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This digital document is an article from APS Diplomat Strategic Balance in the Middle East, published by Pam Stein/Input Solutions on June 18, 2001. The length of the article is 430 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.

Citation Details
Title: UAE - The Regional & Domestic Perspectives.(United Arab Emirates)(Brief Article)
Publication: APS Diplomat Strategic Balance in the Middle East (Newsletter)
Date: June 18, 2001
Publisher: Pam Stein/Input Solutions
Volume: 41Issue: 6Page: NA

Article Type: Brief Article

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The overall defence and security environment of the United Arab Emirates (UAE) remained unchanged through late 2009. A sharp economic downturn - the result of the slippage in the oil price relative to 2008 and the collapse of the building boom in Dubai - will have little impact on the government’s propensity to buy military hardware. The UAE’s small, but technologically well-equipped - armed forces need to rival those of Saudi Arabia and Iran. At the ninth International Defence Expo (IDEX) defence exhibition in Abu Dhabi in mid-2009, the government announced some AED18.4bin (US$5bn) worth of contracts. Externally, the UAE continues to treat Iran with cautious engagement.

The two countries have an unresolved territorial dispute, but they are also major trading partners. The UAE was quick to congratulate Iran’s President Mahmoud Ahmadinejad on his disputed re-election, even amid protests against his suspiciously large margin of victory. The UAE is the second-biggest exporter of goods to Iran and it is a major supplier of petroleum to it, a position that places the UAE at loggerheads with Western powers seeking to isolate Iran.

It has been a bruising 2009 for the Gulf economies. We believe that the UAE is likely to contract by 2.8% in 2009. However, we are fairly optimistic on the UAE's ability to bounce back from the current downturn, and are forecasting growth of 3.6% in 2010. Such a recovery should also be accompanied by a new, more cautious attitude to lending among banks, a more careful investment strategy on the part of real-estate developers, and new policy efforts designed to improve the Emirates' business environment. In particular, there needs to be a realistic appraisal of the distorting influence of government price intervention on consumer and business behaviour. In the power sector, this contributed to frequent electricity blackouts during the summer - electricity prices are fixed by the federal government. This policy is designed to encourage political stability - a major preoccupation of the UAE government -- but it has had the effect of deterring private investment in the sector ... Read more

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This digital document is an article from APS Diplomat Fate of the Arabian Peninsula, published by Thomson Gale on March 27, 2006. The length of the article is 416 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.

Citation Details
Title: UAE - The Prospects Ahead.(United Arab Emirates)
Publication: APS Diplomat Fate of the Arabian Peninsula (Newsletter)
Date: March 27, 2006
Publisher: Thomson Gale
Volume: 51Issue: 3

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All aspects of development and commercial growth for the period 1997-1998. Published as a regular annual.Includes research. ... Read more

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This digital document is an article from APS Diplomat Fate of the Arabian Peninsula, published by Thomson Gale on February 27, 2006. The length of the article is 764 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.

Citation Details
Title: UAE - Pax Americana Is Changing - Part 19E - Dubai's P&O Acquisition.(United Arab Emirates)(Dubai Ports World acquires Peninsular and Oriental Steam Navigation Co.)
Publication: APS Diplomat Fate of the Arabian Peninsula (Newsletter)
Date: February 27, 2006
Publisher: Thomson Gale
Volume: 51Issue: 2

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This digital document is an article from DISAM Journal, published by Defense Institute of Security Assistance Management on March 1, 2009. The length of the article is 1048 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available immediately after purchase. You can view it with any web browser.

Citation Details
Title: United States and the United Arab Emirates joint statement.(LEGISLATION AND POLICY)
Author: Gale Reference Team
Publication: DISAM Journal (Magazine/Journal)
Date: March 1, 2009
Publisher: Defense Institute of Security Assistance Management
Volume: 31Issue: 1Page: 43(2)

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This digital document is an article from APS Diplomat News Service, published by Arab Press Service on March 2, 2009. The length of the article is 1588 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available immediately after purchase. You can view it with any web browser.

