Overseas Pakistani Friends

Mehmood-Ul-Hassan Khan

On 2nd December 2011, the United Arab Emirates celebrates its fortieth National Day. UAE leadership jointly decided to form a federation in 1971 and worked collectively for the common socio-economic development of all the seven emirates. Economic liberalization, financial reforms, active participation of private sector, and business & investment friendly policies subsequently made United Arab Emirates as one of the leading emerging economy in the world.
The latest report of the World Bank and the International Finance Corporation (IFC) Doing Business 2012: Doing Business in a More Transparent World clearly show that the UAE has improved its global ranking by two to reach 33 in 2011. According to the latest Global Competitiveness Report by the World Economic Forum (WEF), 2011, UAE has been included in the most advanced stage of ‘innovation-driven economies’ in the world for the second consecutive year because despite ongoing global financial meltdown and increasing of public debts ratios around the world, UAE economy achieves sustainable growth.

UAE is now a tax free economy with no controls on the inflow or outflow of capital or profits and keeps the true spirits of a free market economy. Now, its macro-economy is strong, stable and sustainable. Even, ongoing Euro-debt crisis, deadly global economic recession and sever financial crunch could not pose any serious problem to its march towards greater socio-economic turn-around.

Right from the beginning, social development has been epicenter of UAE government’s policy. Successive leaders and especially, His Highness Sheikh Khalifa bin Zayed Al Nahyan, the Vice President and Prime Minister and Ruler of Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum initiated effective social development programs and allocated substantial funds in the budgets throughout the UAE in order to pass the trickledown effects of robust economic growth to their populace.

Keeping in view the importance of social development the UAE government has already increased allocations for development expenditure in the provisional federal budget 2012. The social services, including health care, education and housing, accounted for 47 per cent of the total budget i.e. Dh 41.4 billion (US $ 11.2 billion). Higher education, will receive Dh 8.26 billion (US $ 2.25 billion) or 19.6 per cent, the bulk of which will be spent on plans to build new schools and other educational institutions and to upgrade the educational environment.

Now, their constant paradigm shift is paying dividends in shape of better education, health, shelter and clean drinking water facilities in all the seven federating units i.e. emirates. All reports of World Bank, IMF and United Nations indicate that UAE would be the first country to achieve Millennium Development Goals (MDGs) in the region. Its literacy rate is highest in the region.

Women empowerment drive has achieved splendid success. Now, women account for around 70 per cent of all university graduates in the country and fill around two thirds of government jobs. UAE has now four women members of the Cabinet and ambassadors. They are now air force pilots and armed forces recruits. Moreover, it has achieved new skies in advance technologies, development & research and human resource management. It has emerged as knowledge-based economy.

Since it inception, UAE has been following the holistic spirits to promote inter-faith harmony, tolerance, humanity and peace towards all nationalities due to which now it has become country of maximum foreign nationalities. There are more than 40 churches and cathedrals as well as to places of worship for other faiths peacefully exist in the UAE which endorses the vision of its leadership.

UAE attracts people of many nationalities for securing brighter future, availing better services and the last but not the least enjoying cultural diversity in a friendly environment. Even more than 1.4 million Pakistani expatriates are also working in the UAE. Now, it has become one of the ideal destinations for tourism in the region.

According to the latest report of the National Bureau of Statistics (October, 2011) the UAE economy is expected to grow by 4.2 per cent in real terms this fiscal year as compare to 2010. UAE’s nominal gross domestic economy is the second best in the region and reached to over Dh1 trillion in 2010 compared to around Dh250 billion in 2001. It is also the Middle East’s largest consumer market.

Most recently, the Institute of International Finance (IIF) stated that its economic growth is projected to remain resilient in the face of global economic upheavals and regional political turmoil. The IIF has forecast GDP growth of 4.4 per cent and 3.1 per cent for 2011 and 2012, respectively. Moreover, its non-hydrocarbon growth is expected to be supported by high public spending on infrastructure, including spending through government-related entities (GREs). According to the Dubai-based Emirates Industrial Bank (EIB), despite a slowdown in 2009 because of the 2008 global fiscal crisis, the country’s GDP in current prices has leaped by nearly 15 per cent annually over the past decade, one of the highest growth rates in the world.

Diversification drive of economy is now paying its dividends. UAE government’s constant support to industrial sector has made it UAE less reliant on revenue from its oil exports. Its non-oil foreign trade surged by 14 per cent in 2010, to Dh 754.4 billion (US $ 205.3 billion), compared to 2009. Exports increased by 27 per cent and re-exports registered 26 per cent upwards growth, with non-oil imports rising only by 8 per cent. Foreign trade has continued to rise throughout 2011. Prospects are even brighter in the years to come. The UAE also ranked 25th largest global importer of goods and 19th exporter in the world 2010 becoming the only Arab nation to be among the top 30 markets. The UAE’s commercial exchange reached at $405 billion, the largest in the Arab region in 2010.

Moreover, the UAE took the lead in terms of merger and acquisition deal volume in the Middle East and North Africa with 32 deals in 1H2011 compared to nine in 1H2010, resulting in a remarkable increase of 226 percent. Official data showed cumulative inflows of FDI into the UAE totalled $75.7 billion during 2000-2011. As for FDI outflow, the UAE emerged as the largest capital exporter in the Arab region, pumping nearly $52 billion into global markets during 2000-2009.

