United Arab Emirates
Historical Background
1820- Britain devised and imposed an area called pirate coast
or trucial coast on littoral shaykhdoms. The 7 islands were
called trucial states.
1971- Britain severed ties with Bahrain, Qatar and the Trucial
States
 Britain wanted to create a federation that
would include Trucial States, Bahrain and
Qatar but Iran’s claim to Bahrain prevented
these efforts. Only the trucial states
belonged to the federation and were called
the New United Arab Emirates federation.
 In December 2, Abu Dhabi, Dubai, Sharjah,
Ajman, Umm Al-Qaywayn and Fujayrah was
its members. Ras Al-Khaymah joined in 1972.
UAE experienced numerous difficulties:
 Unresolved dispute over Saudi Arabia and
Oman over the Buraymi Oasis
 Strong traditional rivalries
Iran occupied Abu Musa which was in accordance with an
eleventh-hour agreement between the shah of Iran and the
ruler of Sharjah.
The ruler of Ras al-Khaymah defied Iran which resulted to
deaths on both sides.
1974- negotiations about Buraymi Oasis between Abu Dhabi
and Saudi Arabia; this was the start of diplomatic relations
between Saudi and UAE.
Political Environment
UAE is a federation of seven shaykhdoms; 87 percent of the
total land area is occupied by Abu Dhabi.
7 shakyhdoms: Abu Dhabi, Dubai, Sharjah, Ajman, Umm al-
Qaywayn, Ras al Khaymah and Abu Dhabi
 The most distinctive characteristics of these
shaykhdoms is tribal affiliation.
 6 tribes in UAE: All tribes are Arabs and
Sunni Muslims
o the Bani Yas (2 branches: Al Bu
Falah and Al Bu Falasah) provide the
ruling families of Abu Dhabi and
Dubai
o the Manasir
o the Qawasim which rules Sharjah
and Ras al-Khaymah
o Al Ali of Umm al-Qaywayn
o Sharaqiyin in Fujairah
o Nu’aim in Ajman
Bedouin- less than 15 percent of the population; mostly found in
the police and military forces since they are very loyal to their
rulers
A highly sophisticated merchant class in Dubai expanded its
external relationship in the Indian subcontinent and Iran.
 These merchants were very influential after WWII and
before the emergence of oil
The indigenous inhabitants of UAE- less than 1/5 of the
population
 The desire for rapid economic growth meant bringing in
many Arab, Asians and Europeans.
Economic Conditions
UAE shifted from a subsistence country to a highly developed
country that provides one the highest standard of living.
UAE enjoy the highest economic growth among GCC countries.
 Highest source of income: oil and gas
 Before the discovery of oil in Abu Dhabi in 1958, only
Dubai and Sharjah developed an extensive entrepot
trade. Dubai wanted to eclipse Sharjah and was possible
after it succeeded dredging its own inlet/creek.
Abu Dhabi Town- the largest city in UAE which used to be a mud
brick village before the discovery of oil; most advanced in terms
of administrative and social welfare services.
The lack of a centralized government in UAE and the high
competition of various leaders for prestige becomes a problem in
UAE.
Abu Dhabi is creating a hub for a Gulf-wide gas project to be
completed in 2002 or 2003. The pipeline would be from Qatar to
Oman.
In the past two decades, UAE has been trying to move away from
heavily depending on oil. The non-oil sector now generates three
quarters of its GDP.
1991- UAE experienced a major financial scandal when 7
countries terminated without warning the operations of the Bank
of Commerce and Credit (BCCI) in which the ruling family of Abu
Dhabi held a controlling interest.
 Cause: fraud; it was after 1998 when this affair
was closed.
 After this incident, UAE had stricter regulation
of the country’s financial sector.
Despite the extreme aridity in UAE….
 it has expand its agriculture through technology
  it boosted its tourism sector which accounts
15 percent of in the non-oil sector
 moved to e-commerce and aims to be the
regional sales and trading center for goods
sold over the internet.
 Established the UAE offsets group in which
mandates that the winning defense
contracts must invest a percentage of the
value of their contracts in joint venture with
local partners.
Political Structure
UAE’s constitution in 1971 was made permanent in 1996
which provides for federal legislative, executive and judicial
bodies.
Foreign policy decision making is vested on the federal executive
branch; the individual shaykhdoms have considerable latitude
and power in the conduct of foreign affairs.
UAE’s federal judiciary is made up of supreme court and courts of
first instance.
 The country’s legal system places special
emphasis on Shari’a law but is also drawn in
several sources including Western ones.
The ruler or shaykh is usually the oldest son of the immediately
preceding ruler though there are instances that other members
of the family acceded in power. To remain in power, the ruler
must maintain the support of the inner circles of the ruling
family and several groups.

 The legislature was called the Federal Before the establishment of UAE, many local rulers fell victim to
National Council (FNC) assassination.
o It is a consultative assembly in
UAE’s press enjoy most freedom compared with others in the
which norms of traditional tribal
Arab world.
and Islamic rule are kept.
o It has 40 member appointed by the Foreign policy
president and approved members
of 7 member states who constitutes During the Iraq-Iran Conflict, Dubai and Sharjah worked to
the Federal Supreme Council (FSC) preserve their commercial ties with Iran while Abu Dhabi was
o The FNC’s duty is only limited to providing financial assistance to Iraq.
discussion and approval of the
budget, drafting legislation and to UAE’s foreign policy priority is Gulf security which emphasizes its
its role as a forum for discussion relations with its GCC neighbors.
and debate of policies and
programs under consideration by Disputes with Oman and Saudi Arabia had been settled.
the government. However, there
When Iraq invaded Kuwait, the UAE sent ground forces to Kuwait
are no political parties and trade
as an earnest of its support however this action affected its
unions in UAE.
relations with other GCC countries. After a year, Shaykh Zayid
 The Council of Ministers has a dual
called for an easing of UN sanctions in Iraq to reduce the
executive-legislative function.
suffering or Iraqi people and it restored its diplomatic relations
2 functions:
with Iraq.
o Draft laws
o Act as a legislative body when the UAE’s relation with Iran caused tensions with the GCC. Iran is
FNC is not in session occupying Gulf islands claimed by the UAE, Abu Musa and Tunbs.
 The greatest concentration of authority is in The GCC has diplomatically supported UAE
the FSC.
 Abu Dhabi and Dubai have veto powers. USA, Japan and United Kingdom are major trading partners of
 Since independence, Shaykh Zayid has been UAE. It also extended its diplomatic relations in 1985. In 1987-
the president in UAE. Shaykh Rashid of 1988, US ad UAE had closely cooperated to counter threat to oil
Dubai have served as the union’s vice tankers by Iran. UAE signed a defense pact with US in 1994 which
president and also became the prime permitted US airborne refuelling tankers in the UAE territory. In
minister. 1995 UAE also signed a defense accord with France and was a
o Rashid died in 1990 and hi son source of arm in UAE.
became the successor as ruler of
Dubai
o Shaykh Maktoum became the vice
president and prime minister of
UAE
 The powers of the president are in theory
subordinate to those of the FSC.