Citation Details
Title: Abu Dhabi Bails Dubai Out & UAE's Union Gets Stronger; Iran Faces Tougher Times.(United Arab Emirates)
Author: Unavailable
Publication: APS Diplomat News Service (Newsletter)
Date: March 2, 2009
Publisher: Arab Press Service
Volume: 70Issue: 8

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The coming year will be a difficult one economically for the UAE. We have revised down our growthforecasts once again on the back of a worsening export sector, weakness in the construction market, joblosses and increased investor caution. It is possible that the country could fall into recession - defined astwo consecutive quarters of negative growth - during the year, but this will be difficult to assess given thelack of quarterly data provided by the central bank. Overall, we believe that real GDP will grow by 1.0%in 2009, rising to a healthier 3.4% in 2010. Much of the worst news will come out of Dubai; this is theEmirate that is most closely integrated with the global economy and the one that has experienced the mostrapid growth in recent years. Abu Dhabi has greater natural wealth thanks to its oil reserves, but economicweakness in Dubai will undoubtedly have some feed-through effects across all Emirates.

With the conflict in Gaza dominating headlines around the world, governments in the Middle East havebeen quick to condemn Israel's military action and call for an immediate halt to the hostilities. The UAEis no exception, but while it has been quick to offer political support and economic aid to the embattledterritory, we do not expect any fundamental change in Emirati diplomacy. Unlike neighbouring Qatar,which has played an active role in conflict resolution in recent years, the UAE tends to take a back seat inregional affairs. This is largely a sign of the UAE's pragmatism - it is a long-time ally of the US, and isthought to have extensive economic dealings with Israeli businesses, despite the government's officialrefusal to normalise relations with Israel. As a grouping of Sunni monarchies, the UAE is hardly a naturalsupporter of Hamas, yet it retains economic ties with Iran (in spite of US pressure to expel Iranianbusinesses).

The UAE maintains a brisk arms trade, underpinned by regional insecurity, a large budget and awillingness to spend on military hardware. Although its armed forces are small, they are technologicallysophisticated and the country rivals the regional dominance of Saudi Arabia and Iran. Procurementremains a high agenda item for the armed forces in the UAE. Continued strong economic growth,bolstered by soaring oil prices, as well as continued activity in the commercial, shipping, property,financial and tourist sectors in Dubai, mean that defence budgets will continue to be robust. Deficitspending, on the rise in the Emirates in recent years, also indicates that defence procurements will notsuffer from a downturn in the local economy. Regional tensions fuelled by an ongoing US presence in theGulf, and uncertainties in both Iraq and Iran, will also stimulate brisk arms trade in the UAE in themedium-term. Most recently, in March 2009, the UAE announced some AED18.4bn (US$5bn) worth ofcontracts at the ninth IDEX defence exhibition in Abu Dhabi.

On the whole, the security situation remains stable for the country. Its armed forces are a significantdeterrent to aggression and it enjoys the support of numerous allies, including those in the GulfCooperation Council (GCC) security guarantee, the US, UK, France and Germany. In recentdevelopments, Australian Prime Minister Kevin Rudd has also visited the United Arab Emirates. InDecember 2008 he met with the Crown Prince, Sheikh Mohammed bin Zayed al-Nahyan, and held aseparate meeting with the Vice-President, Sheikh Mohammed bin Rashid al-Maktoum. These talksfocused on expanding the two countries’ security relationships and both governments expressed interestin building ties in defense and counterterrorism.

We anticipate that the United Arab Emirates will continue to increase its defence spending. Ourprojection is that this will likely grow at around 5% annually, in real terms, over the coming years. Theseincreases will depend, however, on whether the economy can ride out the global financial crisis anddownturn in oil prices. ... Read more

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In an ominous sign for the United Arab Emirates (UAE) and its neighbours in the region, the Islamic Republic's testing of ballistic missiles on July 9, followed military manoeuvres by Israel in the Mediterranean and by US forces in the Gulf, has increased the threat of future military action in the region. As one of Iran's closest neighbours and the home of a US military base, the UAE would undoubtedly be seriously affected by such a conflict This is compounded by the fact that, as a regional trade hub, the UAE has surely been unnerved by Iran's recent threat to block shipping in the Straits of Hormuz in the event of a US military offensive.

Politically, the UAE is arguably the most politically stable country in the Arab world, and is currently edging towards reforms, largely at the behest of the US’ limited agenda to introduce popular participation in the Gulf States. It is likely these reforms will be symbolic and will not cause any fundamental shifts in the power dynamics, especially in light of the successful change of monarch in 2006. The UAE has few explicit security threats. However, its inauspicious geo-strategic location dictates a permanent state of insecurity.

