time of national crisis or natural calamities, the Kingdom of Saudi Arabia stood first with the government and people of Pakistan. The government of Saudi Arabia has been initiating many notable projects in the fields of education, health, clean drinking water, agriculture, and communications. Most recently, Saudi Development Fund has already launched many meaningful projects in the country for the helping the suffering and struggling people from poverty, disease, hunger and insecurity etc. Moreover, King Abdullah bin Abdulaziz Al Saud Relief Camp has its office in Islamabad taking care lots of projects related to education, health and clean drinking water. It is also taking care about rehabilitation activities in the different troubled parts of the country ravaged from terrorism. We would glad to announce that this Camp is considering to build new 5000 homes with full of various educational, health centers.


Do you think that there should be close cooperation between women chamber of commerce between the two countries?

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We share a strong bond of affinity among the women of Pakistan and Saudi Arabia. We stress the need to have greater collaboration between the women of Pakistan and Saudi Arabia for strengthening socio-cultural ties between the two countries. I believe that regular interaction between the women of two countries could be beneficial for their joint collaboration in various fields. Our Embassy in Pakistan, Islamabad has already taken many initiatives for encouraging the Saudi and Pakistani women to interact for mutual benefit.

What are the media images of women in your country?

It stands for respect, dignity and responsibility. Saudi media gives true reflections of Islam associated with women. Our media is responsible towards their rights of privacy, veil, clothes and they are not used for the maximization of profits and achieving larger market shares in the race of cut-throat competition of survival.

How you respond different programs of Pakistani government towards greater empowerment of its women?

I personally think that women empowerment programs of Pakistan’s government would definitely further increase the productive role of women in the development. It would further enhance women participation in the decision making and improve living standards. It would consolidate their financial independencies in the days to come.

How you define the different roles of Saudi Arabia women?

Women have been rigorously engaged with the socio-economic prosperity of the Kingdom of Saudi Arabia since its inception. They played very important role in the building of a strong family, productive society and of course a progressive nation. They are now more independent in their decision making within the parameters given by constitution, society and Islam.

In Saudi culture, women have their integrity and a dignified special life. A Saudi Arabian women acts as a trustworthy life partner to her husband, a caring mother to her kids, an obedient daughter to her parents and the last but not the least, a lovely sister to her brothers.

Islam protects the basic rights of women which have already been institutionalized in every walk of life in Saudi Arabia. With the passage of time, women have achieved remarkable positions in every sector of economy, politics, education, nursing, business, investment and small and medium and enterprise. Women in Saudi Arabia have been given the right to vote and run in future municipal elections. Allowing women to stand and vote in municipal elections is a big step towards political reform. The right for women to join the all-male Shura Council could turn out to be even more significant as it is the most influential political body in the country. Now we have the country’s first co-educational university, a first female cabinet member, and our government has already promulgated many laws against domestic violence.

What is the importance of family to Saudi Arabian women?

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In every sociological paradigm and political science philosophy, a family has been treated as one of the most important unit of societal development, political interaction and the last but not the least, reaching to national concusses. To us family is the first place of learning, center of love and affection, hub of reliability and definitely an ideal place for character building. Saudi Arabian women tend to work very hard to tame and teach their children valuable lessons and unlimited blessings of Islam, native culture, traditions and heritage etc. They always prepare them to meet with the challenges of life with zeal and full of confidence.

What are the educational and health facilities of your country women?

Education and health are the basic rights of each and every Saudi Arabian woman. They are equally treated with men in the fields of education and health. Women are primarily engaged to study service industries or social sciences. Education, medicine, public administration, natural sciences, social sciences, and Islamic studies are deemed appropriate for women. But now they are adopting new professions of their own choices too.

In my beloved country facilities of education and health are provided free of cost form primary to highest level and from simple surgery to complicated heart operation. We have educational center, schools, colleges and universities along with medical care center, dispensaries and hospitals throughout the country.

Would you please share with us some mega social projects with special reference to women in Saudi Arabia?

Many meaningful mega projects are being carried out in both public and private sectors in the country. New schools, technical educational centers, mother care centers, colleges, universities are being built throughout the country to consolidate the role of women in the development of the country. Constructive, productive and above all supportive environment-oriented activities/programs/projects are being provided to women in Saudi Arabia to make them more useful for the country in the future. Now, even private sector is proactive to initiate woman-oriented projects in the country which is very encouraging.

What is the literacy rate of Saudi Arabia women in the population?

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Education is one of the basic rights of women in Saudi Arabia. Education is the first giant step towards knowledge which stands for blessing and peace. Visionary leadership of Saudi Arabia has been positive for women education in the country since its independence. Many effective national policies and programs have been drafted and implemented which are now paying dividends. Till 1950s the literacy rate was not encouraging. But afterwards, there has been gradual improvement in this particular sector. Now literacy rate is excellent and up to the mark.

Do you have any discrimination towards women in your native country?

We have no discrimination or spirits of apartheid against women in Saudi Arabia. Their basic rights are protected by Islam and our constitution. They have the rights to live a decent and qualitative life. They have the liberty to excel in business, education, medical profession, research, engineering and many other related fields.

How you elaborate the Islamic status of a woman?

Islam provides us complete code of life. Much earlier than the dark ages of Europe, and subjugation of male domination taboos around the ancient world, Islam blessed women a complete set of rights, not confined to property, education, respect, dignity and health for more than fourteen centuries.

The Islam gave women economic and social rights long before such rights were attained by Western women. From the beginning of Islam, women have been legally entitled to inherit and bequeath property, holding their wealth in their own names even after marriage, without obligation to contribute that wealth to their husband or their family. Islamic rights of women are highly appreciated even in the West.

How you differentiate Saudi Arabian woman with Pakistani woman?

Women of both the countries do not share any significant difference. Both have their own traditions, cultures, heritages and histories to embark on. Both live a respectable life according to the teachings of Islam.

Who is your role model in life and what is life to you?

Being Muslim, Prophet Muhammad (Peace Be upon Him) is our ultimate role model. His whole life holds the best and Immaculate Conception perfection to all of us. Prophet Muhammad (Peace Be upon Him) is teacher and preacher to all human beings irrespective of race, color, cast and origin.

What are the social and cultural activities of your country’s women?

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Women of the Kingdom of Saudi Arabia tend to participate in many interrelated social and cultural activities permitted by our religion Islam, traditions, culture, history and heritage. Women have unique role to perform in the country. They are the custodian of our proud social and cultural events.

What is your message to women of Pakistan?

My message is of hope, struggle, hard work and respect. The women of Pakistan must actively participate in the overall growth of their families because family is the nucleus of productivity, positivity and prosperity. I pray to Allah Almighty for the success of all the women living in Pakistan.

Mar 252013
 

Mehmood Ul Hassan Khan

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Most recently, Pakistan’s government used its trump card and announced to hand-over the Gwadar Sea Port to its closed strategic ally China. It produced shock and awe in the region and also panic in the different important capitals of the world. Of course it has multiplier effects in the fields of socio-economy, geo-politics and geo-strategic. Now Pak-China strategic friendship has been further strengthened in many dimensions. It is estimated that after full operation the Gwadar Seaport will be linked with the world’s largest and deepest ports. It would be value addition in the economy of Pakistan with estimated revenue of $40-42 billion and the generation of two million jobs.

Salient Features of Contract

The government of Pakistan formally awarded a multi-billion dollars contract for construction and operation of Gwadar Port to China with the hope that the port’s development would open up new vistas of progress in Pakistan, particularly Balochistan. Under the contract, the port which will remain the property of Pakistan will be operated by the state-run Chinese firm China Overseas Port Holding Company (COPHC). Earlier, the contract was given to the Port of Singapore Authority (PSA).

The contract signing ceremony held in the Presidency was attended by President Asif Ali Zardari, Chinese Ambassador Liu Jian, some federal ministers, members of parliament and senior government officials. President Zardari praised the award of the contract to China as a propitious development in Pakistan-China relations and expressed the hope that it would create new economic opportunities for Pakistan and Balochistan. ‘Gwadar will soon be a hub of trade and commerce in the region as it holds the key to bringing together the countries of Central Asia and lends new impetus to Pakistan-China relations he further added” He also pinpointed the strategic importance of the port for China and Central Asian republics and its potential of integrating the economies of the countries in the region.

He said the Chinese provinces of Xinjiang and Tibet were closer to Pakistani ports than to any port in China and development of a trade corridor linking Xinjiang to the Middle East via Gwadar held great prospects. The president further elaborated 60 per cent of Chinese import of crude came from countries in the Gulf and the amount would increase in next decade. “Because of the proximity of the Gulf countries to Gwadar, oil flow from the region to China will be facilitated.” President Zardari said the building of infrastructure around the port would promote economic activity in Gwadar and Balochistan.

Regional Concerns

According to the official stance, Gwadar seaport would be an energy corridor. It would be hub of all kinds of economic and socio-economic activities in the days to come. However, the worsening law and order situation in the country and designs of main stakeholders of the region and world, Iran, Afghanistan, India, US and Russia may prove fatal to the productivity, efficacy and profitability of the seaport in the days to come.

On Feb 6 Indian Defence Minister A.K. Antony said New Delhi was concerned by Pakistan’s decision to transfer management of the deep-sea port to China, which had interests in a string of other ports encircling India. Foreign ministry spokesman dismissed those concerns “This is not something that any other country should have any reason to be concerned about.” The operation of this port will also affect trade at the Iranian ports of Bander Abbas and Chah Bahar. Therefore, Iran is likely to look at the development of this port with some reservations from economic and military points of views.

India-US Nexus China

China 2

India is cooperating with US in Asia-Pacific and in India Ocean to contain the expanding power of China. The development of new sea ports in the Strait of Malacca are aimed to dominate the sea routes of the region. Presence of Indian and US military will create maritime barriers to China in times of conflict. Full operationalization of Gwadar Sear Port would increase Chinese naval strategic presence in the region which would be a regional equalizer in the days to come. It would nullify the India-US strategy of encircling China. It may expand its influence in the Indian Ocean which may result in harming Indian interests. The port would enable Pakistan and China to take control of more of the world energy circulation and interdiction of Indian tankers.

Strategic Significance

Gwadar Port is on the conduit of three most commercially important regions of the world. The oil rich Middle East, Central Asia bestowed with natural resources and South Asia having the potential for growth, for 21th century.
(a) The Gwadar Port would be mutually beneficial for both Pakistan and China as well as for many other regional countries.
(b) It would increase China’s strategic presence in the Arabian Sea. China maintained one of the largest merchant ship fleets and it is estimated that due to Chinese management at the port it would definitely attract Chinese ships which would trans-ship into the Persian Gulf.
(c) It would be great boost for Pakistan maritime sector. Gwadar possesses great potential and its handing over to a Chinese company has offered unlimited opportunities to Pakistan in the fields of trade and commerce, joint ventures, maritime economy, and the last but not the least, naval defencee in the days to come.
(d) Presently Transit Trade facilities are provided to Afghanistan from Karachi and the same can be extended to CARs from Gwadar.
(e) It would be one of busiest strategic routes because the port’s close proximity to the Persian Gulf’ which provides 60 percent of worlds oil and overlooking the strategic lines of communication.
(f) The transit route through China towards Central Asia would offer the most viable option for international trade to the western part of China, which lays at long distance from Chinese ports in the east as well as for Gulf countries and Central Asian states.
(g) The establishment of special economic zones, free trade zone, and Export Processing Zone (EPZ) would attract foreign investment creating innumerable job opportunities for local youth and increase the living standard.
(h) Further development to local fishery industry. Fish processing at Gwadar will further generate employment.
(i) Gwadar has an immense potential for attracting both domestic and international tourist with a unique landscape. The God gifted landscape, matchless environment, the turquoise sea water with golden sand beaches would definitely main source of attraction to many regional and international tourists.
(j) Construction industry would be booming

Further Needed

Development of its infrastructure and connectivity with the hinterland
The government needs to build road and railway linkages to use Gwadar as an alternative port for the country and to offer its utilities to regional land-locked states of CIS.
Coastal refinery would be optimal choice

Economic importance of global seaports

Round the globe seaports are playing an important role in socio-economic uplift. Countries like the US, Australia, China, UAE and many others are earning handsome revenues from their seaports. For an archipelago like the Philippines with 7,107 islands, seaports play a crucial role in economic development.

More than 232,900 jobs were generated by activity in the Port of New York and New Jersey in 2000-04 while salaries generated equalled as much as $12.6 billion. $5.8 billion contributed to local, state and federal tax revenues, with $2 billion remaining in the port region.

Likewise, a lot of hope is pinned on the Gwadar port. According to some regional and local experts Gwadar seaport would be pearl of the economy in the days to come. According to its geo-strategic importance, Gwadar has also become an issue of conflict among the main stakeholders of the region.


Future socio-economic benefits

It is expected that on full operational capacity, Gwadar seaport will emerge as the third largest seaport in Pakistan after Karachi and Port Qasim. The port will reinforce Pakistan’s economic development and rapidly transform the Makran belt into an important industrial and trade centre.
Pakistan is interested in securing its full operational capacity not only as a trans-shipment port, but also as an energy port by establishing refineries, building storage capacity, and laying pipeline ensuring secure and reliable supplies to Western China. Pakistan would receive $40-42 billion in revenue. Gwadar would handle trans-shipment traffic for the Gulf and ports on the Arabian Peninsula. Pakistan also plans to use it as the main trade link with land-locked Afghanistan and Central Asia through Gwadar. It would be a major refining point as it is located near the largest hydrocarbon reserves of the world. Iran has already planned to build an oil refinery. The government of Oman has also wishes to establish oil refinery in Gwadar. It is estimated that Gwadar deep seaport would be able to handle ships up to 30,000 dwt bulk carriers and 25,000 dwt container vessels. It would accommodate panamax vessels in its proximity and encourage feeder services for Middle Eastern ports like Dubai and Salalah ports due to its low port charges. It is hoped that a chain of warm water ports on the mouth of the Persian Gulf along with modern transport and communication facilities would surely make Pakistan a huge business hub in the 21st century.

Win-Win Situation for China

China 1

It is also win-win situation for China. Xinjiang lies 4,500 km from China’s east coast but just 2,500 km from Gwadar. This will make it possible for China to route some of its external trade through Gwadar port. It will enable Pakistan Navy in nexus, with the Chinese Navy to maneuver the Indian Naval presence as far as the Bay of Aden and prevent its influence to expand near the Gulf of Suez.

According to Chinese official figures, China’s 80 percent of imports from Iran is oil, while it is the third largest importer f oil to China after Saudi Arabia and Angola respectively. Imports of oil from Saudi Arabia to China are expected to increase by 11 percent during 2013, and while by 2015 China aims to import 61 percent of its crude-oil needs. Iraq, Kuwait, Oman, Sudan and Libya are the main importers of Chinese oil pursuits. In this connection, Gwadar would become the common gateway for the Chinese SLOCS (Sea Lines of Communication); thus making it an indispensable and an unavoidable option for China.

Moreover, China has some serious geo-strategic issues with the regional countries on the issue of various islands and the Chinese SLOC pass through the Indian Ocean, Strait of Malacca and South China Sea which would create trouble in the days to come and Gwadar under such circumstances eventually becomes a safe heaven. It is estimated that China trading oil via Gwadar will help China save $20 billion annually.

Energy Corridor

Pakistan has a window of opportunity to reach out to landlocked Central Asian States and the energy-rich Afghanistan to warm waters. Gwadar is situated just 624 nautical kms to the east of the Straits of Hormuz through which 60 per cent of the world’s oil passes. Gwadar would be the terminus of gas pipelines from CARs including multibillion dollar pipelines reaching either from Daulatabad’s fields in Turkmenistan, South Pars fields in Iran or from Qatar. Gwadar can provide a strategic base to China for expanding her high-energy stakes. China needs Gwadar port facilities for future oil and gas imports.

Naval Defence

Emerging geo-political and geo-strategic scenarios in the region and around the globe values the importance of a potent and effective navy. It protects shores uncertainties and maritime economy. It encourages blue economy and merchant navy too. It safeguards deep waters sovereignty against piracy and any kind of human trafficking. It achieves regional naval power equilibrium.