Oil and gas revenues now account for 30 per cent of GDP despite high oil prices at international markets. Now, manufacturing sector is active, healthy and productive. It is one of the leading sources of employment generation, exports and revenues. It is hoped that a strong manufacturing industry that meets the needs of the international markets will help protect the UAE from the continuing economic turmoil.

Tourism has become one of the fastest growing sector and accounts for more than 10 per cent of GDP. UAE welcomes more than 12 million visitors in a year which makes its hotel occupancy highest in the region. Its national airlines Abu Dhabi’s Etihad, Dubai’s Emirates and FlyDubai and Sharjah’s Air Arabia are making providing every possible facility of aviation.

Sable construction sector is contributing positively in the macro-economy. It employs 50 percent of the total labour force. According to official statistics, the share of construction and the real estate sector in Dubai’s GDP declined from 30 per cent in 2007 to 23 per cent in 2010.

Resilient banking and financial sector is providing essential inputs for survival and production. The IIF report (2011) indicated that the country has one of the strongest fiscal positions in the region. It projected total gross foreign assets of the UAE to continue rising to about $600 million by end 2012. It would result in an overall net external asset position of about $480 billion, equivalent to 130 per cent of 2012 projected GDP.

Most recently, the UAE has announced the establishment of the Emirates Development Bank, which has been set up to spur economic growth and improves living standards by providing finance for development projects and other initiatives.

Abu Dhabi’s 2030 which stands for further diversification of economy, better higher education, entrepreneurism, research, development of small to medium-sized businesses and knowledge-based economy would achieve its desired goals in the days to come.

The effective strategic vision of the United Arab Emirates holds the key of further strengthening of its socio-economic development, attracting inflows of FDIs and maintaining its free market economy status. Further diversification of the economy, development of Small and Medium Enterprises (SMEs), service sector, exports, and manufacturing are must to achieve the desired goals. Growth of renewable energy resources would be value-addition in the economy

Mehmood-Ul-Hassan Khan
Rise of diplomacy, dialogue and development at the regional and international power politics especially after the horrendous events of World War II has changed the rules of the game. Terms of engagements have been redesigned, reshaped and reframed around the globe over the period of time.

Our modern international political history and diplomacy are full of prime examples which diverted the imminent war through rigorous meaningful diplomatic engagements because war is not a solution and violence always confronts defeat. Peaceful co-existence, respect for territorial sovereignty and the last but not the least respect for international law guarantees international harmony.

Arab world has been facing different gigantic challenges since 2010. It has been periods of upheavals and harmony, bullets and ballots in most parts of the Arab world. Only few countries succeeded to initiate different effective engagement policies to promote dialogue, peace and cooperation in and within the region in order to resolve conflicting realties. UAE has been proactive in the region and the Islamic community and rigorously participated in international affairs throughout the 2011 and has hub and leader of all these activities.

UAE reaffirmed its continued extension of humanitarian assistance programs to the government and as well as people of Pakistan in the post-flood period. UAE appreciated Pakistan role in the war against terror as front line state. UAE also called to international community to support the people of Pakistan in order to alleviate their sufferings caused by the recent deadly flood in the country. The UAE Magnificent 7 and most recently held joint ministerial meetings between the two countries further strengthened bilateral relations.

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

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

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

This article highlights some effective foreign engagements of the UAE which succeeded to restore peace, political dialogue and harmony in many regional countries. Its efforts to cope with natural calamities, piracy and terror are highly appreciated by the regional as well as international regulatory bodies. Its global humanitarian assistance drive has reached a new level in the world.

UAE Reconciliatory Role

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

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

UAE along with Saudi Arabia successfully protected the sovereignty of Bahrain by sending troops in its time of national crisis which ultimately proved to be security paradigm shift in the Gulf Cooperation Council (GCC). UAE strongly denounced foreign intervention in the Bahrain and sincerely supported dialogue process. It was actively engaged in attempts to negotiate a peaceful resolution of conflicts in Yemen and by virtue of its effective diplomacy a peaceful accord of transition has been reached between the government and the opposition.

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

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

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

UAE Peacekeeping Missions

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

120th Ministerial Session

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

UAE Policy Stance

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

UAE Regional Development Initiative

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

Global Humanitarian Assistance Drive

Humanitarian assistance has been one of the salient features of the UAE foreign policy. UAE government, its charities, i.e. Khalifa Bin Zayed Humanitarian Foundation, UAE Red Crescent, UAE Armed Forces, Zayed Foundation for humanitarian and charitable work and Sharja Charitable Society and people achieved new skies of generosity by rigorously initiating diversified humanitarian assistance activities around the globe during 2011.

Global Humanitarian Assistance (2010)

According to Global Humanitarian Assistance (2010) the UAE has become the first non-western nation in the global Top 10 humanitarian aid donors per head of population. Donations of US$138.9 million in 2009, an average of $30.30 (Dh111.28) per person, put the country in seventh place. The United Arab Emirates has pledged US$7,194,000 for a number of UN development programmes and funds during the year 2012. Ambassador Ahmed Al-Jarman, Permanent Representative of the United Arab Emirates to the United Nations announced this before the United Nations Pledging Conference for Development Activities 2011.