In general however, UAE enjoys good relations with most of its neighbouring and regional states, with only very limited disputes to note. The UAE holds suspicions towards Saudi Arabia with regard to the regional dominance of the latter, and Iran remains an adversary to the UAE due to a long running dispute between the two states over a number of strategically placed small islands in the Persian Gulf. Conflict between the two is unlikely, although the UAE has repeatedly sought international mediation over the dispute.

The UAE’s armed forces are small, but very well equipped with sophisticated technology hardware. As the UAE emerges into a formidable military power, contesting with Saudi Arabia for military dominance in the region, its armed forces are able to pose a significant deterrence to any potential aggressor. In addition, the Emirates enjoy the support of numerous allies, including those in the Gulf Co-operation Council (GCC) security guarantee, the US, UK, France and Germany.

The UAE’s modernisation programme has created a military with the potential to challenge Iran and Saudi Arabia for regional dominance. The confluence of strategic imperative and accessible wealth contributed to the UAE’s establishment as a procurer, not a producer, of arms. With the exception of its recently developed capacity represented by Abu Dhabi Ship Building, the UAE lacks an established local defence industry and its forces are almost entirely reliant upon foreign procurement, training and expertise. To dilute the potential political effect of heavy reliance of foreign arms producers, the UAE consciously aims to diversify its suppliers among the four main global suppliers of arms: the US, France, the UK and Russia. The UAE does not export arms to any significant degree.

It seems, consistent with recent evaluations, the Emirates have little to worry about for the time being - a stable political system, a strong economy, limited security threats and a military with technology that can, in some aspects, rival the best in the world. ... Read more

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Despite the economic damage suffered by the UAE in the global financial crisis, continuing internalrivalries among the seven emirates and proximity to several of the world’s military conflicts, the UAEremains an oasis in a turbulent region.

While UAE is a federation of seven emirates, two of these - Abu Dhabi and Dubai - are dominant andbetween them contribute something like 80% of the national GDP. Abu Dhabi is the capital and centre ofthe oil industry. Dubai is the focus of most commercial activity. It is both a global shipping hub andincreasingly an airline hub also.

There are always tensions among the seven emirates. For instance, the police forces are under the controlof each emirate. Control of the military is similarly split and jealously guarded.

Militarily the UAE maintains a credible defence force and in fact its capability is impressive whenconsidered against the small population size. We expect defence spending to maintain a high priority andmost of the equipment needed will continue to be imported.

The population is small at just 6mn, but only 1mn are Emiratis. The majority of the population isexpatriate workers. The largest number of these - 1.75mn - come from India. They are mostly blue collarworkers and are often poorly paid. There have been some disturbances/demonstrations demanding betterpay and conditions. While to date these protests have been able to be controlled the risk of a more seriousoutbreak of violence remains real.

While there are no immediate threats from either other countries or terrorist organisations, the geographiclocation of the country places it in relatively close proximity to the wars in Iraq and Afghanistan, thethreat from a resurgent Iran not that far from the Arab/Israeli conflict. Moreover, it has a long maritimeborder along the always tense Persian Gulf. Among the issues in the Gulf the UAE has an ongoingdispute with Iran regarding the sovereignty of several small but strategically located islands.The long-term political outlook is stable, provided the economy continues to deliver the money needed tostop people questioning the lack of democracy, transparency, or civil rights. Any serious downturn in theprice of oil, for instance, could threaten the status quo quite seriously. On balance though we expect thecalm to be maintained and change, when it occurs, to be gradual and evolutionary rather than sudden orviolent. ... Read more

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Tension in the Gulf continued to rise in Q407 as a result of the face-off between the US and Iran over the
latter’s nuclear programme. The UAE faced the task of navigating a path between its strategic ally, the
US, and its close neighbour and trading partner, Iran. The United Arab Emirates (UAE) also had to take
account of security scenarios in the immediate neighbourhood. According to the US Defence Security
Cooperation Agency (DSCA) in December 2007, weapons manufacturers Lockheed Martin and Raytheon
were working on an order worth up to US$9bn to supply the Patriot Advanced Capability - 3 missiles
system and associated equipment and services to the UAE. The Patriot system has been promoted
throughout US allies in the Gulf as a defensive shield in the context of a potential military confrontation
with nearby Tehran, which has been building up its arsenal of offensive missiles. DSCA also named
Raytheon as the main supplier of an additional US$1.36bn order for PAC-3 missiles, PAC-2 missile
upgrades, and Patriot ground support equipment upgrades. Another manufacturer, Northrop Grumman,
was reported to be working on a US$437mn order to deliver upgrades and refurbishments of E-2C aircraft
for the UAE.