Most recently, Pakistan Navy and Royal Saudi Naval Forces (RSNF) held joint exercises in Naseem Al Bahr-X. The mutual vested interest between Pakistan Navy & the RSNF will enable the two navies, with joint-operational preparedness, to counter common conventional and asymmetrical threats in the Persian Gulf, Gulf of Aden and the Red Sea. It is estimated that Pakistan would further consolidate its deterrence capability in the naval defence and also enable it to maintain peace and stability in eastern and western waters by flexing its new naval muscle and use it as a negotiation tool where and when required.

The recent AMAN-13 Exercise, the fourth in the series of maritime security exercises since its inception in March 2007, has witnessed a gradual rise in the number of participant states. It attracted naval ships from 13 countries including the US and China and observers from 20 other states. It projects Pakistan’s commitment to maritime security and peace in the region and the globe. The full operationalization of Gwadar Sea Port would enhance Pakistan and China’s naval cooperation and coordination in the days to come.

Concluding Remarks

Handing of Gwadar Sea Port to China further reflects the importance of Pak-China strategic friendship. It has multiplier effects in terms of trade and commerce, energy supplies, joint ventures, foreign direct investment and the last but not the least, naval defence. It would also be value addition to our shipment, freight and forwarding industry, fishery industry and even construction sector in the days to come.

On the contrary the sin of Gwadar would be immense if it is not tackled with rigorous diplomatic efforts. Hot pursuits of energy have already transformed the region from safe heaven to blazing hill. It has even ruined the simple and pure souls of humanity. In order to manage the spillover effects from the sin of Gwadar, the government and the Armed Forces of Pakistan must be at same page. Regional main movers and shakers are in search of easy prey to be killed. Regional geo-political and geo-strategic scenarios would be changed altogether after the US withdrawal from Afghanistan. So, in order to fill the vacuum, Pakistan and China should be prepared and alerted. Gwadar Sea Port is jewel of Pakistan which must be protected from the ill designers because it is closely associated with our future socio-economic prosperity, geo-political comfort and the last but not the least, geo-strategic cushion.

Mar 132013
 

Mehemood Ul Hassan Khan

Despite regional economic meltdown and global weak recoveries the United Arab Emirates (UAE macro-economy has performed well. Its macro-economy is strong and stable. It has achieved the elements of sustainability based on diversification drive, active role of private sector and the last but not the least, export-oriented model.

High GDP Projection

According to the latest published report of the ministry of economy the UAE’s real GDP is projected to grow by up to four percent in 2013, strongly supported by robust tourism, trade, industry, strong recovery in real estate and service sector. Furthermore, in current prices, GDP is expected to reach to a record high of Dh1.39 trillion during 2013 from an estimated Dh1.33 trillion, an increase of about 4.5 per cent. The International Finance (IIF) report showed the UAE’s GDP reached to its highest ever level of around US$375 billion in current prices last year from US$352 billion in 2011, an increase of about 6.5 per cent. The 2012 GDP was more than double its level of nearly US$181 billion in 2006. Inflation has been successfully managed from a record high of 14 per cent in 2008 to below one per cent in 2011. Inflation in 2012-2013 would be around 1-1.2 per cent.

Dubai Department of Economic Development (March, 2013) report expects the economy to expand at 4 percent this year. Keeping in view, the figures for the first six months of 2012 the GDP may reach to 4.1 per cent during 2013.

Strong Macro-Economy

The UAE economy has achieved an annual growth rate of 6 per cent during the past two decades, which shows the country’s competitiveness and economic growth. The Washington-based Institute for International Finance (IIF) appreciated the UAE strides in socio-economy development. According to its latest report, the UAE maintained its position as the second largest Arab economy in 2012 after its gross domestic product (GDP) swelled by US$23 billion in current prices. It has been retaining its the second largest Arab economy after Saudi Arabia for more than 10 years because of a steady and rapid growth in its GDP as a result of high public spending, a steady increase in private sector investment and oil productivity of oil sector. The report further showed the UAE’s economy accounted for more than a quarter of the GCC”s GDP of US$1.482 trillion in 2012 and nearly 14 per cent of the combined GDP of MENA countries.

Despite the massive increase in its population over the past years, the UAE maintained its position as one of the richest nations and the third in the Arab region, with its per capita reaching one of its highest levels of US$45,731 in 2012. The report estimated the UAE macro-economy to continue its rise to reach US$395 billion in 2013 and a record high of around US$410 billion in 2014.

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Export-Oriented Model

Sheikha Lubna Al Qasimi

Right from the inception, the UAE has been moving towards an export-oriented model. Its continued economic liberalization, reforms and policies has already transformed its economy to self-reliance and export-oriented model. The Federal Customs Authority (FCA) says that the UAE non-oil exports show a stable growth, confirming the good reputation of these exports in the global markets. It says the value of the UAE non-oil exports rose in the first nine months of 2012 to Dh135.7bn compared to Dhs84.4bn in the same period of the last year”. Moreover, the total foreign non-oil trade (minus the free zones trade) in the first nine months of 2012 surged by Dh99bn to Dhs783.5bn compared to Dh684.9bn in the same period of the last year.

According to the FCA statistics, gold has been the major item in the UAE export structure at a top of the major ten exported goods with Dh79.8bn, followed by ethylene polymers in the basic forms with Dh5.3bn, jewelry and jewels with Dh4.9bn, crude aluminum with Dh3.3bn, propylene polymers in the basic forms with Dh2.9bn, petroleum oils and oils obtained from bituminous minerals with Dh2.4bn.

The diamond came at the top of the major re-exported commodities in the first nine months of 2012 with Dh26.4bn, followed by jewels and pieces of jewelry with Dh20.3bn, cars with Dh11.1bn, phones including mobiles or other wireless networks with Dh8.3bn and fiber glass with Dh4.2bn.

Demographic Division

Regions Non-Oil Trade Percentage %
Asia- Pacific Dh326.1bn 42
Europe Dh222.2bn 29
MENA Dhs110.6bn 14
America & Caribbean Dhs64.9bn 8
Western and Central Africa region Dh23.2bn 3
COMESA Dh20.8bn 2.7
GCC Dh65.7bn
Source: FCA (March, 2013)

UAE commercial diplomacy has achieved immense success in these years. It has already secured and consolidated strategic allies and business partners.

High Inflows of Foreign Direct Investments

Foreign Direct Investment (FDIs) is the life line for joint ventures and high exports. It is necessary for value-addition. It is must for even technology transfer. It abridges budgetary deficits. It promotes industrialization and activates the positive role of private sector in the national economy. It generates employment.

H.E.-Sultan-Bin-Saeed-Al-Mansouri-Minister-of-Economy-UAE1

UAE open door policy has attracted high inflow ratios of FDIs. The government is taking the necessary steps to establish the rules that facilitate investments. Now, the UAE is ranked second among Arab countries attracting foreign investments in the last decade. According to the World Investment Report (2012) issued by the United Nations Conference on Trade and Development (UNCTAD), foreign direct investments (FDI) flowing into the UAE amounted to $ 7.7 billion of the total amount of FDI to GCC countries, which was $ 26 billion in 2011. Now, many foreign companies and investors consider the UAE as a safe haven for investments because of its political stability and safe heaven for the investments. It also has a strong infrastructure and is considered a leading hub for trade, logistics and services in the region. It is highest connected country in the GCC and MENA too.

Moreover, the EC Harris Built Asset Consultancy’s “Infrastructure Investment Index”, which is a report that ranks 40 countries across the globe according to how attractive they are to infrastructure funds is ranked UAE 4th globally. It shows the UAE strong commitment towards economic facilitations and incentives for the interested businessmen and investors.

UAE: easiest Arab place for starting projects

Facilitation of doing business and staring of projects are must for rapid industrialization, attraction of FDIs and promotion of joint ventures in the country. In this regard, UAE government is doing its level best to provide every possible facility to all the interested businessmen and investors.

Most recently, the World Bank in its report titled “Ease of Starting Business Index” ranked the UAE THE easiest Arab place for starting projects. It is achieved because of UAE smooth procedures and simple tax system. It improved its ranking from 46 in 2012 to 22 in 2013 indeed a giant leap. The index, part of the “Ease of Doing Business Index” covering 185 countries, also classified the UAE as the top nation in the world in terms of paying taxes after it was ranked seventh in 2012. The tax sub-index covered total number of tax years, labour tax, total tax rate to profits, time needed to pay tax and profit tax, which was put at zero, indicating the UAE does not impose taxes on corporate earnings.

The index, published in the latest monthly bulletin of the Kuwaiti-based Inter-Arab Investment Guarantee Corporation (IAIGC), showed the UAE was ranked 13th in the world in terms of dealing with construction permits, seventh in getting electricity for the project, and fifth in trading across borders. UAE government is ready to take measures to further improve the investment climate, expedite procedures, allow full foreign ownership and issue a landmark debt law. The Ministry of Finance said last month the debt law, which will also tackle bankruptcy, has been drafted and would be approved soon.

High Performance of UAE Bourses

Stock Exchanges are at their lowest ebbs around the globe. Abu Dhabi-based Arab Monetary Fund (AMF) said the UAE bourses emerged as the star performers in the Arab world in the first few weeks of 2013, with the markets of Abu Dhabi and Dubai gaining more than $4 billion to offset a decline in most other regional exchanges. The bulk of the growth was witnessed in the bourses of the UAE.

Furthermore, Abu Dhabi Securities Exchange recorded the biggest rise in the region, with its market capitalisation surging from around $82.7 billion at the start of 2013 to $86.1 billion. Dubai’s market capitalisation grew from about $55.9 billion to $57.6 billion in the same period. This means the total increase in the UAE market capitalisation was $4.1 billion. Future prospects are healthy and positive as good results recorded by most banks and other listed firms last year.

Stable Consumer Confidence

The recent report (March, 2013) of the MasterCard has revealed the results of the latest MasterCard Index of Consumer Confidence, which indicates that Consumer Confidence in the UAE is steadily rising, with a score of 91.4 as compared to 86.0 in the previous edition of the Index released 6 months ago.

According to the report the consumers in the UAE are ‘extremely optimistic’ in their overall consumer confidence score, and are positive about all five indicators measured in the Index. When compared to the previous edition of the survey, consumers are more optimistic about

Indicators Present Pervious
Quality of Life 95.6 88.6
Employment 95.2 88.9
Economy 94.6 89.1
Stock Market 86.9 77.0
Source: MasterCard Report (March, 2013)

UAE: Tops in region in travel & tourism

UAE land of tallest building, unlimited sea places, grand hotels and infinite gifts/discoveries of the nature has topped once again in travel and tourism in the GCC and MENA. The Travel & Tourism Competitiveness Report 2013, released by the World Economic Forum (WEF) recent report has endorsed it. UAE has already built a cultural resource base, attracting both leisure and business travellers, with several and growing international fairs and exhibitions and increasingly diverse creative industries. Report titled “Reducing Barriers to Economic Growth and Job Creation” the UAE is blessed by a strong affinity for Travel & Tourism. Its world class international hubs for global air travel along with high standards of hospitality makes it one of the best destinations for the regional and international tourists. I addition to this, its effective marketing and branding campaigns, easy policy rules and regulations, foreign investments policy and the last but not the least, a liberal visa regime are the few factors of its achievements in the Felds of travel & tourism. The emirate’s tourism industry is set to receive 2.5 million tourists in 2013, up from last year’s record 2.3 million tourists.

UAE: Lowest rate of software piracy in Middle East

Due to its continuous reforms and regulatory bodies mechanism, the UAE has the lowest rate of piracy in the GCC and MENA. Microsoft and the International Data Corporation (March, 2013) acknowledges the UAE contribution in anti-piracy drive and institutionalization of laws. The rate of counterfeit software in the UAE was 37 per cent in 2011, the lowest in the region and better than the global average of 42 per cent.

Concluding Remarks

United Arab Emirates macro-economy is stable, strong and sustainable. All the main indicators of its economy are healthy, positive and productive. Export-oriented model paves the way of higher foreign exchange. National drive of diversification of economy speeds us active participation of private sector, industrialization, manufacturing sector and above all lesser dependence on oil and gas reservoirs.

UAE pursuits of alternative/renewables are paying dividends. It is regional leader and global brand name in renewables especially in solar and wind energy mix. Service sector is at its peak and one of main contributors in the GDP. Banking industry is performing extraordinarily. A future prospect of UAE’s macro-economy is positive and healthy.

Mar 062013
 

Mehmood Ul Hassan Khan

1

The 10th Joint Naval Exercises named Naseem Al Bahr (Sea Breeze) was held between Pakistan and Saudi Arabia in Karachi. Naseem Al Bahar (NAB) is a biennial exercise, which was evolved as manifestation of the unique Pak-Saudi strategic bilateral and interpersonal relationship and mutual resolve to enhance bilateral cooperation in facing the common challenges. These exercises were a clear manifestation of Pakistan’s commitment towards maintaining peace and stability in the region. Participation of Royal Saudi Naval Force (RSNF) ships in the exercise further strengthened existing bilateral relations between two brotherly navies. It was also a milestone in history of Pakistan Navy in which the complete exercise was conducted from Jinnah Naval Base, Ormara. It was lasted for one week.

The biennial exercise has matured and now advanced level maritime drills are accompanied by weapon sensors evaluation, test firings of missiles and honing of various doctrines as well as interoperability procedures. These exercises termed critical to access the translation of grand military strategy into operational plans. The exercises were begun on 12th January, 2013.

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A demonstration of Live Weapons Firing by ships and aircraft was conducted. It was the height of these joint naval exercises. The spirited participation of RSNF units in the exercise is a clear reflection of common professional working culture and strong foundation of brotherly relations that exist between the two nations since decades.

Admiral M. Asif Sandila, Chief of the Naval Staff and Royal Saudi Naval Force’s Western Fleet Commander, Rear Admiral Ibrahim Othman Al-Dulaijan, witnessed these joint naval exercises. It was indeed a mega strategic event. It was the professional display of various other maritime manoeuvres at sea of both the brotherly navies. Both the navies showcased their professional preparedness and diversified expertise in different integrated fields. Royal Saudi Naval Force’s Western Fleet Commander Rear Admiral Ibrahim Othman Al Delaijan said that the joint exercises of Royal Saudi Naval Forces and Pakistan Navy was aimed to check the preparation levels of both the navies and the exercises proved that both navies were in excellent condition. “Pakistan navy is a professional maritime force,” he said. “It has modified ships and we have gained from their experience.

Aims & Objectives

The aims and Objectives of the 10th Joint Naval Exercises was to foster friendship and develop common understanding. It was carried out to increase interoperability with RSNF in the domains of traditional as well as non-traditional warfare in order to maintain peace and stability for the larger good of the region.

Traditional Warfare Domain Nontraditional Warfare Domain

It was conducted to share and refine tactics, techniques and doctrines through jointly undertaking anti-surface, anti-submarine and anti-air operations with RSNF The exercise mainly focused to improve inter-operability and tactical proficiency in the execution of combined maritime security operations.

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Details of Joint Naval Exercises (Naseem Al Bahr)

The joint exercise was not merely based on physical manoeuvres of various surface, aerial and sub-surface naval platforms, but involve the entire gamut of maritime operations; planning, executing and drawing lessons from NAB-X. In addition, a platoon of the RSNF Marines and a Special Operations Force team along with explosive ordnance disposal elements were also participated in the joint naval exercise.

Three ships of RSNF, Makka, Al Buraida and Tabuk and five ships of Pakistan navy, PNS Nasr, PNS Shamsher, PNS Zulfiqar, PNS Zarar and PNS Qarar participated in the joint exercises. During the joint exercises, P3C Orion aircraft fired harpoon missile while RSNF ship, Makka, fired C2C MM.40 exorcist missile.

The naval exercises were progressed through phased activities in harbour and at sea for gradual improvement and coordination in all professional realms. The activities in harbour included professional seminars on information security, counter piracy, mine counter measures and host of other events which will provide opportunity to share experiences and knowledge. The sea phase of the exercise was planned from January 15 till 20 in which RSNF and PN units were operated together and exercised all facets of modern warfare.