UAE Notable Humanitarian Assistance Programs

UAE charities carried forward the golden spirits of generous humanitarian assistance activities in all the continents of the world not confined to Australian flood, New Zealand’s earthquakes, Palestine camps, Libya, Iraq, Yemen, Sudan, Bosnia and Herzegovina, Thailand, Afghanistan and the last but not the least Pakistan for the help of needy people confronted colossal natural catastrophes. UAE is now the second largest non-DAC donor of humanitarian aid since 2004.

Development Programs

A large number of development projects relating to education, infrastructure, health, clean drinking water have also been carried forward in different parts of the world especially Abu Dhabi Fund for Development and Dubai Cares. Pakistan, Afghanistan, Egypt, Palestine Authority, Seychelles and the South Pacific were the main recipients of aid during 2011.

Humanitarian Aid to Pakistan

UAE is our strategic partner which always stands first to extend generous humanitarian assistance in times of national crises in shape of devastating floods, fatal earthquakes or thunderstorms. Sheikh Khalifa Bin Zayed Al Nahyan, President of the UAE is always the first one to respond immediately on the requests of government of Pakistan by advising the UAE charities for relief goods and other related activities. UAE Charities humanitarian assistance programs and untying efforts in the relief, rescue, recovery and rehabilitation fields in earthquake of 2004 and series of floods 2010-2011 have already won the hearts and souls of the struggling local people.

Tremendous Role of UAE Armed Forces

UAE Armed Forces played a magnificent by carrying out grand operations of rescue, distribution of relief goods, and logistics to different parts of Pakistan. Chinooks rigorously participated in the humanitarian assistance activities in the most flood affected regions of Punjab, Sindh, Khyber Pakhtunkhwa and Balochitsan. UAE Military Field Hospitals launched effective vaccination campaigns to save children, women and elderly people from different diseases. Water purification plants were also set up to provide clean drinking water in the most flood affected areas.

Most recently, UAE Embassy in Pakistan under the supervision of its ambassador Eissa Abdullah Al Basha Al Noaimi demonstrated strong commitment towards the greater human cause of helping the needy, poor and struggling people of Sindh, currently confronting devastating flood. UAE charities were busy to help the most affected people of Sindh province, Badin, Sanghar Mohammed Tando Khan, Mirpur Khas and Nawabshah battling out their survival.

UAE Ambassdor Noiami appreciated the UAE team carrying out its gracious cause of humanitarian assistance. He assured that existing humanitarian assistance will be continued along with the successfully going on UAE Assistance Project to Pakistan already, gathered momentous appreciation from GOP and its people. He said that UAE relief team activities including distribution of foodstuff have succeeded to lessen some basic problems of the downtrodden people.

On development front, the UAE allocated $100 million dollars to Pakistan for the construction of more than 51 schools (primary & secondary), technical institutions, several healthcare centres, building roads and bridges, infrastructure and supply of safe drinking water schemes. Work on these projects are going briskly and it is hope that after the completion it would generate employment and reduce ratios of poverty in these selected areas of Swat, South Waziristan, other North Western districts and the tribal area.

UAE played extraordinary work to minimize the horrible effects of Horn of Africa caused by hunger, poverty and famine through its extended spells of humanitarian assistance activities in African continent. Unlimited precious lives were saved by providing food, shelter, cloths and medicines. Most recently, According to UAE Red Crescent aid relief contained 84 tonnes of relief materials, including 53 tonnes of canned food and dates, 15 tonnes of emergency tents and 15 tonnes of carpets and floor mats were sent to Somalia and Ethiopia. Another plane was sent to the Republic of Djibouti, carried 93 tonnes of food items and tents, and distribution was done on the Djibouti borders. The UAE Charity Initiative for treating one million children has been launched a massive vaccination programme to protect children in the Horn of Africa against contagious diseases.

UAE Foreign Minister HH Sheikh Abdullah bin Zayed Al Nahyan promised a grant of US$250 million for reconstruction projects in Afghanistan. UAE peace troops have been engaged in diversified humanitarian work such as providing aid and medical services for the last eight years. The UAE has also provided over US $ 1.5 billion dollars over the last decade for rehabilitation and reconstruction programmes. There are six funded medical clinics, 11 schools, 38 mosques, a general public library, a hospital, and an accommodation for displaced families. In 2009, the UAE committed more than Dh1.26 billion in aid, which represents 14 per cent of its total foreign aid in 2009. In addition to the government’s provisions, the people of the UAE contributed $22 million for food, medicine, housing and shelter, and basic relief projects.

Secretes of Socio-Economic Prosperity

UAE leadership jointly decided to form a federation in 1971 and worked collectively for the common socio-economic development of all the seven emirates. Economic liberalization, financial reforms, active participation of private sector, and business & investment friendly policies subsequently made United Arab Emirates as one of the leading emerging economy in the world.