The UAE is arguably the most politically stable country in the Arab world. It is currently edging towards
reforms, largely at the behest of the US’ limited agenda to introduce popular participation in the Gulf
States, but these will be symbolic and will not cause any fundamental shifts in the power dynamics. The
UAE has few explicit security threats. However, its inauspicious geo-strategic location dictates a
permanent state of insecurity. Minor territorial disputes with Iran continue to put a low-level security
pressure on the Emirates, while instability in nearby Iraq and political uncertainties in the wider region
provide reason for caution. The security threats to the UAE in terms of insurgency and terrorism are thus
far not significant.


The UAE’s 10-year modernisation programme has created a military with the potential to challenge Iran
and Saudi Arabia for regional dominance. The confluence of strategic imperative and immediate wealth
contributed to the UAE’s establishment as a procurer, not a producer, of arms. The UAE lacks an
established local defence industry and its forces are almost entirely reliant upon foreign procurement,
training and expertise. The Offsets Group Programme mandates that foreign contractors establish joint
ventures with local firms, providing the opportunities for technology transfers and the establishment of
local maintenance and manufacturing facilities. A number of indigenous firms are however making
limited progress in strengthening their position within the industry. Strong support for advanced military
procurements and upgrades drive the industry for the medium term. Coming to the end of a 10-year
US$15bn defence modernisation programme, the UAE is the most rapidly developing military power in
the Gulf region. The UAE engages in a brisk arms trade with a variety of international suppliers. Regional
security imperatives mean that the UAE is consistently looking to maintain its credible deterrent force by
importing the latest technologies. To dilute the potential political effect of heavy reliance of foreign arms
producers, the UAE consciously aims to diversify its suppliers among the four main global suppliers of
arms: the US, France, the UK and Russia. The UAE does not export arms to any significant degree.
It seems the Emirates have little to worry about for the time being - a stable political system, a strong
economy, limited security threats and a military with technology that can, in some aspects, rival the best
in the world.


... Read more

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When Iraqi forces invaded Kuwait in August 1990, the Gulf states became the focus of frenzied international interest for the second time in a decade, the first having been during the Iraq-Iran war, 1980-8. Both events posed major threats to the regional state system which had evolved over almost two centuries. This book is based on a wide range of primary materials, including declassified documents used here for the first time. It defines and describes the geopolitical framework of the region and the state system which emanated from it. It explains how the Gulf states owe their creation and survival, sometimes against many odds, to forces well beyond the waters of the Gulf. Rosemarie Said Zahlan tells the story of the formation of the states, their evolution from colonial dependency to statehood, their socio-econo mic transformation by oil, and their stability in the midst of change. She illuminates their relationships with each other, with the wider Arab world, and with the major world powers. The result is an informed and balanced picture of the political, economic, religious and cultural character of the region.It is also a story of the powerful families and their shaikhs who have had to lead their countries so rapidly into the modern world, all the while preserving their own socio-political traditions. ... Read more

Customer Reviews (2)

The Best Introduction Available
This is the best introduction available on the Gulf states, examining such critical themes as the British imperial legacy and the relationship between state, economy, and social classes. It certainly offers a non-Orientalist treatment and avoids the condescending and often bigoted discourse adopted by such colonial-minded writers as J.B. Kelly. The late Said-Zahlan had a full mastery of the British archives and extensive knowledge of the region. This is reflected in this valuable and concise introductory work.

A dry and uncritical introduction
Zahlan covers the history of the Gulf states with special emphasis on the history of the various monarchical families. Sadly, her attitude is unflinchingly fawning; she seems afraid to say one negative thing aboutthese countries and their economic and political challenges. As well, thewriting style is very dry and wooden. Her bias is symbolized by one of themaps showing the UAE as extending westward all the way to Dawhat as Salwa,at the southwest base of Qatar. This reflects absurdly ambitiousterritorial claims of the UAE at a time when the Saudis have claimed thecoast in the vicinity of Khawr Duwayhin, southeast of Qatar. This map isemblematic of the book's flaws. A much better book despite its age (1980)is 'Arabia, the Gulf, & the West' by J.B. Kelly. ... Read more

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United Arab Emirates Industrial and Business Directory ... Read more