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Wide Range of Operational Maneuvers Participants

Pak-Saudi Joint Naval Exercises focused on different aspects of modern maritime warfare not confined to counter terrorism, convoy protection, anti-air, anti-submarine, mine countermeasure. Different intelligence based full-fledged operations were also conducted in multi-threat environment during these one week long exercises between the two countries. It further broadened new avenues of mutual cooperation and coordination in military related fields. Pakistan Navy Destroyers/Frigates, Missile boats, Fleet Tanker, Submarine, Mine Hunters and Naval Aviation units. Special Operating Force and Marines in addition to Fighter Aircraft from Pakistan Air force also participated in the exercise along with four Royal Saudi Navy ships, aircrafts, Special Operating Forces and Marines rigorously participated in the Pak-Saudi Naval Exercises. Participants of both the navies were determined to learn more and more to excel in the related fields.

Potent and Effective Navy

Emerging geo-political and geo-strategic scenarios in the region and around the globe values the importance of a potent and effective navy. It protects shores uncertainties and maritime economy. It encourages blue economy and merchant navy too. It safeguards deep waters sovereignty against piracy and any kind of human trafficking. It achieves regional naval power equilibrium.

Admiral Sandila said that, to deal with the emerging challenges on the maritime scene, seafaring nations need to collaborate and assist in protecting each other’s interests in a cooperative manner. In this context, Terrorism and piracy; being global challenges, demand a collective and coordinated response among all stakeholders as no single country can eliminate this menace single handedly, he added.

He emphasized that a potent and effective Navy is the need of the hour. Government of Pakistan having limited resources is making all the efforts to equip Pakistan Navy so that it can effectively guard the national maritime interests at Sea. ‘I feel it is important for national and global economy that a legitimate maritime order is maintained at seas. He stressed that Pakistan Navy’s outreach to regional and global navies in respect of defence collaboration is a manifestation of Government’s Foreign Policy Objectives. The Chief of the Naval Staff expressed satisfaction on successful conduct of exercise and appreciated strengthening of maritime cooperation between Pakistan and Kingdom of Saudi Arabia. He also thanked Royal Saudi Naval Forces for their active participation in Exercise Naseem Al Bahr.

Pakistan Special Services Group-Navy (SSG-N) and Royal Saudi Naval Special Forces
A bilateral exercise between Pakistan Special Services Group-Navy (SSG-N) and Royal Saudi Naval Special Forces was also conducted during the joint naval exercises. The officers and members of SSG-N, Pakistan Navy Maritime Special Warfare (MSW) Group, SEAL Group and officers and members of the Royal Saudi Naval Special Forces participated in the exercise. It was operationalized simultaneously by MSW and SEAL Group. Many interactive seminars, informative lectures and special operations exercises were carried out. MSW conducted Maritime Special Operations encompassing maritime counter terrorism, counter piracy operations at sea and close quarter combat.

Special operating forces used special force boats, VBSS boats and helicopters. The joint exercise culminated with mock boarding operations on a simulated pirate vessel in counter piracy situation by using the SSG-N sea platforms. The SEAL Group mainly focused on minor operations, marksmanship, transition drills, live moving fires, Fighting in Built Up Area (FIBUA), Military Operations in Urban Terrain (MOUT), Close Quarter Combat (CQC) and mountain warfare. It made them perfect and passionate.

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SSG-N & RSNS Joint Field Tactical Exercise

All participating teams demonstrated individual skills in different facets of special operations. Both the teams and especially SSG-N rated as one of the most potent forces globally with a diverse capability to undertake sea, air and land operations and anti-terrorist operations. It consists of field craft, survival techniques, navigation, hide pit drills, ambush on convoy and raid on simulated target which was undertaken in mountainous terrain by both special operations forces. It further enhanced their professional experiences and preparedness.

The bilateral exercise provided a good opportunity to the armed forces of both the countries to exchange expertise in the domain of special operations, to develop cordial relations and to also enhance interoperability in times of war and peace. It would alter the repercussions of War Theater in the days to come. Terrorism is menace and naval piracy has already become a potential threat to regional and global peace and joint exercises of these kinds would be right step in right direction.

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Historic Perspectives

Pakistan and Saudi Arabia being a strategic ally have been extending diversified mutual military cooperation since long. Navies of both the countries have a long history that dates back to the period of 1960s. Initially Pakistan Navy offered to train Saudi naval cadets at the Pakistan Naval Academy, Karachi. The ties have since grown in size and stature. The relations have now excelled in several mutually beneficial areas covering professional, academic and operational fields. Pakistan has been remained second home to all the Saudi naval cadets for since long. The Saudi officers are regular recipients of mid-career professional as well as advance BE engineering courses at the NUST-affiliated Pakistan Navy Engineering College, PNS Jauhar.

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Naval Mutual Cooperation

NAB series of exercises is indeed a concerted effort from Pakistan and Saudi Arabia to promote maritime security awareness for collaborative maritime security in the region. First NAB series of exercise was conducted in January 1993 and the present exercise also marks the 20th year of this interaction with Royal Saudi Naval Forces.

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The current commander of the RSNF, Vice Admiral Dakheel-Allah Bin Ahmad Bin Mohammad Al-Wakadani, is also a graduate of Pakistan Naval Academy. Moreover, a number of seats are availed by the RSNF each year in the PN staff course. Numerous first generation Pakistan Navy trained Saudi naval officers have held key positions in the RSNF hierarchy in the past while countless others from later generation are now in the top slots. In an attempt to reinforce cooperation and expand the mutually beneficial ties, exercise Naseem Al-Bahr was formalised between the Pakistan Navy (PN) and the Royal Saudi Navy Force (RSNF) in 1993.

The joint naval exercises use to conduct every two years. It usually begins with combined seminars that examine various maritime security challenges from each side’s perspective. The seminar proceedings are followed by simulated war games at PN tactical training centres ashore. In the final phase, major naval combatants, including aircraft from each side, conduct joint manoeuvres at sea.

Pakistan Navy

The Pakistan Navy regularly conducts bilateral and multilateral exercises with regional and extra regional navies to improve its interoperability with international navies. Pakistan Navy is increasingly focused on policing roles and sharing of resources for maritime security operations against asymmetric threats as well as contemporary challenges like piracy, terrorism, narcotics, arms and human smuggling which have a great impact on the maritime environment. It is a responsible maritime power contributing relentlessly in maintaining legitimate maritime order at sea through conduct of Maritime Security Operations in Arabian Sea and beyond.

Pakistan Navy Royal Saudi Naval Force

It has transformed into a regional force during the past decade or so. It is achieved through new platform acquisitions, cutting-edge technology and distant operations. It now allows the PN to wield influence in much of the western Indian Ocean. Staring from 1950 with a few coastal vessels, the Royal Saudi Naval Force has developed and now exerts considerable sway over the Persian Gulf and Red Sea region through its eastern and western fleets headquartered at Jubail and Jeddah respectively.

020925-N-4309A-006

Royal Saudi Navy

1. Past
The naval force of the Kingdom of Saudi Arabia is known as the Royal Saudi Navy or the Royal Saudi Naval forces (RSNF). The Royal Saudi Navy was formed in 1950. According to an official figure, now it consists of a total of about 20,000 naval personnel which includes a total of about 3,000 marines.

Royal Saudi Naval Forces Details
naval headquarters Riyadh
Main Base Jeddah
Western fleet Red Sea
Eastern fleet Persian Gulf
Source: Royal Saudi Naval Forces (2011-2012)

The Royal Saudi Naval Forces is the naval unit of the Saudi Arabia Armed Forces and it main role in the Saudi Arabia armed forces is maritime warfare. Some of the important world events in which the Royal Saudi Naval Forces took part are the Gulf War, Operation Restore Hope and Sa’dah Insurgency.

2. Present

The Royal Saudi Naval Forces with its headquarters in Riyadh is under the overall command of Chief of Naval Staff Vice Admiral Dakheel-Allah Bin Ahmad Al-Wakadani. It comprises of a host of modern foreign built ships ranging from the US built corvettes to French built frigates to British built mine hunters.

Royal Saudi Naval Forces Operational Preparedness

Western Fleet/Red Sea Base It consists of frigates and two projectile boats, 1 refilling ship and a patrol minesweeper; sited due north of the King Faisal Naval Base air station and to the south of the container port area. The smaller base home to corvettes, replenishing ship left over projectile boats.

Eastern Fleet/ Jubal Base/Persian Gulf It houses minesweepers on the Persian Gulf, Jubal, the Saudi naval forces Eastern fleet home. Dammam is the Persian Gulf home base port for the Saudi Arabian Royal family’s two Royal Yachts.
Source: Royal Saudi Naval Forces (2011-2012)

3. Future

One of the main aims of the Royal Saudi Naval force is to counter the threat of the regional threats. Saudi armed forces are prepared to go every extent to protect their motherland. It has been under the rigorous process of modernization in the armed forces at every level. The Jubail base is now considered to be the second largest naval base in the Gulf and the Saudi.

Mutual Vested Interests

Since the independence of Pakistan in 1947, Saudi Arabia and Pakistan have maintained close religious, cultural, economic and strategic ties. The bilateral relationship between the two countries is extremely close. Pakistan has maintained the closest bilateral ties as a non-Arab Muslim country with Kingdom of Saudi Arabia. Defense cooperation between the two countries is very unique too.

Both PN and RSNF are major players in their respective areas of interest within the western Indian Ocean. Both share mutual vested interests in the region. Both the navies have robust capabilities to radiate influence far and beyond. Both the navies can synergize their potential to significantly advance the cause of maritime security and stability in the wider arc of the Indian Ocean. Joint exercises like Naseem Al-Bahr, whilst deepening the time tested ties, continue to serve such a purpose and concomitantly stimulate peace and harmony for the larger good of the region.

Pakistan has been providing support, arms & extensive training to Saudi defense forces for so many years. Saudi Naval forces & Special Forces are sent to Pakistan every year on joint exercises with the Pakistan Army and Pakistan Navy. Both the countries have been extending mutual cooperation and coordination in the several past hostile events that occurred in both the countries.

In 1969, Pakistan air force pilots flew Saudi fighter planes to ward of invasion from south Yemeni separatist group. The Yemeni separatists were crushed by the Pakistani forces. Between the 1970s and 1980s around 15000 Pakistani forces were stationed in Saudi Arabia to protect the borders and train the Saudi forces. In 2009, Yemeni
rebels attacked Saudi forces and tried to enter southern provinces of Saudi Arabia. Pakistani forces were once again backing up the Saudi Army and Yemeni rebels were forced to retreat after suffering heavy causalities.

During the 1979 siege of Masjid ul Haraam at Makkah Al Mukarramah, Pakistani SSG commandos were called to clear the rogue group that had laid siege at the Haram. The rogue group was successfully neutralized and the siege ended. In 2011, Pakistan Army supported Saudi Arabia stance on Bahrain and sent around 1000 retired army men to protect the Kingdom of Bahrain against ecowarriors. Also in 2011, two Pakistan army divisions were on standby in case of unrest in eastern province of Saudi Arabia.

12

In 1980s Saudi Arabia and Pakistan jointly supported the Afghan freedom fighters who were fighting against foreign invaders. Ultimately they succeed and former Soviet Union collapsed. It was one of the biggest achievements of joint Saudi-Pak defense cooperation. Both the countries are working closely to counter the dragon of terrorism in the region and around the globe. They have already initiated many effective diplomatic measures to bring peace in Afghanistan. Marathon diplomatic efforts are now going on and on behind the curtains. Moreover, Saudi Arabia being the biggest strategic ally of Pakistan supported it to develop nuclear power.

Concluding Remarks

Pakistan and Kingdom of Saudi Arabia strategic bilateral relations have transcended the vicissitude of time. The relations are not based on political cooperation; rather it is imprinted deep in the heart of every Pakistani and Saudi national. Both countries care about each other more in practice than in words. Regular Naval Exercise and goodwill visits of naval ships from friendly countries like Saudi Arabia further strengthen their bonds. They are the source of strength between the armed forces of both countries.
Naseem Al Bahar-X highlighted the combat management system on the ship, which includes torpedoes, missiles and oceanographic technologies. An impressive demonstration of Live Weapons Firing by ships and aircraft was supposed to be culminating point. The Joint Naval Exercises included a wide range of operational manoeuvres encompassing major facets of maritime warfare. It related to counter terrorism, convoy protection, anti-air, anti-submarine, mine counter measure and intelligence based operations conducted in multi-threat environment.

It reflected tremendous professional gameness, martial allegiance and the last but not the least, spirits of cooperation and coordination of both the navies. It showed the importance of a potent and effective Navy in order to tackle the emerging state and non-state actor’s threats in the region and around the globe. It portrays the feelings of togetherness, uniqueness and unity. It stands for mutual trust and respect. It speaks about uniformity of vested strategic interests. It manifests of both the government’s foreign policy objectives. It would further strengthen the maritime cooperation between Pakistan and the Kingdom of Saudi Arabia.

Mar 012013
 

Mehmood Ul Hassan Khan

IDEX 15

The 11th International Defence Exhibition (IDEX) 2013 was held in UAE, Abu Dhabi during February 17-21, 2012. More than 1,112 companies from some 59 countries participated in the strategically most important tri-service exhibition for the Middle East and North Africa (MENA).

It was held under the patronage of His Highness Sheikh Khalifa bin Zayed Al Nahyan, President of the United Arab Emirates. It was organised by the Abu Dhabi National Exhibitions Company (ADNEC) in coordination with the UAE Armed Forces GHQ. Tawazun was the main sponsor. IDEX 2013 provided an ideal business environment for international defence companies and top decision makers in the land, air and sea sectors

First held in 1993, is the largest joint defence exhibition in the Middle East and North Africa (MENA) region. IDEX takes place biennially under the patronage of HH Sheikh Khalifa Bin Zayed Al Nahyan, President of the UAE, and is organised by ADNEC (Abu Dhabi National Exhibitions Company) in association with the UAE Armed Forces GHQ. It was a unique platform to establish and strengthen relationships with government departments, businesses and armed forces.

IDEX 11

United Arab Emirates has been put on the armaments industry map again by the successful holding of successive IDEX. In War Theater it is said “self defence is the best defence”. Weakness has always been one of the key factors of foreign aggression and infiltration which ended up to subjugation, socio-economic embargos and above all political isolation. Strong Deterrence’s Model has become the symbol of national sovereignty and pride. It depends on domestic armaments industry which always guarantees safety of the national strategic assets. It protects the desired goals of foreign policy and commercial diplomacy.

It has been the policy of the UAE to promote its own local military/defence production industry for the best solutions of its protection from any kind of aggression since its inception. The International Defence Exhibition and Conference (IDEX) have now counted amongst the most established and prestigious international defence shows/exhibitions which provide an excellent opportunity for the manufactures to share expertise and technological achievements and enhance their global presence.

IDEX and Global Peace

The International Defence Exhibition and Conference 2013 now paved the way towards mutual understanding and cooperation between the nations jointly involved in serving the global cause of peace where UAE keeps playing its dominant role in the GCC and Middle East.

IDEX 2013

The grand opening ceremony of IDEX 2013 was attended by a high-profile officials, foreign delegations and ministers. Large numbers of senior civilian and military officials along with defence ministers, chiefs of staff, top commanders as well as VIP guests, dignitaries, diplomats and leaders of the world defence industry attended the opening ceremony today.

An international conference named “The Gulf Defence” was also held. It was organised by the Institute for Near East & Gulf Military Analysis (INEGMA), the conference provided an excellent prelude to the formal opening of the IDEX exhibition. It provided an important forum to address developments in the defence industry as leaders and decision makers from around the world gather for IDEX. This year’s technology focus reflected the increasingly significant role of advanced systems, such as unmanned systems and network-centric architecture, in reinforcing regional security.

IDEX 12

It was the ultimate biennial event for participants to establish and strengthen ongoing relationships with governments, businesses and armed forces across the region. Exhibitors showcased the latest technology and products; demonstrated capabilities of live equipment, and host guests and clients at private presentations and networking events.