Latest Reports of International Financial Agencies

The latest report of the World Bank and the International Finance Corporation (IFC) Doing Business 2012: Doing Business in a More Transparent World clearly show that the UAE has improved its global ranking by two to reach 33 in 2011. According to the latest Global Competitiveness Report by the World Economic Forum (WEF), 2011, UAE has been included in the most advanced stage of ‘innovation-driven economies’ in the world for the second consecutive year because despite ongoing global financial meltdown and increasing of public debts ratios around the world, UAE economy achieves sustainable growth.

Different Meaningful Marco-economic Policies

UAE is now a tax free economy with no controls on the inflow or outflow of capital or profits and keeps the true spirits of a free market economy. Now, its macro-economy is strong, stable and sustainable. Even, ongoing Euro-debt crisis, deadly global economic recession and sever financial crunch could not pose any serious problem to its march towards greater socio-economic turn-around.

Miraculous Social Development

Right from the beginning, social development has been epicenter of UAE government’s policy. Successive leaders and especially, His Highness Sheikh Khalifa bin Zayed Al Nahyan, the Vice President and Prime Minister and Ruler of Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum initiated effective social development programs and allocated substantial funds in the budgets throughout the UAE in order to pass the trickledown effects of robust economic growth to their populace.

Budget Allocations

Keeping in view the importance of social development the UAE government has already increased allocations for development expenditure in the provisional federal budget 2012. The social services, including health care, education and housing, accounted for 47 per cent of the total budget i.e. Dh 41.4 billion (US $ 11.2 billion). Higher education, will receive Dh 8.26 billion (US $ 2.25 billion) or 19.6 per cent, the bulk of which will be spent on plans to build new schools and other educational institutions and to upgrade the educational environment.

Now, their constant paradigm shift is paying dividends in shape of better education, health, shelter and clean drinking water facilities in all the seven federating units i.e. emirates. All reports of World Bank, IMF and United Nations indicate that UAE would be the first country to achieve Millennium Development Goals (MDGs) in the region. Its literacy rate is the highest in the region.

Women Empowerment

Women empowerment drive has achieved splendid success. Now, women account for around 70 per cent of all university graduates in the country and fill around two thirds of government jobs. UAE has now four women members of the Cabinet and ambassadors. They are now air force pilots and armed forces recruits. Moreover, it has achieved new skies in advance technologies, development & research and human resource management. It has emerged as knowledge-based economy.

Inter-Faith Harmony

Since it inception, UAE has been following the holistic spirits to promote inter-faith harmony, tolerance, humanity and peace towards all nationalities due to which now it has become country of maximum foreign nationalities. There are more than 40 churches and cathedrals as well as to places of worship for other faiths peacefully exist in the UAE which endorses the vision of its leadership.

UAE attracts people of many nationalities for securing brighter future, availing better services and the last but not the least enjoying cultural diversity in a friendly environment. Even more than 1.4 million Pakistani expatriates are also working in the UAE. Now, it has become one of the ideal destinations for tourism in the region.

Salient Features of Marco-Economy

According to the latest report of the National Bureau of Statistics (October, 2011) the UAE economy is expected to grow by 4.2 per cent in real terms this fiscal year as compare to 2010. UAE’s nominal gross domestic economy is the second best in the region and reached to over Dh1 trillion in 2010 compared to around Dh250 billion in 2001. It is also the Middle East’s largest consumer market.

Gross Domestic Development Projections

Most recently, the Institute of International Finance (IIF) stated that its economic growth is projected to remain resilient in the face of global economic upheavals and regional political turmoil. The IIF has forecast GDP growth of 4.4 per cent and 3.1 per cent for 2011 and 2012, respectively. Moreover, its non-hydrocarbon growth is expected to be supported by high public spending on infrastructure, including spending through government-related entities (GREs). According to the Dubai-based Emirates Industrial Bank (EIB), despite a slowdown in 2009 because of the 2008 global fiscal crisis, the country’s GDP in current prices has leaped by nearly 15 per cent annually over the past decade, one of the highest growth rates in the world.

Diversification Policy

Diversification drive of economy is now paying its dividends. UAE government’s constant support to industrial sector has made it UAE less reliant on revenue from its oil exports. Its non-oil foreign trade surged by 14 per cent in 2010, to Dh 754.4 billion (US $ 205.3 billion), compared to 2009. Exports increased by 27 per cent and re-exports registered 26 per cent upwards growth, with non-oil imports rising only by 8 per cent. Foreign trade has continued to rise throughout 2011. Prospects are even brighter in the years to come. The UAE also ranked 25th largest global importer of goods and 19th exporter in the world 2010 becoming the only Arab nation to be among the top 30 markets. The UAE’s commercial exchange reached at $405 billion, the largest in the Arab region in 2010.

Leading Role in Merger & Acquisition

Moreover, the UAE took the lead in terms of merger and acquisition deal volume in the Middle East and North Africa with 32 deals in 1H2011 compared to nine in 1H2010, resulting in a remarkable increase of 226 percent. Official data showed cumulative inflows of FDI into the UAE totalled $75.7 billion during 2000-2011. As for FDI outflow, the UAE emerged as the largest capital exporter in the Arab region, pumping nearly $52 billion into global markets during 2000-2009.

