When we think of the Gulf area we are used to hearing the negative news related to the Iraq war or the usual tension with Iran, but we must also see the positive examples that the area is offering to us and United Arab Emirates are without a doubt such an example. 38 years ago Sheikh Zayed bin Sultan Al Nahyan announced a visionary experiment uniting 7 emirates along a geopolitical destiny .What was the secret of this astonishing experience?
UAE between Scylla and Charybda
In 1968 Great Britain announced its intention to evacuate the former Trucial states , as the Gulf states area where known at that time. This decision spelled problems for the region, in the north the Iran of the Shah Mohammed Reza Pahlavi was looking forward for this moment to assert his authority on all the banks of the Gulf , taking under control the Gulf and the vital energy supply line of this space.
No other formula was acceptable; any of the adjacent countries that could take over control of the area would enjoy a monopoly over the trade and energy route of the region. From the emirate of Abu Dhabi, Sheikh Zayed bin Sultan Al Nahyan understood this geopolitical game and acted bravely. In 1971 uniting 7 emirates he proclaimed the United Arab Emirates (the initial plan included also Bahrain and Qatar but the negotiation failed and only 7 emirates joined Sheikh Zayed’s plan) an alliance destined to keep free the trade and energy supply area of the Gulf . How difficult a task this would be was clear from the first moment when the Shah of Iran sent his army and occupied 3 islands off the coast of the UAE. Despite this tense moment UAE survived and oil exploitation boosted the area.
An economic model under pressure?
Today controversial financial news is arriving from the UAE concentrating on financial the troubles of Dubai World, one of the 45 companies investing in major real estate projects in the area. But this must not let us forget the strong fundamentals of the UAE economy. First off all UAE enjoy a reserve of oil and gas lasting for at least 100 years, offering a steady income of more than 50 billion euro annually .This number could be misleading, the common perception is that UAE is dependent on oil and gas but this perception is false, more than 64% of the GDP is offered by non-oil sectors. Long before the crisis hit the UAE decided to develop non oil sectors like trade, finance, real estate, manufacturing and this sector survived the economic crisis offering to UAE the status of a country non-depending on natural reserves exports. Today UAE are enjoying steady growth in a crisis year, investments are continuing to come and a massive financial reserve makes a stable currency and a low inflation economy. This economic model is not under question, UAE are still showing growth and the geopolitical climate of the region makes investing here a wise move.
Energy revolution.
This economic model can be understood if we see the UAE participation in a new energy revolution. Rich in oil and gas UAE is not forgetting that this wealth will eventually cease to exist or will become too expensive to exploit or too ecologically detrimental, so they choose to invest in solar energy. With clear skies for 365 day a year, the UAE could not only fulfill its own energy demands but also be a world supplier of green energy and technology. Investing in projects like Masdar City, a city that will supply 100% percent of its necessary energy from green sources, UAE is proving that there is life after fossil energy. Investing in this energy of the future not only will assure UAE energy demand but also will be an important part of the economic growth. Already in Germany an important solar plant property of UAE is launching a bid to make green energy for the European Union.
Gulf Cooperation Council a geopolitical mission.
In 1971 Sheikh Zayed bin Sultan Al Nahyan wanted an inclusive state, but this option could not be put into life at that time . Today this vision is alive by the creation of the Gulf Cooperation Council ( GCC) uniting the Arab Emirates, Bahrain, Kuwait and Saudi Arabia , Qatar and Oman. Today GCC is assuring the survival of the mission of keeping open for trade and energy supplies the waters of the Gulf . The efficacy of GCC was proven in the Iraq-Iran war in the eighties and in Iraq –West tension after the 1991 Gulf War. United Arab Emirates not only constructed a powerful and modern navy able to keep open the waters and make safe the supplies but also became the symbol of a strong ally of western democracy , capable to support democracy building missions, peace keeping activities and investing in reconstruction projects in war torn countries. Sheikh Khalifa bin Sultan Al Nahyan (the son of deceased Sheikh Zayed and the continuator of his vision) declared that the geopolitical mission of UAE is to promote a unity of the Gulf area and his example is an example of hope: unity is a conviction and a belief.
Now after 38 years since the UAE independence proclamation in what was at that time a small city: Abu Dhabi, the world is having a positive model. A powerful economy, a unity of 7 emirates without tensions or conflicts, a political balanced system of federal states and of unity governments, a balance of democracy, efficiency, respect for Islam and open society in a delicate area. We have an example of a Gulf state that is building a future society, based not on war or threat and we have the proof that oil is not necessarily a curse (as many can believe) if we can build on it and not make it the only reason for life, just a means to an end. United Arab Emirates are just teaching us this lesson.
by Professor Anton Caragea PhD, MA, FINS – European Council on International Relations
Net News Publisher for World News