Highlights of IDEX 2013

Specifications Details
Unmanned Systems
A focused Unmanned Systems Area was introduced for the first time, together with a one-day technology workshop, under the principal sponsorship of Abu Dhabi Autonomous Systems Investments (ADASI) and with the support of the Association for Unmanned Vehicle Systems International (AUSVI).
Helicopter Pavilion It was located outside at the ADNEC Marina, this area will provide outside display space for rotary-wing aircraft to be displayed and viewed.
Live Demonstrations IDEX continued to offer exhibiting companies the prime opportunity to demonstrate equipment and crafts. Daily choreographed displays were took place daily on the water and on the purpose-built demonstration track.

Leaders Perceptions about IDEX 2013

IDEX 9

Vice President and Prime Minister and Ruler of Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum, and His Highness General Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, highlighted the strategic importance of IDEX. They agreed that it has grown to be counted among the world’s most important defence shows in terms of the increasing number of participating countries and exhibitors, the quality and types of showcased products, and the number of visitors it draws from many countries from near and far.

Both leaders also stressed that under the stewardship of President His Highness Sheikh Khalifa bin Zayed Al Nahyan, the UAE works to achieve humanitarian stability and security, not only within the country, but also globally, and has ensured excellent relations with all states, due to its balanced policy. Sheikh Mohammed bin Rashid Al Maktoum explained that IDEX is not an arms market, but an information gathering platform for updating such information through viewing the latest innovations and modifications to air, land and sea weapons and to reconnaissance, observation and communication equipment and logistic tools.

“We continue to have the ambition to live up to the global and international competition, so we have harnessed all capabilities to achieve our strategy. We have spared no effort to invest in the national human capital to qualify it with science and knowledge and to polish its experience with training Sheikh Mohammed bin Zayed Al Nahyan added.

IDEX 13

Sheikh Mohammed bin Zayed Al Nahyan praised the regular holding of IDEX by saying “Among the essential and significant aspects of organising these high-quality military exhibitions is to give national companies and establishments an opportunity to promote their status as specialised manufacturers and producers adopting the highest international quality standards and competing with global corporations, and, ultimately, to be able to provide advanced products, technologies and solutions.

IDEX 2013 and Notable Foreigners/Diplomats

The IDEX also attracted foreign officials. High ups from France rigorously participated in IDEX and showed great interest in the development of the UAE military assets and local industry. Yemeni Defense Minister Mohammed Nasser Ahmed also attended the IDEX 2013. Italian Undersecretary of State for Defense, Filippo Milone, on behalf of the Defense Minister Giampaolo Di Paola, participated as well. The US Principal Deputy Assistant Secretary of State at the Bureau of Political-Military Affairs Thomas Kelly; the British Minister for Defense Equipment, Support and Technology Philip Dunne; the Delegate to the Minister of National Defense of Algeria Abdelmalek Guenaïzia and the Minister of Defense of Bosnia and Herzegovina Zekerijah Osmic also visited the IDEX 2013.

IDEX 2012 and Local Expertise

It is hoped that with successful execution of IDEX 2012, it would give a big boost to Abu Dhabi’s defence productions capabilities. According to the official figures over 1,112 exhibitors from 59 countries showcased their latest technologies and weapons. More than 80,000 visitors showed their keen interest in the displayed items. Six defence ministers, 12 chiefs of staff and 15 military leaders also attended the IDEX 2013.

IDEX 8

During the IDEX 2013, the UAE Armed Forces signed 55 contracts worth Dh14 billion, to procure arms and ammunition and service agreements with local companies. General Shaikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces appreciated the support given by the UAE leadership to the initiatives aimed boosting industrial sector and increasing productivity in a way that would contribute to the economic diversification and enhance competitiveness of the UAE made products. He also praised the capabilities and skills of the Emirati youth who proved themselves in advanced and specialised industries.

“Our youth have great potentials and we are confident that they can take precision and advanced manufacturing capabilities to new levels. We are proud of our national industry making its presence strongly felt under one roof with the leading industrial houses,” he said. General Sheikh Mohammed said the UAE had developed a clear plan for developing advanced industries “which is bearing fruit today.” He also expressed appreciation to international companies which entered partnerships with the national companies, leading to the transfer of technology and know-how.

UAE’s Contributions

The UAE was hosted the largest country pavilion at IDEX 2013. More than 147 UAE-based companies exhibited, spanning over 12,500 square metres (sqm) of exhibition space. The UAE succeeded to achieve a global reputation for staging and organising security and defence exhibitions. Its soft image has been enhanced.

IDEX 7

Abu Dhabi’s Tawazun Holding displayed its might to the overseas visitors. Forty-companies showcased guns, missiles, ammunition, rocket launchers, heavy military vehicles and other sophisticated weapons. It was a proud moment for the leadership, which built the capability in less than five years, and has already made the nation self-reliant in several areas of defence productions and creating several business opportunities.

The spokesman for the UAE Armed Forces Staff Major General Obaid Al Ketbi, said: “The UAE is proud to host IDEX, the largest land, air and sea defence exhibition in in the MENA region and one of the most strategically significant defence exhibitions on the world stage.”

Following is given the detail of UAE companies which rigorously participated in the IDEX 2013.

Names Names
Abu Dhabi Aviation Continental Aviation Services
Abu Dhabi Mar Cummins Middle East FZE
Abu Dhabi Ship Building Dry Docks World
Abu Dhabi Tourism & Culture Authority Eagle Tugs
Action Target; Action Target Earth
ADASI Elcome International LLC
ADCOM Systems Emiraje
ADM Kiel Emirates Advanced Investments
AGP FZE Emirates Classification (TASNEEF)
Al Fahad Smart Systems Emirates Defence Technology
Al Fattan Ship Industry Emirates Inflatable Boats Libra Est.
Al Jaber Land Systems Emirates Shooting Equipment Co.
Al Jundi Journal Euro Holography LLC
Al Masaood Bergum WLL Exalto Emirates
Al Masaood Travel Excel – Altec
Al Naboodah Protection LLC Excel Industry Co. LLC
Al Seer Marine Supplies of Equipment Co. Ltd Fighter Gifts
Al Shaheen Flir
Al Taif GAL
Al Tuff International Hard Shell FZE
Al Wasl Trading Group Hawker Pacific Airservices Ltd
Alhallami Group High Impact Technology
Alhamra Group Higher Colleges of Technology
Ali & Sons (Audi Abu Dhabi) Honeywell
Ammroc Horizon
Ares Security Vehicles LLC Hotzone Solutions Middle East Consultants & Trainings
ASIS Boats LLC Hydra Trading
Austal Ships INEGMA
Babcock International Group plc Injazat Data Systems
Bayanat INKAS
Beltechexport FZE Integrated Logistic Solutions
Bin Hilal Enterprises Intelligent Safety Glass LLC
Burkan International Armored Group
C4AS International Golden Group
Caracal
CMN

Isherwoods Joint Aviation Command
Khalifa University of Science, Technology and Research KP
Leader healthcare FZCO LOC8 Equipment Trading LLC
Logistik Unicorp FZE Lowa
Maelstrom Footwear Mahindra Emirates Vehicle Armouring FZ LLC;
Marlow Masder United Arab Emirates
Massif MDC General Services Holding Company LLC
Microsoft; Motorola Solutions, Inc.
MP3 International Mystery Ranch
NAS Nation Shield – GHQ of UAE Armed Forces
National Bank of Abu Dhabi Naval Advanced Solutions
Nimr United Arab Emirates NIMR Automotive
Nobiskrug Patagonia
PETZL Privinvest
Promostar Publishing & Advertising; Rabdan
Ras Al Khalimah Free Trade Zone Authority Remaya
Revision Sakthi Aerospace Products Design Services
SecuTronic FZE Sofia Trading
Solas Marine Services Group Solite Electro Technology
Spectec Middle East Specturm
Steelforce Middle East FZCO Stratign FZCO
Streit Group FZE Sultan RoyalBlue
Superhouse Middle East Swarovski Optics
Tactical Solutions Middle East Trading Agencies LLC TADS
TAS Tawazun
Tawazun Dynamics Tawazun Training Center
TechWise Global JLT Telecommunications Regulatory Authority
The Emirates Center for Strategic Studies and Research The International Security & National Resilience Exhibition and Conference 2014
The Security Review Thuraya Telecommunications Company
TIP TPI
Transworld Aviation FZE TSSDMC
UAE University Ultra Electronics
Vision Technologies Systems Yahsat
Zone Group UAE
Source: IDEX 2012

It is seemed that over the past two decades, IDEX has helped participants and exhibitors alike establish valuable strategic partnerships while facilitating knowledge-transfer amongst the world’s leading defence companies, the UAE, and our friends and allies.

With the conclusion of Idex-2013, the second Naval Defence Exhibition, (NAVDEX) which doubled in size since its inception with over 80 exhibitors, was also concluded. Reflecting the strategic significance of the exhibition, exhibitors from 2013 have already booked more than 50 per cent of the exhibition area for IDEX and Navdex 2015.

UAE Strong Presence at IDEX 2013

IDEX 1

The strong presence of 147 UAE-based companies, occupying the largest of 38 country pavilions, reflected the emerging prominence of its national defence industry. It was another giant step towards economic diversification as desired by Abu Dhabi Economic Vision 2030. It highlighted UAE advancements in the fields of aerospace and defence. Local companies of the UAE especially Abu Dhabi achieved significant progress in these areas, establishing the foundations of an industry that would support economic development for decades to come.

UAE and Naval Defence Exhibition (NAVDEX)

Abu Dhabi Ship Building (ADSB) is the main sponsor for the concurrent Naval Defence Exhibition (NAVDEX) 2013, which featured a revamped maritime security zone designed to address emerging trends in the region’s naval defence market. “NAVDEX presents a unique opportunity for ADSB to showcase our industry-leading offerings to government and private sector decision-makers.

Amongst those with the largest space reserved include Tawazun, headline sponsors of the exhibition, with 2,918sqm reserved, and Mubadala Development Company, the Abu Dhabi based investment and development company, with 1,870sqm reserved.

UAE Prominent Participants

Names Demonstration
Abu Dhabi Autonomous Systems Investments Advanced line-up of unmanned, remotely controlled vehicles across air, land and sea
Caracal Range of leading edge hand guns and rifles
NIMR Multi-purpose vehicles specifically designed for tactical missions in harsh environments such as arid deserts, modern urban warfare, deep infiltration missions, reconnaissance, border surveillance and support logistics
Al Taif Technical Services Services exhibited its systems engineering and integration capabilities for defense systems, as well as a range of their prototyping and small lot production of critical components in support of its MRO activities
Bayanat Showcased their fully integrated end-to-end geospatial services that include aerial, hydrographic and field surveying and geodesy, spatial data management, various types of maps (topographic, hydrographic and aeronautical) and 2D and 3D data models production in addition to related advisory services.

IDEX 6

In addition to the above given table Masdar, the Telecommunications Regulatory Authority, Advanced Integrated Systems, Bin Hilal Enterprises, Emirates Defence Technology, International Armored Group, Abu Dhabi Tourism and Culture Authority and Al Fattan Ship Industry. Universities participating in the pavilion include the Higher Colleges of Technology, UAE University and Khalifa University of Science and Technology were remained the star performer during the 5 days international event i.e. IDEX 2013.

Strategic Significance of IDEX 2013

The IDEX 2013 has a long history of growth. It has already influenced the armaments decisions of countries situated in the Middle East, Africa and the Asia. It gathered attention from the world’s defence and homeland security industry during the 5 days international event.

Due to IDEX UAE has become the forefront of defence and military industries in the region which would reduce the country’s dependence on oil and on imports from foreign countries of such weapons. Its military industries had established international reputation with capabilities ranging from air to land to maritime and manufacturing. Its military Industries have pursued more sophisticated, high tech capabilities, benefitting from joint ventures with major international companies that has led to technology transfer and helped increase Emirati experience and skills.

One of the main objectives of the UAE was to become self-sufficient in the defence industry. UAE is doing its best to be self-sufficient through joint ventures that provide its national cadres with sufficient knowhow and knowledge to invent equipment and devices that meet our future needs. During IDEX 2013, the UAE Armed Forces inked deals worth Dh14.1 billion to purchase weapons and equipment. More than 70 per cent of the amount has been awarded to local companies.

IDEX 10

The UAE defence industries cover the production of a wide range of products including portable arms, ammunition, naval vessels (construction and repair) and inflatable boats, aircraft systems (unmanned, structural parts, spare parts, engine maintenance and repair, ground support equipment), vehicles and vehicle superstructures. The IDEX 2013 would be great boost for its local defence industry in the days to come. IDEX 2013 helped to create partnerships without running into too many bureaucratic hurdles. Sellers and buyers meet directly and they finalised the deals on spot.

Different Fields Description
Domestic Defence Industry It would be better for the domestic defence production industry to compete and match with regional or any international companies. It provided a ideal platform to UAE local defence industry.
Defence Exports The country’s defence exports may be increased in the GCC because a larger number of the UAE local defence manufactures.
Boost to Service Sector It would further boost the service sector. Facilitations process with regard of fairly economical cost as compare to individual company trips in the exhibitions may also be speeded up.
Manufacturers & Suppliers It facilitated manufacturers and suppliers of defence and security technology in securing contacts and contracts within the Middle East and surrounding regions.
Transfer of Technology The chance of transfer of technology would become higher afterwards.
Decision Making Process The decision makers easily selected the state-of-the-art weaponry systems in the IDEX 2013.
Soft Image Projection It promoted the UAE and its institutions and allowed foreigners the opportunity to learn more about the country’s achievements, cultural aspects and Arabic and Islamic traditions
Promotion of State-of-the-Art Infrastructure It would further enhance UAE’s pursuits to build state-of-the-art infrastructure, providing government facilities and competent nationals, experienced in organising and hosting international exhibitions.
FDIs & Joint Ventures High hopes of attracting FDIs and joint ventures
Ready Reference to Instructors and researchers Firsthand knowledge about the latest machineries, equipment and arms production in the region and around the globe. Facilitation for the instructors and researchers etc

IDEX: A Historic Perspective

Since its inception in 1993, IDEX has grown tremendously to become a globally recognised tri-service defence exhibition and the largest event in the Middle East and Africa. The International Defense Exhibition & Conference, or IDEX, is a biennial arms and defense technology sales exhibition. According to many prestigious regional and international defence journals IDEX is the largest arms exhibition in the Middle East. The business conducted at the 2005 IDEX totaled 2 billion US dollars.

Every time IDEX has always been attracted a growing attention of international decision-makers and key military and government representatives. The strong representation of individuals/private sector from the GCC and MENA countries make IDEX a primary mechanism to reach these influential audiences/manufactures.

IDEX 4

IDEX Details/Year
I Originally it was launched on February 14th 1993, with the active participation of more than 350 companies, representing 34 countries.
II It was conducted in March 1995. It saw the participation of more than 600 companies from 55 countries, with more than 45,000 visitors during the 5 day event.
III It was honoured by the visit of H.H. President Sheikh Zayed Bin Sultan Al Nahyan the late President of the UAE and Supreme Commander of the UAE Armed Forces who toured the entire exhibition in 1997.
IV It saw further growth, with 848 companies from 41 countries receiving 70 military delegations. It was held in 1999.
V It attracted 865 companies from 43 countries and numerous delegations led by Heads of State, Ministers of Defence, Chiefs of Staff and Heads of Military Procurement. It was held in 2001. It further enhaced UAE status as the host nation.
VI It maintained the show’s reputation as an important platform for the announcement of military contracts and as a reflection of the strategic importance of the region. It was executed in 2003.
VII It was planned in 2005. It had grand success.
Source: IDEX Home Page

Afterwards, the IDEX series continued to see growth across the show with substantial visitor numbers, exhibitors and delegations participated at the event.

Main Deals

According to Major General Obaid Al Ketbi, Chairman of the organising committee for the International Defence Exhibition and Conference (IDEX 2013) a total of DHS5.2 billion of defence contracts was awarded by the UAE with 17 international and national contractors. The US Wisconsin-based defence contractor Oshkosh Corporation won the biggest deal of Dhs1.4 billion to provide the UAE Armed Forces with 750 Mine Resistant Ambush Protected All-Terrain Vehicles (M-ATV).