Progressive Manufacturing Sector

Oil and gas revenues now account for 30 per cent of GDP despite high oil prices at international markets. Now, manufacturing sector is active, healthy and productive. It is one of the leading sources of employment generation, exports and revenues. It is hoped that a strong manufacturing industry that meets the needs of the international markets will help protect the UAE from the continuing economic turmoil.

Blossoming Tourism Sector

Tourism has become one of the fastest growing sector and accounts for more than 10 per cent of GDP. UAE welcomes more than 12 million visitors in a year which makes its hotel occupancy highest in the region. Its national airlines Abu Dhabi’s Etihad, Dubai’s Emirates and FlyDubai and Sharjah’s Air Arabia are providing every possible facility of aviation.

Stable Construction Sector

Stable construction sector is contributing positively in the macro-economy. It employs 50 percent of the total labour force. According to official statistics, the share of construction and the real estate sector in Dubai’s GDP declined from 30 per cent in 2007 to 23 per cent in 2010.

Resilient Banking & Financial Sector

Resilient banking and financial sector is providing essential inputs for survival and production. The IIF report (2011) indicated that the country has one of the strongest fiscal positions in the region. It projected total gross foreign assets of the UAE to continue rising to about $600 million by end 2012. It would result in an overall net external asset position of about $480 billion, equivalent to 130 per cent of 2012 projected GDP.

Establishment of Emirates Development Bank

Most recently, the UAE has announced the establishment of the Emirates Development Bank, which has been set up to spur economic growth and improves living standards by providing finance for development projects and other initiatives.

Abu Dhabi’s 2030 which stands for further diversification of economy, better higher education, entrepreneurism, research, development of small to medium-sized businesses and knowledge-based economy would achieve its desired goals in the days to come.

Concluding Remarks

The effective strategic vision of the United Arab Emirates holds the key of further strengthening of its socio-economic development, attracting inflows of FDIs and maintaining its free market economy status. Further diversification of the economy, development of Small and Medium Enterprises (SMEs), service sector, exports, and manufacturing are must to achieve the desired goals. Growth of renewable energy resources would be value-addition in the economy.

By Mehmood-Ul-Hassan Khan

The UAE Embassy in Pakistan with the collaboration of UAE charities mainly Red Crescent Authority organized series of extended iftari programs in the holy month of Ramadan in different cities of Pakistan especially Islamabad and Rawalpindi, right from the first of Ramadan. Embassy’s envoy said such purposeful initiatives will be continued and carried in other parts of the country during the whole month of Ramadan.

The Embassy, on Tuesday held a well organized iftari program/dinner in the courtyard of the Pakistan Red Crescent Society which was attended by all employees and workers of the society.

HE Mattar Al Mansouri, the charge d Affaires of the Embassy and the chairperson of the Pakistan Red Crescent Society Ms. Nilofar Bakhtiar attended the iftari with the people.
HE Mansouri said in this occasion that the humanitarian and charity initiatives sponsored by the UAE charitable organizations/institutions under the guidance of H. H. Sheikh Khalifa bin Zayed Al Nahyan, President of the UAE are well taken and highly appreciated by the social welfare authorities in Pakistan.

The embassy has systematic mechanism and necessary arrangement to carry out the charitable program which included the distribution of dates, alms and iftari meals for the needy and poor people in order to reduce some worries of orphans, widows, special people, and students of educational centers to achieve social interaction and reduce their suffering he further added.

Ms. Bakhtiar Nilofer, the chairperson of the Pakistan Red Crescent Society said this iftar program is important for majority of poor strata of the Pakistani society. It advocates the true spirits of social camaraderie, kindness and mitigation of the sufferings, she praised.

She added that this initiative sponsored by the UAE Red Crescent Authority under the directives of H. H Sheikh Hamdan bin Zayed Al Nahya Ruler’s Representative in the Western Region and Chairman of the UAE Red Crescent is the extended part and parcel of the humanitarian aid and charitable assistance to the Pakistani people.

She loved to attend such iftari program with her staff members, colleagues and common worker which embraced social equivalence, approbation, and sense of cohesion among us, she further added.

Ms. Bakhtiar extended her thanks and appreciation to the UAE leadership, government and its brotherly people for their unrelenting meaningful assistance and support. She said the United Arab Emirates always stood with the people of Pakistan in all circumstances.

Mehmood-Ul-Hassan Khan

The government of Pakistan has been rigorously engaged with so many internal and regional issues of survival, regional predominance, energy supplies and the last not the least grand regional conciliation for the last two months. Its active drive for conflict resolution, track II diplomacy, arbitration and developing regional consensus is the hot topic in Islamabad, Kabul, Tehran and Riyadh.

Main Reasons

(a) US withdrawal from Afghanistan

Regional regrouping has been initiated to reassess the regional situation and collective preparedness to counter its strategic ramifications. There are many power brokers in the region to secure their lion share on the issue of Afghanistan. Conflict resolution is being carried out by arbitration between the two different poles of entities i.e. Saudi Arabia and Iran. Its harmonious stance on Afghanistan would create new era of peace and socio-economic integration in the region. The government of Pakistan is making every possible diplomatic effort to avoid any misadventure in the region.

Directly and indirectly the government of Pakistan has conveyed its concerns over Afghanistan’s changing situation and asserted that Washington should not contemplate any reconciliation process in Afghanistan sans Pakistan.

(b) Sever Energy Crisis

Pakistan is badly suffering from the ongoing sever energy crisis in the country. Easy and smooth supply of energy resources is the official mantra in Islamabad. Pakistan is currently witnessing an energy shortfall of approximately 4,680 MW (24 per cent) which may reach to 5600 MW in its peak season. Dearth in natural gas supply stands at 1,295 MMCFD (25 per cent). Sincere efforts are being carried out to reactive IP (Iran-Pakistan) gas pipeline by avoiding the looming sword of the US.

(c) Political Turmoil and Arab Spring

From Manama to Hama, the political map of the Middle East is being redrawn. Political turmoil in one of the important country of the Gulf Cooperation Council (GCC) is also one of the main reasons for that diplomatic surge carried by different important countries in the region. The government of Pakistan played a substantial role to put an end to any expected proxy war arrangements in the region. The government of Pakistan reiterated that Pakistan supports all efforts for peace and stability in the Islamic world so as to promote development and prosperity of the common people. The rigorous track II diplomacy on the issue of Bahrain raised Pakistan’s regional stature which opened greater job opportunities for Pakistani expatriate workers in the GCC states, economic assistance from the petrodollar GCC states, oil supplies on concessionary terms, budgetary support for Pakistan’s ailing economy and the last but not the least its key role in the collective security shield in the GCC states security apparatus.

(d) The US inclination towards India

The US continued inclination towards India badly forced Pakistan to research for reliable regional alternatives. So, Pakistan-Saudi Arabia-Iran Axis was sought. Although, it seems to be unnatural and unholy alliance but still a greater realization at the top levels and dominance of convergence over divergence has played a crucial role in it. Sincere efforts are being carried openly and secretly to reach at some functional arrangements of regional political cooperation, stable socio-economic integration and above all sustainable geo-strategic accommodation in the days to come.

(e) Collective stance of regional terrorism

Regional terrorism is a permanent threat to all the countries. Levels of fears are sky-high that ongoing anarchy in many regional countries may lead towards terrorism nexus has also brought regional countries close to one and another.

(f) Greater socio-economic relations

Greater socio-economic integration in order to mitigate the ongoing global economic recession and financial crunch played significant role in current greater regional reconciliation. High qualms of geo-political and geo-strategic isolation in the affairs of power politics made them united.

Emerging Pak-Saudi strategic relations (recent surge)

Saudi Arabia is our strategic partner which is rooted in culture, shared values and common faith. Close geographical propinquity, historic trade ties, religious acquaintance and the economic support have created a strong ties based on trust and mutual respect between the two countries.

In recent extensive diplomatic spells between the two countries, Saudi leadership reaffirmed its commitment towards Pakistan’s cause and assured that it will continue its cooperation and assistance to Pakistan in all the fields and even agreed to enhance bilateral trade. The government of Pakistan also sought Saudi Arabia support for early finalization of Pakistan-GCC Free Trade Agreement (FTA). Matters relating to foreign direct investment, finance, trade, defence and export of manpower from Pakistan were also thoroughly discussed. Over 1.5 million Pakistanis are working in Saudi Arabia and it was also agreed that Pakistan would send more trained manpower for the development of Saudi Arabia. Moreover, Saudi leadership agreed to provide financial support for the construction of Bhasha Diamir Dam and also assured to extend help for other energy projects.

President Asif Ali Zardari and King Abdullah of Saudi Arabia agreed to work with greater cooperation in the wake of major developments in the region. The two leaders held extensive discussions on bilateral ties, situation in the Middle East and South Asia and the fight against militancy. The issues related to Iran, Afghanistan, situation in Bahrain and its security implications for the region came under discussion during the meeting.

National political scientists, regional strategists and international security experts termed President Zardari’s visit as significant because it immediately follows his visits to Iran and Afghanistan. According to them it is all about the ‘end game’ in the Afghan war, the turmoil in Bahrain and worsening relations between Saudi Arabia and Iran and the President Zardari’s visit is being seen as an effort to evolve a joint strategy on these sensitive issues.

It seems that the recent regional geo-political and geo-strategic developments have played important role bringing both the countries closer than they were about a year ago. The government of Pakistan has been doing track-II diplomacy for the last few months to bring Saudi Arabia and Iran on board and achieve regional harmony and greater peace.

Diplomatic Relations

Saudi Arabia has been helping Pakistan in many fields since 1947. Saudi Arabia and Pakistan are leading members of the Organization of the Islamic Conference (OIC). Saudi Arabia supported Pakistan on the issue of Kashmir and encouraged both the countries to start confidence building measures. It openly opposed partition of Pakistan and creation of Bangladesh. Both the countries were at same wave-length at the time of Afghan War and remained closed allies fighting against communism during 1980s. During the 1990-1991 Persian Gulf War, Pakistan on request, sent troops to protect the Islamic holy sites in Saudi Arabia. Both the countries played important role in recognition of Taliban rule in Afghanistan. Pakistan offered its political, moral and diplomatic support on many regional Islamic and international issues.

Saudi Arabia came to our rescue even in May 1998 (nuclear test) and promised to supply 50,000 barrels per day of free oil to help Pakistan cope with likely economic sanctions in the aftermath.