The UAE also signed a Dhs 722 million contract with the UAE’s International Golden Group (IGG) to purchase Predator-EPs and integrated technical support, Al-Ketbi said in a press conference at the venue of IDEX 2013. Another contract worth 472.7 million was signed by the Armed forces with Russia’s KBP to buy different types of ammunition.

The third largest deal worth Dhs 720 million was won by Tawazun Holding; the UAE’s strategic investment holding company focused on defense and specialized manufacturing, to supply CIRIT laser guided missiles. CIRIT, manufactured by Rokestan, is the first Turkish-made laser-guided missile.

The other deals announced included a contract worth Dhs 215 million with global consulting firm Booz & Company which will provide consultation and support, a contract worth Dhs 350 million with UAE’s IGG, Germany’s SAP and USA’s IBM to provide IT support for the Forces’ supply system.

Italy’s Fincantieri won a deal worth DHS140 million to provide technical support to Abu Dhabi’s anti-marine ship. The Armed Forces also sealed a deal worth Dhs 375.4 million with ADSB to install Rolling Airframe Missile (RAM) systems on its vessels, Al-Ketbi added.

The other deals, according to Al-Ketbi, include a contract worth Dhs 345 million with the UAE’s Knowledge to provide strategic consultation for the Land Forces, a Dhs 56 million deal with South Korea’s Hanwha Corporation to provide the Armed Forces with ammunition and explosives, a DHS30 million deal with the UAE’s Naval Advanced Solutions to provide technical support for the Armed Forces’ vessels, a Dhs 11.7 million contract with the UAE’s Al Jisr Company to provide the Armed Forces with chemical equipment, a Dhs 46.3 million deal with France’s CEFA to provide spare parts, a Dhs 27.2 million contract with the UAE’s Telecommunications to provide telecom equipment and spare parts and a Dhs 157 million with the UAE’s Advanced Military Maintenance Repair and Overhaul Centre (AMMROC) to provide upgraded avionics for the UAE’s C130 Hercules transport aircraft.

Some of the most substantial local deals made by the UAE Armed Forces included the purchase of Dh829.8million of small arms ammunition and Dh720m of laser-guided rockets from Abu Dhabi based Tawazun, the principal sponsor of Idex.

The UAE oil firm, Adnoc, concluded a mammoth contract worth Dh1.1bn to manage operating facilities and provide fuel for aircrafts and vehicles. There were also significant deals done with the United States for unmanned Predator drones in the shape of a Dh722m contract. But by far the biggest single deal was for 750 mine-resistant, ambush-protected all-terrain vehicles worth Dh1.4bn, also built in the US.

IDEX and Pakistan’s Defence Industry

Pakistan’s defence production industry has made significant progress in developing indigenous capabilities for production of sophisticated weapon systems and has the capacity to export its products from small arms to jet fighters. 24 high-profile and auxiliary defence production companies from Pakistan participated in the exhibition. Visitors and experts from different parts of the world showed keen interest in Pakistani products.

Pakistan Ordnance Factories, Heavy Industries Taxila and Global Industries & Defence Solutions, especially the Al Khalid tank were the star performer during the 5 days event. Experts appreciated the quality and efficiency of the tanks the best in the world, like targeting the enemy at night and auto-tracking of enemy tanks were the star performer. Pakistan participated the IDEX 2013 with three vessels including a submarine, a multi-purpose auxiliary craft called Jurrat, which has been built in Pakistan with full integration of weaponry; and Shah Jahan, modified as per the requirements of our own armed forces. All the three vessels are equipped with the indigenously produced weapon systems.”

Concluding Remarks

IDEX and NAVDEX have given the chance to create strategic partnerships in accordance with Abu Dhabi’s vision for 2030 to diversify the local economy. IDEX 2013 provides excellent opportunity to develop better understanding and friendship, networking of the defence industry for trade and joint ventures and, more importantly, seeking affordable solutions to prevent war through conventional balance. IDEX has become a meeting place for defence exhibitors and delegations, analysts and trade visitors seeking affordable solutions to meet challenges faced by the defence industry.

UAE defence firms received the lion’s share of the contracts with 35 deals signed with the Armed Forces. Navdex, the naval and maritime security section of Idex, also grew in size from 60 companies two years ago to 80 in 2013. Daily live demonstrations featured a host of attractions for visitors, including aerial acrobatics and choreographed marine displays from a range of participating countries.

Preparations are already under way for IDEX and NAVDEX 2015, with plans to expand the area’s promenade and dredge a deeper canal that can allow for a greater number of larger ships to moor at the site. More than 50 percent of the exhibition space has already been booked for IDEX 2015. Undoubtedly, IDEX 2013 was a great success.

Feb 082013
 

Mehmood Ul Hassan Khan

Saudi Arabia has been playing a vital role in the socio-economic prosperity of Muslim World since its inception. Time and again, the leadership of Saudi Arabia stressed the need to achieve spirits of harmony, trust and peace within the GCC, and OIC. Its timely diplomatic efforts saved many regional conflicts. Its foreign policy has been based on conflict resolution. Development, diplomacy and human values have been salient features of its regional and as well as international engagements since its independence.

Enduring Freedom

King Abdulaziz Al-Saud established the modern Kingdom of Saudi Arabia in 1932. The leadership of Saudi Arabia gradually institutionalized its macro-economy and achieved and maintained elements of stability and sustainability. Now once a desert nation has become a dynamic country. It is now leader in regional politics. Saudi Arabia is also one of the major players in the world affairs. Its socio-economic achievements mesmerized rest of the world.

A. Robust Socio-Economy

1. Healthy Macro-Economy

Due to strong economic and financial reforms regional socio-economic upheavals could not produce any dint in Saudi Arabia macro-economy. It successfully maintained its biggest economy status of the Gulf Cooperation Council (GCC) and MENA (Middle East and North Africa). The current published report of IMF (January, 2013) has projected healthy and productive prospects for Saudi Arabia’s economy in 2013 and beyond. The Saudi American Bank Group (SAMBA) data shows that its GDP surged from around $447.8 billion in 2010, rocketed by about 28.8 per cent to $576.9 billion in 2012, an increase of 129.1 billion.

According to the latest report of the central department of statistics and information of Saudi Arabia (2012-2013) all the indicators of its macro-economy are in good shape. The report shows that its GDP increased 6.64 percent from a year earlier in the fourth quarter of last year, accelerating from 5.1 percent growth in the third quarter. The said report further said private sector growth, at 9.9 percent, outpaced the state sector’s 3.6 percent expansion. Private sector GDP amounted to SR112.91 billion in the fourth quarter compared to SR102.75 billion in 2010. Moreover, the construction sector expanded 13.3 percent because of a real estate boom and heavy government spending on infrastructure.

2. Fiscal Surplus

According to latest report of its National Commercial Bank (NCB) the largest bank report (January, 2013) Saudi Arabia’s budgeted fiscal surplus for 2013 could end the year nearly 30 times higher because of an expected surge in oil export earnings as a result of high prices. It exporter projected revenue at SR829 billion in 2013 and expenditure at a record high of SR820 billion, with a surplus of SR nine billion. It project a fiscal surplus of SR277 billion or 9.5 per cent of GDP during 2013. Moreover, non-oil revenues are also expected to reach SR104 billion, 3.9 per cent above actual level in 2012.” It would allow Saudi Arabia to record another large current account surplus even in 2013. It forecast the surplus at around $144 billion this year against $179 billion in 2012 and $158 billion in 2011.

Due to its constant current account surplus the country’s net foreign assets would be high and reach to an all-time high of about $710 billion at the end of 2013, an increase of nearly $70 billion from 2012. The assets, controlled by the Saudi Arabian Monetary Agency (SAMA), central bank, had already gained over $100 billion through 2012. Furthermore, the all the major indicators of GDP would remain positive and healthy.

B. External Accounts Management

Due to stable and sustainable macro-economy along with booming exports has increased Saudi Arabia’s net foreign assets. According to Saudi Arabian Monetary Agency (SAMA), central bank latest report (January, 2013) Saudi Arabia’s foreign assets achieved a new height and reached to R372.4 billion ($100 billion) in the first 11 months a monthly average of around SR34 billion, or more than SR one billion a day.

It said, from around SR2,057.8 billion at the end of 2011, the foreign assets soared to an all-time high of nearly SR2,430.2 billion at the end of November 2012. It explained that the assets swelled by nearly SR38 billion over their previous month’s level of SR2,392.3 billion, one of the biggest monthly increases over the past two years. It was achieved having of a massive fiscal surplus recorded by the country through 2012, when it stood at SR387 billion, the second largest fiscal balance after the 2008’s record SR581 surplus.

In 2012 the net foreign assets achieved the second largest rise since 2008 and reached to SR513 billion. The rise in the first 11 months of 2012 was more than the 2011 increase of SR352 billion and more than doubled the assets growth of around SR135 billion through 2010, when they ended the year at SR1,705 billion compared with SR1,570 billion at the end of 2009.

1. Stable Currency

Stable currency plays an important role in the management of external accounts. It encourages exports and imports to do business. It provides strategic cushion to monetary policy experts, banking industry and people alike to avoid volatile situation in the economy. It reduces external debts also.

On the external accounts front despite US dollar instability, the Euro vulnerability and constant decline/devaluation of many international currencies around the globe, Saudi Arabia currency maintained its value. The report also showed that surge in nominal GDP boosted Saudi Arabia’s per capita income to around $20,244 in 2011 from $15,246 in 2010 and expected it to edge down to $19,449 in 2012 before recovering to $19,923 in 2013.

2. High Inflows of FDIs/FPIs

Foreign Direct Investment (FDIs) is must for achieving and maintaining a stable and sustainable economy. It promotes exports. It generates employments. It produces budgetary surpluses. It enhances industrial output. According to many regional and international reports (2011-2012), Saudi Arabia has been received highest inflows of FDIs for the last so many years. Future prospects for attracting inflows of foreign direct investments are positive even in the days to come. International investors are interested in ongoing various mega projects in the field of construction, infrastructure, communication and the last but not the least oil and gas exploration. FDIs surged in the recent past from $3 billion to $34 billion in 6 years.

3. Diversification of Economy

Saudi Arabia has been rigorously pursuing national drive of diversification of economy for the last five years. Policies are being drafted and implemented to promote private sector. Huge investments have already been diverted into the field of renewables mix of energy. Many mega projects of renewables are going on the country which would reduce its reliance on conventional resources of energy in the future. Industrialization process has been fastened. Steel, chemicals, plastic and promotion of small and medium enterprise are the key pillars of its ongoing industrialization drive in the country.

4. Social Development

Social development is must the overall high ratios of GDP %. It plays an important role achieving dreams of qualitative life. It promotes healthy activities in the society. It secures easy access of clean drinking water. It facilitates education, healthy and shelter to its people. Saudi Arabia has been giving priority to social development of its people right from the day. Every year, in the federal budget huge funds are allocated for social development. According to the latest report of the CBRE (2012), the 2012 budget allocated $45 billion for the education sector, $23 billion for healthcare and $9.4 billion for transport. Its allocation for the development of non-oil infrastructure increased 7 percent. About $67 billion has been allocated for the construction of 500,000 housing units. These housing units, which are intended to meet the needs of the lower income sector.

5. Better Public Transport Facilities

Efforts are also being made to introduce a massive public transport system for all the major cities. The transport solutions will include both buses and trains and will be first implemented in Riyadh, where phase 1 completion is expected in 2017. Around 80 percent of the metro network will be underground and will be served by 34 stations. To enhance the aviation and tourism industries the capacity of Riyadh’s international airport will be increased to triple to 25 million per annum by 2015 as part of the first phase of planned aviation sector expenditure totaling $53 billion.

C. Healthy and Productive Banking Industry

The modern economy rests on the finances sanctioned by the banks. It provides the fuel/finance to run industries/factories and mobilizes domestic saving as well as. Global banking industry has been not in good shape since 2009. It is now passing through very tough time. But it is not in case of Saudi Arabia. Its banking industry has been resilient since 2009 and maintained the best banking industry in the region. Its stimulus plans geared the banks profits.

According to latest report of the JPMorga (January, 2013) its banking industry income increased up to 808 million Saudi riyals in the fourth quarter of last year, a 22.2 per cent increase compared with the same period a year earlier, on the back of a 16.1 per cent rise in operating income. Last month, the Saudi council of ministers approved 820 billion riyals in expenditures for 2013 a spending increase of 18.8 per cent compared with its budget for last year.

Saudi Arabia has already allocated huge funds for building projects and infrastructure in an effort to generate more jobs. Construction industry is robust. Infrastructural development is at its peak. The combination of both boosted the overall profitability ratios of banks. Another report of HSBC (2013), shows that the Saudi economy is well placed to maintain momentum. Expansionary fiscal stance would be maintained throughout 2013 for the overall wellbeing of its people. HSBC (2013) admits that the Saudi Arabian economy grew at more than 6 per cent last year, more than double its five-year average, led by the non-oil sector. Fitch Ratings said last month that government spending underpinned the private sector, with construction growing faster than any other industry. Bank lending and strong consumer and corporate confidence should also support the private sector.”

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D. Diplomatic Triumphs

Diplomacy is the last resort to achieve unthinkable. It provides durable solutions. It deescalates violence and use of power. It brightens the chances of peace and harmony. In recent years, Saudi Arabia diplomatic role has been paramount in the region and around the globe. Saudi Arabia stood first to abridge widening societal division in Tunisia. It helped Tunisia to sail from hot waters to shores of political stability and economic prosperity. It saved millions of poor people from the easy prey of war in Libya. It gave message of hope and better life to its people through its peaceful engagements.

The Kingdom prevented Yemen from complete political chaos and socio-economic meltdown. Its diplomatic endeavors protected millions of Sudanese from destruction. It launched reconciliation drive in Sudan. Its proper response and timely course of action saved Bahrain from the hands of ill designers.

Egypt regained political transition with the good wishes of the Kingdom. Lavish socio-economic assistance was also provided to put Egyptian from failing in the deep seas of poverty, unemployment and societal alienation. Palestine has been one of the main pillars of its diplomatic struggle since from the first day of its independence. Its political, moral and humanitarian assistance has been beacon of light to struggling people of Palestine. Palestine’s recent strategic recognition at different international forums especially at UN is the result of Saudi Arabia’s continued deliberations. Visionary leaders of the Kingdom also encouraged achieving strategic expansion of the GCC by allowing Jordan and Morocco to join the GCC. Saudi Arabia even now is trying its levels best to achieve durable peace and political stability in Syria.

To initiate “Dialogue between the Civilizations” was one of the biggest achievements of its pragmatic diplomacy in the last decade. It promoted spirits of peace and harmony in the world. It was the logical reply of Samuel P. Huntington’s “Clash of Civilizations Theory” which proved to be ice-breaker.

E. Global Humanitarian Aid

Respect for humanity irrespective of color and caste has been one of salient features of its unending global humanitarian aid campaign. Saudi Arabia stood first to rescue the struggling people from natural catastrophes and national emergencies around the globe. It has been reaching out to the shores of Tanzania to the deserts of Sudan and Yemen. It has been active on the mountains of Jordan to the plains of Syria to serve the naked humanity. It has been offering its services of medication, airlift and military medical hospitals to the struggling people around the globe.

According to global aid report, Saudi Arabia’s official development assistance (ODA) was equal to 0.7% of Saudi Arabia’s gross national income (GNI) in 2009. 85.1 percent of Saudi Arabia’s official humanitarian aid was spent in poor states in 2009. It donated humanitarian aid up to US$256m in 2010.

F. Arab Development

During the 3rd Arab Economic and Social Development Summit in Riyadh Crown Prince Salman Bin Abdul Aziz, Deputy Premier and Minister of Defense, emphasized that the initiative of Custodian of the Two Holy Mosques King Abdullah to increase the capital of Arab financial institutions and joint companies by at least 50 percent reflects the King’s keenness in further boosting efforts for Arab development and bringing about direct and immediate benefits for Arab citizens.