Saudi Arabia extended its humanitarian assistance on many times of natural calamities in the country. Saudi Arabia donated SR245 billion between 1973 and 1993, which equals 5.5 percent of its average annual production during that period. In recent years, both countries have exchanged high-level delegations and developed plans to expand bilateral cooperation in trade, education, real estate, tourism, information technology, communications and agriculture.

Saudi Arabia has provided assistance in form of fuel donation, fuel credit. Both the countries strongly advocate dialogue among cultures, civilizations and faiths, so as to remove misperceptions among the followers of different faiths. Saudi Arabia has been among the first countries to acknowledge Pakistan as a newly developed country and extended a helping hand to strengthen its development drive.

Pak-Saudi Trade Volumes

Exports to Saudi Arabia Principal items
Rice, ready made garments, cotton fabrics, synthetic fabrics, made up textiles, tents and canvas, fruits and vegetables, spices, towels, carpets and rugs, sports goods, fish and fish preparations, handicrafts, leather manufactures and printed matters
Imports from Saudi Arabia Crude petroleum, polythene, plastic moulding powder, aluminum waste, urea, dates, copper wire and rods, ships and boats, ether and its derivatives, chemicals machines, paper waste, parts of aircraft and sulphur.
Source: FBS

Saudi Arabia is among the 15 export partners of Pakistan with which bilateral trade volume has gone above US$ 4 billion per annum and it would be further increased in future.

Recommendations

It is strongly recommended that cargo flights between both of the countries should be increased to save extra tax expenditure as well as quality of a product. There should be close coordination and information sharing between the local business community and the Saudi business men to further boost trade in the fields of surgical instruments, furniture, leather goods, fruit and vegetable. Simplification of the visa process would further facilitate the business community in the country. Moreover, there were 350 Pakistani investors in the Saudi Arabia have already obtained licenses from Saudi Arabian General Investment Authority and have established companies in various fields.

Main Contribution

Pakistan has very close and longstanding relationship with Saudi Arabia. Saudi Arabia has already invested substantially in some Pakistani key sectors of the economy and basic industries which are given below as: Saudi Arabia is interested in investing in Pakistan’s energy and agriculture sectors.

Key sectors/fields
infrastructure, key production industries, banking, irrigation, energy, fertilizer and port development like Mirpur Mathelo Fertilizer Plant, Pipri Thermal Power Project, Tarbela Dam repairs, Port Qasim etc

Military cooperation

Since form the beginning, both the countries maintain close military ties by providing extensive support, arms and training for the military of Saudi Arabia. Pilots of the Pakistan Air Force flew aircraft of the Royal Saudi Air Force to deter an raid from South Yemen in 1969. In the 1970s and 1980s, approximately 15,000 Pakistani soldiers were stood tall in Saudi Arabia. Saudi Arabia showed great interests to purchase of Pakistani ballistic missiles capable of carrying nuclear warheads. Pakistan and Saudi Arabia have information mechanism on different subject.

Pak-Iran Bilateral Cooperation

Pakistan and Iran enjoy strong cultural, religious, historic, economic, political and geographical relations which bind them in eternal friendship and brotherhood. It is hoped that Pakistan and Iran can help each other a lot on a variety of regional issues. Prominent researchers and think-tank centers are of the opinion that Pak-Iran relations will help bring peace in the region, especially in Afghanistan. Security experts and energy advisors have already stressed that Pakistan cannot resolve its energy crisis without assistance of Iran. In this regard, Iranian gas supply can help resolve energy crisis in the country.

The growing stronger bilateral relations between Pakistan and Iran showed Pakistan’s strategic defiance of the US. In recent times, frequent officials visits of the President of Pakistan irked the US. In order to create balance of force in the end game of Afghanistan, Pakistan initiated rigorous diplomatic efforts in the region and consulted with main power stakeholders. Elements of displeasure, political uncertainties, and geo-strategic overlapping created sense of insecurity between Tehran and Riyadh and Pakistan played very important role to minimize the widening conflicting approach.

Peace pipeline

With the dawn of globalization, conflicts and confrontations have been replaced by the economic and political diplomacy. In the economic arena, energy seems to be centre point as more energy means more power industrial and political. Hot pursuits of the energy resources have also been instrumental for peace building. It was most recently observed in the case of the Turkmenistan-Afghanistan-Pakistan-India (TAPI) and also Iran-Pakistan (IP) pipelines.

Energy resources of Pakistan

In chilly winter season, households and industrialist are used to face shortage of gas supply. Life and machine both suffers immensely. The government is planning to import gas supply from different sources. Gas supply in Pakistan is currently 71m cubic meters per day, which is estimated to increase by 50 per cent in the next five years.

At the same time, gas production in Pakistan is expected to increase substantially. It is assumed that in the near future Pakistan will face a shortfall of 600 mmcfd of natural gas by the year 2009 despite recent gas discoveries, which would be insufficient to meet the rising demand. So, Pak-Iran gas pipeline would be a viable alternative option to fulfill the rising demands in the days to come.