In a final declaration, the leaders of 19 countries and the Palestinian Territories vowed to conclude preparations for a greater Arab free-trade zone by the end of the year. Leaders also endorsed a proposal by Saudi Arabia’s King Abdullah to help increase capital across the Arab world’s financial institutions and businesses.

The Saudi foreign minister Saud Al Faisal said his country pledged US$10 billion (Dh36.73bn) to back the initiative, saying that the new capital was meant to help banks and firms finance efforts to “meet the growing needs of the goods and services by Arab citizens, and provide them with more job opportunities”.

G. Achieving Peace in Afghanistan

From the early days of former Soviet Union invasion to 9/11 episode, the Kingdom has been active to achieve durable political solution in Afghanistan without becoming part of great game. Time and again, it facilitated the peace process in Afghanistan and hopefully all efforts of Saudi Arabia and Pakistan would bring desired results in the days to come.

Concluding Remarks

Saudi Arabia is a dynamic country. Its public is politically motivated and articulated. Its economy is robust. Its society is harmonious. It always ready to do more good things for its people, region and the world alike. Saudi Arabia is the inspirational force for all the Muslim World.

Jan 292013
 

Mehmood Ul Hassan Khan

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The leadership and government of the United Arab Emirates are taking all possible measures to tackle the looming danger of water scarcity. Water security has become mantra of every government around the globe, especially in the Gulf Cooperation Council (GCC) and Middle East region. It is one of the key strategic assets for human survival on the planet. It is an effective tool of achieving micro or macro socio-economic goals around the globe and Arabian Gulf too. From ancient civilizations to modern times of to-day, water has had been remained driving force for collaboration, integration and socio-economic development. It has been one of main reasons for stability, sustainability, peace, and the last but not the least green revolutions throughout the human history.

International Water Summit (2013)

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Most recently, an international Water Summit was held during the Abu Dhabi Sustainability Week in Abu Dhabi. Technologists, scientists, decision makers and researchers were participated the said summit. The International Water Summit was a major new global platform for promoting water sustainability in arid regions. It provided the unique opportunity to network and do business with global leaders, municipalities, utilities, contractors, consultants and top decision makers from the public and private sectors within the Middle East and around the globe. The Ministerial Panel gathered a distinguished group of policy makers, entrepreneurs, innovators and visionaries from around the world to create an international think-tank dedicated to sustainable development during the said international water summit (IWS) 2013.

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An international conference was held on January 16-17 that provided a platform for exchange of ideas, presentation of cutting-edge research, benchmarking of successful strategies and insight into the thoughts and vision of water industry leadership and technical innovators. During IWS an exhibition was staged and which showcased state-of-the-art products and solutions by water industry experts from around the world.

Main topics discussed/highlighted during the ISW are given below as:

a) Global and local water governance and cross boundary cooperation
b) The water challenges presented to arid and water scarce regions
c) Water and energy for sustainable development
d) Water network efficiency
e) Tariff, Tax and Transfer
f) Supply and demand management
g) Desalination
h) The water energy nexus
i) Energy Conservation and cost efficiency
j) Providing water solutions to rural communities
k) Water resource classification, allocation and management
l) Clean technologies and renewable energy integration into water production
m) Water production, technology and processes to positively impact environment
n) Public and private partnerships to promote water industry diversity and effectiveness
o) Future challenges affecting water availability
p) Reducing consumption, recycling and reuse

Importance of water

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Water is indeed blood vessel for the life on earth which in endangered due to many socio-economic, geo-political and geo-strategic reasons. It was warned during the summit that more urgent policy measures must be taken as the population of the GCC grows. In addition to this according to international water summit organizers the population of the Middle East would reach from 360 million to more than 600 million by 2050 so, sincere efforts must be initiated of allocating the precious resource i.e. blue or liquid gold, water.

UAE successful Pilot Project

According to the Abu Dhabi Water and Electricity Company (January, 2013), each person in the UAE uses 350 litres of water a day, compared to the 160 to 180 litres recommended by the World Health Organisation. Moreover, ground-water supplies that sustain agriculture in the emirate are dwindling. In UAE, a successful pilot project using tertiary-treated wastewater to irrigate crops will be initiated to produce an estimated 6 million gallons a day. Other potential uses for recycled water, including sustaining whatever parks and other green spaces that can be feasibly maintained in an arid environment, should be followed.

Demand-Supply Parity

The executive director of the International Water Resources Association says “by 2030, we will withdraw 20 to 30 per cent more water than our existing reliable supplies.” He shared that re-use was crucial. “The Colorado River is reused six to seven times before reaching the sea.

The Global Water Intelligence’s Re-use Markets says 4,000 trillion litres is extracted a year. Only 10 per cent of that is collected and only seven trillion litres, or a small fraction of 1 per cent of the total, is treated. Globally, agriculture accounts for 83 per cent of water used. But with the world population expected to rise from seven billion people to nine billion by 2050, so will demand. It was warned that allocation of water for human, industrial and agriculture consumption should be rationalized as soon as possible for protecting our present and securing our next generations.

Masdar’s announcement

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During the Sustainability Week, International Water Summit Masdar, the Emirate’s clean-energy company announced to build the UAE’s first large-scale water desalination plant to be powered by renewable energy. Masdar is looking for interested technology partners for three trial projects to run until the end of 2015, before construction on the plant begins the year after. Dr Sultan Al Jaber, the company’s chief executive said “The aim of the pilot programmes is by 2020 to have a large-scale, commercially viable water desalination plant powered by renewable energy whether it is solar, geothermal or other sources, or maybe even a combination.”

Abu Dhabi’s desalination plants

According to the official data the UAE relies on desalination plants for more than 90 per cent of its potable water. In 2011, Abu Dhabi’s desalination plants produced more than 2,700 million litres of water. Moreover, Abu Dhabi relies on combined-cycle electricity and water plants, powered by natural gas, which are responsible for almost a third of the UAE’s greenhouse gas emissions.

“Energy-intensive water desalination will continue to play its role, yet we have to start thinking about innovative ways of utilising technologies that will allow us to harness natural resources, like solar, wind, geothermal, to desalinate water,” he added.

Masdar’s Priorities

Masdar says it will cover half of the cost of the plant and its partners will cover the other half, but no figure has been announced. Forty-eight companies have already been shortlisted for the programme and their ideas will be evaluated by a technical committee of experts from Masdar, UAE University, the Environment Agency, Abu Dhabi and the Abu Dhabi Water and Electricity Authority.

Many countries in the region especially, United Arab Emirates (UAE), Saudi Arabia, Kuwait and Qatar have already initiated many diversified but integrated policies/programs to cope this emerging serious problem.

It has now been labeled as blue gold due to its precious nature. It has multiplier effect on different sectors of production and survival. It has been intertwined with human health, energy, environment and the last but not the least, socio-economic development.

UAE and especially, Abu Dhabi shows great commitment for new desalination capacity. To meet the challenge, large-scale dual purpose power/desalination plants are built to reduce the cost of production of electricity and water.

Abu Dhabi diversified policy initiatives and Agriculture Sector

Razan Al Mubarak, secretary general of the Environment Agency Abu Dhabi said agriculture is the largest consumer of ground water and effective measures have been taken to increase its efficiency. She said one option was to update an existing law from 2006 that gives the agency the right to oversee ground-water wells. The law was followed by a decree banning the drilling of any new wells. The said law could be amended to give the agency authority over how much water users were allowed to take from each well and to deal with the illegal sale of ground water by well-owners, she added.

She pinpointed that “In areas of Abu Dhabi such as Al Ain, Al Shweib and Liwa, 50 years ago groundwater was easily accessible,” she said. “The groundwater was between half a metre and a metre below the surface and wells could be dug by hand.” She warned that overuse of the water for agriculture, forestry and the oil sector has tapped a substantial amount of the reserves and at some places ground water depletion is so significant that the water table has dropped by as much as five metres a year.

Depletion of water levels

In 2011, total demand for water in Abu Dhabi was 3,313 million cubic metres. Two thirds, 67 per cent, of this demand was filled by ground water reserves, 29 per cent from desalinated water and 4 per cent from recycled water. From 2009 to 2011 the amount of water used in irrigation fell by 7 per cent, possibly as a result of growing fewer water-intensive crops such as Rhodes grass. However, more needs to be done and the agency has made extending the life of Abu Dhabi’s groundwater reserves a strategic priority.

In addition to possible changes to the law, other approaches supported by the agency involve supporting agriculture in greenhouses and the use of hydroponic systems, which can be as much as 80 per cent more water efficient she explained.

Inefficient use of potable water also has serious financial implications. In 2011, it cost on average Dh10.43 to produce a cubic metre of water through desalination. Emiratis receive water free, and expatriates are charged Dh2.2 a cubic metre. The difference is covered by the Government.

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Strategic Measures

(a) Building of World’s largest underground reservoir

It has started to build the world’s largest underground reservoir, with 26,000,000m3 of desalinated water. It will store enough water for 90 days when completed. The reasoning is that the UAE is now wholly dependent on desalination to survive.

(b) Underground artificial water reserve

It will construct an underground artificial water reserve, a man-made aquifer storing desalinated water deep underground in an economical and environmentally sound manner to be used in case of emergency. The strategic reserve, on which construction started earlier this year, will increase Abu Dhabi’s reserve capacity from three days (the current reserve capacity) to 90 days.

(c) Policy Guidelines

Moreover, the Abu Dhabi Declaration issued by the 31st Summit of the Supreme Council of the GCC further links water security with energy and food security, and calls for collaborative action to change regional water consumption patterns.

Practical Measures

(d) Installation of water filters
It has planned to install water filters, which would enable consumers to reduce water consumption by up to 50 percent throughout the Emirate by 2013. Now schools are competing with each other to reduce water wastage. In Abu Dhabi, which is building Masdar, the $20bn futuristic city to be run on renewable energy, the environment agency is spearheading a massive drive to reduce water use. More than 2,000 mosques in Abu Dhabi have been fitted with water-saving devices, which are saving millions of gallons of water a year when people wash before prayer. Other UAE states are expected to follow.

(e) Use of renewable/alternative energies mix in desalination of water

Construction of smaller dams would improve rain capture and groundwater recharge, and the use of cloud seeding to enhance rainfall. Moreover, water and wastewater treatment would be turning point in the region. The regional water industry has set to spend an estimate of USD 50 Billion to expand its wastewater, water reuse and service water projects in 2011.

Suggestions

(a) Think globally, act locally by slowing population growth, drastic reduction of pollution, better supply and demand of available water resources along with water conservation.
(b) Declare water security a national interest by gradually imposing reasonable tariffs (e.g. Egypt, the Alexandria Water Company introduced a clever tariff system, the Dubai Electricity and Water Authority introduced a slab tariff system a few years ago. The more water people consume, the higher the slab category they fall into, resulting in a higher cost for water).
(c) Paradigm shift is immediately needed in irrigation system especially use of freshwater in agriculture sector in these countries. Abu Dhabi government has already taken a concrete step by introducing necessary legislation.
(d) Introduction of modern irrigation techniques, plastic greenhouses, better crop rotation and other up-to-date technology and practices. Masdar has become sign of inspiration and regional leaders by using renewables mix in the region and around the globe. It has lots of functional plans and projects to overcome this looming problem.
(e) Launch of massive public campaigns about the importance of water, and its optimal utility through education. UAE government and especially Abu Dhabi emirate use to launch public awareness campaigns throughout the country for optimal conservation of water resources.
(f) Bring healthy changes in eating (lesser rice) and the lifestyles (say no to swimming polls).
(g) Develop local food stuff (drought resistant) as these will reduce the need for water.
(h) Develop ecological agriculture adaptable to climate change conditions. Masdar and other related departments are doing their combined efforts to introduce environment friendly agriculture in the country.
(i) Provide financial support to protect the interests of farmers and increase their active participation in alternative energy usages.
(j) Improve the development of new technologies in the agricultural sector.
(k) Develop hybrid crop varieties that use less water to produce the same amounts.
(l) Instead of looking at investments in major exporter nations such as the US, the EU and Australia, the GCC has tended to focus on countries that are geographically close to the GCC.
(m) Desalination drive must be generated through alternative energy mix with dual purpose.
(n) More focus should be on fish farms, a mangrove plantation and fields to produce salicornia, a crop which is also known as samphire, a salad-like vegetable often served with fresh fish. (an advance stage in UAE, Masdar Institute of Science and Technology).

Jan 212013
 

Mehmood Ul Hassan Khan

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UAE and WFES 2013

United Arab Emirates, being the leader of renewable energies and technologies in the region and one of the active exporters of renewables around the globe once again successfully staged the 6th edition of the World Future Energy Summit (WFES) 2013 in Abu Dhabi January 15-17. It was inaugurated by General Shaikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces. The grand opening ceremony was attended by a distinguished and talented audience of politicians, business leaders, innovators, scientists, engineers and entrepreneurs. More than 30,000 people from 150 countries including world leaders, government ministers and high official and important delegations gathered at Abu Dhabi’s National Exhibition Centre.

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Salient Features

The 6th WFES was the world’s foremost annual gathering to enhance advancement of future energies resources mix. It was first initiated in 2008, Abu Dhabi. During which many effective policy measures were announced to achieve energy efficiency and clean technologies through the involvement of political, economic, business, and academic leaders in the region and around the globe. It was hoped during the said summit was the transition to clean energy would be hastened in the near future with the rise in oil prices.

Inauguration Speech

In his inaugural speech General Shaikh Mohammed bin Zayed Al Nahyan said the UAE despite being a leading fossil fuel producer, is committed to global energy security with investments in clean and renewable sources. “The UAE always called and calls for concerted efforts and constructive cooperation with the international community at all levels, both with governments, organisations or companies or individuals and innovators in an effort to reach the desired solutions for energy security,” he added. French President Francois Hollande called for more investments in renewable energy projects to prepare for the post-oil era and to avoid global warming. “If we don’t spend … we will have a catastrophe,” Hollande warned the summit.

Diversified High-powered Participation

The World Future Energy Summit (WFES) 2013 brought together global leaders in policy, technology, climate change, business and sustainability solutions to discuss the state of the art, develop new ways of thinking and shape the future of renewable energy. Different substantial agreements were finalized during the WEFS 2013.

His Majesty King Juan Carlos of Spain, the President of Iceland Olafur Ragnar Grimsson, Prime Minister of Serbia Ivica Dacic, Prime Minister of Montenegro Milo Djukanovic, and President of Mauritania Mohammad Ould Abdul Aziz were also attended the WFES 2013. Furthermore, Queen Rania Al Abdullah of Jordan and French President Francois Hollande were the key speakers. Queen Rania Al Abdullah of Jordan said Abu Dhabi’s bold vision for sustainable energy was transforming this nation and inspiring our region at a time when the Arab world is at a critical juncture. “Fuelling our future with innovation and humanity, bringing power, and with it, empowerment, to millions around the world, so, thank you Shaikh Mohammed bin Zayed Al Nahyan and Abu Dhabi, and Masdar for bringing us together she added”.

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Showcasing of different Mega Projects

According to WFES 2013 more than Dh29.44 billion ($8 billion) of international clean-tech and renewable energy projects were showcased at the Project and Finance Village and a record visitors paid personal visit to watch the latest renewables and technologies available in the international markets. It also rigorously focused the nexus of energy and the challenges in some counties. More than 40 new projects of renewables mix were exhibited during the WFES 2013. It was unique; it witnessed the launch of a number of new projects alongside regular ones. Besides, there was the international exhibition, the Project and Finance Village, the Young Future Energy Leaders programme, corporate meetings and social events.

WFES 2013 Initiatives

The WFES 2013 initiated the Sustainable Living Area, incorporating the WFES Eco-Home endorsed by Estidama green building initiative of Abu Dhabi. As well as for the first time, there was a Green Jobs Fair. There will be massive employment opportunities in this field in the future, which should be a motivation for Arab countries.

Renewables Multiplier Effects

WFES 2013 has diversified socio-economic multiplier for the UAE, region and the world too. It has special importance for the regional countries including GCC because renewable energy can diversify energy sources. The implementations of WFES 2013 protocols would help the regional countries to achieve easy and smooth supply of energy resources. It would also transform traditional economies into green economies, which is the main tool for achieving sustainable development.

According to world energy (2012), every one megawatt of solar energy, 15 jobs will be created across the value chain. It increases business opportunities. It fastens national economy. It provided real income generation opportunities. It reduces negative environmental impact. It gradually achieves sustainable economic growth. It secures sustainable development. It protects life and acts like a life-line to humanity. It achieves socio-economic prosperity. It provides comparative advantage. It attracts inflows of huge FDIs. It supports the national economy and saves lots of foreign exchange.

UAE Leading/Supportive Role

The WFES 2013 has already highlighted the seriousness of the UAE towards renewable energy. UAE is doing great to fight against climate change at regional and international level which shows its concrete political will and economic preparedness towards green energy mix. It was strongly suggested that price-based subsidization, incentives and financial mechanisms that support renewable energy necessary to overcome the obstacles and to embrace the potential. It was further decided to start continuous awareness campaigns to target various consumers, companies, households both urban and rural to encourage them to make the move to renewable energy.

Ideal Platform

It provided ideal platform to innovators and investors, businessmen and bureaucracy, technology practitioners and people to pool ideas, minds and finances to move forward to achieve sustainable future based on renewables and green/clean-tech solutions.

UN Secretary General

Addressing the WFES 2012, Ban Ki-moon, UN Secretary General said that over a billion people lacked access to electric power and three billion people depended on coal, wood and waste substances for their heating and cooking purposes. The advancement in renewables and clean-tech solutions would be answer to these human miseries and economic problems, he added.

The International Energy Agency’s World Energy Outlook (2012) said that around half of the 1.3 billion energy-poor populations live in Africa. Additionally, there are 2.7 billion people living without clean cooking facilities; more than 25 per cent of these people reside in Africa. It also highlighted.

Significance of Renewables

The emerging socio-economic problems, geo-political hurdles and geo-strategic compulsions stress the revision of existing development goals, agenda and fight against climate change because they proved unstable and unsustainable. Therefore, renewable energy can be a key part of the solution to many of these challenges and problems and WFES 2013 provided clear-cut path to all the countries to remove all barriers in this regard.

Prospects of Solar Power

During the WFES 2013, it was discussed that the GCC and MENA can developed solar power easily. It is indeed a very healthy sign. All applications of solar power, especially the two common methods, Concentrated Solar Power (CSP) and Thin Film PV Cells, are feasible and applicable in the Arab world. CSP requires large-scale plants in the desert and the Thin Film PV Cells can play an important role in generating electricity in buildings as well as in remote rural communities, which are not connected to the grid, and thus help in achieving self-sufficiency. GCC and all the regional countries have comparative advantage in terms of cheap labour, fiscal surplus, easy and smooth supply of clean-tech solutions of the Masdar and above all strong political will. Its costs are falling, demand is growing, and technology is developing very fast.

Energy Diversification

Energy diversification protects the long awaited dreams of socio-economic prosperity. It promotes 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.

UAE government in its integrated the Abu Dhabi 2030 Plan and the Dubai Integrated 2030 Strategy has already suggested policies/programs and plans for achieving energy diversification targets in the days to come. Both strategic plans promote solar, wind, and waste-to-energy projects throughout the country. Under the Abu Dhabi 2030 Plan, the capital will be powered by clean technologies and alternative sources of energy, with an initial target of achieving 7 per cent renewable energy generation capacity by 2020. Concurrently, the Dubai Integrated 2030 Strategy targets a 30 per cent reduction in power demand and total energy consumption by 2030. Moreover, 99 per cent of Dubai energy production uses gas and one per cent using diesel, the energy strategy 2030 will reduce its dependence on oil and gas. Twelve per cent of its future energy could come from nuclear energy and another 12 per cent will come from coal-fired power plants, 71 per cent will come from gas and 5 per cent from renewable energy. Moreover, according to International Energy Agency (2011), the UAE will increase its renewable energy up to 7 percent by the year 2020.

Concluding Remarks

The World Energy Forum Summit 2013 provided an ideal platform to policy makers, economists, political leaders, businessmen and investors to share expertise, knowledge, and finances to move forwards from brown economies to green economies. Green stands for prosperity, security and sustainability. Renewable energy mix and clean-tech solutions hold the key of future socio-economic development. It would reduce the chances of any regional or international power play on the issue of energy security. On the long run it would get free the international economy and financial system from the clutches of oil and gas exploitation.

UAE is the hub of latest renewables and clean-tech solutions in the GCC and MENA. It has become regional leader in exporting its potential of renewables to the world. Masdar stands for its green energies custodian. Reservoirs of conventional sources of energy are depleting. So it is the need of the hour to use renewables for the safety of humanity, planet and socio-economic fabrics and the UAE is doing great in this respect.

Jan 162013
 

Mehmood Ul Hassan Khan

Most recently, the People’s Republic of China during Communist Party Central Committee (CPC) 18th meeting changed its top leadership and the reins of governance and decision making power has been handed over to Xi Jinping, the new president of China. It fully reflected the will of the Party, which is thriving and full of vitality, and the wishes of the people across the nation. It was indeed biggest shake-up of the party’s leadership in a decade. Xi Jinping is now CPC (of the 82 million-member) general secretary, but also head of China’s army. Hopefully, the giant change will further enhance its awareness of crises, innovation, objectives, and missions on the new journey. The seven new members of China have been selected for the next decade.

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China being the 2nd largest economy is immediately needed four consensuses, namely the consensus on reform and opening up, consensus on social harmony, consensus on the scientific outlook on development, and consensus on distinct Chinese characteristics. The new leadership is well aware of these goals which need to be achieved in the days to come.

Objectives

The 18th party congress has set two main objectives in its recent meeting. To achieve these goals the new leadership must ensure an annual growth of at least 7.5 percent for both GDP and incomes in the next eight years. According to the Organization for Economic Cooperation and Development report (December 2012), titled “Looking to 2060: A Global Vision of Long-term Growth”, China is the 2nd largest economy after the USA may surpass it as the world’s largest economy as early as 2016. So, after successful transition of China, hopes are very high to achieve all desired goals of socio-economy in the country. Objectives are crystal clear which reflect the collective dreams of Chinese people. These are given below as:

Objectives Details
Macro-Economy/GDP Doubling both GDP
People’s per capita/incomes Further substantial increase in per capita income

Personal Dossiers

The given below table shows that the new PSC members are better educated than their predecessors. Both Xi and Li hold PhDs (Xi’s in law from Tsinghua University and Li’s in economics from Peking University). Majority of them are young, energetic.

Names of Standing Committee Age Details

Xi Jinping 59 General secretary, Presidency & head of China’s army
Li Keqiang 57 At present vice premier, to succeed Wen Jiabao as prime minister
Zhang Dejiang 66 At present vice premier and Chongqing party chief, to succeed Wu Bangguo as NPC chairman.
Yu Zhengsheng 67 At present Shanghai party chief, to succeed Jia Qingling as chairman of the Chinese People’s Political Consultative Conference (CPPCC).
Liu Yunshan 65 At present party propaganda chief, to oversee party operations and propaganda affairs.
Wang Qishan 64 At present vice premier, is appointed as head of the CCP’s Central Commission for Disciplinary Inspection (CCDI), the party’s top anti-graft watchdog.
Zhang Gaoli, 65 At present Tianjin party chief, to be executive vice premier.
Source: Foreign Ministry of China (2012)

Reshuffling of the People’s Liberation Army (PLA)

During 18th CPC meeting, the high officials of the People’s Liberation Army (PLA) have also been reshuffled. The move has also given hints about the reorganization of the policy-setting Central Military Commission (CMC).

New Chiefs Names Age
The General Staff Department (GSD) General Fang Fenghui 61
General Political Department (GPD) General Zhang Yang 63
General Logistics Department (GLD) General Zhao Keshi 65
General Armaments Department (GAD) General Zhang Youxia 67
Source: Asia Times (November, 2012)

In addition to the above table, General Ma Xiaotian, (aged 63) and General Wei Fenghe (58) have also been appointed commander of respectively the Air Force and the Second Artillery (which is in charge of the country’s nuclear armory). The management also named a dozen-odd new deputy and assistant chiefs of the headquarters units as well as the Navy, Air Force and Second Artillery.

Six Challenges

Many regional prominent economists and political gurus pinpoint many short term challenges to newly appointed Chinese leadership. These are given below as:

Challenges Details

Demographic There is shortage of labour force. Cheap workers are no longer exists. The population ages rapidly becoming older.
Social A social fabric is under threat from the widening gap between the urban and rural divide.
Environmental China is emitting more CO2 gases than the US which may create a natural disaster in the future. Ecological balance must be maintained.
Economic In search of new economic model based more on consumption, social services, and higher value-added production and innovation should be mantra of the new leadership.
Political Current political system gradually needs to be revised for the benefit of all stakeholders.
Geopolitical It phenomenal peaceful rise is under threat as the country has become embroiled in a number of quite serious spats with its neighbours and has strained its relations with the US.

Strategic Challenges

Xi Jinping in his first press conference, acknowledged the challenges ahead, including improving people’s livelihoods and tackling corruption, and confidently pledging to overcome them. “Our people have an ardent love for life. They wish to have better education, more stable jobs, more income, greater social security, better medical and health care, improved housing conditions, and a better environment,” Xi said. New leadership may face problems to tackle menace of corruption, losing touch with the people’s concerns, being sticklers for formalities, and a bureaucratic approach adopted by some Party officials is the few national issues

On the national front, new leadership may face socio-economic and political reforms to more transparency in governance structure and steps to curb the prevalent corruption within the society and communist party ranks. Moreover, ageing population, widening rich and poor gap besides environmental issues also require priority attention.

(a) Macro-Economic Sustainability

China’s economic success has lifted 500 million people out of poverty. According to recent official figures of the Japanese government and the IMF (2011-2012), China surpassed Japan and succeeded to become world second largest economy after the US. The country of 1.4 billion souls achieved it after three decades of spectacular socio-economic growth. During this period despite global economics recessions and financial crunches, China’s economy stood firm, stable and sustainable.

In recent years, China has started to reshape the existing global economic order and system by virtue of its growing dominance of international trade, its huge deposits of foreign exchange reserves and United States government debt and its voracious appetite for oil, coal, iron ore and other natural resources.

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China has become a major driver of global growth. China the new economic superpower has begun to assert greater influence in Asia, Africa and Latin America by promoting bilateral trade, investments and joint ventures of multibillion dollars. China is also the biggest investor in Central Asia region.

China has continued to climb up the economic league tables by investing heavily in infrastructure and backing a $586 billion stimulus plan in 2009-2010. According to the latest data of the World Bank (January, 2011), China’s economy is forecast to expand about 10 percent in 2011 continuing a remarkable three-decade streak of double-digit growth.

New Chinese model of economic growth

During the recent time of global economic and financial crises the government of China introduced new economic growth model due to which it has succeeded to mitigate the bad effects of ongoing global economic recession on its macro-economy.

(a) Role of the state, concentrates much more on increasing domestic demand for the products of the expanding industrial base.
(b) Relies on building trading ties with the countries in its immediate neighborhood.
(c) Paradigm shift in structure of the economy.
(d) Mega projects of urbanization in order to discourage migration process
(e) Exports-oriented policies and mechanism
(f) Equitable exchange rate management
(g) High levels of domestic savings invested in United States Treasuries.
(h) Active participation of private sector
(i) Renewal of agricultural sector especially in western provinces such as Xinjiang and Gansu.

Yet the economic model that worked so well during the early years of China’s development now needs to change. Economy must be rebalanced to give more weight to consumers instead of investment, much of which is government-led and wasteful. State-owned companies which dominate many sectors need to be opened up to free and fair competition. And, instead of championing these state-owned giants, the government must give more support to small and medium-sized companies, because these are likely to be the providers of future growth and jobs in the days to come.

Due to ongoing global economic recession and global financial crunch, maintaining and sustaining of China’s economic supremacy would be one of the main tasks for the new leaders of China in the days to come. According People’s China, China’s GDP is US$7.3 trillion five times more than 10 years ago. It trailed the US, Japan, Germany, Britain and France in sixth place. China’s growth miracle was built on the export market, which has slowed dramatically as the euro zone struggles and the US remains sluggish. There is a need to reorganize the economy to boost the domestic market.

There is also an urgent need to reduce the widening financial gap between the very rich and the very poor. According to the Economist, per capita GDP has also increased five times from $1,000 to $5,500. GDP growth is on track to exceed 7.6 per cent this year, and reach 8 per cent next year, the trade surplus is set to rise visibly from last year, and investment is likely to outpace consumption in the next few quarters. Issues of structural imbalance namely, the current supportive investment and credit policies to stay largely unchanged need to be revised as soon as possible.

(b) Better Financial Management

Gradual interest rate liberalisation of the past year to be sustained and for the renminbi to strengthen slowly over the couple of years ahead is required. Given the stronger tone of recent economic data, pressure to ease policy has eased.” Easing of monetary policy is appreciated Stimulate domestic consumption must be encouraged at once.

(c) Maintaining of Social Fabrics

The country’s middle class and urban population is rapidly growing and they demand high quality, premium products and services. The export-led model of development is no longer viable. As recent figures show, 9.5 per cent of China’s GDP growth in 2011 came from domestic demand and only 0.8 per cent came from net exports. Concrete efforts should be carried out to maintain the real social fabrics of China for the wellbeing of all the masses.

(d) Reassessing of explosive growth on the expense of environment

China’s explosive growth has created some of the world’s most complex environmental challenges. It is now the world’s biggest emitter of greenhouse gases, accounting for some 29 percent of total emissions in 2011, up by 9 percent from 2010. Climate change is threat to many countries around the globe. Compromise on ecological degradations must not be prolonged any more.

(e) Foreign Policy

The new leadership faces a “stark choice” between focusing more on domestic issues and less on foreign affairs and the “more assertive foreign policy” that had begun under President Hu Jintao over the past two or three years. One China Policy would remain the mantra of new leadership. Commercial diplomacy especially in Africa and Latin America would be intact in the years to come.

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Conflicts and crises with the U.S. and territorial spats with Japan and other neighbors have worsened in recent months as the leadership focused on the power transfer which should be first priority of the new leaders. China’s foreign policy towards so-called water disputes is based on principles which reflect its legitimate rights on it. It has been pursuing nonviolent policy to assert its genuine claims on it. Time and again, the government and leaders of China reaffirms its peaceful engagements to resolve these issues with all its neighbors. The recent change in the US foreign policy towards, Asia has already brought paradigm shift in all the stakeholders’ outlook and China is rigorously engaged to dismantle the ill wills of imperialism.

(f) Freedom of speech

Freedom of speech is the perquisite of a decent society and dynamic country. In this regard, Chinese government has already initiated many effective measures in the recent years. China has now a vibrant social media culture in the country. An estimated 40 percent of China’s 1.3 billion population is online. Chinese Weibo and Qzone web pages have grown hugely popular throughout the country. Freedom of speech would be pressing demand to be met in the days to come for the new leadership.

(g) Political Reforms

Every country has its own system of governance depending upon its culture, tradition, historic perspective and the collective will of the people. System is a secondary thing and delivery is the main item for the wellbeing of the people. The delivery system must be free from every kind of dogma, stigma, discrimination and above all undue due advantage in the country. China has its own unique system of governance and delivery which has already achieved wonders in every sphere of life. Politics stands for rapid economic development in the age of globalization 3.0. Politics stands for qualitative life and protection of basic necessities of life. Chinese government is doing its best effort to match with the increasing demands of political liberalization and articulation in the country.

Gradual political reforms would be good for the leaders and people of China during the next decade. In this regard, the new leadership may face pressing challenges from an increasingly politically conscious and activist public at large.

(h) Reallocation of Water Resources

Water is a strategic asset. Water is life and has multiplier effects. Blue gold has changed the parameters of national priorities and vested interests of foreign policy. Easy and smooth supply of clean drinking water is an emerging problem in some parts of China. The new leadership may face gigantic task to overcome this emerging socio-economic problem.