Geo-political and geo-strategic implications

The agreements also showed Pakistan’s will to come out of the total subordination to the US. Pakistan needs to build peace with its neighbours to ensure a stable future for itself. The trilateral deal envisaging the supply of gas to China through Pakistan is also a good omen for regional cooperation that will work to everyone benefit. On the political front, the pumping of Iranian gas into Pakistan, India and China at a time when the US opposes such dealings with Iran Islamic regime is significant.

It also shows the revival of regionalism against the onslaught of brutal globalization. It reflects the demise of uni-polarity arena. It also shows the defiance of US imperialisms drive.

Through IPI gas pipeline project it is hoped that Pakistan would be successfully normalize their relations with Iran. The completion of IP gas pipeline will open the door for the energy wealth of the region-coal in India, gas in Pakistan and Bangladesh, hydropower in Nepal and Bhuta and renewable energies in Sri Lanka and Maldives that need to be pooled and used in many ways that are more conducive to the prosperity of the people than their exploitation separately.

Receiving final nod from Iran, Pakistan has geared up its efforts to ensure smooth supply of imported gas to the country till 2012 under the proposed multi-billion dollar Iran-Pakistan-India gas pipeline project (IPI).

Paradigm-shift

IP gas pipeline has created a new paradigm of friendship which may put an end to some regional concerns and worries on the future relationship and political understanding between neighbouring countries. All said and done terrorism may be one of the main hurdles in the completion of IP gas pipelines.

Economic benefits

Economic benefits are the most potent factor of the whole project as it provides cheap energy (gas) for Pakistan, low transit fee, and access to energy markets. It is estimated that the IP project will reduce poverty by expanding the use of natural gas resources and enhancing sub regional economic cooperation among the regional countries.

The IPI gas pipeline ($ 7.4 billion) has been finalized. In addition to it, Tehran would provide Pakistan 1100 MW of electricity per day which would be used to control the high ratios of energy shortage. It will bring economic prosperity to all the involved countries. Especially Pakistan can enhance its strategic and economic significance by permitting its territory to be used for the transit. Transit fees ranges from $400 million to $750 million a year and Pakistan may be able to earn, as much as $500 million a year if the proposed gas pipeline is to materialise. In fact, Pakistan stands to earn about $14 billion in 30 years, including $8 billion in transit fee, $1 billion in taxes and $5 billion in savings. It would initially transport 60 million cubic metres of gas (2.2 billion cubic feet) daily to Pakistan but capacity would be raised later to 150 million cubic metres.

Specifications

The 2,775-km pipeline was proposed to start from Asalouyeh and stretch over 1,100 km through Iran. In Pakistan, it was proposed to pass through the restive Balochistan Province and Sindh. In Khuzdar in Pakistan, a branch was to extend to Karachi, while the main pipeline would continue towards Multan. From Multan, the pipeline could be expanded to Delhi.

Pak-Iran currency swap

Most recently, President Asif Ali Zardari proposed a currency swap agreement between Pakistan and Iran to further strengthen bilateral trade and economic ties between the two brotherly countries. Pakistan was already in the dialogue process with Turkey, Sri Lanka and China for the currency swap arrangement. The Union of Small and Medium Enterprises (UNISAME) has said the proposal for currency swap with Iran will boost up trade as it will resolve the problems faced by Pakistani exporters.

Currently, due to the embargo imposed on Iran, Pakistani exporters were facing many dimensional problems and compelled to ship goods through UAE to Iran as letter of credits (LCs) of Iranian banks were not accepted and negotiated by Pakistani banks, which curtailed the trade volumes to and from Iran as Pakistan and moreover, trade through an intermediary proved costly and involved maneuverings.

The agreement between Iran and Pakistan to swap currencies is a wise decision and should have taken place long ago. It is hoped that it would make both the countries independent in terms of debt adjustment for import and export to one another comfortably both in the private and public sector. It is a very pragmatic decision and this system may be adopted with other countries.

Integrated Border Management Regime

The government of Pakistan proposed to the Iranian government to consider creating an Integrated Border Management Regime (IBMR) between both the countries because it is need of the hour to intensify consultations and take practical measures for meeting the challenge of terrorism, militancy and extremism.

Socio-economic integration

Iran has the potential to undertaking joint economic projects in Afghanistan in order to enhance connectivity, build infrastructure, rail and road links as well as trilateral cooperation in other mega projects which may open new window of opportunist for Pakistan. A bilateral Pakistan-Iran Free Trade Agreement would provide ideal platform for regional socio-economic prosperity and political stability. In addition to this a business council for the promotion of trade between Pakistan and Iran will be established soon. Iran is keen to invest in Pakistan’s power, gas and ‘Halal’ meat sectors.

Concluding Remarks

Regional stakes are very high, complicated and overlapped which demands collective political wisdom, spirits of conflict resolution, operational collaboration and above all strategic accommodation. Respect for national sovereignty, territorial integrity and above all denial of blame game must be mantra of each and every powerbroker in the region. Regionalism should be preferred on imperialism which would open new doors of socio-economic interaction, geo-political stability and geo-strategic sustainability in the days to come. Pakistan-Saudi Arabia-Iran alliance would guarantee larger regional conciliation and stronger ties of survival, production and socio-economic prosperity. Generosity of Saudi Arabia, mediation of Pakistan and rational policies of Iran hold the

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