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Dynamic and Vibrant China

China adopted foreign-capital-led, export-oriented industrialization model more than 30 years ago which is now paying the dividends. Moreover, the model of foreign capital-dependent, export-oriented industrialization is now at the center of debate in the party and government

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Although, GDP remained less than 8 percent but future prospects are very bright and healthy. It is an urgent need to have more harmonious society and balanced economic growth model for the years to come. In the past, its economic development traditionally favoured the city over the countryside and the coasts over inland regions. During the previous years, China’s coastal provinces accounted for 61 percent of the country’s economic output. Heavy investment in inland provinces has helped to achieve a balanced growth strategy due to which share of GDP was 58.5 percent last year. Urban incomes also outpaced rural incomes under Deng’s rule and in the latter half of Jiang’s reign. By 2008 rural incomes averaged less than 30 percent of urban disposable incomes. Since then, according to official figures (2011-2012) rural incomes have regained some ground. Mr Hu also sought more balanced growth. But his efforts to expand the role of household consumption failed. Its share of GDP averaged an astonishingly low 37 percent from 2003 to 2011, compared with 46 percent during Mr Jiang’s term.

Concluding Remarks

China has more than 5000 years old civilization based on the principles of survival, striving and thriving, honesty and dedication. China is the land of Confucius, pioneer of uprightness in the realms of civility, politics, law and business. China represents the collective wisdom of its diversified cultures, factions and philosophies. It is the ideal combination of traditions and modernity, struggle and service and the last but not the least, competition and competency. It is the great country where humanity meets with spirituality to surpass the genie of innovativeness.

It seems that China’s socio-economic vibrancy, go-political prominence and geo-strategic supremacy will depend on Xi Jinping visionary capabilities. President Xi will need to promote the concept of institutionalised checks and balances within the CPC for increased political transparency and address China’s economic issues such as the growing income disparities, inflation, a property bubble and the rapid expansion of giant state-owned monopolies at the expense of the private sector.

Xi Jinping will also need to manage the growing economic disparity between Chinese citizens. Certain major socioeconomic groups, including farmers, migrants, the urban poor and elderly often find themselves increasingly marginalised as a result of China’s rapid economic growth which needs to be revised as soon as possible.

China like any other economic superpower confronts different short and long term problems such as: shortages of natural resources, environmental degradation, the side effects of large-scale urbanisation, the prospect of an ageing society, inadequate healthcare and social welfare, public concerns about food and product safety, tensions between the central and local governments and ethnic conflicts which must be foremost priorities of the new leadership and hopefully, President Xi Jinping and his team can easily resolve these issues in the days to come.

Dec 172012
 

World EXPO 2020: Perceptions, Realities and Prospects

Mehmood Ul Hassan Khan

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UAE Minister of State Reem Ibrahim Al Hashimi and Managing Director of the Higher Committee for Hosting the 2020 World Expo said the government needs private sector help to support Dubai’s bid to host Expo 2020 as the whole country and the region would get benefits from the event. She was of the opinion that active participation of the private sector would make Dubai’s case stronger. She claimed that there would be a lion share for every sector of the private sector in the country. She said that Dubai already has very significant infrastructure for big events and “we promised we delivered.”

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Last week, UAE Vice President and Prime Minister and Ruler of Dubai His Highness Sheikh Mohammed bin Rashid Al Maktoum opened the 3rd Annual Global Entrepreneurial Summit (GES) and the Exhibition at the World Trade Centre in Dubai where he also asserted that UAE is a centre for creativity and innovation on the regional and global levels and provides the ideal environment. More than 2000 businessmen and decision makers attended the summit that would further enhance Dubai’s chances to win the bid for hosting World Expo 2020.

The US President Barack Obama televised addressed to 3rd Annual Global Entrepreneurial Summit (GES) in Dubai, highly appreciated the leadership and its people to achieve high standard of development. It is possible when people of vision and imagination can pursue their dreams, US President Barack Obama added. “Here in Dubai, let us keep creating the next generation of dreamers and creators and builders,” he said. Admirations from the world leaders would helpful for Dubai to win the race of World Expo 2020 in the days to come.

United Arab Emirates specially and Dubai rigorously are working hard to host the World Expo 2020. In this regard, few days ago the UAE submitted its final plans to host World Expo 2020 to the Paris-based Bureau International des Expositions, or BIE. The final decision will be announced in November 2013. If the UAE wins the bid, Dubai will become the first city in the Middle East, North Africa and South Asia region to host a World Expo. With one third of the world’s population living within a four-hour flight of the UAE and 50 million passengers travelling through Dubai International Airport in 2011, Dubai is strongly positioned to welcome the world and showcase all the emirate has to offer during the World Expo 2020.

Reem Al Hashimy, UAE Minister of State and Managing Director of the Higher Committee for Hosting the 2020 World Expo

Reem Al Hashimy, UAE Minister of State and Managing Director of the Higher Committee for Hosting the 2020 World Expo

While meeting with private sector representatives she said “More than its infrastructural facilities, Dubai has the capabilities and has a strong case as the emirate is a safe and secure place to live and holds good experience in organising and hosting world-class events.” Different points of convergences were also thoroughly discussed during the meeting. Role of Dubai Chamber was appreciated and considered to be important to support the bid. The meeting was the first step to achieve high level of awareness among the private sector, public sector and international stakeholders, she added.

In his welcome address, Hamad Buamim, director general of the Dubai Chamber, said that it is the moral responsibility of the business community to support this national campaign that will bring business and promote growth in the country. He said “Dubai Chamber is utilising all its resources through its local, regional and global network of stakeholders and associates to generate support for the bid”. He emphasized that the Dubai Chamber, during its foreign visits as well as while receiving overseas delegations, makes it a point to promote the advantages of Dubai by highlighting its leading economic sectors like trade, tourism, logistics and financial sectors, as well as its world-class infrastructural facilities.

The participants spoke highly about Dubai’s marvelous infrastructure development, use of latest technologies, financial strength, strategic location, comparative advantages and above all leadership commitment towards revolutionizing emirate.

They projected Dubai as an ideal choice to host the World Expo 2020. Dubai reverberates with the selected theme of “Connecting Minds, Creating the Future”, and Dubai Expo 2020 will prove a vibrant, memorable experience for all involved, Bin Byat added. He said “I have every confidence in our bid, and will look forward to its success being a catalyst for ushering in a new era of partnerships to promote growth and a sustainable future for the UAE”.

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Dubai government is using all possible means to win the support to host World Expo 2020. It has been engaged with different coordinated efforts and meetings to raise awareness of its strong credentials. Social media is effectively engaged to promote Dubai’s main characteristics throughout the world. Even, the Chairman of Dubai International Film Festival (DIFF) announced that the organisation is supporting the UAE’s bid.

Abdulhamid Juma, Chairman of DIFF, highlighted the Festival’s international prominence, commenting, “Building bridges of understanding throughout global communities is vital for the progression of humankind and promoting such cultural awareness has always been imperative for Dubai International Film Festival’s vision. The Festival is a gateway of innovation between the East and the West, bringing together some of the most creative and progressive minds from across the globe and making it an ideal platform to further promote and support the UAE’s bid.”

During the international film festival all delegates at DIFF will wear Dubai Expo 2020 pins and the bid’s branding will appear on all official banners and collateral. Ali’s Film, a feature film produced specifically to support the bid, will be played at the gala dinner on the final night of festival, which is going on in the emirate.

Comparative study of competing cities

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(a) Dubai, UAE: “Expo theme “Connecting minds, creating the future”

United Arab Emirates (UAE) has seven emirates and Abu Dhabi is its capital. According to official figures it has approximately population of 2 million people. Dubai is the financial hub of the UAE which attracts high ratios of foreign direct investments (FDIs). It is also hub of innovations, modern technologies and tourism. It is known for signature building projects like Burj Al Arab and the Palm Jumeirah Island, to Burj Khalifa, the world’s tallest building. Dubai is not just tallest buildings. It is more than that, offering lots of amazing opportunities for all.

Dubai claims that it is an ideally place which is also strategically located for hosting World Expo 2020. Sheikh Mohammed bin Rashid, Vice President and the Ruler of Dubai said “We would be able to do it. We would be honoured to do it.”

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1. UAE: Basic Characteristics

According to official figures, it has 83,600 sq km and is 115th in world. Its total population is 7.9 million and stands at 116th in the world. Life expectancy is 76.71 years. It is the second largest economy in the region and has GDP per capita $47,700, 12th globally.

2. Potentials

The comparative study reveals that Dubai is the ideal city to host the World Expo 2020. It is even endorsed by Urso Chappell, founder of ExpoBids.com by saying “definitely one of the serious candidates” for 2020. Connecting people, as Dubai’s impressive bid highlights, “lies at the heart of the UAE’s vision as a cosmopolitan nation he added. He is of the view that by connecting minds, our common aspirations are celebrated and together we can work to create a brighter future”.

UAE is the wealthiest country in terms of per capita GDP $47,700. Russia is at $16,700 being the nearest rival. It has even better life expectancy as compare to other competing countries/cities. It has no match even in the levels of happiness and prosperity indexes to other countries/cities for hosting World Expo 2020.

graph3

Dubai with outstanding and sustainable socio-economic development for the last forty years has made it ideal destination/city of hosting World Expo 2020. It has been experiencing rich expertise of hosting world class events, summits, expos, exhibitions and conferences. It announced to develop a 438 hectare site at Dubai Trade Centre Jebel Ali, halfway between the city and Abu Dhabi. It seems that the city is “logistically ready to host a World Expo”. It is an ideal destination of the global tourism where 80 percent of the world’s population could reach less than 8 hours. By 2015, Dubai International Airport is expected to be the busiest in the world and the new Al Maktoum Airport, next to the proposed Expo site, will be able to handle 160 million passengers a year.

Last but not the least, its proposed date of hosting World Expo 2020 would be more convenient to tourists, businessmen and all the participants due to friendly weather in the city. Being the latest status of decent living city of the world, hub of financial services, leader in renewable energies, ideal destination for all the famous brands/multinational companies, and the last but not the least rich experience of hosting various international expos, exhibitions, summits and conference would go in its favour long way to win the race and host World Expo 2020.

(b) Ekaterinburg, Russia: Expo theme “The global mind”

According to an official figure, it has population of 1.35 million. It is known for The Tsar and his family was murdered here by the Bolsheviks in 1918. They claim “Ekaterinburg Expo 2020 shall be an excellent opportunity to demonstrate innovatively, technologically and scientifically advanced Russia engaging foreign partners to a mutual conversation on issues mentioned.”

3. Russia: Basic Characteristics

It has 17.09 million sq km area and 1st in world. It has population of 142.5 million, and stands 9th in the world. Its life expectancy is 66.46 years which ranks 164th globally. It has GDP per capita $16,700, at72nd globally.

Ekaterinburg, Russia’s fourth-largest city is 1,430km east of Moscow. It is situated on the dividing line between Europe and Asia. If successful, it would be the first Expo hosted by Russia. More important, perhaps, the bid makes a case for opening up to the world the vast and lesser-known tracts of the country in and beyond the Ural Mountains. It has ambitious objective, “to engage the world in an open dialogue about our shared future and help to enhance the transformation of Russia towards a more open and expressive society”.

Comparative study shows that Russia has weak, less attractive or less convincing theme, i.e. the Global Mind. It does not convey its strength and clarity to larger world. It does not portray its real values of hopes, dreams and aspirations to the world. Its proposed dates May 1 to October 31, 2020 which would not be so friendly weather would also be not easy for the tourists to visit. Sensitive issues of human rights, corruption, transparency, political freedom and hot pursuits of power politics would act against its chances to host World Expo 2020.

(c) Sao Paulo, Brazil: Theme “Power of diversity, harmony for growth”

According to official figures, it has population of 11.31 million. It is one of the main emerging economies in the world. The city is famous for financial capital of Brazil. It is the 10th richest city in the world.

They project “In the upcoming years, we are going to host the World Cup and the Olympic Games. In 2020, Brazil and Sao Paulo will be well prepared for hosting this big event. All levels of government will work together to honour this tradition of great shows.”

4. Brazil: Basic Characteristics

According to Brazilian government’s figures, it has 8.51 million sq km area and 5th in the world. It has population of 194 million. Its life expectancy is 72.79 years, 124th in the world. It has GDP per capita $11,800, stands 102nd globally.

Like UAE, Dubai it has also a long record of hosting major events. Its previous unsuccessful bids could not the good for its bid to host World Expo 2020. If it is sanctioned to host World Expo 2020, it will be staged after Brazil’s 2014 football World Cup and 2016 summer Olympics. In case of World Expo 2020 to be held in Brazil, there would be lesser interests left for the tourists, businessmen and people alike to revisit the same country time and again.

It has plan of a 502 hectare exhibition site with hotels, malls and a major conference centre, and new roads, railways, airport and “digital highway” infrastructure. It’s important socio-economic credentials are not matched with the World Expo 2020. It would only consolidate Sao Paulo’s leadership role in the internationalisation of the Brazilian economy. Proposed dates: May 15 to November 15, 2020. Its economic domination, and other trade issues with other countries would not be good of it.

(d) Ayutthaya, Thailand: theme “Redefine globalisation, balanced life, sustainable living”

It consists of 80,000 people. It is the smallest among the other competing countries/cities. It is known for Ayutthaya Historical Park, site of ruins of the former capital of the Kingdom of Siam, destroyed by the Burmese in 1767.

They highlight “Ayutthaya, the former capital city, is a diplomatic crossroad that opened the door to Asian civilisation, a port city, a centre of trade, the Venice of the East, linking the Silk Road to the world. It is really a city of perfect balance a perfect illustration of our proposed theme, Redefine globalisation: balanced life, sustainable living.”

5. Thailand: Basic Characteristics

It spreads on 513,120 square kilometres, 51st in world. It has population of 67.05 million, 19th in the world. Its life expectancy is 73.83 years, 114th globally. Its GDP per capita is $9,400, 114th in the world.

Comparative study indicates that it has lowest GDP per capita among the other four countries/cities in the race of winning the bid of World Expo 2020. Financial resources are also not surplus to build such a huge infrastructure in the country. Rampant corruption, political uncertainty and deteriorating law and order situation would against its chances of wining World Expo 2020 bid

Thailand recently hosted Royal Flora Ratchaphruek 2006, an international horticultural exposition recognised by the BIE, might make it difficult for the organisation to grant the country a second international show so soon. Proposed dates: January 15 to June 15, 2020.

(e) Izmir, Turkey: theme “New routes to a better world, health for all”

According to Turkish official figures, it has population of 2.78 million. The city formerly known as Smyrna is famous for rebuilt by Alexander the Great.

The Turkish authorities say “The theme, which includes the healthy living concept, is based on a very strong content to catch attention and global participation. For the first time at the East of the Mediterranean, this Expo organisation is very important for us because it will strengthen peace and raise life expectancy of the people living in this area.”

6. Turkey: Basic Characteristics

It has size of 783,562 sq km, 37th in the world. It consists of 75.7 million, 17th globally. Its life expectancy is 72.77 years, ranked 125th. It has GDP per capita $14,400, 88th in the world. By judging its main characteristics, Izmir is probably Dubai’s most serious rival to host Expo 2020. Its ongoing power struggle in the region would be fatal for it. Izmir was in the running to host Expo 2015, a race it lost by a narrow margin to Milan. Its continued power struggle with Kurds, Syria and disputes with many regional countries would lessen its chances to some extend in hosting the World Expo 2020. Proposed dates: April 30 to October 31, 2020.

All the five cities already submitted copy of their dossiers about World Expo 2020 some days ago. Onward, each of the BIE’s 161 member states receives a copy of the dossiers, which will be examined in detail by its executive committee in May next year, then by the general assembly in July. A decision will be announced shortly afterwards.

Detailed comparative study of the above given countries clearly indicate that UAE, Dubai is well positioned in the race. Perceptions are there to distract people but realities and prospects are strongly projecting Dubai to win the bid of hosting World Expo 2020.